Farmers in Minnesota are struggling with the downturn in the commodity cycle and are going on four years of grain prices being below their breakeven costs. University of Minnesota Extension Educator David Bau says he’s not alarmed yet, but farmers are starting to eat into their equity.

He says some of the farmers he works with were able to take advantage of the early summer rally in corn and soybeans, but will still have an average price on their crop that is not profitable.

Bau says the other negative is the farm program payments for 2015 will be down in the state.

He says net income for Minnesota grain farmers in 2015 was around $27,000 which is down substantially from the record high of $260,000 in 2012.