Kansas net farm income plunged to a 30-year low in 2015, dropping 96% to $4,568 in 2015, according to the Kansas Farm Management Association of Kansas State University in Manhattan, Kansas.
The dramatic drop in net income was 5%of the $128,731 Kansas net farm income in 2014, a fraction of the last five-year annual average of $120,000, making it the lowest in 30 years, KMA reported.
Kansas farmers were hit by lower prices for crops and livestock productionand are now facing a tightening cash position, it said.
The value of farm production from livestock sources decreased by more than $94,000 (55%) for the average farm in 2015, according to report.
“More than 44% of KFMA farms had a negative net income for the year which denotes the difficult cash flow situation many farms are currently experiencing,” according to the report.
“We are clearly at a critical juncture for many Kansas farms and ranches. Will farm net worth continue to decline? How will the cost structure farms face respond to this weakening economic environment?” asked Craig Althauser, who authored the KMA report.
Answering those questions may simply take time and patience.
“Possibly the most important factor involved in answering these (and many more) questions is the length of time we will be dealing with crop and livestock prices at the current—or lower—values,” Althauser said.
How is your 2016 shaping up? Let us know in the comments.