Farmers are tightening up their spending as economic forces beyond their control drive down prices, according to an analyst for an agricultural tech company with offices in Sioux Falls.
Farmers Business Network has grown its footprint in Sioux Falls while adding thousands of farmer members across the United States and Canada who use its tech-based services to buy seeds and other materials.
Data from its 8,000 farmer members show sinking prices and limited demand for American crops are causing growers to look for savings, FBN Chief Economist Kevin McNew said Friday.
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“They’re shopping, looking for lower cost options, they have to shave their bottom line,” McNew said. “There’s going to be a lot of tight belts going on as we move forward here.”
South Dakota farmers were already in a financial bind due to a wet planting season this spring and the ongoing trade disputes with China and other countries limiting demand for the state’s crop exports.
This week, a report from the federal government caused corn prices to drop again. Data from the U.S. Department of Agriculture showed there was 90 million acres of corn planted, in spite of rain causing delays for farmers in South Dakota and across the Midwest.
“They came out with a very high corn acreage number that was a lot higher than what the broader trade had been expecting,” McNew said. “Which of course, sank the market.”
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