Minnesota Governor Tim Walz has requested a secretarial disaster designation for a dozen counties in the northwest corner of the state. Walz told the Red River Farm Network that the crop losses are a significant issue this fall, but the problem will likely extend into next spring. “We are going to see flooding, that’s two seasons back to back where it will be very challenging.” The current farm situation differs from the 1980s, but Walz recognizes many farmers have refinanced operating loans for multiple years. Will lenders be asked to consider loan forbearance? “We have not officially asked that question,” says Walz. “A group of ag lenders showed me that on some farms farmers aren’t going to breakeven at $5.10 corn; others can make it at $2.65. This year, that band of those who can make it is getting narrower and more difficult.” Walz spoke at the Minnesota Ag & Food Summit Thursday in Minneapolis.
