Minnesota farmers face tough 2009 and 2010, study shows

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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,

Joerger said.

“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.

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