Banker Comments from the Tenth District
“Cattle futures have collapsed in the last two weeks due to the coronavirus scare and will have major implications on working capital in the coming months.” - Southwest Kansas
“Farmer finances were stable for the 2019 production year, but would have not maintained that position without the MFP program.” - Northeast Kansas
“It was going to be a tough year ahead even before the coronavirus.” – Eastern Kansas
“The effects of coronavirus are just starting to come into play, but I can't determine how severe that will be.” – Central Missouri
“Our main concern right now is the pandemic sweeping the nation and wrecking the markets.” - Northwest Missouri
"Economic conditions could drastically change as a result of the coronavirus, especially crop and livestock markets. However, there could be positive impacts as second quarter approaches if the virus impact diminishes and markets correct."- Northeast Nebraska
“In general, farm income is lower this quarter due primarily to a weaker cattle market and higher operating expenses and the pandemic will add further pressure in the next quarter.” - Southeast Oklahoma
“With the large drop in cattle prices, some operators were forced to hold stocker cattle longer than projected and some customers don’t want to sell because of low prices.” – Northern Oklahoma
“Deterioration was continuing with our borrowers due to adverse conditions in recent years, but COVID-19 will add further complications.” - Central Nebraska
“We are anticipating stress due to decreases in all commodity prices across the board. The price of oil will decrease input prices for farmers and ranchers, but that will also have an impact on the overall economy in our area.” - Eastern Wyoming
“The issues surrounding sugar beets has greatly hindered the cash flow and repayment ability of some of our borrowers. The rest of our farmers cash flowed well in 2019 with the ability to sell corn silage and alfalfa hay at above average prices.” - Northern Colorado
“Commodity prices have remained low and farm income has been on the decline. However, farm real estate has benefited from strong demand.” - Northern Wyoming
A total of 159 banks responded to the First 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, 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.