As we officially enter a recession in America it is easy to look around and see the effects it has had on the entire nation as well as the entire world. But our rural neighbors, although affected, seem to be fairing better than others; this according to a recent article in The High Plains Journal. In the article titled 'Rural communities have tools for success at hand' by Larry Dreiling, he says "Because rural banks are in good shape that means that local businesses, including farms and ranches are, on the whole, in good shape too."

This means, for example, that although the cattle market may be down from the recession a producer may still be able to go through their local bank for an operating loan.

In a statement regarding the farm financial forecast published by USDA's Economic Research Service U.S. Secretary of Agriculture Ed Schafer says this: "America's agriculture continues a positive growth - a fifth straight year of record crop receipts, historically sound farm asset balance, and the third-highest net cash income over the last 33 years. Farmers remain prudent in their borrowing amid increased costs for seed, fuel and fertilizer. Livestock receipts of the past two years are up although producers are managing the increased costs to their operations. Producers' total expenses are expected to increase nearly 16 percent this year. The marketplace, not the government, has provided the source of income, with crop supports falling from $11 billion to $810 million in three years."

This is certainly a case by case topic. But it does seem that as whole rural communities do have the tools for success.

Sources:
Dreiling, Larry. 2008. Rural communities have tools for success at hand. Section A, December 1, 2008.

USDA Release No. 0301.08