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Ag banker predicting a credit culture shift for farm businesses
An ag banker says he expects a credit culture shift for farm businesses looking at renewals.
Barry Benson, Vice President of Agribusiness Banking with Nebraska-based First National Bank of Omaha, tells Brownfield lower commodity prices have impacted balance sheets.
“Some operators may be looking at lower liquidity, may be looking at increased debt service that would show that profits from this year were not sufficient to be able to make their payment,” he says.
He says grain farmers should prepare for continued tighter margins.
“In today’s age we, especially in soybeans, may need to play a little bit of defense and figure out ways to potentially obtain some upside if prices rebound, but also limit what our downside could be,” he says.
The Federal Reserve lowered interest rates another quarter percent at its December meeting. Benson says he anticipates another 25 to 50 basis point reduction could happen in 2025, depending on market conditions.
AUDIO: Barry Benson, First National Bank of Omaha
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