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2016 Logan County Fall Farm Outlook Magazine
Lincoln Daily News
Oct. 27, 2016
5
slight profit in 2016, and turn negative on return for
2017. These figures include all costs, which may not
be applicable in all situations, but they do show the
tightening economic situation across the agriculture
spectrum. The University budgets do show a
decrease in land costs of $33 from 2015 levels to
projected 2017. There are also some USDA safety
net programs which have recently made payments
for the 2015 crop year to some producers.
In the livestock area, prices have decreased a
minimum of 20% since mid-summer. Hog prices
have once again been hit the hardest with decreases
exceeding 30%. Of course, in-place contracts
for grain and livestock may temporarily insulate
producers, but new contracts are at substantially
reduced levels. The bright spot for livestock
producers has been the reduced feed costs, at the
expense of the crop producers.
The trend to locally produced food continues
to gain steam. One great indicator has been the
success of the latest Farmer’s Market in Lincoln.
Reports of high attendance, and sales by vendors,
indicate people want to know where the food
comes from, how it was produced, and be able to
speak with the person who grew it. This isn’t just a
local phenomenon, as it is playing out all over the
country. This is in addition to people who grow their
own, and then want to preserve the food by canning,
freezing, or dehydrating. What was once becoming a
lost art, has returned to some prominence.
As we work to finish harvest this year, many are
eying next year – and the prospects for improved
income. While substantial yields from this year will
bolster income now, they will tend to keep a lid on
price movement for next year. Of course there are
outside factors such as ethanol use for corn, food
ingredient processing such as cooking oil, and the
potential for increased consumption for livestock
producers. Exports to other countries, needing
additional commodities for their food and industrial
uses, may also increase consumption - and lead to
eventual higher commodity prices.