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Guaranteed Loan Programs Find Favor

Ag lenders are reducing exposure to lending risks by requiring more farm real estate as collateral for large, non-real estate farm loans. —The Editors Using responses from 213 banks, economists with the Kansas City Federal Reserve Bank presented a survey

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Ag lenders are reducing exposure to lending risks by requiring more farm real estate as collateral for large, non-real estate farm loans. —The Editors

Using responses from 213 banks, economists with the Kansas City Federal Reserve Bank presented a survey of Agricultural Credit Conditions covering the first quarter of 2016. A selection of observations by some of these bankers follows:

“Good quality land has still brought a premium at auctions. Marginal soil types have reduced in price or ‘no sold’ at auctions. Cash rents have remained steady.” — Southeast Nebraska

Leveraged farmers are beginning to see their debt load increase and becoming harder to manage.” — Southeast Colorado

Production expenses have not decreased in proportion to decreased market prices.” — Southeast Colorado

Debt repayment on real estate and equipment loans is a big problem.” — Western Missouri

Cow-calf areas have plenty of margin after annual debt service and living costs.” — Southeast Wyoming

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Read the complete report at www.KansasCityFed.org.

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Posted in Agriculture, Bankruptcy, Cattle, Colorado, Farming, Feature, Federal Policy, Great Plains, Kansas, Missouri, Nebraska, New Mexico, Oklahoma, Southwest, West, Wyoming

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