Rabobank report: U.S. farmers face challenges in 2017
In a field crop margins report, Rabobank said, Nov. 23, that U.S. farmers will face another challenging year in 2017.
“Where wheat farmers in the Great Plains area saw a small improvement of margins in 2016, following an exceptionally good yield, the Midwest corn-soy farmers saw a continuation of margins too low to cover all costs not accounted for in our margin calculation, such as cost of machinery (e.g. interest costs),“ the report said.
Worldwide, the report added, the low margins mean that farmers will not be buying any more inputs than necessary.
In addition to the outlook in the United States, the report said, “The margin decline in 2016 in Europe comes on top of the prolonged decline in the US. And both in Brazil and in Australia, margins are under pressure too. The forecasted recovery in Europe in 2017 will not provide comfort before early 2018, when the cash of the new crop comes in.”
–The Hagstrom Report