Researcher Urges Farmers to Watch Capital Spending

As commodity grain prices decline, University of Illinois’ ag economist Gary Schnitkey is advising farmers to reduce their capital expenditures sooner rather than later.

“During recent years, capital purchases on grain farms have more than tripled on a per acre basis,” said Schnitkey of the Dept. of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, in a Dec. 2 Farmdoc Daily report. “Capital purchases will need to decrease given the lower net incomes projected…

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