“If You Give a Farmer a Dollar”

This Week In Ag #141

“Give a farmer a dollar, he’ll spend a dollar.” That’s what dad used to say. Not because he was a spendthrift, mind you. Those who knew him will laugh hysterically at that mere notion. You see, getting Dad to remove a dollar from his wallet was akin to removing a bull from a pen full of heifers in heat.

But his point was well taken. Farmers are a boom to the economy. Less than 2 million US farmers directly generate over 22 million US jobs and account for over 10% of all US goods exported. Their impact on local rural economies is even greater.

Whether it’s big-ticket items such as machinery, buildings, grain systems or more land; improvements such as field tile; or maintenance like fence repair, there’s never any shortage of investments needed on the farm.

That’s what makes findings from the recent Purdue Ag Economy Barometer especially troubling. When asked how farmers would spend any potential government-issued market facilitation payments (word has it $12 billion is earmarked and awaiting release pending the reopening of the federal government), nearly two-thirds said they will use it to pay down debt or cover family living expenses.

Just 12% of farmers said they would invest in or update farm machinery. That sentiment is reflected in AEM’s September sales report. Year-over-year monthly sales of high-horsepower (100+ hp) 2WD tractors dipped 11.5%, 4WD tractors plummeted 32% and combines dropped 22%. Combined sales of these big three product categories – chief indicators of farm health – are off 22% from the rolling five-year average.

Reductions in fertilizer seem imminent for 2026. In response to low corn prices, 29% of farmers said they will reduce the rates of phosphorus. With DAP going for over $900/ton at many retail outlets, it’s easy to understand why. Adopting lower seed trait costs was reported by 27%, while just 16% plan to reduce nitrogen. For many corn growers, N is traditionally among the last inputs cut.

Yet despite these attitudes, overall farmer sentiment rose three points over the previous month and is as high as it’s been in four years. And 72% of farmers believe things in the US are generally heading in the right direction. These numbers were reported prior to the news of China’s soybean purchase intentions.

So while they aren’t spending much money, they’re still content with other aspects of life. Sounds like another farmer I knew.