NASHVILLE, Tenn. (RFD-TV) — Low prices and high costs do not make idling a real option for most farm and ranch operations, argues Dr. Joe Outlaw of Texas A&M’s Agricultural & Food Policy Center in an interview with Southern Ag Today.
So, “If Crop Returns are so Bad, Why Do Farmers Keep Planting?”
Shutting down guarantees zero cash flow to service debt, payroll, and family living, while ceding global market share to competitors who would quickly ramp up output.
Switching crops is not a simple fix either: many crops now pencil similarly thin or negative, multiyear rotations protect soil health and weed control, and equipment and storage are often crop-specific.
Outlaw adds that farmers are uniquely optimistic—planting with the expectation that weather, basis, and prices can improve by harvest—and that the profession is an identity, not just a job.
The upshot: producers keep planting to preserve business continuity, agronomic systems, and future market position, even when spreadsheets look grim. That’s also why Congress and administrations have long supported agriculture when risks beyond farmers’ control overwhelm margins.
Farm-Level Takeaway: Planting sustains cash flow, rotations, and market share—even in lean years.
Tony St. James, RFD-TV Markets Expert
New Season 11 Premieres Tuesday, February 13, 2024!
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As we start the new year, let’s take a look at some of the legislative items from 2023 affecting agriculture that will continue to play out in the political area for months to come.
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As I try to catch up on my writing after being on the road for a lengthy time, I have several recurring themes in my legal work. Another potpourri of random ag law and tax issues — that is the topic of today’s Firm to Farm blog post by RFD-TV Agrilegal Expert Roger McEowen.
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The meaning of a “double-fraction” clause and the impact on future oil and gas conveyances—that is the topic of today’s blog post by RFD-TV Agril-Legal expert Roger McEowen.
October 13, 2023 03:28 AM
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Recently, a bank in Texas got confused on the financing rules governing agricultural crops and lost its security interest as a result. Ag financing and priority rules among competing security interests—that is the topic of today’s post.
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