Minnesota Corn Growers Association President Dana Allen-Tully kicked off the House Agriculture Committee testimony about the farm economy. “Unless conditions change, we’re facing a perfect storm though I don’t think it will be fully understood until early next year when farmers are unable to secure loans because they can’t cash flow,” said Allen-Tully. “Plummeting crop prices, high cost of production, doubling interest rates, natural disasters and tightening credit are some of the key culprits. Working capital is fast depleting. John Deere’s layoff of thousands of workers is a canary in the coal mine.” Allen-Tully said a supplemental disaster assistance bill may be necessary. A representative of the American Bankers Association testified his organization supports changes to the Farm Service Agency lending programs to authorize larger loans.
