A new report shows more than 30 percent of Minnesota farmers finished 2016 in the red.
University of Minnesota Extension economist Dale Nordquist says the annual farm income analysis points to continued low crop and livestock prices as the primary factor.
“Even with record yields, and obviously we had spectacular yields for the second year in a row, and again for the second year in a row that didn’t really translate into profitability for the crop producers in the state.”
According to the study, the median crop farm earned about $46,000 in 2016.
While up more than $18,000 from the previous year, Nordquist tells Brownfield there’s no guarantee incomes will improve in 2017.
“Prices are lower again, and if we’re trying to put together a cash-flow projection for 2017 with normal yields...at these prices it’s even tougher.”
Nordquist says livestock producers were hit hardest in 2016.
The median Minnesota beef producer lost more than $11,000, and the median hog farm lost $4,000 a year ago.
The University of Minnesota partners with Minnesota State University to conduct the annual survey.
Source: brownfieldagnews.com