Heading into 2019, both farmers and agricultural bankers are facing uncertainties. Those uncertainties were discussed at the 2018 National Agricultural Bankers Conference in Omaha. Moving into renewal season, the biggest concern is cash flow. “It’s hard to make something break even, much less profitable, with low commodity prices,” says Shan Hanes, chairman of the American Bankers Association Agricultural and Rural Bankers Committee. “We have to start looking at some of the hard numbers such as rental rates and terms with suppliers.” Adding to the challenges of gearing up for 2019 is the lack of a farm bill. “Producers are trying to make planting decisions and pre-purchase inputs for next year. Without the confidence of protections in the bill, they’re having a hard time deciding what crops to plant.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.