As the farm economy declines, agricultural economists are expressing concern about the impact of decreasing U.S. ag exports on rural communities. According to Ernie Goss from Creighton University, ag exports were down approximately 9 percent compared to the previous year, which is having a significant impact on these communities. Banks in rural areas have tightened credit standards due to weaker commodity prices, making it even more difficult for farmers to access funding they need to run their businesses.
Another challenge facing farmers is the rising cost of fertilizer. New data released by the U.S. Department of Agriculture identifies fertilizer as the largest variable input expense for corn farmers historically. With this in mind, Stone X is advising U.S. cotton producers to prioritize risk management at their annual meeting held in Texas, regardless of weather conditions.
Slow export sales and weak housing and retail sales are also issues of concern for agricultural economists, as they are not performing as well as they were in previous years. The decline in ag exports has had a ripple effect throughout the agriculture industry, leading to reduced demand for inputs such as fertilizer and machinery, which has further contributed to the decline in farm income and profits.
In summary, agricultural economists are concerned about the declining farm economy caused by decreasing U.S. ag exports and rising input costs such as fertilizer and machinery demand reduction due to slow export sales and weak housing/retail sales performance.
