A number of events and topics are weighing heavy on producers minds. An Ag banker shares why added uncertainty, heading into the new year, is reason for concern.
Shan Hanes, Ag and Rural Bankers Committee Chairman, says farm bankers are nervous about the new year. Hane says a majority of America’s farmers and ranchers expressed concern about cash flows.
“With low commodity prices, it’s hard to make a cash flow work and break even much less profitable,” Hanes said. “That’s a pretty big concern as we’re now moving into renewal season.”
Hanes talks about ways banks can help farmers in the new year.
“We have done some rebalancing in the past. We feel like we’ve got our guys in as best position as we could,” Hane said. “I think now we’re going to start looking at some of the hard numbers and try to revisit rental rates, terms with suppliers. Those are hard conversations to have because those are real dollars.”
Hanes admits, “Having a new farm bill signed into law helps.” However many questions still remain as farmers look forward to the 2019 crop season.