ABERDEEN, S.D. (AP) – A South Dakota State University expert says increasingly tight financial times are imminent for the region’s farmers, who are already managing depressed markets.
Jack Davis is a field specialist at the university’s extension service. Davis presented on crop production and income trends for farmers early this month.
Davis has cautioned agriculture producers to expect tight budgets for about two more years.
Davis says farmers will need to manage top costs closely and try to reduce them by at least 5 percent without cutting the yield.
The region’s popular crops, including corn and soybeans, reached record price levels a few years ago. But the prices have dropped, which is causing farmers to struggle.
Davis says producers should focus more time on managing expenses.