Last week we wrote about the U.S Department of Agriculture's latest biannual report of farm incomes which painted a very bleak picture for the American farmer. In its first forecast for 2017, the USDA saw real farm cash receipts down 14% versus 2015 and 36% from the previous high set in 2012 as farm debt continued to soar and leverage surged to all-time highs.
Below is a summary of some of the key takeaways:
Real farm incomes in 2017 are expected to sink below 2010 levels which represents a 36% decline from the recent peak and a 14% decline since 2015.
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"..farm incomes down 14% versus 2015 and 36% from the previous high set in 2012
ReplyDeleteReality check from Cornfield County: 2012 - 2015 included some record grain prices because of drought. So high that the prices drove our food costs way up. A lot of farmers bought expensive new equipment and financed it.
Last year's crops were record yields.. the market is now flooded with grain, and the prices are way down.
That's the way things work here. The high grain prices couldn't last forever.
So going deep in debt to get the latest shiny green combine isn't such a good idea, is it?
When you need a combine, you need a combine.
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