There’s no doubt farmers are in a down cycle now but a new report says they will begin to see relief in 2017. Rabobank has issued a news report which says farmers are near the bottom of a cycle that should begin to rebound next year.
Ken Zuckerberg is a Rabobank executive director, “The last two years have been difficult. Our main message is that, although not there yet, we see signs of stabilization in row crop margins, hovering around the long-term break even levels.”
He says farmers are not in the negotiating phase and must continue to be vigilant with capital expenses,“One should not hope for a radical upturn in commodity prices. We don’t see that bailing out the system. Second, given where interest rates are, locking in long-term financing makes just a tremendous amount of sense here.”
Zuckerberg says efficiency is key and that means mergers and consolidation are likely needed to make it through, “And we see the possibility of increased consolidation activity, especially among small farms.”
Source: www.brownfieldagnews.com