LUBBOCK, Texas (RFD News) — The U.S. farm economy remains in a weak and uneven period, with crop producers facing tighter margins while livestock, poultry and dairy continue receiving more support from consumer protein demand, according to Meridian Agribusiness Advisors partner Wesley Davis.
Davis says crop producers remain under pressure from high input costs relative to commodity prices, even after recent rallies in corn and soybeans. He says many input suppliers have passed higher costs through to farmers, limiting affordability.
Livestock and dairy conditions are comparatively stronger. Consumer demand for protein is supporting beef and dairy products, while poultry supplies have become more balanced. Swine producers still face some pressure from oversupply.
Specialty crops remain mixed, with tree fruits and nuts facing oversupply in some markets while food-safety concerns have softened demand for some vegetables.
Davis describes agriculture as remaining in a trough rather than a broad recovery, with the same stressed segments from earlier in the year still under pressure.
