Economy

Many U.S. cattle producers saw the TPP as a way to boost beef exports to Japan.
File: Grant Gerlock / Harvest Public Media

After publicly stumping for the Trans-Pacific Partnership trade deal, many in the agriculture industry were forced to re-group Monday after President Donald Trump formally backed out of the trade pact.

Health Insurance Woes Add To The Risky Business Of Farming

Feb 28, 2017

There are many challenges to farming for a living: It's often grueling work that relies on unpredictable factors such as weather and global market prices. But one aspect that's often ignored is the cost of health care.

A University of Vermont researcher found that nationally, most farmers cited health care costs as a top concern.

Cabela’s is known for big stores filled with museum-grade taxidermy and shelves piled with hunting and fishing gear. The Cabela’s store in Sidney, Nebraska, sits along Interstate 80 with a giant bull-elk sculpture facing the freeway. Next door is the sprawling company headquarters, complete with a forest-green Cabela’s water tower.

Shareholders of agricultural seed and chemical giant Monsanto agreed to a merger Tuesday, moving the controversial deal one-step closer to fruition.

German drug and chemical maker Bayer plans to pay shareholders $66 billion to take over Missouri-based Monsanto. That breaks down to $128 per share if the merger closes.

Profit from U.S. farms will sink to its lowest point since 2009 this year if Agriculture Department predictions are correct.

U.S. net farm income is expected to drop for the third-straight year in 2016, dropping 17.2 percent from the 2015 estimate to $66.9 billion, according to projections from the U.S. Department of Agriculture released on Wednesday.

The livestock sector is expected to be particularly hard hit.

As another harvest season wraps up, Midwest farmers are once again facing low commodity prices amid enormous supplies. And when they recover from the long days bringing in the grain, they will eventually sit down with their books and try to figure out how best to farm again next year.

The current run of down times for farmers are only going to get worse, according to many farmers.

Nearly 80 percent of the 400 farmers and agricultural producers surveyed in October by Purdue University researchers said they expect bad financial times in the next year, a jump of 11 percentage points since a September survey.

The massive industry that supplies farmers with the tools to raise crops is on the brink of a watershed moment. High-profile deals that would see some of the largest global agri-chemical companies combine are in the works and could have ripple effects from farm fields to dinner tables across the globe.

Five of the six biggest companies that produce and sell seeds and chemicals to the world’s farmers are pursuing deals that could leave a market dominated by just three giant, global companies. They say getting bigger means bringing more sophisticated and innovative solutions to farmers faster, but opponents say consolidation has irreversible downsides.

Like most farmers, Mark Nelson, who grows corn, soybeans and wheat near Louisburg, Kan., is getting squeezed. He's paying three times more for seed than he used to, while his corn sells for less than half what it brought four years ago.

"It's a – that's a challenge," Nelson says. "You're not going to be in the black, let's put it that way."

Low commodity prices are rippling up and down the farm-economy food chain — from the farm to the boardroom — and it has many of the huge companies that control farm inputs looking to a new future.

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