Banker Comments from the Tenth District
“Dry weather will significantly impact wheat yields, and increase irrigation costs on fall crops.” - Southwest Kansas
“We are in the middle of a drought and in addition to that, low commodity prices for an extended time have hurt working capital and requires more time and effort to get loans re-worked” - Western Kansas
“Most grain and livestock prices are lower than a year ago, but recent moisture may mean better crop yields on grain crops and livestock prices are expected to rebound back by the fall or winter season, when many of our borrowers sell.” – Central Kansas
“Farmers simply cannot be successful at current grain prices and input costs. Most have some form of off farm income” – Northwest Missouri
“It appears that the CFAP will assist the farmers quite a bit and help some people to make some loans until harvest time rolls around.” – Southwest Missouri
“The slowdown of meat processing facilities due to COVID 19 created a backlog of slaughter animals in our area” – Northcentral Nebraska
“There is a poor outlook on commodity prices, but customers are using government programs to assist in the near term.” – Central Nebraska
“Price support to livestock feeders and crop producers are helpful but may not be enough to completely offset losses for some.” – Western Nebraska
“The biggest impact in our area is lower cattle prices and most producers are operating at a loss currently.” – Southeast Oklahoma
“Downward pressure on commodity prices are having some impact on local area producers. Yields have proven to be a little better than expected, which mitigated the lower prices some.” – Western Oklahoma
“The biggest concern in our area looking forward is the condition of cattle markets” – Northern Wyoming
“Drought conditions have limited the amount of hay in our area and we also expect the price that livestock producers receive for calves this fall to be well below a year ago” – Eastern Wyoming
“The PPP was less impactful for borrowers that didn’t qualify on the basis of some of the eligibility requirements” – Northcentral Colorado
A total of 178 banks responded to the Second 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.