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
Harvested acres are estimated at 90.0 million, making this year’s corn crop one of the largest since the 1930s.
The North Carolina Farm Bureau highlights the work being done on Sound Mind Farms, a farm producing hemp to make sustainable fabrics.
U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
Assistance for losses due to flooding and wildfire on non-federally managed land
Rep. Mike Simpson (R-ID) joined us on Champions of Rural America to share his insights on upcoming changes to public land management and how they will benefit agriculture and the Western working class.