There are many unknowns, as Midwest farmers move into planting season.
One is the need for capital to operate for another year. It is no secret that agricultural profitability has been down for several years and lenders are being called on to supply more money to keep farmers going.
Higher limits are now available for U.S. Department of Agriculture’s (USDA) farm loans, which will help producers with ever increasing capital needs.
Richard Fordyce, Farm Service Agency (FSA) Administrator in Washington D.C., says the 2018 Farm Bill increased amounts producers can borrow for farm operating loans, assisting producers in paying for expenses like machinery, equipment, seed, livestock and feed.
He says the Farm Bill also raised farm ownership loan caps, which help producers become owner-operators of family farms and can benefit farmers looking to improve and expand current operations.
AUDIO: Profit Matters 4-17-19