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Farm economy sees some plateauing

The weakening farm economy is starting to plateau in some areas of the Midwest.

GreenStone Farm Credit Services President and CEO Dave Armstrong tells Brownfield the ag economy has been on a downward slide since 2014.  “We produced a lot more corn and soybeans and other commodities.”  He says that over production led to an industry wide slump, “We start to see deterioration of individual farm net income and that starts to impact farm values, machinery values and other assets associated with the industry.”

But, Armstrong says a plateauing effecting is starting to appear in land values which has created opportunity for some farmers.  “Maybe they were better stewards of the earnings that they produced in higher income years and so they’re positioned to take advantage of land sales when they come up at little lower values. They continue to help, I think, put a floor under some of the land values.”

Armstong, speaking with Brownfield during the Michigan Ag Credit Conference, says milk prices are starting to see improvements, but recovery for corn and soybean markets could be another one or two years out.

AUDIO: Interview with Dave Armstrong