After being whipped by drought and slumping milk prices in 2016, Northeast producers remain cautiously optimistic about 2017. That’s the bottom line of a recent Farm Credit East poll of 150 farm, fishing and forestry producers.

That’s not to say they aren’t worried about a number of business challenges. Topping their list of concerns were shrinking margins and lower prices, labor availability, and regulatory compliance. Even so, more than 70% anticipate growing their businesses this year. Key findings include:

• Almost 70% continue to be optimistic or cautiously optimistic about their farm enterprise’s future.

• 71% plan to increase production this year, but at a slightly more modest rate than in the past. About 24% look to increase production by more than 10%, and 47% expect more moderate growth. Only 6% expected to downsize or discontinue their business.

• Top focus of their 2017 business plans hinges on availability of land (36%), restructuring operations (34%) and adding an enterprise (26%).

• Top business concerns were: price volatility and/or shrinking margins, 29%; qualified labor availability, 19%; regulatory issues, 14%; and changing consumer patterns, 9%.

Producers answering the survey were from New York, New Jersey, Maine, Connecticut, Massachusetts, New Hampshire and Rhode Island. Some 55% were from New York. Dairy was the largest farm product, totaling 36% of respondents. Some 67% were from family farms.

Operators between ages 35 and 55 accounted for 50% of those polled; operators over 55 made up 33%; 17% were under age 35.

For the full Pulse of Agriculture report, visit Knowledge Exchange at farmcrediteast.com, or click here.

Source: Farm Credit East