Livestock Profits Rise as Crop Farmers Face Debt Concerns

By Bob Bragg

As we look at the U.S. agricultural economy, it’s apparent that livestock producers are much more optimistic about the prospects for the near term then crop producers. Beef producers see the potential for record profitability this year. But crop producers are likely to have a tougher time. Over the Past couple of months, the Purdue University-CME Group Ag Economy Barometer Index has registered falling optimism among crop farmers concerning future prospects for their operations due to the expectations that returns on their crops will be low. Also, agricultural economists and agricultural lenders have begun to register concerns that all is not well in the agricultural economy. They’re finding troubling comparisons to the 1980’s farm financial debt crisis that caused many farmers to file for bankruptcy, often forcing them out of farming.