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
Duvall’s connection to cowboy culture extended beyond the screen.
Slightly higher sales amid shrinking acreage and inventories point to tighter supplies supporting catfish prices.
Winter Weather Shapes Markets and Early Fieldwork Nationwide
Phibro’s Medicated feed additives are helping cattle strive right from the very start.
Rising Chinese feed output — especially for swine — signals sustained demand for protein meals and feed inputs, even when meat production growth appears modest.
The USDA’s Farm Service Agency (FSA) has issued final Emergency Livestock Relief Program (ELRP) payments totaling more than $1.89 billion.

LATEST STORIES BY THIS AUTHOR:

Midland County Livestock Association President Brandon Mitchell reflects on another strong year for the event, including a premium sale that once again topped the million-dollar mark.
The Midland County Junior Livestock Show in West Texas features a competitive steer showcase highlighting top-quality cattle and the accomplishments of driven youth exhibitors.
CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
Farm CPA Paul Neiffer discusses how January’s WASDE report could impact ARC and PLC payments and updates on disaster relief programs as farmers navigate a challenging market environment.
Texas Commissioner of Agriculture Sid Miller joined us to discuss data center expansion, farmland preservation, rural economic impacts, and imminent cattle biosecurity concerns affecting agriculture today.
The Pennsylvania Farm Show continues through Saturday, wrapping up another successful year of celebrating agriculture in the Commonwealth.