It’s been said time and time again, “United States farmers face much uncertainty.”
An agricultural official addresses the uncertainty surrounding farm country.
U.S. Agriculture Secretary Sonny Perdue today testified before the House Agriculture Committee on the state of the rural economy. Perdue first commented on the tough nature of the farm economy.
?Farm income has fallen (by) about 50-percent over the last five years. There are very few businesses that can survive that (kind of) revenue decrease. Most commodity prices have fallen, while global stock levels – due to good growing seasons around the world – have rebounded with several years of record production. Farmers, like any other business, depend on working capital. Working capital has decreased by 70-percent since 2012,? Perdue said.
The U.S. Department of Agriculture (USDA) expects net farm income to total $77.6 billion in 2019. If realized, farmers will collect more than they did in 2018. Things are subject to change, as this is merely a prediction.
However, Secretary Perdue believes the 2018 Farm bill will provide U.S. farmers and ranchers certainty and security, heading into what looks like another year of tight margins.
?The current state of the rural economy leaves many producers vulnerable to market disruptions, including illegal retaliatory tariffs and disasters,” Perdue said. “Overall, I think the new Farm Bill fulfills a primary goal to farm programs, helping farmers/ranchers manage risk and continue to produce food, fiber and fuel in good years, as well as bad.?
Secretary Perdue says his Department will also have an increased focus on trade, farm labor, regulation and disaster programs.
Perdue said he is proud of the “great strides the men and women of USDA are making,” and looks forward to serving American farmers and ranchers throughout 2019.
“Our goal and mantra is to be the most effective, efficient and customer-focused agency in the federal government,” Perdue said. “As we work to implement the 2018 Farm Bill, we want to keep our motto in mind, to ‘Do what’s right, and feed everyone,'” Perdue said.
