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Showing posts from March, 2019

"Brutal" is probably the appropriate adjective to describe the farming status

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Farmers face another brutal year in 2019March 8, 2019 Category: Politics
by Farm News Media
As farmers across the country prepare for the 2019 planting season, the one question on everyone’s minds seems to be: will the new Farm Bill provide an adequate safety net to see farm families through another brutal year? The Wall Street Journal and Politico have both reported on farm bankruptcies rising to the highest level in at least 10 years. Asked about these troubling reports, House Agriculture Chairman Collin Peterson (D-MN) said, “I have been saying for a year people are nervous.” Meanwhile, Senate Agriculture Chairman Pat Roberts (R-KS) noted the Farm Bill can help farmers “but we need price recovery.” House Agriculture Committee Ranking Member Mike Conaway (R-TX) may have been the canary in the coalmine on this question, arguing throughout the Farm Bill process that the safety net provisions of the Farm Bill must be strengthened. Farming is inherently risky, requiring a large amount …

Passing on the family farm: Can the next generation afford it?

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In the not so distant past, economics played a lesser role in farm succession planning.Let’s face it, with 7 dollar corn and 15 dollar beans, their generally was ample money to bring in the next generation into the farming operation and/or have the next generation buy out the older generation.Now, with prices that are break even or below, economics play a much greater role. The question becomes how do we ensure the next generation can financially afford to take over the farm?I was recently asked how does a farm family pass on a farm if the next generation cannot afford it.We all know it is next to impossible for someone to break into farming due to the capital costs of land, machinery, and so forth.So, how do we expect the next farming generation to do the same? In many instances, for the older generation, economics and the need for income is so important that succession plans do not get established because the older generation is fearful if the farm is transferred so does their incom…