Uncertainty looms over farms in Ohio
By: Morgan Anderson
Posted on:
ATHENS, Ohio (WOUB) — Tariffs may dominate the headlines, but for Ohio’s farms, the real threat runs deeper. The agricultural economy has faced uncertainty for years, and the delay in passing a new farm bill only adds to the pressure.
“Everyone wants to focus on tariffs, but the overall ag economy has not been in a good spot for quite some time,” said Brad Bales, senior director of state and national policy for the Ohio Farm Bureau Federation.
That uncertainty, Bales said, is nothing new.
“The only answer we have right now is uncertainty,” Bales said. “However, if world leaders are having conversations that will lead to fairer trade, then we will weather it. This uncertainty is not new.”
In fact, all farming is uncertainty. In the last seven years, that unpredictability includes the COVID-19 pandemic choking up supply and demand, record-high input costs, inflation and unprecedented weather — to name a few.
In southeast Ohio, one of the worst major flash droughts since the 1980s took a toll on farmers last summer. The drought led to reduced crop yields, the depletion of hay supplies and increased costs to feed and water livestock. Many farmers were forced to sell their livestock earlier than planned due to a lack of feed, and many faced the financial consequences of a limited supply in the year that followed.
But Mother Nature shows no mercy.
“Farmers get one shot a year,” said Luke Crumley, director of public policy and sustainability with Ohio Corn & Wheat Growers Association. “There’s a lot of risk up front. Growers can’t protect every event.”
And that risk is magnified by the fact that farmers are price takers, not price setters.
“We don’t get to set our price,” said Duane Stateler, a hog farmer and president of the National Pork Producers Council. “We’re told what the market will pay us depending on demand.”
For years, the farm bill has offered some relief. Since 1933, the legislation has been a cornerstone of federal food and agriculture policy, renewing roughly every five years. The 2018 bill has already been extended twice, and lawmakers are running out of time to act again. With a Sept. 30 deadline, it seems unlikely Congress will pass a new bill this year.
The bill is much more than its name implies, according to Brandon Kern, deputy executive director and senior policy director for the Ohio Soybean Council and Ohio Soybean Association.
“Upwards of 85% of the farm bill’s funding is for nutrition assistance,” Kern said. “Only about 15% supports farm policy with programs like crop insurance, trade development and conservation.”
But with lawmakers stalled in Washington, farmers say time is running out — and so are their options. Congress can choose to pass a third one-year extension, let it expire or pass a new one entirely. However, with a new budget bill on the docket for this fall, many are doubtful.
“We are so intent on wanting a complete farm bill and having it done this year,” said Stateler, a fifth-generation farmer from McComb. “But I see no feasible way to get it done by September. And if we don’t — I don’t know what another year brings.”
“We’re dying on the vine”
That gap between the realities on the ground and policy in Washington is something Jamie Graham knows all too well. Graham and his wife, Amy, operate R&C Packing in Patriot, a full-service meat harvest and processing facility. It’s one of the first plants in the country to receive Cooperative Interstate Shipment (CIS) status, allowing them to ship specialty meats across 48 states.
Since taking over in 2004, the Grahams have grown the business from seven employees to 18, specializing in helping small, local producers bring beef and pork to retail shelves and kitchen tables.
“In a typical week, we’ll process 25 to 35 head of cattle and 10 to 20 head of hogs,” Graham said. “We do the full works: harvest, process, smoke and packaging. But it’s all built around helping the little guy.”
About 80-90% of R&C’s customers are smaller producers, often with just 20 to 30 head of cattle. Many are based in southeast Ohio, western Virginia and northeastern Kentucky — a region not often recognized for its dense agricultural output.
“We’re seeing more and more production-oriented people than most would think,” he said.
But the current economic climate — especially uncertainty around the farm bill — has made it harder for these smaller operations to survive, let alone grow.
“Indirectly, the farm bill has huge implications for us,” Graham said. “Our success hinges on our producers’ success. If they can’t protect their pricing, we lose too.”
He pointed to Livestock Risk Protection, a federal program that allows producers to lock in livestock prices and reduce risk exposure, serving as a critical buffer in today’s volatile market.
“If you don’t change with the times, then we’re dying on the vine,” Graham said. “The 2018 Farm Bill was proactive then, but it needs to be updated. Today, global markets, inflation and sporadic supply and demand affect us in ways they didn’t 10 years ago.”
The profit margin on farms is gone
On the crop side of the aisle, the Ohio Soybean Council echoed those concerns.
“Three years ago, soybean prices were over $17 a bushel,” Kern said. “Today, it’s about $10.53.”
Meanwhile, input costs such as fertilizer, seed and diesel haven’t dropped. With razor-thin margins, federal programs like crop insurance and commodity safety nets are becoming more important.
“The operating margin has been pinched down to nothing, essentially,” Kern said.
Kern said many of Ohio’s 26,000 soybean farmers are anxious about the long-term direction of U.S. trade policy and foreign market development. Programs like the Market Access Program and Foreign Market Development, which help American farmers grow international sales, haven’t seen increased funding since 2014.
“We need to at least double those investments,” Kern said. “Soybeans don’t just feed people — they’re in diesel fuel, tires, biodegradable plastics. We need a global strategy that reflects that.”
Local roots have global reach
Back at R&C Packing, Graham said consumer expectations have changed, too. More people want to know where their food comes from — and they want it to come from nearby. His business depends on being able to meet that demand.
“People want specialty cuts. They want labeling and traceability. That’s what we built R&C on,” he said. “But inflation makes it hard. We were awarded a grant to build another facility, but with the current cost of goods, it just doesn’t pencil out right now.”
And even with growing consumer interest, the weight of national policy decisions trickles down fast.
“What happens with the farm bill impacts everything — from a farmer in Meigs County to a grocery shopper in Columbus,” Graham said. “If we don’t adapt, we’re going to lose a lot of small operations that form the backbone of our food system.”
Still, he remains optimistic.
“I have the utmost confidence our leadership understands that,” he said. “I don’t get caught up in the what-ifs. But we always plan for the worst. That’s just how you survive in ag.”