The plan not only includes immediate, direct relief for farmers during this tough period, but calls for regulatory relief, increased trade, and more affordable risk management tools to promote a healthy and productive farming future. The timing is crucial, as the legislators are currently on summer recess. We urge Congress to take up the issue when they return in early September. These meetings will offer a foundation for legislative decisions to be made. In addition, government policies, such as tariffs, duties and embargoes, have further added to the stress on the market.
Exports are a major component to the farm economy - when they're down, the industry suffers.
We're seeing some rebounding markets, but in the meantime we need to look for economically viable solutions to manage our surplus - which are outlined in the AgRecovery Action Plan. Farmers need to continue to produce in order to meet cash flow obligations. Land left idle or livestock buildings left vacant mean lost opportunity and additional debt. Equity in equipment and buildings can be used as a cushion during down times, but when a poor farm economy extends over several years, the agricultural value declines, according to Boehm. The option of selling becomes more appealing, and the buyer is more likely to be a developer than another farmer.