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Low commodity prices push farmers to weigh borrowing options carefully

A senior commercial lending manager with Wilbur-Ellis says smart financial planning has never been more important for farmers.

Shane Prim says low commodity prices, volatile markets, tighter liquidity, and shifting bank practices mean farmers need to weigh their borrowing options more carefully.

“We really look at that from kind of a three-pronged approach through competitive pricing, flexibility, and simplicity,” he says.

He tells Brownfield it’s important producers consider repayment timing when comparing operating loans.

“When they really take a look at what their income stream is, they can try to match when they have to repay their loan based on their income so that it takes that stressor off the table,” he says.

He says taking advantage of low-interest opportunities can also help the bottom line.

“They may have an operating line with their bank, and there might be other areas like input financing where they may be able to finance some of their inputs at a reasonable rate and be able to kind of tailor make that to their operation,” he says.

Prim says while interest rates have eased slightly, he believes the credit market will remain tight in 2026 if commodity prices remain depressed, so farmers will likely need to consider all financing options.

AUDIO: Shane Prim – Wilbur-Ellis