Economist Says Arkansas Farmers Have Had a Hard Year

NOVEMBER 11, 2005 - Posted at 3:38 p.m. CST

FAYETTEVILLE, AR - University of Arkansas farm economist Eric Wailes says this year's drought and high fuel prices are likely to push some Arkansas farmers out of business.  Wailes was part of a team that estimated in September that Arkansas farmers would lose $923 million this year compared to a normal year.

He predicts that banks will be more cautious in how they lend money to farmers.  And Wailes said 2006 could be another tough year for farmers because fuel prices are likely to stay relatively high.  Fuel prices matter to farmers because they burn fuel in the process of raising, harvesting and storing crops.

(Copyright 2005 by The Associated Press.  All Rights Reserved.)