Given that prices are still low, the lower harvest is a double whammy to farmers looking for relief. The latest USDA grain report put stocks higher than expected so prices are low and, for the most part, are expected to remain low. All the action in agricultural income currently is government subsidies. There is discussion of more precisely targeting government payments to smaller farmers - even away from landowners who have been share renting and receiving payments. Additional money is also slated for subsidizing insurance premiums of farmers who purchase crop insurance.
Land values are under pressure.
Looking at the distribution of the land value changes shows that some of the more production regions of the state along the Missouri and Mississippi Rivers are experiencing the greatest decrease in cropland values. Lenders are expected to scrutinize loans much more closely. Land and equipment values on balance sheets may be lowered to reflect possible difficulties in selling them at previously projected market price. Cash flow plans will need to reflect realistic price and production goals. The one bright spot is that the prices of most inputs for crop production remain low.