Rabobank Farm & Ranch Survey shows U.S. farm income down
6-10-2009 | Food and Agribusiness news
In a drastic downturn, fewer than 5 percent of U.S. farms saw an improvement in income this year, says a Rabobank Farm & Ranch Survey of U.S. farmer confidence.
“U.S. farmers and ranchers continue to take a consistently conservative position when anticipating future performance, irrespective of the recent market volatility,” said John Ryan, President and CEO for Rabo AgriFinance in the U.S. “They understand the cyclical nature of the industry and can adjust their risk management strategy, purchasing decisions, and output to help weather this economic downturn.”
Business Conditions
Regardless of acreage, U.S. producers are more distressed regarding their income. Approximately 40 percent believe their income will be worse next year, when compared with previous surveys. However, 27 percent of respondents have some optimism that their income will improve.
Nearly all farmers surveyed are concerned about price fluctuations. To manage that concern, 45 percent have implemented or plan on investing in risk management or marketing strategies.
Expansion plans
Of the farmers surveyed, 66 percent have no plans to purchase farm equipment. However, farms in operation for 40 years or more are planning to buy equipment compared to newer farms.
In terms of land purchases, 9 out of 10 farmers plan to keep farms the same size. The only change in land seems to be a slight increase in those who plan to sell land – 5 percent versus 2 percent in the survey earlier this year.
U.S. Farm & Ranch Survey
The study was conducted to gauge farmers’ confidence among target farming regions in the United States. An independent survey company conducted 455 computer-assisted telephone interviews in the first half of August 2009. Farmers who owned or operated a farm grossing US$250,000 or more in one of three U.S. census regions – the Midwest, Southern and Western United States – were targeted.
