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    Home»Commodities»How can farmers adjust input spending with low commodity prices?
    Commodities

    How can farmers adjust input spending with low commodity prices?

    July 29, 20241 Min Read


    News

    How can farmers adjust input spending with low commodity prices?

    An economist at Rabobank says sluggishness in the ag economy is forcing growers to be more mindful of their budgets.  

    Owen Wagner, vice president of oils, grains, and seed analysis, says farmers typically cut back on capital investments first.

    “These different input categories you could describe some as being sticky so that when fortunes either improve or deteriorate in the ag economy, you don’t see as much movement in in, in expenditures on those categories, whereas others you know have much more volatility and seem to ride up and down,” he says.

    Wagner says there’s also been a reduction in large farm equipment purchases.

    “We’ve seen layoffs across some of the major tractor manufacturers in the heartland which is obviously devastating for those communities machinery market is complex and you even see some differences in terms of how new machinery markets have responded versus used equipment markets,” he says.

    He anticipates an increase in borrowing over the next year due to tighter margins.

    AUDIO: Owen Wagner, Rabobank





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