By TIM ALEXANDER
Illinois Correspondent BLOOMINGTON, Ill. — As the U.S. economy continues to tumble along with agricultural commodity prices, a survey of farmers by the Illinois Farm Bureau (IFB) reflects the uncertainty of the times.
The IFB’s 2009 Illinois Farmer Outlook and Intentions Survey, taken during the organization’s annual meeting in Chicago Dec. 6-9, shows nearly three-quarters (74 percent) of farmers polled believe it will be a challenge to break even or turn a small profit in 2009.
“There’s a lot of uncertainty out there facing farmers,” IFB news service director John Hawkins told Farm World. “Most of it is resulting from higher input costs and the substantial fall-off in prices that we’ve seen.”
The poll was the first of its kind taken by the IFB and came as a direct result of the tumultuous economic times and the downward spiral in commodity prices. “We thought this would be a good time to talk to our leaders and our members,” Hawkins said.
This uncertainty is causing many farmers to delay final crop decisions, the survey shows.
“Most farmers, given current prices, are very apprehensive about making a big decision on what they’re going to plant. They want to see either higher crop prices or lower input prices by the time spring rolls around,” said Hawkins.
Only 19 percent of the farmers surveyed indicated they were optimistic about turning a profit in the coming year, while nine of 10 expressed a high level of concern about the grain markets and input costs. Only one in six is committed to making a major equipment purchase in 2009; however, 30 percent of respondents reported they are expanding their farming operations next year.
“This year, if you sold your crops early you saw record high prices and you made a lot of money,” Hawkins explained. “But if you were a holder of grain and didn’t sell until the fall, then it didn’t turn out to be such a good decision.”
The majority (86 percent) of farmers surveyed indicated the recent credit crunch has not impacted their ability to get loans for their operations, while 37 percent said they expect the economy to recover next year.
The potential for increased environmental regulations imposed by government worried two-thirds of the farmers. Concentrated attacks on the livestock and renewable fuels industries were of concern to roughly half of the respondents, while 98 percent indicated their support for the use of more ethanol in the nation’s fuel supply.
Illinois’ budget woes ranked high (77 percent) on farmers’ list of concerns, said Hawkins. Since the survey, Illinois politics have taken center stage in the national media spotlight because of federal allegations against Gov. Rod Blagojevich of attempted bribery, further clouding the future of Illinois’ political landscape.
“It’s just basically a crap shoot,” Hawkins said of what 2009 will look like for Illinois farmers. “You go back to that uncertainty principle. Nobody knows what’s going to happen in the next six weeks or six months, therefore, how can you make a rational decision on your farming operation?”
IFB plans more farmer surveys down the road, he said, citing USDA surveys as necessary but not timely enough.
“(Surveys) can be quite useful in times like these,” he said. December 31, 2008 |
