Debt-to-asset ratios are on the rise, working capital is eroding and
farmers’ sentiments are on the decline. Despite the negativity
surrounding prices and outlooks, Famer Mac is providing a voice of
optimism. In the an early exclusive of the quarterly edition of
Farmer Mac’s “The Feed,”
economists say they are more optimistic about 2019. However, Farmer Mac
economist Jackson Takach cautions it won’t be a “home-run” year for
most producers. “It's not going to be the best year in
agriculture,” said Takach. “It's going to be another sort of level-level
year in terms of profitability.” Farmer Mac releases its favorability chart per commodity in each
edition of “The Feed.” Takach thinks profitability this year will depend
on region and will vary widely depending on the crop a person grows or
the livestock they produce. Overall, USDA currently projects net
farm income will rise by 10 percent, while net cash income is forecast
to increase by 4.7 percent. Despite that increase, USDA is still
projecting the farm sector’s working capital will decline and
debt-to-asset ratio will trend higher...
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