The lagging farm economy was a top focus today for the House Agriculture Subcommittee on General Farm Commodities and Risk Management. National Farmers Union (NFU) President Roger Johnson joined a panel of industry leaders to testify on behalf of NFU’s nearly 200,000 members who are currently facing a diverse set of challenges in the farm sector.
“As commodity prices continue to decline and farmers and ranchers struggle to adjust to lower prices, there is a growing burden felt by producers out in the countryside,” Johnson informed members of the committee. “Even more worrisome is the U.S. Department of Agriculture forecasts, which show a prolonged period of low commodity prices. This situation will result in trouble accessing credit, negative farm budgets, depressed markets and tests to the farm safety net.”
The downturned farm economy has put a significant strain on farm financials, Johnson explained. “We are seeing this manifest itself in the Farm Service Agency’s loan portfolio, an early indication of challenges ahead,” he said.