Minnesota farmers face tough 2009 and 2010, study shows
Nearly forty percent of the farmers enrolled in the Minnesota State
Colleges and Universities system’s Farm Business Management Education
program expect to lose money this year, and projections suggest that
many farmers could be forced out of business in 2010, according to a
survey conducted by the system.
“It’s a crisis for some farmers, but not all,” said Richard
Joerger, the system’s director for agriculture and business programs,
who conducted the survey. Many livestock and crop producers have found
it increasingly difficult to obtain credit, the study showed. Hog and
dairy farmers face the most financial stress because the prices they
receive for their products are less than the costs of production,
“Our instructors are working very hard to help farmers restructure
their debt and find more ways to increase efficiency,” Joerger said.
“Despite the best efforts of many professionals, some producers
will be unable to continue farming.”
Each year, between 3,000 and 3,500 farmers enroll in the system’s
farm business management program. Instructors use one-on-one, group and
online instruction to help them become better managers.
“This survey helps point out the value of the Farm Business
Management program to the state’s farmers,” said Chancellor James H.
McCormick. “In these difficult times, this unique program is more
important than ever in helping farmers remain solvent.”
The study was conducted July 14 to July 29 by surveying the
system’s 73 farm business management instructors about their
students’ agricultural operations. Sixty-nine instructors responded
for a return rate of nearly 95 percent.
The instructors reported that financial difficulties have forced 86
farmers out of business so far this year, and they projected that
another 162 farmers will go out of business by year’s end. Businesses
within rural communities also are being hurt, and more mental health
services need to be readily available, the instructors reported.
Reviewing the results, Agriculture Commissioner Gene Hugoson said,
“This survey provides important information that gives us an early
warning about the financial stress that many farmers may be facing. With
this information, we can better prepare for the difficulties ahead.”
Joerger said the Minnesota State Colleges and Universities will work
with the Agriculture Department and other agencies to help farmers
through these challenging times. And, he said, “We will be looking
for additional resources because there are more farmers out there who
could benefit from being in our program.” The program’s annual
tuition is about $1,300.
The Minnesota State Colleges and Universities system comprises 32
state universities and community and technical colleges serving the
higher education needs of Minnesota. The system serves about 250,000
students per year in credit-based courses and an additional 140,000
students in non-credit courses.