The head of a Midwestern Farm Credit organizations says he’s
preparing for another year of negative margins.
“Shallow, negative loses, but over a long period of time, is really taking a severe toll and it’s like nothing I’ve ever experienced.”
GreenStone Farm Credit Services CEO Dave Armstrong tells Brownfield
they expect producers in 2019 to continue to lose equity and working capital
for the fourth year.
“We’re extending payments in some cases, we’re putting some operations on interest only and foregoing some principle repayment. In some dairy accounts, we’re going on three or four years in some cases of interest only.”
In 2018, interest rates rose by one percent which CoBank’s Tanner Ehmke tells Brownfield made up a significant portion of rising costs for farmers.
Continue reading Credit organizations preparing for more red at Brownfield Ag News.
