The State of Agriculture but What is the Mental State?

Testifying before Senate Ag Committee in DC about the 2018 Farm Bill

If you follow agriculture news you likely know that row crop agriculture in the entire country will experience a bad year financially. You may also know that there has been a big push for Congress to write a Farm Bill. In September, a delegation of representatives from all crops and agricultural bankers descended on Washington DC to explain the need for the bill to be completed as soon as possible. Since that push and consequent attention that has been given to the issue harvest has progressed and the commodity markets have fallen even further. It has become increasingly apparent that many farming operations may not survive until the next farm bill. The structure of the most recent bill does not distribute any price loss payments until at least a year after the losses occur. This would be November of 2026 for the 2025 Farm Bill which we do not have. This is just too long to “wait and see” for many row crop operations across our country. In addition to the length of time is the probability that the current legislation would not even trigger a payment due to the out of date target prices for all commodities. Without that legislation in place lenders see row crop loans as highly risky. The back stop that has been in place for decades is no longer effective and even if extended will not help.

Senate Ag Committee Field Hearing Jonesboro, Arkansas June 2022

Jennifer chatting with Senate Ag Committee Ranking Member John Boozman of Arkansas.

I had the opportunity to meet with Senator Boozman recently as he made his way around our state. He and his staff understand the issues for not only Arkansas but all farmers. I was surprised and happy to have the support of animal agriculture in our state. Those farmers and ranchers are having good years but they realize if the producers who are growing the feed for their animals struggle and possibly go out of business they lose their supply. That supply is locally grown and appreciated by beef, pork, poultry and other meat producers. They worry they may have to import their feed. These folks were at the meeting because they support the need for row crop agriculture to be strong.

Senate Ag Committee Field Hearing Jonesboro, Arkansas June 2022

Jennifer with Ag Committee Chairwoman Debbie Stabenow of Michigan

These are issues really beyond my control. I do my best to advocate for strong agriculture policy but it is just politics sometimes. The give and take of DC may not represent the average citizen but I will not lose hope that agriculture policy can continue to be non partisan and effective at keeping our food supply domestically grown. I believe this should be an issue for every American. We simply cannot become dependent on other countries to supply or food.

Mental State of Row Crop Agriculture

There have been many articles written recently about the economic state of row crop agriculture. I appreciate the coverage to get the word out there about the difficulties we are facing. I have yet to read very many about what is happening inside the heads and hearts of farmers and their families at this time. I had a call from a friend in another sector of the ag industry last week. We were chatting about the troubles and then they asked me, “But how are you and your family doing?” I said, “What do you mean?” They asked again, “How are you all handling this? How are you doing mentally?” Being the optimistic person that I am I began my answer with the usual “We are doing great! We will get through this.” They pushed a bit further. I assessed my answer. “It has been hard and we have a long way to go.” was my reply.

At this point in the season, few farmers really “know” exactly where they will be in a few months. As the grain is still being collected and final pricing or storing decisions are being made there is not a TOTAL of anything just yet. The final bills are still to be paid to get total expenses tallied. And interest is still accruing. Projections can be made but there are still unknowns and assumptions made to be able to begin the process of planning for the 2025 crop. For those of us who have been doing this awhile we know. Our gut is telling us and it is usually correct. But for younger farmers I am worried. Many have never experienced a downturn of this magnitude and I hope they can survive it.

Another question I have been asked recently was, “Why would I want my children to come back and farm when it’s all losses or barely breaking even?” That is a good question as farms are continually in one phase or another of a succession plan. The fact is for many years farming has not been much of fun. The margins are extremely thin and only two things seem to help: expense management and good marketing. Now the market has thrown a huge curve ball since it does not offer any semblance of a positive margin if you have properly invested in producing a crop.

Farmers are still a profession that is highly respected across the nation. I am glad that is the truth but with that comes a certain perceived lifestyle. Hard work and living off the land are descriptive phrases for us. We are to have “dirt under our nails” and “sweat on our brow”. Why is that? Why does the industry that surrounds us only allow for minimal margins? Publicly traded ag companies have been having their hey day in recent years with large profits and oversized bonuses to executives. Our government allows barriers in trade and regulation that impedes profit on the farm. There is talk about corporate family farms edging out small and medium size family farmers. What does that mean? It goes back to the fact that we are perceived as simple and hard working. Farmers must be efficient and technology driven while keeping the Ma and Pa facade in place. We must be innovative and help big food companies achieve net zero emissions by 2030, while living on a minimal subsistence. Why should farmers who make a profit be criticized when other industries are allowed to grow and be profitable? It is a double standard, that if allowed to continue, will put America out of the world agriculture and food supply business. Why would a talented, hard working individual return home to a business that fights tooth and nail to survive every season?

The stress of constantly having to thread the needle so closely is wearing down the American farmer. It is not providing incentives for families to succeed to the next generation. Do we, as Americans, care if our food and fiber is all imported? With a consumer base that talks of how the farmer is poisoning our food supply, I worry that without a change in the industry that may well be the result. It may sound dramatic, but live the drama that we do and see if you don’t agree.