2012
LOGAN COUNTY FARM OUTLOOK MAGAZINE. LINCOLN DAILY NEWS.com October 23, 2012
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Last year, Green held off on capital
purchases, and he expects hemay continue
to hold back some this year also, “because
things might not be so great next year.”
“
We’ve had some very good years; the
past two to three were very good and it’s
been when the rest of the economy has
been in the pits. That afforded businesses
in agriculture the
opportunity to put
money back for a rainy
day. We can expect
that we are going to
have some times like
this,” Green said.
Crop insurance was
very valuable for those
who needed it this year
and will keep money
flowing in the industry.
E q u i p m e n t
purchases
are
something that each farmer will want to
weigh out carefully. The government has
sponsored a tax reduction program offering
a tax write-off and equipment depreciation
to encourage spending in a tough economic
climate. That program ends this year. For
those who can, it could be better to buy now.
As for Farmer Green, what will he be
doing for capital purchases?
“
I’ll wait and see,” he said.
On another note of importance, the
farm bill did not pass in September and is
not expected to be acted on until after the
election. The bill is an ongoing resolution
started in 1940 that provides support for
subsidies, insurance and land set-aside
programs.
“
You don’t know what will be in it, so you
can’t plan,” Brown said.
However, “farmers know how to cut
back,” he said. “Unlike the state of Illinois,
they know how to pull their belt a little bit
tighter and get by. There won’t be as many
new cars bought; there won’t be as much
equipment traded.”
The farmers agree that the yield that did
come inwasasurprise, given theconditions.
They attribute the newer drought-tolerant
seed and more clay in area soil. That
accounted to some degree for why some
crops did have yields
when there was little or
no rain.
Therehas been some
talk that crops may not
have taken up as much
nitrogen this year.
However, depending
on soil types and how
much
precipitation
would fall before next
season, nitrogen could
still be lost from the soil.
“
Maybe people are
cutting back on nitrogen. I’m not willing to
do that so much,” Green said. And, Brown
said the same.
Economic impact on the farmer
“
If your grain farmers had federal crop
insurance, they won’t be hurt as bad as
livestock farmers,” Brown said, and then
explained: “The livestock farmers have
to contend with the poor quality of feed
and higher prices going in this year, and
with no subsidies coming back from the
government.
“
It’s a gamble. We don’t need the slot
machines, we don’t need the riverboat,
because you’re gambling on the price,
you’re gambling on the product to come in,”
Brown said.
For everyone, you can expect to see
some economic trickle-down effect during
the coming year, right into the grocery store.
[
Jan Youngquist]