Cornhusker Economics

Cornhusker Economics

Stabilizing Your Farm’s Financial Condition and Profitability
Nationwide farm net income has fallen for the last three years and appears to be on trend to keep falling. Interest rates are likely to increase, as the economy seems to be warming up, resulting in increased borrowing costs and tighter credit conditions. Cash rents fell by nearly 11% on average-quality farmland in 2016 and are on a trend to continue in the coming year. In addition, many farms have decreasing amounts of working capital to make up for declining incomes and high costs of production. The decrease in working capital if unchecked can decrease the stability of an operation. With no real signs that commodity values will increase and the unpredictability of the future this situation, while not dire, warrants watching.

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2017 Cornhusker Economics

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