Kansas economist talks agriculture income and challenges for farmers

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Kansas Reflector Podcast 19 min 1 speaker 8 chapters transcribed 1 day ago
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Who is Jennifer Ifft and what is her role in Kansas agricultural policy?

Morgan Chilson 0:00
Thank you for joining the Kansas Reflector podcast today. I am here with Jennifer Ift, who is going to talk with us about agriculture and the industry and what we're seeing right now. I feel as if as someone who's been covering the business side of agriculture this year, that we've seen a lot of different stories, a lot of different approaches, a lot of things about rising input costs and the impact of trade and tariffs and things like that. So I'm looking forward to hearing from Jennifer. Hi, how are you doing today? Great, great, great to be here. Well, thank you so much. Let's start by just introduce yourself and tell me a little bit about the work that you do.
Jennifer Ifft 0:36
Right. My name is Jennifer Ift. I am based in the Department of Agricultural Economics at Kansas State University. I hold the Flinchball Agricultural Policy Chair and I'm also the State Extension Specialist in Agricultural Policy.
Morgan Chilson 0:50
Wear a lot of different hats there. Absolutely. Yeah, that gives you a good overview of what's happening and happening in agriculture. And, you know, I started by talking just a little bit about some of the things that we're seeing that are just really affecting our Kansas farmers and ranchers. Can you talk a little bit about what the biggest issues are that you've seen so far this year?
Jennifer Ifft 1:09
Right, right. Well, if I had to pick one thing that's uniform, I'd say rising input costs across the board or or, you know, Not necessarily rising from last year, but still at elevated levels. It varies from category to category. So that's the one common thing is this general inflationary pressure on production expenses. But once you get beyond that, I think this year more than ever, you really have to look at crops and livestock separately. So, you know, the one category of expenses that hasn't gone up is feed. Feed costs have gone down. Cattle prices, I'm going to focus on cattle just because we're based in Kansas, right? That's most, most, but not all of, we have a substantial and growing dairy sector that's very important, but it's mostly beef cattle.
Jennifer Ifft 2:01
The beef cattle prices are high, historic highs, you know, for the cow-calf side, especially they're finally making money after, you know, some pretty long rough spells. So that would be called a margin expansion where you have strong prices and at least on the feed side, expenses
Unknown 2:21
are going
Jennifer Ifft 2:22
down. On the crop side, it's opposite. We call that a margin squeeze. So prices are down, not necessarily historic lows, but they're down. Expenses are down too, but not that much.

What are the biggest issues Kansas farmers faced in 2024, especially rising input costs?

Jennifer Ifft 2:33
Not back to previous levels. So margin squeeze on the crop side, margin expansion on the livestock side, especially beef cattle.
Morgan Chilson 2:43
That is one thing I've noticed as I talk to different folks throughout the state is getting a lot of different stories about You know, just depending on who I'm speaking with. I mean, where they're sitting. Absolutely. Yeah. Yeah. So one of the reports that you all have put out this year, I think it came out in October on and it took a really good look at agricultural income. It talked about net farm income. Can you tell me what's included in that calculation?
Sure.
Jennifer Ifft 3:08
Right, right. So that is a statewide measure of farm income. You could think of it roughly like agricultural GDP, gross domestic product or gross state product. I don't know what you'd call it, but for the state of Kansas. So it's all revenues on the crops and livestock side, all expenses included. um as well and then you have a couple other you have something called farm related income we make adjustments for inventory levels we account for depreciation so so those are the things that are in there but what it really reflects is all the revenues across different crops and livestock and all expenses it's an aggregate number it is not a farm level number
Morgan Chilson 3:49
Okay, so yeah, so that's why when I took a look at that report, it was reporting an increase this year of approximately 88% in net farm income. But again, it's not separating out those industries, right, in terms
Jennifer Ifft 4:02
of crop and
Morgan Chilson 4:03
cattle. So is that what, a little bit about why that increase is there?

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