BY MARY ELLEN POWELL DBJ Contributing Writer

Farming is an unpredictable profession dependent on factors as fickle as the weather and the favors of the federal government. The risks of farming, however, do not stop with that industry alone. They extend to other businesses in an agriculturally-based economy such as the Delta.
“If the farmers aren’t making money, no one is making money; from the farmers to the tractor suppliers to the chemical company to the Ramada Inn on Friday night–poor agricultural times affect business,” says Todd Wright, new car sales manager for England Motor Company in Greenville.
Businesses, both those directly and indirectly related to the agricultural industry, are affected by agriculture’s economic slowdown. And though these businesses are affected in different ways, most feel the economic slowdown in the hesitancy of farmers to make unnecessary expenditures.
One long-time Delta business owner in an agriculture-related business says, “Good times and bad–whatever affects the farmer affects the economy of the Delta. When the farmer is doing well the farmer will spend what he has and will be willing to go into debt. But as times get harder, they shut down their spending.”
John Letchworth is the owner of John S. Feretti Building, a complete home center. “We are, as a community, directly tied into agriculture. The farmers don’t do anything extra, such as home repairs and additions in bad farm years and that affects us directly.”
Retailers also feel the economic the slump. Chuck Hudson, owner of the Bow Shop in Cleveland, has only been in business for four years and this is the first time that he has experienced the effects of a depressed agricultural market from a business owner’s point of view
We have seen lower sales,” says Hudson. “Right now we are trying to determine how we need to adjust as we go along. The slow spell has caused us to manage our bills and our inventory differently. We have had to reduce our inventory to account for the lowered capital.”
Fred Surholt, Senior Vice President in charge of the Agriculture Division at First National Bank of Clarksdale, explains that in an economic downturn, farmers handle their finances differently, which affects the banking industry.
“In these times, we see that crop loans are not being exhausted at the beginning of the year. Farmers will instead go to the chemical and seed companies to extend their credit to buy their products,” Surholt says.
For those in equipment sales, like James Braxton, manager of Wade, Inc., in Indianola, the difficulties that face farmers and business owners alike is understood.
“These can be devastating times,” says Braxton. “We are seeing a slowdown in row crops and in catfish farming as well, but not near as bad as we saw in the mid-80’s. When these times come we try to address the issues it brings about first by marketing–to bring in new customers–and watch our expenses closely. If worse comes to worse. Then we would be forced to lay off workers, this, in turn would affect other businesses in town.”
Other businesses see the slowdown as well. The Tri-Delta Insurance Agency in Rolling Fork has benefited from the state’s new ruling requiring the purchase of liability insurance, but has seen less purchases of commercial insurance. Tri-Delta’s president and agent, Connie Ferguson, feels that the lack of commercial sales is due to the lean times for farmers.
“When farmers are struggling financially it affects the entire Delta economy. When there is less business, there are less businesses to insure,” she says.
Whether the times are boom or bust for farmers, the Delta economy has weathered them before and will weather them again. Until the next economic upswing comes, businesses will do their best to go with agricultural economic flow that affects them from year to year in the Delta. DBJ