There’s trouble brewing under the surface of ag markets, farm creditors warn

The ag markets are holding steady as lawmakers work to keep the government running. As farmers look ahead to next year, farm creditors say inputs may be cheaper but that relief is hiding a bigger problem.

“We’re seeing large declines in expenses for feed, fertilizer, and fuels, although there are still some increasing costs for things such as interest on debt or on labor costs. Now at an aggregate level, we can look at this and say that liquidity and profitability ratios for the sector have been largely stable. Ratios are improving, but these aggregate stories really are masking sub-sector strain,” said Greg Lyons.

Crop receipts are expected to be down $32 billion from last year. It is one reason multiple ag groups have been pushing lawmakers to get emergency aid to farmers.

Related Stories
Brazil’s ethanol growth could shift the corn trade.
Kansas row crop farmer Brad Keeler joins us to discuss drought conditions, planting decisions, input costs, and overall farmer sentiment in his region.
AFBF Economist Danny Munch joined us to discuss snowpack levels in the Colorado River Basin, water supply concerns, and the potential impact on agricultural production.
Donald Chase of Chase Farms joined us to discuss drought conditions, planting progress, input costs, and the outlook for Georgia agriculture.
Ag Secretary Brooke Rollins hints at new fertilizer plan while trade deals, soybean markets, and farm bill momentum drive ag policy discussion.
U.S. Department of Agriculture Restructuring Aims to Improve Government Efficiency and Better Serve American Farmers

LATEST STORIES BY THIS AUTHOR:

Patrick De Haan with GasBuddy joined us to discuss diesel price volatility and what farmers can expect as geopolitical tensions continue to impact energy markets.
Farm programs remain small but politically easier to expand.
Pat Hord with the National Pork Producers Council joined us to recap producer meetings in Washington and discuss key policy priorities including Prop 12 and agricultural labor.
As budget hearings continue on Capitol Hill, policymakers focus on long-term solutions to stabilize the fertilizer market to support U.S. farmers.
Rising global supplies may cap soybean price strength, while sorghum prices hinge heavily on China’s export demand.