Banker Comments from the Tenth District
Higher recent commodity prices have spurred producers to liquidate existing grain contracts at break-even prices for 2018. – Central Nebraska
Extreme weather conditions and commodity prices continue to adversely affect the financial condition of producers. These conditions are potentially setting up a difficult renewal season this fall. – Central Nebraska
Weather is still the biggest factor in the farm sector. The lack of signed trade agreements still loom like a black cloud on the horizon. – Central Kansas
Good moisture in winter and spring have supported excellent wheat yields and increasing prices for both corn and wheat are a positive for those in the area not impacted by flooding. – Southwestern Kansas
The excessively wet spring weather delayed crop planting and the harsh winter resulted in cattle not putting on weight as normal, both of which are a negative impact to ag borrowers’ income and cash flow. – Northcentral Kansas
Flooding and excessive rain caused delays to wheat harvest and summer crop planting. On the other hand, land prices have increased based on sales in the past three months. – Northern Oklahoma
Some cattle ranchers are choosing to hold on to their herd in anticipation of increased prices which has led to extension of some single pay cattle loans. – Southeastern Oklahoma
Overall the 2019 spring planting season has been a disaster. The weather has prevented farmers from planting corn and what is planted doesn't look very good. – Southwestern Oklahoma
Planting went well and crop conditions also look good. Subsoil moisture is excellent and long range irrigation water availability is the best in years. – Northern Colorado
Farmers had a tough time getting all of their crops in because the fields were too wet and cooler days have also delayed the growth of what was planted. – Northeastern Colorado
Our bank noticed a sharp increase in new loan applications from non-customers looking for new lender relationships and none qualified. All had very high financial stress in their operations and will probably require debt and expense reduction in order to continue operating. – Northeastern Kansas
There was major flooding in our area and ag producers in the direct path of flooding may face struggles this year. Indirectly, there were also delays in crop and livestock sales due to transportation constraints and postponed sales at local salebarns. – Eastern Nebraska
A total of 181 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.