The House Appropriations Subcommittee on Agriculture met with Farm Credit Administration CEO Glen Smith on Wednesday. In his hearing testimony, Smith told lawmakers the U.S. farm sector continues to face challenges. “High operating costs for labor, farm inputs and other expenses are still putting stress on farm cash flows. Farm subsidy payments help, most notably crop insurance and the Market Facilitation Program payments. Those were, in many cases, the difference between net operating loss or profit.” Smith said there are some positives that should help improve the 2020 outlook. “One year ago we had almost no trade agreements in place. This year, we have the U.S.-Mexico-Canada Agreement, bilateral trade agreements with Japan, South Korea and the phase one deal with China. It may take patience, but at least the groundwork has been laid for trade normalization and improved farm prices.” Smith also answered questions on declining land prices, hemp and MFP.
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.