This Week In Ag #89

Scary season is upon us. This week our doorsteps will be invaded by legions of mini goblins. Their biggest fear is receiving candy corn in their baskets. But what about farmers? What’s scaring them this Halloween?

– The biggest fright is low crop prices. This fall’s record haul isn’t going to help an already depressed market. Inland cash prices remain in the 9s for soybeans, 5s for wheat and 3s for corn. A record soybean crop and second-largest corn crop in history won’t stimulate upward trajectory. Both Brazil and Argentina are expanding soybean acreage for 2025, so record volumes are expected in 2025. Potato prices have dropped 6-17% over last year, while cotton prices  just crept into the 70s. In the recent Purdue Ag Economy Barometer, farmers listed low commodity prices as their chief concern.

– High crop prices are 1a on the scary list. Fertilizer prices have softened slightly, due to lower demand from the low crop prices. But the majority of other input costs, such as seed and chemicals, show little to no signs of dropping. Overall, breakeven costs may drop a few pennies, but any profit-making will continue to be a challenge, especially on rented or currently financed land.

– Credit availability is emerging as a significant threat. By its nature, the business of farming is heavily dependent upon credit. As a seasonal endeavor, farmers must front significant expenses to produce their product, then wait several months before selling it. That’s why Congress set up the Farm Credit system over a century ago, to ensure farmers and ranchers have reliable access to credit. In addition, over 1,400 banks specialize in farm lending. But many farmers are having trouble accessing the credit they need, as lender’s risk remains high. These fears are prevalent throughout the country, from the Southeast to Pacific Northwest. Short-term credit providers have become inundated with requests by growers to double their credit lines. In the Delta, lenders are discouraging growers from planting corn in 2025, as the economics aren’t there.

– Interest rates continue to eat into margins. It’s especially scary to think that credit availability exceeds rates. But high rates are still a concern.

– Labor costs and availability continue to give producers nightmares, especially those across the West. Worker protection rules under the H2A Visa Program and new thresholds for overtime have added complications and cost to sourcing labor.

– The price tags for farm equipment, and parts. Sticker prices for new equipment is enough to give anyone a coronary. So you’ll just keep and fix what you have, right? The sticker shock on parts is very real. Fortunately, farmers these days have multiple options, and parts shopping on-line is the norm.

– Then of course, there’s the election. Who will gain control of the White House, and Congress? Like it or not, today’s farming industry is closely tied to the decisions made, and not made in Washington, DC. Energy, inflation, climate action, trade, government regulations, border security, estate tax… oh, and this thing we would call The Farm Bill.

Tomatoes at Disney World are ready for Breakout. Last week I received a behind-the-scenes tour of the popular ride “Living with the Land” at Disney’s EPCOT theme park. Huma products such as Breakout and Promax are used to grow tomatoes, bananas and other crops displayed on the ride, which magically explores the past, present and future of farming. Growing crops within an attraction visited by thousands of families each day, 365 days a year, for one of the most beloved brands in the world presents a host of challenges. For the ride itself, the plants must always look beautiful – portraying perfect color and stature, and free of blemishes – to impress visitors. For the chefs who create the park’s dining experiences, the crops must meet the highest standards in taste, texture and nutrition. And for the greenhouse managers, any products they apply must work fast and effectively, and be completely safe for all workers and visitors, while free of any re-entry restrictions. We are extremely proud that Disney Parks has chosen to use Huma to help provide both the world-class appearance for their ride and culinary experience for their diners.