Only 57-percent of farm operations will be profitable in 2019, according to a survey of 450 loan officers, managers and executives released by the American Bankers Association and Farmer Mac, the nation’s secondary market for agricultural credit.
When the survey was conducted between August and September, 82-percent of respondents said that their customers’ profits were declining. Also Chapter 12 bankruptcies are increasing.
Agricultural bankers put this in perspective.
Lenders expect 56-percent of their borrowers to remain profitable through 2020. Dairy, grains, and cattle were sectors that concerned lenders the most, while lenders reported less concern for the swine, poultry, and vegetable sectors.
AUDIO: Profit Matters 11-13-19