USDA Expecting A Drop In Working Capital

Like any other business, farming is typically more successful when more money is coming in than going out.  But according to USDA farmers will see a 9% dip in net cash income and another rise in debt level for 2020.

“We're expecting debt to go up by about 2.3%,” said USDA senior economist, Ashley Hungerford.  She added falling incomes and rising debt could result in another year in which farmers see a 15% decline in working capital money.  That's money to run the farm, after paying on the loans that they already have, putting some producers in a tight position, having to make some big decisions for the future.

“As far as, do you take on more debt, do you sell off part of your land, is there any more that you can cut back on in your expenses, and what does that mean for your production?”

Of course this is an early forecast and Hungerford says a lot can happen over the next 10 months to change it, possibly for the better.

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