Farm Economy Update
Pressures on Repayment and Spending
Cooperative Extension translates scientific research to help farmers and ranchers manage financial risk.
Monday, February 13, 2017
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10 AM ET
328A Russell Senate Office Building
 
Lunch~n~Learn
12 Noon ET
1300 Longworth House Office Building
 
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A Cooperative Extension Director and researchers will discuss the current condition, approaches for communicating and assisting farmers, and policy research. The agricultural economy has changed dramatically over the last decade, going from a position of high commodity prices and strong net income to a situation of increasing financial stress because increased global production and stagnant demand leading to falling commodity prices. For 2016, net farm income is forecast to be $71.5 billion, while net cash farm income is expected to drop to $94.1 billion. Both measures are forecast to decline for the third consecutive year in 2016, after reaching recent highs in 2012 and 2013. Net farm income is forecast to decline by 11.5 percent in 2016, while net cash farm income is expected to be down 13.3 percent. [i] The weakness of the crop and livestock sectors has caused cash-strapped producers reduce working capital to meet immediate financial obligations. Farm land values have begun to decline and rental rates are beginning to decrease. The current condition is causing repayment situations to become more and more tenuous. [ii] 

Speakers:

**********Related Event*********

Tuesday, Feb 7, 2017
12:00 PM EST

The Economic Research Service (ERS) releases farm income statement and balance sheet estimates and forecasts three times a year, including February, August and November. These core statistical indicators provide guidance to policy makers, lenders, commodity organizations, farmers, and others interested in the financial status of the farm economy. During the webinar, economist Jeffrey Hopkins will present and discuss the February forecast for 2017.

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[i] U.S. Department of Agriculture Economic Research Service. 2016. "2016 Farm Sector Income Forecast." Washington, D.C.
[ii] Nathan Kauffman and Matt Clark. 2016. "Financial Stress in Farm Sector Shows Slow but Steady Increase." Kansas City, Kansas: Federal Reserve Bank of Kansas City.
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