Virginia Tech Economist Emeritus Dr. David Kohl speaking at the American Ag Bankers Conference in Indianapolis this week says he foresaw the present ag economic downturn a few years ago.

He says today the top 50 percent are still making money but to continue to do so will be a challenge.

Kohl says core equity is the excess land that is out there. He says when it gets to the core equity then lenders and farmers and ranchers start looking at that very closely.

Kohl says there are five strategies to deal with the economic downturn and that includes: negotiating lower rents, trimming input costs without hurting production, lowering family living expenses, becoming a better marketer and diversifying income sources.