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U.S. NEWSWednesday 2 December

American Living:

Demand for farm loans surges amid low crop, cattle prices

ROXANA HEGEMAN past president of Kansas current run on loans will be row any money for the farm ports.
Associated Press Bankers Association’s Ag anything like the farm cred- between 2012 and 2014. “Most of what we are hear-
WICHITA, Kan. (AP) — The Bankers Division. Yet, crop it crisis of the 1980s, when “Everybody is kind of taking ing out there is that farmers
nation’s net farm income prices are not high enough those who survived the sig- a step backward with these and the banks are in good
is the lowest since 2002, for farmers to make pay- nificant year-to-year losses low commodity prices,” he shape to be able to weath-
and with another year of ments on equipment loans were without large debts to said. “In fact, it might be er any potential downturn,”
low commodity prices, de- — or even to get paid for repay. more than a step — it might said Steve Apodaca, vice
mand for agriculture loans their own labor. Farmer Tom Giessel had to be kind of a tumble back- president of the Washing-
ward.” ton, D.C.-based American
Lester Reimer harvests wheat on his farm near Lebo, Kansas. The nation’s net farm income is the U.S. farm debt is forecast Bankers Association’s Cen-
lowest since 2002, and with another year of low commodity prices, demand for agriculture loans to increase 6.3 percent in ter for Agricultural and Ru-
is surging as farmers struggle to make ends meet. 2015, a recent U.S. Agri- ral Banking.
culture Department’s Eco- The USDA’s Farm Service
(AP Photo/Orlin Wagner) nomic Research Service re- Agency saw demand for
port showed. At the same loans across the nation
is surging as farmers strug- Agricultural lenders say borrow just to finish out this time, net income has plum- soar over two from nearly
gle to make ends meet. they are seeing people season at his western Kan- meted by a staggering 55 $4 billion in 2013 to more
Today’s grain prices will who had operating loans sas farm where he grows percent since 2013 and than $5.6 billion in 2015. De-
bring in enough to pay for requesting larger ones, and wheat, corn and sorghum. is forecast to be $55.9 bil- linquency rates nationwide
basic operating costs like some who had operated Not so long ago, commod- lion this year — the lowest were around 1 percent,
fertilizer, seed and land with cash are borrowing ity prices were so high that since 2002. The report cites according to FSA data.
rent, said Troy Soukup, the money. But it’s unlikely the Giessel didn’t have to bor- depressed crop and cattle Lenders credit the low de-
prices as the main reasons linquency rates in part to
for the decline. banks, government lend-
It’s the latest in a boom- ers and some agricultural
and-bust cycle as old as programs that help stretch
farming. A widespread out repayment periods un-
drought that began in 2010 til prices come up again.
in the south and spread Some lenders also are re-
across the Midwest before structuring payments on
peaking in 2012 diminished some older loans for equip-
stockpiles of grain, but was ment or land to give farm-
followed by a renaissance ers more flexibility, accord-
fueled by a rare combina- ing to Soukup, who’s also a
tion of high crop yields and banker.
prices. As more grain crops But the longer commodity
were grown, the resulting prices stay at this level, the
glut caused a sharp fall in more difficult it will be to do
prices these past two years, that long-term.q
aggravated by weak ex-

Monsanto pledges to be carbon neutral by 2021

JIM SALTER ing carbon to zero. Climate “Rather than being the ing,” such as stricter emis- who use Monsanto seeds
Associated Press change is one of the most problem, I think there’s a sions control, conserving and pesticides. The com-
ST. LOUIS (AP) — Monsanto vital issues facing human- growing realization they energy at offices, using pany is developing an in-
Co. plans to make its op- ity, Monsanto’s Hugh Grant can be a big part of the more fuel-efficient vehicles. centives program to en-
erations carbon neutral said in an interview ahead solution.” Monsanto’s an- The company also pledges courage environmentally
by 2021, in part by work- of the company’s an- nouncement comes as within its seed production friendly production meth-
ing with farmers who use its nouncement Tuesday, and world leaders gather in Par- operations to reduce its ods — cover crops and
products to help them re- an “untold story” is the ag- is for two weeks of negotia- carbon footprint through conservation tillage chief
duce carbon emissions, the ricultural industry’s effort to tions to finalize a sweeping breeding, plant biotechnol- among them — that allow
company’s CEO told The address the issue. global agreement to re- ogy, conservation tillage the soil to absorb and hold
Associated Press. Farmers “have an oppor- duce carbon emissions. and use of cover crops. as much or more green-
To be carbon neutral, Mon- tunity and a part to play Grant said part of St. Louis- A key component of the house gases than are emit-
santo must reduce its net in mitigation around cli- based Monsanto’s effort is plan calls for working with ted in corn and soybean
emission of climate-chang- mate change,” Grant said. basic “good housekeep- the thousands of farmers farming.q