Money

Dairy, Agriculture Commodity Prices Will Likely Stay Low Through 2016

Prices for dairy, corn and other commodities are expected to stay low through 2016, causing Wisconsin farmers to start cutting back on production costs.

It means that ag-related businesses, like seed companies and veterinarians, are also anticipating lower profits for the coming year.

Darin Von Ruden, president of the Wisconsin Farmers Union, said low prices trickle down to all parts of the ag industry. “The implement dealers are feeling the pinch. Your local supply outlets are not seeing the purchases of seeds and fertilizers that they were expecting,” Von Ruden said. “It has that effect on the whole community.”

Jennifer Bailey from Country Farm Supply in Sparta said this year’s low prices are all part of a familiar cycle in the agriculture industry.

“When the economy is good, the farmers are spending money or putting money back into the system,” Bailey said. “It’s the same farming cycle back and forth.”

Bailey said it’s hard for suppliers to anticipate how they’ll be impacted by low prices as they wait for farmers to decide where to cut back.