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
Approximately 42,000 birds were affected in the outbreak, officials said.
Beef demand could be influencing other economic sectors, as consumers adjust spending habits to prioritize higher-priced beef products.
AFBF Economist Bearnt Nelson joins us with insights into current turkey flock sizes, HPAI concerns, and production impacts on holiday demand.
Dr. Beetham outlined the background of the EU’s decision to modernize seed regulations and where the process stands today, and its impact on global agriculture and food security.
“It, all of a sudden, says that tracking and fighting hunger is not a priority, apparently, at the federal level.”

LATEST STORIES BY THIS AUTHOR:

Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
If confirmed, early Chinese buys tighten nearby Gulf/PNW capacity and could bump basis in export-oriented regions.
Alan Bjerga, Senior Vice President of Communications with the National Milk Producers Federation (NMPF), shares updates and resources available to dairy producers.
Culver’s Senior Marketing Manager Alison Demmer joins us to share the company’s deep-rooted partnership with FFA and ongoing commitment to support agriculture education.
Chancey Williams joins us in the studio to share his history with FFA as we continue our Countdown to Convention sponsored by Culver’s.
FarmHER Erin Cumings shares how Nationwide’s “Every STEP Counts” helps farm and agribusiness owners prioritize safety.