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Business and the Economy

Annual Ag Economic Report Shows Upcoming Challenges for Grain Sector

southeastfarmpress.com

Members of Kentucky's agriculture industry Thursday held their annual Ag Economic Review and Forecast meeting in Louisville. 

The big picture for the state's agriculture indicates livestock farmers, by and large, are doing well.  However, University of Kentucky Ag Economist Will Snell says in the coming year, some sectors are likely to have a tough time.  "The biggest concern out there will be for grain farmers as we move ahead into 2015," said snell.  "When they start selling a lot of this lower priced grain this year and the outlooks for somewhat of a depressed grain economy for 2015 as well." 

Snell says 2014 may go done as one of the best years for Kentucky dairy farmers due to manageable feed costs and good prices for milk.

He says the state's tobacco business registered $300 million in 2005, one year after the federal buyout. The past couple of years Snell says tobacco has made $400 million annually. He says despite predictions of a decline in tobacco, the burley and dark varieties have done well in recent years.  "It's been a case where we've had a huge concentration, a reduction in the number of farmers growing tobacco. But the ones who have stayed in have done fairly well.  That $400 million figure will probably come down a little bit this year because of lower prices.  We've got an excess supply of burley," added Snell.

Snell says the global burley market is where the excess is being felt the most.

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