USA - Staple in Kansas economy taking major hit

28.02.2017 213 views
Farmers across the state of Kansas are dealing with what could be the worst economy for farm commodities in their lifetime. A year of record production has led to grain and livestock markets crashing, and now Kansas farmers are trying to deal with what to do. Sedgwick County farmer Mick Rausch says there are many farmers wondering how to get by, now that the prices for their crops and livestock are so low. “This is as bad as I have ever seen it, as far as commodity prices,” said Rausch. Grain storage facilities in many towns have two years' worth of grain simply from last year's crops. A big worry for farmers is the work being done in Washington regarding the Farm Bill. The Farm Bill covers a vast list of items that affect not only farmers, but consumers as well. The bill is revised every four to five years, and the revisions this year have farmers worried that government-subsidized crop insurance could be eliminated as a cost-saving measure, as well as other government programs. “We need a few things to come through for us. We need our safety net, our crop insurance,” Rausch said. Government-subsidized crop insurance and production programs help farmers in case of disaster, or if a crop performs poorly. Farmers usually only have one chance per year to get revenue from a crop. If a storm damages the crop to the point it is ruined, all the expense of planting the crop cannot be paid off and the farmer is out all that money for an entire year. Government subsidies ensure farmers receive some income from a field, given situations such as storm damage or poor production. The Kansas Agriculture Mediation Services program at Kansas State University is also advocating to retain subsidies for farmers. “The decline in commodity prices have put a real strain on cash-flow for farmers,” said Forrest Buhler, staff attorney for the program. Buhler said that the government subsidies give stability to farmers, especially those that are wanting to take out loans for equipment or materials. Buhler added the reason the federal government could consider cutting subsidies is to limit federal spending. For farmers struggling to get a loan, the Kansas Agriculture Mediation Services program could help. The program has been around for 29 years, helping farmers and lenders work through financial issues through mediation and counseling. Source - http://www.kake.com
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