Lending Down for Q1 of 2017, Adjustments to Financing

April 24, 2017 12:09 PM
 
 

The farm economy is continuing to feel the pressure of lower commodity prices and a tepid outlook for 2017.

The latest lending report from the Kansas City Federal Reserve shows that lending activity is down in the first quarter of 2017, down 16 percent compared to 2016.

As economic conditions remain stagnate, borrowers and lenders are making adjustments to financing.

The Fed report says some borrowers are spending less on farm inputs while lenders have made adjustments to loan terms in recognition of the heightened risk.

Bankers are extending amortizations for most loans, including the maturity period for operating loans.

The maturity period jumped 22 percent from 2016, and are now three months longer than they were in 2010.

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6/23/2017 05:22 AM
 

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Senior PA Dairy Farmer
Westfield, PA
4/25/2017 12:57 PM
 

  Duh! Of course we feel economic "pressure" in "flyover country." Trump hasn't drained any rural ag/dairy "swamps" yet, clear to see from his ill-advised speech in WI picking fights with Canada over processor Grassland's disrupted "MPC" exports. Shame on the President's handlers for putting Mr. Trump in the public eye to carry water for dairy globalists in NMPF, etc. using "dairy farmers" to mask the truth, which is that bad domestic dairy and trade policies cause our dairy farmers' financial crises, not Canadian dairy programs. President Trump was supported by rural citizens ("We The People!") to "drain the swamp.” Decades of federal policies promoted by globalist "free traders” in ag/dairy "Industry" and government--both parties--have put rural America into an economic death spiral that is the worst financial disaster since the "Great Depression" because current centrally-planned "Farm" Bill policies disregard the critical need to allow farmers to cover US "cost of production" before any commodity leaves our farms/ ranches. To hell with "world" prices! We need "American" farm commodity prices! Do you REALLY think consumers want to eat unmarked, no "COOL” putrid JBS beef from Brazil over ours? Our farmers must take control of their socio-economic destiny away from “establishment" fat cat, status-quo, globalist, trans-nationalists on the Ag Committees and in the "commodity" groups and stand up to preserve their private property rights by demanding "cost of production" reform, long-overdue. If farmers delay "cost of production" reform much longer then they can blame themselves for letting DC politicians continue to control their farms, dismantling rural America one "Farm" Bill at a time as they globalize our rural life. Politicians will continue to hang farmers with more nutty "safety nets. Farmers get government "safety nets" as long they allow the feds to keep throwing them off economic cliffs! With "cost of production" rarely should farmers need "lenders."

 
 
Paul
Fort Benton, MT
4/25/2017 09:31 PM
 

  Senior PA is right on!

 
 

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