Purdue University Agricultural Economist Otto Doering may have shared the most honest prediction on the next farm bill when he spoke to the Agricultural Bankers Conference in Indianapolis.
Economist Pat Westhoff used USDA estimates as well as his own to project market prices for next year. He anticipates slightly higher prices for corn and lower for soybeans.
Because interest rates remain low and farm debt isn’t highly leveraged, today’s low commodity prices don’t mean the farm economy is headed toward a debt crisis like in the 1980s.
For the past eight years, many farmers have chaffed under what’s seen as regulatory overreach under the Obama Administration. Farm groups expect that to be pulled back after Trump was elected.
The American Bankers Association (ABA) follows the performance of farm banks, which are defined as banks with more than 15.5% of outstanding credit going to agriculture.
Tax laws are more favorable for you now than during the debt crisis of the 1980s, when debt write-offs were considered income by the IRS.
Thorough financial records can give you earlier warnings of potential problems and a better chance of working them out with your lender.
In a study released this month, economists from USDA’s Economic Research Service show that over time, some farmers will substitute savings for insurance.
FSA is known to work with lenders to help farmers caught without operating loans.
Crop insurance guarantees will be below cost of production for corn and soybeans this year but some of the pain will be eased by ARC (Agriculture Risk Coverage) payments on last year’s crops that will be sizable in many Midwest counties.
That's a key takeaway from University of Illinois economists Gary Schnitkey, Nick Paulson, and Bruce Sherrick, during a webinar Tuesday. The webinar is archived on the Farmdoc website.