Farm Economy Sees Some Positive

Financial stress has increased for many producers, but that doesn’t mean it’s all bad news.

USDA Chief Economist Rob Johannson said there are some positives.

“Some commodities may see improving returns. There are interest rates and energy prices remaining near historic lows. Export values are projected up. Median farm household income is expected to rise.”

Sadly it’s not all sunshines and rainbows, with Johannson noting that there could be some very tough choices in the future for many producers.

“The ag sector will continue to adjust to lower prices for most commodities both in the U.S. and abroad. The net effect of this financial stress over time is difficult to forecast but certainly we might consolidation in some farm sectors and certain regions and movement of the most leveraged farmers our of farming.”

Johannson and other experts spoke to the Senate Ag Committee about the state of the farm economy last week.