IARN — Even the most basic understanding of economics is that we are in business to make money. This isn’t something that agriculture has invented, and we aren’t the only ones that play by those rules. However, when we look at the financial situation that we are facing across the globe, farmers have a unique takeaway from what’s happening.
Farmers have to take out operating loans and modify their financials every year to keep up. Unlike other business entities, this is not just a company, that farm is your livelihood. You don’t earn a paycheck with insurance benefits; you are paid when the farm is paid.
So how do we survive the current economic situation when inputs are rising, interest rates are going up, and crop prices, while good, are lower than they were at their peak, and could come down quickly if we have a good 2023 growing season? Matt Erickson is with Farm Credit Services of America, and he talks to us about what he is seeing in this economic climate.
For more on this story, visit the Iowa Agribusiness Radio Network.
