News

How long can you hang on?

A farm management specialist says all sectors of agriculture are facing declining farm incomes.

Adam Kantrovich with Michigan State University tells Brownfield farmers need to update their balance sheets at the end of every year.  “If I can’t pay my bills and every month I’m seeing that I’m having to owe more and more money to the local feed elevators and other suppliers—it’s really time to take a serious look at my farm business and my productivity.”

He says reaching out to consultants or extension specialists can help farmers dissect how every cost of production may be adjusted.  “We really need to determine ‘How long can I hang on if it looks like for the next year or two my net worth is going to continue going backwards?’ and make some decisions.”

He says while there are some bullish indicators in the market, the downward trend in the ag economy is expected to last longer than in previous cycles.

AUDIO: Interview with Adam Kantrovich