US Farmers See Leaner Times in Stormy Market

Many predict downturn for agriculture after years of record profits

By Jim O'Neill, Newser User

Posted Oct 22, 2008 1:20 PM CDT

(Newser) – Plunging crop prices and soaring costs are hitting US farmers with a one-two punch that’s knocked the fight out of what had been one of the stronger segments of the nation’s economy, reports the Wall Street Journal. Corn prices have dropped some 50% since July, and prices for fertilizer and seed are expected to jump 40% next year.

Farmers who’ve enjoyed record profits—net income is expected to top $95.7 billion this year, nearly double the $58 billion of two years ago—are expecting a major slowdown. “I was finally enjoying farming, but it's real scary right now,” said one. Farm services companies, too have been hit, with giant ADM off 60% from its 52-week high.

[Images (3)]

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A farmer unloads harvested corn grain from the auger on his farm near Auburn, Ill., Sept. 26, 2008. (AP Photo)

An ear of corn is missed during harvesting near Sherman, Ill., Sept. 19, 2008. (AP Photo)

A combine driver stops to clear corn stalks from the blades on the combine while harvesting corn crops near Auburn, Ill., Friday, Sept. 26, 2008. (AP Photo/Seth Perlman)

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I was finally enjoying farming, but it's real scary right now. - Keith Richert, a Nebraska corn
and soybean farmer, on challenges
facing the sector

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US Farmers See Leaner Times in Stormy Market