At the 2015 midway point, financially sound farm businesses will have no problem with credit availability at interest rates that continue at low levels.
Farm Credit East has released the cooperative’s mid-year Agricultural Credit Conditions report indicating that while most farmers are in good financial condition in 2015, excessive moisture in key crop regions could result in problems for some producers. All eyes will be on the weather going forward, as that will be the main determinant in the yield and quality of 2015 crops. Based on current market prices, Farm Credit East is projecting 2015 net farm income to be 24 percent lower than the most recent five-year average.
Coming off a very strong year for dairy, in which many producers saw record earnings, margins have fallen dramatically for dairy producers in the first half of 2015 due to excessive supply. Dairy producers are looking at a challenging period for at least the next 12 months.
Some apple growers in the Lake Ontario region sustained damage from late frosts, which may impact the size of their processing apple crop. The greenhouse, nursery and ag retail industries have had a good spring thanks to favorable weather on spring weekends and stronger consumer demand for products.
Today's Harvest: Where agriculture means business.
To provide those interested in Northeast agriculture increased information and resources related to the diverse farming, forestry and commercial fishing industries in the Northeast, Farm Credit East has launched a blog called Today's Harvest: Where agriculture means business. Check it out by clicking here. To stay up to date on new posts, feel free to subscribe to our blog by entering your email address in the Get the Updates section.