2017 Fall Farm Outlook

2017 Logan County Fall Farm Outlook Magazine LINCOLN DAILY NEWS Oct. 25, 2017 Page 45 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. 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 Continued ►►