Farm income, assets, and equity are all expected to decline nearly three percent in 2016, while farm debt is forecasted to rise about two percent. However, the Agricultural & Applied Economics Association(AAEA) reminds us these numbers may not tell the whole story.

AAEA members Ani Katchova (The Ohio State University) and Allen Featherstone (Kansas State University), along with Jeffrey Hopkins (USDA’s Economic Research Service), met with Senator Pat Roberts (R-Kan.), Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry. The meeting was part of a day on Capitol Hill focused on “Dynamics of Farm Profitability: Factors Influencing the Decline in Income.”

“I felt honored to have the opportunity to share information and present at the Capitol Hill briefing,” Katchova said. “Overall, the ag sector is coming down from historic highs but is currently in a strong position.”

“The financial situation of the farm sector is currently in excellent shape,” Featherstone said, “but farmers need to begin thinking about restructuring debt and adjusting crop insurance levels.”