New-employee hiring stable; input costs have moderated
By Wes Sander
Capital Press
Fewer than 5 percent of U.S. farmers expect their incomes to improve this year, according to a survey by farm lender Rabobank.
The survey suggests a significant change from 2008, when 1-in-4 farms saw improved year-over income, according to the survey.
The survey was conducted in August by International Communications Research. It sought responses from farmers whose operations gross at least $250,000.
It found that 54 percent of U.S. farmers expect the farm economy to keep worsening, with roughly one-third "extremely concerned" about the economic outlook.
Among farmers in Western states, 40 percent of those grossing $1 million or more feel their incomes will fall next year. Only 2 percent of Southern farmers said their incomes would shrink.
But the survey found some positives amid the gloom. New-employee hiring remained stable, input costs have moderated and land ownership is expected to remain stable.
Furthermore, farmers on the whole say their jobs haven't become more difficult. But that's not the case with farmers in Western states, where 60 percent said their jobs had become harder. Only a quarter of Southern farmers said the same.
Two-thirds of respondents nationwide said they had no plans to purchase new equipment this year. Three-quarters expect their hiring plans to remain unchanged.
"U.S. farmers and ranchers continue to take a consistently conservative position when anticipating future performance, irrespective of the recent market volatility," said John Ryan, president and CEO of subsidiary Rabo AgriFinance. "They understand the cyclical nature of the industry and can adjust their risk management strategy, purchasing decisions, and output to help weather this economic downturn."
E-Mail Us. Designed by Uneek Industries.