A report to the Farm Credit Administration shows an overall negative profit outlook for 2016. The Farm Credit board received a report on the 2016 profit outlook last week and found the outlook is negative for corn and wheat and is near the break-even point for soybeans. The forecast was based on data from the U.S. Department of Agriculture and university estimates of production costs. Farm Credit says large supplies are pushing down farm prices for corn and wheat, while soybean prices are expected to be near last year’s average because of a less bearish global stock situation. For the farmer’s bottom line, a modest reduction in production costs is offsetting some of the price-depressing effects.
Still, Farm Credit says many producers will need to make adjustments by controlling their input costs, selling crops when pricing opportunities arise and cutting household living expenses. That message falls in line with similar comments made throughout the year regarding the farm economy.
Source: NAFB News Service