• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / Agriculture / ISU economist finds continued decline in farm equity

ISU economist finds continued decline in farm equity

November 6, 2019 By Radio Iowa Contributor

Alejandro Plastina.

An Iowa State University study finds farm equity across the state is on the decline.

The study of more than 200 mid-size Iowa farms found 44% could be classified as having vulnerable liquidity in December of 2018. That was just 31% in December of 2014. ISU Extension economist Alejandro Plastina says several factors have led to the fall.

“There’s been trade issues as of recently, there’s been uncertainly about crop prices,” Plastina says. “In 2019, pushing liquidity even further down, weather issues prevented planting and delayed planting.” Those factors combined put a lot of stress on farm operations, he says. The average loss of working capital on Iowa farms and ranches between 2015 and 2017 is about $189 per acre.

Plastina says, “Mostly all farms lost substantial amounts of working capital and the slight increase in working capital over 2018 was not enough to compensate the loss in working capital since 2014.” Without government assistance last year, including 646-million dollars in Market Facilitation Program — or MFP — payments, he says economic conditions on Iowa farms would have been even worse.

“In 2019, we saw a small increase in liquidity from 2017 levels but still, liquidity levels are low compared to the last ten years,” Plastina says. “Most of that increase in liquidity, unfortunately, is not coming from crop revenue or livestock revenue, but from government payments.”

Plastina expects the numbers for 2019 to be poor as well. He’s advising producers to secure their operating loans for the next year or two and to do as much as they can to protect their working capital.

(By Jerry Oster, WNAX, Yankton/ISU photo)

Share this:

  • Facebook
  • Twitter

Filed Under: Agriculture, News Tagged With: Iowa State University

Featured Stories

ISU research finds health benefits for chickens watching virtual reality

Fish kill at Storm Lake linked to virus that impacts only carp

Final employee who was there at the launch of the Iowa Lottery to retire

No more USPS mail in Iowa prisons; inmates to get copies of mail

State officials warn of influx of fake prescription drugs laced with fentanyl

TwitterFacebook
Tweets by RadioIowa

Grinnell College football looks for more progress in rebuild

Iowa State’s Brock eyes expanded role

Iowa’s Jones adjusting to move to center

Iowa unranked to open the season

UNI’s Spencer Cuvelier bounces back from injury

More Sports

eNews and Updates

Enter your email address:

Delivered by FeedBurner

Archives

Copyright © 2022 · Learfield News & Ag, LLC