A growing number of American farmers, especially those cultivating grain crops, are grappling with severe financial strain caused by persistently high production costs and declining market returns. Sam Kieffer, vice president of Public Policy at the American Farm Bureau Federation (AFBF), described the current situation as an unusual convergence of record-high input expenses and historically low commodity values. n n”We’re seeing a scenario where operating expenditures continue to climb while the revenue from harvested crops remains near multi-year lows,” Kieffer explained. “Since the 2017 Census of Agriculture, over 160,000 farms have disappeared, and many rural families are now facing tough decisions at the kitchen table.” n nAmong the key stressors are unpredictable trade policies, labor shortages, and gaps in federal safety net programs. However, Kieffer emphasized that the most pressing issue lies in the widening gap between what farmers spend to grow their crops and what they earn when selling them. n n”Since 2018, the last year a comprehensive farm bill was enacted, farm-related expenditures have risen annually without pause. Today’s projected costs significantly exceed the income generated by producers of staple crops,” he said. n nHe also warned against relying solely on the USDA’s latest farm income projections, which suggest an overall increase in earnings. According to Kieffer, nearly 25 percent of that projected income stems from government disaster aid—funds approved by Congress rather than organic market performance. n n”That figure doesn’t reflect the true state of agricultural economics on the ground. Farmers aren’t benefiting from stronger markets; they’re surviving on emergency support,” he added. n nThe current one-year extension of the 2018 Farm Bill is set to expire on September 30. Although some funding for critical programs was included in legislation signed on July 4, broader policy issues remain unresolved. Lawmakers on both the House and Senate Agriculture Committees are working on a streamlined version of the bill, often referred to as a ‘skinny’ farm bill, but progress has stalled due to political and logistical hurdles. n nLaramie Adams, associate director of Government Affairs at Texas Farm Bureau, expressed cautious optimism. “The committees understand how vital food and agriculture legislation is for rural America. We believe they will act to pass a bill that supports farmers, ranchers, and the communities they sustain. Passing a new farm bill remains a top priority for us,” Adams said. n
— news from texasfarmbureau.org
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Farmers caught in perfect storm of economic challenges
Farmers, particularly those growing grain crops, are struggling economically due to a . Sam Kieffer, vice president of Public Policy for the American Farm Bureau Federation (AFBF), said this is a rare intersection of high expenses and low income. n n“It’s a combination of nearly record-low crop prices and , or production expenses,” he said. “We’ve lost more than 160,000 farms since the 2017 Census of Agriculture. There’s a lot of difficult conversations happening around those farm tables.” n nKieffer said farmers also have to deal with uncertainty in areas like trade, labor and the farm safety net. But the difference between input costs and crop prices, Kieffer said, is causing the biggest challenge. n n“Farm have increased steadily every year since 2018, the last time a full farm bill was passed, and farm expense estimates, right now, are far surpassing the income for the farmers who raise major crops,” he said. n nKieffer cautions that looking at USDA’s farm income forecast, which predicted farm income to increase, doesn’t paint an accurate picture of the farm economy. n n“That number does not tell the whole story. Almost one-quarter of all the farm income projected in that report is coming from disaster assistance, whether it be or that Congress approved, and they’re not dealing with the current economic calamity that’s happening out there.” n nThe current one-year extension on the 2018 Farm Bill expires Sept. 30. n nAlthough funding for many farm bill programs was included in the that was signed into law July 4, there are other issues that need to be addressed in a “skinny” farm bill. n n“The House and Senate Agriculture Committees continue working on a ‘skinny’ farm bill but have not been able to get that across the finish line just yet due to a number of factors,” said Laramie Adams, Texas Farm Bureau associate director of Government Affairs. “The lawmakers we’ve been working with understand the importance of the food and farm legislation, and we’re confident they will do everything they can to pass a bill to support America’s farmers, ranchers and rural communities. Passage of a farm bill remains a priority for Texas Farm Bureau.”