High supply and low demand are causing farm prices to plummet, and some farmers are feeling the devastating effects of the Iowa farm crisis, while others aren’t seeing much of a problem.

Matt Wenger, senior in agricultural education, doesn’t buy into the hype surrounding the farm crisis. “To me, I don’t see it as being as bad as what others are making it sound,” he said.

However, Wenger said there are problems with the agricultural economy, which he believes are based partially on large-scale corporate farms. He also said the high surplus of many farm commodities is causing less demand for these products.

Aaron Putze, director of public relations for the Iowa Farm Bureau, said farm prices are usually cyclical — low prices traditionally are followed by periods of higher prices.

“We are currently experiencing a rural crisis, and there are many farmers who are feeling the impact of the low-farm prices that we’ve been experiencing — both from an emotional standpoint and from a financial standpoint,” Putze said.

Does that mean all farmers are facing the same level of difficulty? Putze said no. “But it would be false to say that the current farm situation is not having an impact on many of Iowa’s farm families,” he said.

Ann Moberg, senior in agricultural education, foresees improvement in the future. “This is part of a cycle. It happened in the ’80s and during the Dust Bowl. This will pass,” she said.

Agricultural economics professor William Edwards expanded on the issue of supply and demand, which has contributed to the recent drop in agricultural prices.

He said there is more land in production now than in prior years due in part to the end of the Set Aside programs, which ceased in 1996.

In this program, farmers would stop planting certain areas to allow for the surplus crops to be used, which would bring the prices up.

“It was a way of counter-balancing nature,” Edwards said.

And Edwards said nature has been pretty cooperative with farmers lately. “The weather has been good,” he said. “We usually have some sort of natural disaster every five years.”

The last major problem of that type was the flooding of 1993, Edwards said.

Edwards said another factor contributing to the farm crisis is in the Loan Deficiency Payments set up by the U.S. Department of Agriculture. The USDA guarantees a minimum price to the farmers, and if the market does not meet that price, the farmers are reimbursed for the difference.

“This helps the farmers in the short run,” Edwards said, “but it prevents the normal adjustment where people would cut back on their production.

“The thing to remember is that farming is a long-term commitment. Just because we experience some problems in the short run doesn’t mean it won’t be financially rewarding in the long run. You learn to deal with the extremes,” he said.

The Iowa Agricultural Department’s latest statistics show a decline in the number of Iowa farms. The 1998 statistics show 97,000 farms in Iowa compared to 98,000 in 1997 and 119,000 in 1980.

“The numbers show that the number of farms have declined, not just over the past 18 years but for many, many years,” Putze said. “Farming is very labor-intensive. It’s hard work; it’s long hours.”

The farm crisis may span deeper than the current low prices, Putze said. With a good economy and a low unemployment rate, many students are choosing other career opportunities, which could affect the future of the family-operated farm.

“It really makes some tough choices out there for young people who want to pursue a career in production agriculture,” he said.

However, despite these difficulties, Putze said farmers generally remain positive.

“They have a special bond with farm life and with their role in rural communities,” he said. “They want to survive.”