Springfield Business Journal_2019-03-25

SPRINGFIELD BUSINESS JOURNAL · 35 MARCH 25-31, 2019 NEWS A recent U.S. Department of Agricul- ture analysis projects 2019 net farm income again will be well below normal. This broad measure of farm prof- itability has disappointed farmers for at least the past five years. Despite the continued down- turn, Missouri farmers have glimmers of hope on the horizon. The U.S. Department of Agriculture’s Farm Sector Income Forecast, released March 6, pro- jected 2019 net farm income at $69.4 billion na- tionwide. This projection is about a 9 percent increase over 2018. While a 9 percent increase sounds promising, it comes off a severe low. Last year was the sec- ond-lowest level in the past decade. Even with the projected increase, 2019 would still mark the third-lowest amount in 10 years. When adjusted for inflation, 2019 is projected to be in the bottom 25 percent all-time. These fig- ures range from 1929 to the present, with over 90 years of data. According to John Newton, chief econo- mist for the American Farm Bureau Feder- ation, most of the in- crease is coming from increased yields and slightly higher commodity prices. But Newton says continued retaliatory tariffs are keeping prices from reaching their potential. Higher in- put costs also are cutting into profit margins. Several Missouri commodities show prom- ise for higher prices. Corn, wheat, rice, cotton, cattle and calves, milk and chickens all should bring more money than 2018. Unfortunately, hogs and soybeans are projected to decline, as they have been the hardest hit by tariffs from China and other countries. Any net calculation has two sides: income and expenses. Input costs will tick up $2.2 billion this year. A key factor on this side of the ledger is a 6.6 percent projected labor cost increase. In- terest expenses also are expected to jump by 3 percent. Major increases to interest rates be- yond these projections would dramatically im- pact farm profitability. None of these numbers are set in stone. Po- litical shifts, weather events, trade deals and changes in the broader economy can all move the markets quickly. As farmers adjust planting decisions in response to these factors and data, profit projections will adjust in kind. Recent rumors coming out of U.S.- China trade talks sparked hope for a resolution to the on- going trade war. If the countries can reach an agreement, in- creased Chinese demand could again boost U.S. exports. This would have a positive impact on prices for many of Missouri’s strongest com- modities. While this report isn’t the great news farmers hoped to hear, it does provide reason to be op- timistic. If a few things could move in the right direction and the weather holds out, hopefully 2019 can be the year that Missouri farmers get back to normal prices. Eric Bohl is director of public affairs for the Missouri Farm Bureau in Columbia. He can be reached at publicaffairs@mofb.com. OPINION Letter to the Editor Buildings aren’t the answer to SPS’ problems Farming Forecast Another weak year predicted for farm economy Dear editor, This is a letter reporting on the state of the Springfield R-12 Public School System. It is failing! The [Missouri Assessment Program] test scores for the new Fremont Elemen- tary, featuring open classrooms, are at the very bottom of all SPS elementary schools in math (9.4 percent proficiency, according to the Missouri Department of Elementary & Secondary Education). By comparison, York Elementary, an old two-story build- ing also with very high free and reduced lunch numbers, was sixth (at 56 percent) among all SPS elementaries – whatev- er their poverty rates. Likewise, Pershing Middle School, an old building, was top in math (48 percent proficient or advanced) while the new Westport was at the bottom of middle schools in student proficiency (14.2 percent). The No. 1 root cause for failure is the su- perintendent. A further look at the super- intendent’s failure is how he mismanages your tax dollars: • $620,000 of original architect’s plans for Fremont were trashed; • $350,000 paid to consultants MGT for framing the failed 2017 bond proposal; • $450,000 for architect’s studies for the current bond proposal; and • $430,000 for land acquisition for relocation of Boyd before the bond vote. The total of the expenditures is $1.85 million. Not one brick to show for it. Voting “no” means [John] Jungmann must go. Recent news coverage [by the Spring- field News-Leader] has drawn attention to pornography popping up on Chromebooks. They are a teaching tool, just as chalk- boards once were, but chalkboards were never exposing kids to X-rated lessons. Voting “no” keeps from adding one more tax increase on top of a recent one-half- cent sales tax for the jail, potential 20-year extension of the one-quarter-cent sales tax for city infrastructure and potential extended three-quarter cent sales tax for the police/fire pension fund. And, after the upcoming election, property reassessment letters will be issued with likely increases in valuations. Voting “no” will save Portland Elemen- tary from the bulldozer. The Portland site, at nine acres, has enough land to build a new Jarrett without closing Portland. That would save millions of dollars. Everyone wants what is best for the kids. Teaching kids is more than buildings. Buildings do not teach. Teachers teach. Vote NO. —Carl E. Herd, of Springfield, a retired SPS math teacher Send letters and comments to sbj@sbj.net GUEST COLUMN Eric Bohl IN PERSPECTIVE If the countries can reach an agreement, increased Chinese demand could again boost U.S. exports.