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.
Seth Tucker of Tucker Farms, a first-generation Arkansas farmer, says rising input costs are forcing changes to his operation, including stepping away from rice this season.
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UNL’s Dr. Dirac Twidwell discusses wildfire recovery efforts in Nebraska and what producers should keep in mind in the days and weeks ahead.
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Rich Nelson with Allendale joined us to break down early planting progress, market expectations, and what producers should keep an eye on as the season moves forward.
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Tight global supply is likely to keep fuel and fertilizer costs elevated.
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