Statewide Iowa — (RI) — A new study from the United States Department of Agriculture finds many farms in Iowa, and across the country, are losing money every year, but USDA economist and study co-author David Prager says there are a few key variables.
The report finds there are about two-million households that operate farms nationwide and about half of them are losing money year after year. Prager says farmers can make financial moves to off-set those losses, while losing money on the farm can actually help with taxes.
The report shows the smaller the farm operation, the greater the chance of it losing money. Still, Prager says farmers find ways to stay afloat.
Prager says the value of farm assets typically goes up every year and farmers can borrow money against those assets. The agency report found some people farm to supplement their incomes while others press on because they simply enjoy the profession.