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Farm Credit system seeing impact of down ag economy

The slumping ag economy is having real world impacts.

Bill Davis, CEO of Oklahoma Ag Credit, told the 123^rd annual convention of the National Farmers Union in Oklahoma City that concerns are mounting across the countryside.

“We haven’t seen default stress in our portfolio generally yet, but we are concerned about the trends that we’re seeing.”  He says, “While farm real estate values remain stable, in some areas we’re beginning to see a slight decline.”

He says the Farm Credit system anticipates working with even more producers as farm incomes continue to suffer.

“FSA loan guarantees, principal deferrals, restructuring of payments, and refinancing are just a few of the tools and tactics that we’ll use to help our producers get through the downturn that may be in front of us,” he says.

Davis says the situation shows the need for a strong farm safety net that better reflects the economic challenges facing the industry.