Financial Stress Mounts For Local Farmers Amid Falling Prices

Minnesota farmers are facing financial challenges now and in the immediate future.  Minnesota Farm Advocate for the Minnesota Department of Agriculture Steve Zenk joined me on WJON to discuss.  He's been working with farmers in Minnesota since 1988.

Crop Prices

Zenk says among the challenges are crop prices.  He says corn has been below $4 a bushel and soybeans have dropped below $10 a bushel.  Zenk says when they were making cash flow plans they were hoping for $4.25 for corn and $10 to $10.50 for beans.  He says there are some who've had additional yields because it's been a good year. Zenk explains those with additional yields will be OK financially this fall and winter but those who didn't have as good of crop will be financially short.  He says there isn't a good chance the soybean price will go up with China buying their soybeans from South American this year.  Zenk sees the biggest challenge for farmers will be making cash flow in 2026 to go along with the increasing input costs.

China Buying Soybeans

Zenk says China buying soybeans from South America is part of the problem for farmers in Minnesota.  He says South America produces more soybeans than the United States does, which was unthinkable 10 years ago.  Zenk indicates South America produces more and they can do it more cheaply than the U.S. can.

Federal Money Will Help

Zenk says many farmers have full time jobs and farm their land part-time.  He says that can become more challenging if the farmers have livestock.  Lawmakers have been talking about Federal dollars to help farmers in need.  Zenk says that money will help with the shortfall for this year but unless this assistance happens every year, farmers will have a hard time making cash flow. He says farmers don't get rich from Government payments and that money doesn't build wealth it just allows them to get by for the year the money is given.

Late on Loan Payments

In Minnesota if farmers are late on loan payments the lender has to offer them farmer lender mediation if your loan is larger than $15,000.  Zenk says over 150 notifications were sent out in Minnesota in just 1 month.  He says this has been happening in September and October of this year.  Zenk explains hundreds of people late on loan payments is not a good sign for the economy.  He urges farmers who are struggling to check their mail and to respond quickly if they receive past due notifications.

If you'd like to listen to my conversation with Steve Zenk, click below.