Helping Lenders and Farmers in the 2020 Ag Loan Renewal Season
As stated in a recent newsletter email, there is no sugarcoating how difficult this 2020 to 2021 farm loan renewal season will be for some farmers. Iron Comps is organizing a discussion with farmers, lenders, and ag business managers. If you would like to be included in this discussion, or submit questions, please let us know by emailing Andy at ACampbell@TractorZoom.com
If you didn't catch some of the troubling indicators in the newsletter, let me reiterate here:
- In a presentation in late August, Illinois economists predicted that their state's farmers may have a record corn crop and still lose $3 an acre on that crop!
- Overall index advanced to a weak level and remained below pre-COVID-19 levels.
- Approximately 45.8% of bank CEOs with ethanol plants in their area reported temporary shutdowns. The remaining 54.2% reported ethanol production expanding at a slow pace.
- More than three of four bankers reported negative COVID-19 economic impacts on their local economy.
- Approximately one of six bank CEOs expects farm loan defaults to climb by an average of 15% over the next 12 months.
- On average, bankers estimated that farm loan defaults would rise by 5.3% over the next 12 months. This is up slightly from 5% recorded last month, and 4.8% registered one year ago.
- On top of that, the same survey reported 38% percent fewer visits into rural banks.
If your farmer's business is stressed, and they are unwilling or unable to visit you, how can you best reach out and help them?
Again, if you would like to be notified of this information as it develops, email Andy at ACampbell@TractorZoom.com
We will be posting more information and webinar signups here on this page.