The farm financial situation reflects a clear divide between the haves and the have-nots. Bell Bank’s Director of Agribusiness Development, Lynn Paulson, is seeing dramatic differences from one type of operation to the next. “You’ve got row crop grain farmers that are struggling a little bit, and your protein sector, your cattle, your cow-calf, your swine, are doing relatively well,” said Paulson. “I tell folks both the row crop guys and the cattle guys are drinking whiskey, but for entirely different reasons.” Paulson views the $12 billion Farmer Bridge Assistance program as a band-aid solution, but it doesn’t address the underlying issue. With the challenges in the grain sector, farmers are taking out larger loans or converting operating lines of credit into longer-term debt. Paulson said most ag lenders are taking a longer-view approach.
