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 Here is an oft-repeated scenario: An Illinois
grain farmer has been facing declining grain prices for several
years, while his farming costs--seeds, equipment, fuel, fertilizer,
transportation, interest on debt, and taxes--all steadily creep
upward. When the unpredictable weather cycles are added in, the
stress levels can become overwhelming.
The whole family feels the stress and relationships suffer. The
farmer begins to consider selling out, but the debt load may make it
unlikely that a sale will provide any significant cash pool for a
new venture.
Some might say, "But I don't know if I can hold out much longer."
In the midst of this uncertainty the news comes that foreign markets
so important to the American agricultural industry are being
increasingly challenged by other producers. Brazil, for example is
now said to control one-half of the world soy bean market.
In such an environment it may be an understatement to say that
farmers are under siege.
In her editorial, "Stress of 'the game' takes toll of farmers'
mental health," Patti (Edwardson) Naylor said farmers are "reduced
to competitors in a game." Naylor says, "In this game, the farmer
must compete to grow and sell his share of the worldwide
overproduction of commodity grains. See the irony? The problem of
low prices is too much grain. Yet to win, each individual farmer
must produce as much as he or she can."
In addition, farmers may also be competing for land access at high
cash rent prices.
A higher cost of living due to increasing land costs, and higher tax
bills due to higher property and estate taxes, also take a toll.
The numbers are sobering.
Agricultural journalist Allan Guebert said February reports from the
USDA predicted 2017 farm asset values will drop $32 billion
nationwide, farm debt will increase 5.2 percent, or a modest $20
billion, and farm equity will decline another $51 billion after a
$61 billion decline the year before.
These factors may cause farmers to have banks restructure their
loans to keep up, while some even end up filing for bankruptcy.
Though grain prices are lower, the cost of labor has increased. It
can be hard to find help, and some are reducing the number of
laborers they hire. Continued discussions of increasing the minimum
wage could make finding help even more challenging.
Other challenges may occur with succession planning. Plans for
transferring ownership to the next generation can cause emotional
stress for those involved, especially if there are no clear plans.
Having to alter who makes financial and management decisions can
cause frustrations and disagreements.
Any intergenerational family business is likely to face some
challenge in this area, but the intensely personal nature of farming
accentuates the generation-to-generation debates and conflicts.
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Adding to all these stresses are new legal
requirements that put strict regulations on farming. For example,
the Clean Water Rule, which the Obama administration issued in 2015,
was intended to protect streams and wetlands in the U.S. According
to Dan Charles in his article "Farmers Fight Environmental
Regulations," the rule "defines what streams or wetlands are
considered waters of the U.S. (WOTUS), and thus covered by the Clean
Water Act."
In the same article, Don Parrish, senior director of congressional
relations for the American Farm Bureau Federation, says "the rule's
definition is much too broad" because "All of a sudden, farmers go
from farming fields and land that they have always farmed, to
farming in 'waters of the U.S.' "
Much to the relief of some farmers, after an Executive Order in
February by President Trump asking that the rule be reviewed, the
EPA is now working on revising the definition of Waters of the U.S.
There are hopes that it will clarify the definitions and relieve
some of the regulatory burden on farmers.
With all the uncertainty faced by farmers, it is no wonder farming
is considered such a stressful occupation.
The main issue is anyone connected with farm production is
encountering considerable challenges that may require changes in the
way business is done.
There is no single solution to these varied challenges, but there
are some actions some farmers have chosen to manage stress.
Some farmers with lengthy histories of traditional farming are
shifting into "niche" farming. Organic farming is a response to an
uncertainly expanding market, but, of course, there are both cost
challenges and unpredictable prices for "organic" products.
Diversification is chosen by some farmers, spreading their efforts
into a wider variety of crops so that difficulties with one crop may
be offset by success with others.
Though these choices will not work for everyone, learning to manage
stress can keep stress from controlling you.
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