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Ohio Farmers Hit by the Credit Crunch

November 12, 2008

Ottawa, Ohio – As the Buckeye State wraps up the harvest and maps out expenditures for 2009, many Ohio farmers are hitting an economic roadblock. Input prices are skyrocketing and some farmers are finding they can't expect a profit for next year.

The executive director of the Ohio Farmers Union, Roger Crossgrove, says no anticipated profit means many farmers won't be able to secure financing.

"Right now, with the price of inputs and the price on grain markets with a normal yield, you can't end up with a black bottom line and it's going to be difficult to get credit."

Crossgrove says farmers are keeping their eyes on the markets and hoping for the best.

"There's so much instability; nobody knows where it's going to go, and that just creates stress and tension as farmers try to plan for the next year."

Fuel costs have dropped, but they only account for about ten percent of input costs. Crossgrove says there are bigger budget items.

"Whether the grain markets will go back up and fertilizer or chemicals will soften – that’s what it sort of boils down to - if there is going to be profitability in farming next year."

Crossgrove say some farmers are increasing soybean acreage and moving away from corn in an effort to save money.

Mary Kuhlman/Elizabeth Grattan, Public News Service - OH