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Ag Economist: Farming Preparing for Financial Winter

Dan Economy, Industry News Release

agIf you’re not happy with the weather, wait a little while and things will change. That phrase works not only for the weather, but the overall ag economy. Ag economist and financial analyst Dr. Dave Kohl recently spoke at the 2017 Ag Bankers Conference in Wisconsin.

He said the ag economy runs through four seasons. He also said the current economy enjoyed its summer, with high commodity prices and great growth from 2006 to 2012.

Currently, we’re in the fall, where prices are declining, and some producers are feeling more and more restricted. Dr. Kohl says he anticipates the economy will hit winter in 2018, which will negatively impact roughly 60 percent of farmers.

Economy

Kohl is expecting spring between 2021 and 2025. But, what about the statistical 20 percent of farmers that may not make it to the spring cycle? To determine if marginal operations will make it the next four years, difficult questions will need to be asked.

Questions

For those currently struggling, Kohl recommends a game plan, with specifics on how your market plan will change, and how you will pare down your operation. He says those conversations should take place with a financial consultant.

From the National Association of Farm Broadcasting News Service.