Warren Graeff, Agricultural Banking Market Manager for PNC Bank spent some time in Greenville, North Carolina last week talking to farmers about what he’s seeing on the national ag scene:
“Stable farm income is doing very well overall. With the price of corn declining some this summer, it has helped out the livestock producers. Exports are staying strong and world demand for food is staying strong.
There will still be adjustments that will happen, agriculture is constantly in a state of flux. I believe that from a corn perspective, that even if the RFS mandate does back off – as has been proposed – with the lower prices we are seeing some improved profitability with our livestock producers. Our foreign grain farmers have been doing well the last few years but they are still looking at net incomes well above average even with unreduced demand for corn. My analogy is that the grain producers have had quite a party here the last few years, and it will still be good, but not as good as it has been.
I think NC is in a very strong position. NC typically is in the middle of the top ten when it comes to commodity sales and net farm income. I think they will remain in that position because of the diversity of agriculture and they have some specialty crops.”