Trendspotting by Ag Lenders
January 27, 2020
A behind-the-desk perspective on farm finances
For 2020, lenders expect 56% of their agricultural borrowers to remain profitable through 2020. That's according to a 2019 report from Farmer Mac and the American Bankers Association, which surveyed 450 loan officers, managers and executives.
What is pushing some farmers into the black and others into the red? Risk management, grain marketing, business acumen and production results, lenders report.
“Depending upon how a producer did on marketing, 20% to 25% of farmers in our area will be better off in 2019 than they were in 2017 or 2018,” says Alan Hoskins, CEO of American Farm Mortgage. “It ties directly to their ability to control risk management.”