By Blake Jackson
With farm profitability under pressure from higher input costs, weaker commodity prices and unpredictable markets, University of Kentucky agricultural economists are helping Southern producers identify ways to protect their operations and prepare for the challenges ahead, according to Jennifer Elwell, agriculture specialist at the University of Kentucky Martin-Gatton College of Agriculture, Food and Environment (CAFE).
Martin-Gatton CAFE is represented by six of the 36 economists who contributed to the Southern Extension Risk Management Education Center’s (SRMEC) “Surviving the Farm Economy Downturn: 2026 Update.” The publication brings together research and practical recommendations addressing some of the most pressing financial issues facing farm businesses.
“Our specialists covered topics from cattle markets and row-crop profitability to lender communication, bankruptcy, alternative crops, value-added marketing and long-term farm resilience,” said Jennifer Hunter, associate dean for Extension and director of the Kentucky Cooperative Extension Service. “Their contributions reflect the breadth of economic expertise available through the UK Extension.”
The updated publication follows an earlier resource developed about 10 years ago. Jordan Shockley, Ph.D., an Extension professor in the Department of Agricultural Economics, said economists across the Southern region recognized that changing market conditions created a need for updated information and additional guidance.
“This is a great example of the working relationship we have in the Southern region,” Shockley said. “When issues arise for producers here, we get together and respond. The fact that we put this together in a couple of months shows the urgency of the issue and how close-knit and effective we are as economists in the Southeast.”
The USDA National Institute of Food and Agriculture also supports the publication, which contains 24 peer-reviewed articles designed to help producers manage financial stress caused by declining commodity prices and persistent production expenses.
Among the recommendations are knowing the true cost of production, maintaining adequate cash reserves, communicating with lenders before financial problems become severe and carefully assessing risks.
The economists also encourage producers to avoid decisions that may provide short-term relief but undermine the future strength of their businesses.
Shockley emphasized that Southern agriculture differs from the Midwest because of its broader mix of crops and livestock. Kentucky’s diversified agricultural sector can offer some protection, while producers in areas heavily dependent on crops such as corn, cotton or peanuts may face greater profitability challenges.
Other UK contributors include Kenny Burdine, Grant Gardner, Jonathan Shepherd, Tyler Mark and Tim Woods, whose work covers livestock, farm strategy, crop profitability, financing, bankruptcy, alternative enterprises and value-added marketing.
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Categories: Kentucky, Business, Education