Indiana’s economy may be holding steady, but one major sector is feeling the squeeze…agriculture.
At the last AgriNovus Quadrant meeting of the year, Professor of Business Economics, Dr Philip Powell painted a picture of Indiana doing well economically.
According to Powell, “So the Indiana economy in the last year has grown thrice the rate of any of our neighbors. And it’s this combination of an economy that’s well diversified. Hoosiers love to make things. Hoosiers are innovative. We have a state government that has got a triple A bond rating, has a quarter billion dollars ahead in tax revenue. We are seeing innovation in terms of our educational system and apprenticeships, and this is driving our economy forward. And we’re actually seeing the inflow of engineers and scientists and the type of talent that drives economic prosperity. All this is coming together to to make the Hoosier State stand out as a positive economic outlier.”
But out on the farm, a very different story is unfolding. Farm income has dropped sharply this year as commodity prices slide, input costs remain high, and interest rates continue to squeeze operating loans. Many Hoosier farmers are calling it a “silent recession” — one not reflected in the state’s broader numbers, but deeply felt in rural communities.
Powell continues, “Agriculture is in recession because of the negative trade impacts. Our farmers produce food for the world. And our imposition of tariffs on other countries means they put tariffs on farmers. In fact, foreign nations have targeted our agricultural exports because they want the administration to feel the political pressure from farmers. And so farmers are feeling much more pain than any other export industry in the country.”
So while Indiana isn’t in a recession on paper — for many farm families, it certainly feels like one. However, Dr. Powell left the AgriNovus Quadrant audience with some encouraging words.
“Indiana farmers for generations have dealt with uncertainty, especially with weather and the larger economy. This is just another, era of uncertainty. And so the same things you do during a drought are the expectation of lower yields. This is the time to implement those types of practices. These are lean times right now for agriculture. We will get through it. And on the other side will be even better technology that can work for farmers. So our Hoosier farmers need patience, which they’re well known for. But they also need to know that the clouds will clear. This too will pass. And there’ll be even more opportunity in the future.”
