Farmers might have to make significant costs to remain profitable, economists warn

The farm economy has several challenges ahead. Economists with Ag Economic Insights say tight margins are likely to continue and warn it will take some cost cutting to find profitability again.

“At this point, it’s a little unclear how much of the cost cutting is going to come out of the variable cost, the things that e get price sheets for, how much of it’s going to come out of the things that we do around the home, homesteading our family living, or machinery, or cash rents in our farmland values,” said David Widmar.

While there is likely a rocky road ahead, farmer sentiment is up. Economists with Purdue University say the Ag Economy Barometer rose 11 points last month. However, the report showed little change in how producers feel about the future prospects.

Related Stories
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
While there has been an increase in outbreaks of Highly Pathogenic Avian Influenza (HPAI) this migration season, the CDC says the public health risk is low.
Shaun Haney, Host of RealAg Radio, discusses President Trump’s move to halt trade talks with Canada and Mexico over a commercial about tariffs launched by the Government of Ontario.
Input costs are top of mind for farmers, as they contribute to higher prices and smaller profits.
The President’s trip to Asia this week follows a trade mission by the Iowa Soybean Association. Farmers say they were reminded that U.S. soybeans have an international reputation that can be easy to take for granted here at home.
Jacob Wheeler and Dustin Connell of Team O’Reilly Auto Parts capped off an unforgettable week on the Alabama pro’s home waters with a dominant performance on Monday, cruising to a win at the Folds of Honor Patriot Cup Presented by B&W Trailer Hitches on Logan Martin Lake.

LATEST STORIES BY THIS AUTHOR:

Jacob Wheeler and Dustin Connell of Team O’Reilly Auto Parts took an early lead and never let go, finishing atop SCORETRACKER® with 64 pounds, 8 ounces on 42 scorable bass.
“President Trump Undercuts America’s Cattle Producers,” says NCBA
The U.S. Department of Agriculture (USDA) is investing now to make markets less volatile for ranchers over the long term and more affordable for consumers, according to a press release.
Elizabeth Strom with the American Society of Farm Managers & Rural Appraisers (ASFMRA) joined us to share the latest on harvest progress and market activity in her area.
Lyndsey Smith with RealAg Radio discusses how global trade dynamics could shape the future of Canada’s pulse exports.