ERS economist Jeffrey Hopkins says, “It is apparent that what is happening in global food prices and the global economy is beginning to filter through into the U.S. farm sector.” Hopkins says three year’s worth of decreased food and fiber prices are beginning to impact U.S. farms.
Deere & Co. also has had sharp decreases in shares of farm equipment during the farm economy downturn. And farm chemical, seed and fertilizer conglomerates continue to investigate mergers as a way to economize during the downturn.
ERS forecasts a farm debt increase of 6.8 percent. However, costs of farming have not decreased, creating the drop in income and pushing debt to asset ratios up for the third straight year.
Read more of the economy outlook at Reuters. FG
