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Texas and Southwestern Cattle Raisers Association

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Economists: Margin compression in ag to affect net incomes

The agriculture industry is entering a period of margin compression in which revenues are depressed and costs remain elevated, according to Brian Briggeman, Kansas State University associate professor of agricultural economics and director of the Arthur Capper Cooperative Center. As a result, farming profits are expected to be thin, and net incomes are projected to be down in 2016. Producers can also expect lower commodity prices this year, Briggeman said. For example, the U.S. Department of Agriculture’s average predicted farm price for corn for 2015-16 is $3.60/bu., a 10-cent decrease from the average in 2014-15. Read more at Feedstuffs…

Written by:
kristin
Published on:
February 19, 2016

Categories: General

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