Hennings: We’re At A Breaking Point

What needs to happen to help farm country survive this challenging economic environment?  Ask ten people, and you’ll get 11 responses.

For Michelle Hennings, Executive Director of the Washington Association of Wheat Growers, she says one of the top concerns for growers is input costs, specifically fertilizer prices.

During a recent trip to Washington D.C., she and other members of the wheat community met with Congressional members, as well as the Administration, and discussed the struggles farmers on the west coast are facing.  She said thanks to fertilizer prices that have been steadily climbing for over five years, producers are facing a price squeeze.  She acknowledged D.C. is trying to find the right solution, or combination of solutions.

“We're just at a breaking point. And I wish I had better news, but it's been, years we've gone through this and equity is starting to run out on the farms.  And so, you're seeing farms default and, you know, they're not able to get their loans or, you know, pay their bills.”

And that’s where the Bridge Payments announced by the USDA come in.  Hennings points out that those payments coming out the end of this month come out to $39.50 per acre.

“[According to USDA numbers] operating break-even is $160. And then if you add overhead, we're at $400 an acre.  So, it is a band-aid.  I know they're trying to do what they can, but we need to find a solution to this. And I know they're trying to keep farmers farming, but we're going to have to find a solution to our inputs because our inputs just have not come down.”

Hennings also stressed that growers don’t want government money, they want the opportunity to farm and sell their commodities.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com