U.S. agriculture economists are expressing concern about a declining farm economy, which they attribute to a decrease in ag exports. 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 communities reliant on the ag sector. Banks in rural areas have also tightened credit standards due to weaker commodity prices, making it more difficult for farmers to access the funding they need to operate their businesses.
Goss adds that slow export sales, as well as housing and retail sales, are issues of concern as they are not performing as well as they were in previous years. This is putting pressure on farmers who rely on these sectors for their livelihoods and making it more difficult for them to plan for the future.
In other news, new data released by the U.S. Department of Agriculture has identified fertilizer as the largest variable input expense for corn farmers historically. This means that farmers need to carefully manage their fertilizer usage in order to maximize their profits and minimize their costs.
At the 2024 Plains Cotton Growers annual meeting held in Texas, Stone X advised U.S. cotton producers to prioritize risk management, regardless of weather conditions. This means taking proactive steps to protect against potential losses and minimizing exposure to market risks that could negatively impact their bottom line. By doing so, cotton producers can better prepare for unforeseen challenges and ensure long-term success in an increasingly competitive marketplace.
