Greg Cole says many of the lenders who became active in making farm loans in the good times are still there, but they may face some challenges of their own if the economic stress in agriculture continues.
“It’s easy to make farm loans in the good times, but when times become stressful like they are now, there tends to be a sorting out,” said Cole, a speaker at this year’s Mid-South Agricultural and Environmental Law Conference in Memphis, Tenn.
Cole said farmers have more options, ranging from traditional lenders such as the Farm Credit Service institutions and commercial banks to equipment dealer financing and input supplier programs that they didn’t have during the last significant agricultural recession, which occurred through most of the 1980s.
But those may become more limited if dealers have to begin repossessing equipment and working through payment delinquencies.
If they haven’t already done so, Cole suggests farmer borrowers talk to their lenders about rebalancing their loans in light of the steep declines in commodity prices of the last 24 months.
For more information on AgHeritage Farm Credit Services, visit https://www.agheritagefcs.com/.