There has been talk about much uncertainty in the Ag industry. Trade, politics, and weather really took their toll this year. No one area of concern for farmers is more frightening than securing financing for next year. It is a concern shared by bankers on the other side of the table.
Ag lenders have been worried about making loans to producers for 2019. There has been much uncertainty. It hasn?t been for a lack of desire to support American farmers, it has been concerns over farmers being able to pay back their loans. American Bankers Association Vice President Brittany Kleinpaste says the while there has been a slight downturn, the situation may not be as dire as feared.
Kleinpaste says the hardest part about making these loans will be determining profitability for the operation. While the farm may not be going bankrupt, at least half of operations look to not be profitable for the coming year. She says that doesn?t mean the outlook is terrible, just that we could be in for a tough year.
Much can be done to shore up lending confidence with securing trade markets and finalizing ag legislation to provide economic certainty in the Ag industry. Hopefully, a quickly passed Farm Bill and continued trade talks with China can help alleviate the situation.
