Bohemia, NY (PRWEB) December 25, 2012
On December 25, Colle issues a response to the possible dangers that farmers could face in 2013 as noted in an article published by AG Web.
A devastating drought made life tough for farmers throughout the U.S., however farms persevered, and the industry actually saw improvement in 2012 compared to recent years. According to an article from AG Web, the USDA estimates that net farm income, which includes total returns after expenses, will exceed $ 122 billion in 2012, up 3.7% from 2011. High grain prices and crop insurance indemnity payments are reported to be behind the dramatic increase in profit.
However, Bob Utterback, a Farm Journal Economist, told AG Web that the market can go down just as fast as it went up. The drought left U.S. farms with short supplies, unpredictable demand and unpredictable grain prices. The article also listed the five main dangers that farmers should be concerned about going into 2013:
Danger #1: Economy stays tepid.
Although the economy is stagnant at this point, unemployment is going down. However, many people are still remaining stringent in their spending, and this could definitely hurt farmers.
Danger #2: Crop prices fall.
Prices for corn and soybean reached an all-time high over the summer. A large harvest due to more acres of corn next year could result in the price of corn dropping.
Danger #3: Hypothetical farmland bubble bursts.
Farm income has increased over the past few years, which resulted in an increase in farmland value. If crop prices fall, however, land prices could soften.
Danger #4: Interest rates go up.
Although interest rates for farmers are at a rock-bottom price, the Federal Reserve Bank could potentially increase the rates at any point.
Danger #5: Another major weather event.
This is always a threat to farmers, and 2012 saw seriously bad weather conditions, including the drought. We will just have to wait and see how the weather fairs for farmers in 2013.
Colle Farmers Market, an organic farmers market community, responds to the article, saying that they expect farmers to do well in 2013. Although the market may rise and fall, Colle is confident that the need for the agriculture industry will override any threats it may face.
Colle is an E-Commerce enabled farmers market community that is passionate about sustainable consumption and responsible conservation. The Colle movement is dedicated to connecting natural product vendors, organic farmers and all consumers who live an organic and natural lifestyle with the ultimate goal of creating more sustainable farming and consumerism.