Study Shows Farmers Downshifting to Avoid Costs09/09/2016
The latest Farmer Speaks research study conducted in August, 2016 by Millennium Research and commissioned by J.L.Farmakis, Inc. reveals farmers are holding off on equipment purchases and trying less expensive inputs to reduce costs. Among the findings:
- The number of farmers making no new equipment purchases nearly doubled over their own projections of 36% from February 2016 to 67%. The one bright spot:
Precision ag equipment
- Only about half of the anticipated reductions in input purchases occurred this spring as planned
- Farmers are looking to store the surplus from their anticipated “above average” crop at local elevators this year, not adding on farm storage
Bill Farmakis, President of J.L. Farmakis, Inc. shared observations from the latest research. “While farmers are driven to survive this downturn, the study reports a high level of satisfaction among growers who traded from branded premium products to less expensive options, which is surprising to me,” says Farmakis. He wonders how the continued interest in cost-cutting will play out as farmers make plans for 2017.
Differences in which products are substituted most often are evident between farmers over and under 2,000 acres. The study showed 2000+ acre growers reduced seed traits at the highest percentage, yet swapped crop protection products at the lowest rate. Farmers with 500 -2,000 acres were most likely to switch crop protection products rather than traits, and moved over 40% of their acres when making that decision to go generic or with a store brand.
If interested in a copy of the latest study, request the latest Farmer Speaks study online at jlfarmakis.com/farmerspeaks.