Directionless, aimless, or drifting are words which come to mind when thinking about conditions in agriculture. Corn, soybean, and wheat prices are lower compared to January. Cattle prices are higher. Input costs have moderated, especially fuel costs, yet remain high. Interest rates are higher. Land values are unimpeded. Exports of goods important to Nebraska, like corn, soybeans, and red meat, are lower. Domestic consumption of beef, pork, and poultry is stable. Drought conditions continue, but recent rains have lessened the impacts. Agriculture continues to move forward, but for the moment lacks a direction or a true course. It’s as if agriculture is adrift on an ocean, waiting for a stronger current to carry it one direction or another. Directionless, aimless, or drifting are words which come to mind when thinking about conditions in agriculture. Corn, soybean, and wheat prices are lower compared to January. Cattle prices are higher. Input costs have moderated, especially fuel costs, yet remain high. Interest rates are higher. Land values are unimpeded. Exports of goods important to Nebraska, like corn, soybeans, and red meat, are lower. Domestic consumption of beef, pork, and poultry is stable. Drought conditions continue, but recent rains have lessened the impacts. Agriculture continues to move forward, but for the moment lacks a direction or a true course. It’s as if agriculture is adrift on an ocean, waiting for a stronger current to carry it one direction or another.
While the signals are mixed, financial conditions for Nebraska farms and ranches are sound. March projections of this year’s net farm income by the University of Nebraska-Lincoln forecast an income of $7.3 billion, a level similar to last year. About 40 percent of commercial bankers surveyed by the Kansas City Federal Reserve Bank, including bankers in Nebraska, reported that income in the first quarter of the year was higher than a year ago and 25 percent reported it was lower. Loan repayment rates are stable, farm bankruptcies are low, and land values remain strong—all signs of sound financial conditions.
Source: nefb.org
Photo Credit: gettyimages-daniilantiq
Categories: Nebraska, Business