#2-Low Prices, High Input Costs

The combination of low commodity prices and high input costs pressured the farm economy throughout the past year. That’s the #2 agricultural story for the Red River Farm Network. “There’s no room for error,” said Lynn Paulson, ag lender, Bell Bank. “Good management will find a way to power through this, but if this thing hangs in for an extended period of time and losses are $100 or $200 per acre even well-heeled guys will feel the financial stress.”  A $12 billion relief package called the Farmer Bridge Assistance program is on the way, but most ag groups are calling it a band-aid and not the permanent solution that farmers are asking for.