Cost cutting farmers

As planting looms, saving on inputs and finding efficiencies are top priorities for farmers. A research study conducted in February, 2016 by millennium research indicates growers greatest concerns are low commodity prices, land rents and input prices. As a result, growers are changing their purchase behavior to adjust to the new economic realities. The survey sought to identify what changes growers will make for 2016.

Well, growers are working to reduce land rents and are renegotiating with landlords. The survey shows approximately 70% of younger farmers have been successful in lowering land rents, while only 25% of older farmers had success.

Among the findings also are included the facts that: 74% of farmers will switch to generics or change brands of crop protection products, no new equipment purchases will be made by 37% of farmers, reduced traits in seeds and changes in fertilizer practices were significant, increased attention to marketing aims to raise revenue through better prices, and this surprised me very much, half of the farmers surveyed are seeking off-farm employment. I called spokesperson Jeff Whetstone: "What kinds of off farm employment are we talking about what? anything they can do to supplement their incomes because they don't think they are going to make ends meet this year."

The initial study was conducted with 160 growers primarily in the Midwest, but also with farmers from other agriculture areas around the country. A follow-up study is planned.