Rent walkouts point to strains in U.S. farm economy

[Yahoo! News]

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By Jo Winterbottom and P.J. Huffstutter CHICAGO (Reuters) - Across the U.S. Midwest, the plunge in grain prices to near four-year lows is pitting landowners determined to sustain rental incomes against farmer tenants worried about making rent payments because their revenues are squeezed. On Friday, tractor maker John Deere cut its profit forecast citing falling sales caused by lower farm income and grain prices. Many rent payments – which vary from a few thousand dollars for a tiny farm to millions for a major operation – are due on March 1, just weeks after the U.S. Department of Agriculture (USDA) estimated net farm income, which peaked at $129 billion in 2013, could slide by almost a third this year to $74 billion. The costs of inputs, such as fertilizer and seeds, are remaining stubbornly high, the strong dollar is souring exports and grain prices are expected to stay low.

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