Banker Comments from the Tenth District
Yields on fall crops in 2017 significantly higher, should result in improved cash flow and liquidity even with current prices. – Southcentral Kansas
With low commodity prices we expect most of our farm customers to lose money or at best breakeven. – Southcentral Nebraska
We have seen consecutive "No-Sale" on land auctions. – Northeast Nebraska
Poor commodity prices and very little moisture are going to lead to another difficult renewal season. – Northeast Colorado
Overall the health of our Ag portfolio is healthy with experienced operators. – Southwest Oklahoma
Customers have been adjusting living expenses and slowed purchasing upgrades in machinery and equipment. – Northeast Kansas
Through our area we expect some wonderful yields that will make up for some of the price drops, but it may not be enough for the highly leveraged borrower. – Southeast Nebraska
The cow/calf industry is seeing slightly higher revenues over last year; however, expenses have also increased. Overall financial performance should be steady. – Southeast Wyoming
We have a big concern the current corn and bean prices will not cash flow enough to pay off operating loans as well as make payments on term debt. – Southwest Missouri
Livestock prices are helping to hold heads above water right now. Soybean prices are at break even, but corn prices are below cost of production. – Southeast Kansas
The farming conditions are very challenging as crop prices continue to drift south and working capital is stressed during these times – Northwest Wyoming
A total of 203 banks responded to the Third Quarter Survey of Agricultural Credit Conditions in the Tenth Federal Reserve District—an area that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri. Please refer questions to Nathan Kauffman, Omaha Branch executive or Matt Clark, assistant economist at 1-800-333-1040.
The views expressed in this article are those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System.