An ag economist says the health of the farm economy isn’t the same across the board.
University of Tennessee’s Charley Martinez says he views it in two main buckets—crops and livestock. “One has had 2 1/2 to three years of not good times on the row crop side of things, with pricing and profitability being so hard to come by,” he says. “And then you look at the livestock side of things, and in particular, the cattle side, it’s been one of the best profit windows or profit years that we’ve had continuously over the last two, maybe 2 1/2 years.”
He tells Brownfield there are some headwinds facing both sectors. “As we continue to see interest rates holding steady to not coming down, and that impacts availability of credit, operating capital,” he says. “And then we look at inputs as those continue to increase, that puts strain on people that are out planning right now with demand for diesel being so high.”
Martinez says volatility in the markets is a good reminder for producers to utilize tools that help protect their bottom line. “We never know when risks can pop up,” he says.
He says recent run-up in prices has producers already starting to think about costs for the 2027 growing season. “One thing that we do know right now is risk management in order to secure some type of profitability that not only helps this year,” he says. “But can help the next year when you’re trying to secure operating capital as well.”
