9 August 2023
WICHITA, Kan. (KSNW) – 2023 has not been spectacular for farm profits.
“You know, recently, the federal reserve mentioned the fact that the economy in agriculture is getting very, very tough right now,” said KSN Agriculture Analyst John Jenkinson.
Jenkinson says higher costs are hitting farmers like the rest of the country with no immediate change in sight.
“We’ve got rising diesel prices, rising gasoline prices, all of these prices are going up. In the meantime, crop prices are steady or at least coming down some,” explained Jenkinson.
While many farmers will tell you across Kansas they did not have a spectacular wheat harvest, there was hope for the corn crop. But some places got rain at exactly the wrong time, and a once-promising harvest is now looking mediocre in many places.
“So dry for so long. And then the middle of May hit, and we had over 20 inches of rain in about four or five weeks,” said Brian Mitchell with Mitfarms. “And then from not being able to get all the corn planted and then not be able to get the milo planted, then the one thing we can grow is weeds about five feet tall. So, it has been quite a year.”
Mitchell says more established farmers can brave a mediocre or bad year. But he also says it’s getting tougher to break into the business. Especially when crops have another down-growing season for some.
“Last year, of course, we, and a lot of people, planted alternative crops because of the high fertilizer prices and high chemical prices and the supply chain issues,” said Mitchell.
Mitchell says one bright spot has been some of the input costs have changed. He says on irrigated cropland, there is a slight break in cost because natural gas prices have given farmers a break in some areas where irrigation systems run on natural gas.
“It’s a challenge for younger farmers, no doubt, because farming is such a capital-intensive business to get into,” said Mitchell. It’s just hard unless you have a family member or a way to get in. There’s no way a new farmer can start out.”
Jenkinson says he will closely be watching commodity prices to see where profits could be found for a changing farm ecosystem.
“I think the best way to put it is this year has been a challenge,” said Jenkinson.