The headline reads “Farm Credit Dairy Summary Gives Bleak Outlook”. In the first paragraph a panel of experts (their words, not mine) say milk prices keep trending downward and farms will have to tighten their belts even more. DUH?
Certain members of the panel said 2016 will be more challenging than 2015 due to the cash onb hand from 2014 when milk prices were pretty good…Ok one minute…I’m old but dammit, my head still works! These same ‘experts’ were telling farms in 2014 when prices were good to pay down debt, good times wouldn’t last forever! Which is it dudes: your “Webinar” as you call it, where stats abound, I know it must have a case of the ‘figures and liars figure’…
I likes the part where it is stated that adding cows is not necessarily the answer..try keeping that in mind when you are lending money! The farm size breakdown seems to give smaller farms the edge in cost control while noting BIG generates more volume to create more income. That being a big no-no at this time.
Things said about resilience and they always find ways to tighten their belts…My response would be ‘ would that not be a normal business move in challenging economy? Problem being farms deal with marked cards. (USDA Stamped).
Finally that elephant in the room… Non farm income: most farms rely heavily to supplement their overall revenue stream… that is how it’s written… Great! Problem solved — wife and kids get a job so I can be a farmer!