Banker Comments from the Tenth District
Grain and cattle prices were down this year causing a loss for some farmers. We will have to term out more losses this year than what we have had to in the past. – Northeastern Colorado
Government payments have made a big impact on the profitability of farm operations. – Southwestern Kansas
Commodity markets are too low. Good farm management practices and marketing are essential to our farm customers. – Northwestern Kansas
If it wasn't for the MFP payments, we would have carryover debt issues on all operating lines of credit. – Central Kansas
Government payments represented the largest share of positive net income and the majority of operations would likely have negative margins in their absence. – Northwestern Missouri
The wet weather is still affecting the farmers getting finished with harvest into December. Farmers are working hard on lowering their input costs with prices not looking too promising in the future. - Southwestern Missouri
The MFP kept the balance sheets in check in 2019. - Southeastern Nebraska
In addition to low commodity markets negatively impacting local producers, continued weather concerns are also still affecting our cattle producers (ex. low preg rates, lower hay production). – Central Nebraska
The outlook in our area all depends on commodity prices and oil and gas income. – Central Oklahoma
The overall decrease in cattle prices during 2019 is probably the number one concern in this area for our customer base. – Southeastern Oklahoma
Late planting this spring and cold, wet weather this fall led to pretty significant crop losses for a lot of local farmers. Sugar beet producers have suffered another huge setback, with as much as 70 percent of the crop left in the ground. – Northern Wyoming
Young and beginning producers continue to lack capital needed to enter ag production and returns are not sufficient to support debt repayment and family living expenses without off farm income. – Central Wyoming
A total of 174 banks responded to the Fourth 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 Cortney Cowley, economist or Ty Kreitman, 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.