USDA, farm loan program need update to be ready for the future
There has been much focus recently on shrinking the size of, and increasing the efficiency of, the federal workforce. USDA will not be immune from these painful discussions. [Continue]
There has been much focus recently on shrinking the size of, and increasing the efficiency of, the federal workforce. USDA will not be immune from these painful discussions. [Continue]
This spring the Ag Press has been filled with breathless articles about the future direction of commodity prices. “Wheat Hits 14-Year High!” and “How High Can Corn Prices Go?” are two of our favorites. The sad fact is that a war in Europe has historically led to record prices for U.S. commodities (see 1914 and 1939). [Continue]
Every Federal Reserve district bank is reporting hefty increases in farmland prices. Ultra-low interest rates are helping drive land prices. Is it too early to use the bubble word? And it isn’t just land prices; if you lend money to farmers and ranchers, you know there has been an explosion in prices for used machinery and all input costs. How long do these artificially low rates last, and what happens to asset values when rates start to climb? [Continue]
“Ag banking is different.” How many times have you heard that one? Or, if you are an ag banker, how many of you have used that argument in loan committee as the discussion goes on and on about the viability of a particular credit? Is ag lending really different, and if so how? [Continue]
Bankers are in a unique situation: They want their customers to be able to take advantage of low rates, but as responsible advisors to their farm and ranch customers, they don’t want their customers to plunge into debt too deeply just because rates are low. [Continue]