Farm Lending Officials Say Farmers Should Weather Current Financial Storm

U.S. farmers should be able to weather another year of disappointing crop prices, but there could be more financial pain for farmers if the trade tensions with China are not resolved, according to officials that represent institutions that provide financing to farmers. U.S. agriculture remains on more-solid financial footing than it did during the 1980s farm crisis, but officials sounded warnings about the future. “Our message is that this is very serious,” Farm Credit Council President Todd Van Hoose said at a briefing with reporters. “We are seeing four years of accumulated problems hit home ... They have now weathered it for four straight years and a lot of producers are coming to the end of their ability to weather it.” The relatively low level of debt relative to assets and equity and real estate values holding up better than expected are two factors helping farmers in the current climate, according to Mark Jensen, CEO of Frontier Farm Credit and Farm Credit Services of America. "A high percentage of our customers are supportive of the long-term trade agreements putting US in the best position it could ... but everyone wants to see those completed sooner versus later,” he predicted. “Do not be surprised if you hear more percentage of producers that are really struggling.” As for USDA temporarily reopening FSA offices for limited activities over three days, Van Hoose said it would provide "a little bit of relief." He noted this is currently a time when ag lending agreements are renewed and the group things "it is very important that we get those FSA offices open permanently so we can get business done."