11/08/2015: Dramatic fall in grain farm incomes expected

Photo courtesy of greenacres.com

The Agricultural Price Report was issued last week by the US Department of Agriculture's (USDA) National Agricultural Statistics Service (NASS). 

It reported that the index of prices received for crop production had decreased by 11 per cent since the previous year. 

Included in the report was the fact that corn prices had fallen by more than 20 per cent and soybean prices by almost 33 per cent.


These facts indicate that there is little room for farmers to make alterations, and a report issued earlier this month by Dr Gary Schnitkey of the University of Illinois, suggests that farmers should focus on machinery purchases, managing seed, fertiliser and chemical costs, through negotiating lower rents and the reduction of family living withdrawals. 

He believes that this is the way to cut costs in the coming years.


“With domestic demand growth relatively flat and a strong dollar giving us a challenge in export markets, we can expect prices to have a hard time moving above this level for the next couple years at least,” said Bob Young, chief economist at AFBF.

Read more HERE.

 

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