USDA’s Economic Research Service officials say the decline in ag working capital is projected to fall by 25% from 2018 to 2019. That’s on the heels of a 30% decline from 2017 to 2018. The level of working capital available today in the farm sector is at $38 billion, the lowest level since 2009. Nebraska Farm Bureau Senior Economist Jay Rempe says that shows the amount of financial stress farmers and ranchers are facing.
He says the decline has become a disturbing trend. Rempe says farmers are spending through the capital they received when prices were good in 2005 and 2013.
Rempe says with the tough spring weather and record flooding there may be some opportunities for farmers to price their crop this year.
ERS notes that the current level of working capital is just 31% of the value achieved in 2014 and only 23% of the high achieved in 2012.
