Farmers Getting Squeezed Out and Food Price Index Up Slightly
From the Ag Information Network, this is your Agribusiness Update.
**With some of the state’s major agricultural commodities struggling and farmers and ranchers facing increasing economic and regulatory pressures, California farm leaders say the industry will continue to lose farms as more are squeezed out.
In a recent meeting of the California State Board of Food and Ag, farmers and farm advocates representing specialty crops, winegrapes, cattle and dairy voiced concerns about problems impacting the industry.
They warned of more consolidation and fewer farms.
**Ag credit stress was limited in the second quarter but showed signs of tightening amid lower crop prices and rising input costs, according to a Federal Reserve Bank survey.
The survey says despite sharp declines in farm income and capital spending, agricultural credit stress remained limited, but signs of financial pressure have appeared.
The Fed says about 60% of farm lenders reported income was lower than last year.
**The Food Price Index increased 0.2% in July, as it did in June.
Three of the six major grocery store food group indexes rose over the month, while the other three dropped during July.
The meat, poultry, fish, and eggs index rose 0.7%, with eggs seeing the largest increase.
The cereals and bakery products index dropped by 0.5%, and so did the dairy and related products index.
