Rural Issue

A changing agribusiness sector

An ag retailer says as commodity prices soften and margins get tighter, the agribusiness sector is having to tighten its belt, too.

Doug Hemm with Ohio based K-Buildings -Elgin Service Center says farmers had a pretty good run of high commodity prices and increased farm incomes – and their buying practices reflected that.

But things are changing.

“For every high you definitely have a lower point that comes along with it,” he says.  “And that’s where we’re at right now.  There’s a lot of people walking through the trade show here but very few people are talking seriously about purchasing that ag storage building in 2016.”