In a joint letter yesterday, 38 state bankers associations urged congressional leaders to include meaningful economic assistance to U.S. farmers in a proposed continuing resolution to keep the federal government funded through March. “Agricultural producers are weathering the impact of multiple disasters and a severe downturn in the agricultural economy, and it is imperative that Congress act,” the associations said.
The groups pointed to the American Banker Association’s and Farmer Mac’s annual Ag Lender Survey, which found that borrow liquidity and farm income were the top concerns for ag lenders. Those same lenders expect only 58% of borrowers will remain profitable this year, compared to 78% last year.
“Agricultural bankers have a unique position to view the true financial stress of producers as they work through operating loan renewals for next year,” the associations said. “The survey shows what bankers from across the country have been saying — working capital has evaporated. The most vulnerable growers are also our young and beginning farmers — our next generation of producers who will provide for our food security.”
