Farmers Spend Less to Offset Loss

A story released by Reuters last week reports that after four years of bumper crops and earnings, farmers expect diminished returns in 2015 and are buying less to brace for it.

The U.S. Department of Agriculture anticipates this growing season to be the least profitable since 2007, and early spending among farmers suggests they will not bet against that prediction. In the Midwest, equipment sales are down and seed companies report selling less.

The USDA also said farmers will plant fewer acres of corn this year and opt instead to plant soybeans – a cost-saving measure because soybeans need less fertilizer.

Tom Eickhoff, corn agronomic systems lead for Monsanto, told Reuters: “Whether it is new equipment, fertilizer, or other inputs such as fungicide, growers are reevaluating every one of those decisions this year, probably at a higher level than they have in the pasts.”

The article also noted the risk of such cost-cutting: Crops not protected against disease or insects are more vulnerable and may ultimately yield less.  S