Are farmers successfully managing their farm debt?

The nation’s farms are in a “new farm crisis” as Kansas State University experts put it during the Cover Your Acres Conference on Jan. 17 in Oberlin, Kansas. And, as Zerr and others in attendance would soon learn from the variety of speakers, it could be another crucial year as farmers battle to turn a profit—especially the ones struggling to make payments on their rising debt. Some financial woes are so deep that economists like Mark Wood questioned whether these farmers can stay in business. In 2016, the average net farm income dropped to just $300 a farm and, for 2015, the average producer was in the red. Charlie Griffin, a research assistant professor in the School for Family Studies and Human Services at Kansas State University, calls this the “new farm crisis.”The crystal ball question is how long the new crisis could last, said Griffin, adding that farmers should have a long-term plan in place.“We don’t know if things are going to get better in the next year or two or not,” he said. “I can’t find anyone on the production ag economics side willing to express an opinion on that right now —especially in terms of grain prices.”