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Some farm expansions happening despite down economy

An agricultural banker says some farm operations are borrowing for expansions despite the down farm economy and higher interest rates.

Roger Sinkula with Nicolet National Bank tells Brownfield much of that expansion is in the dairy sector. “I see a couple of farmers that are expanding their heifer operation or are putting up some buildings for heifer operations or are, depending on where they ship their milk, we’re seeing some expansions to the cow numbers for those milk plants as well.”

Sinkula says the dairy expansions appear to be regional and dependent on where processors are expanding and need more milk. 

He says the expansion in the down economy is a bit of a surprise. “It does surprise me but the cheese demand is still strong out there so a lot of people are still waiting to see what these tariffs are going to bring and how that’s going to affect the exports of the cheese, but overall, the demand for cheese is still strong.”

When asked if farmers and processors are worried about the new tariffs, Sinkula says, “I think everybody is kind of taking the attitude of let’s wait and see what happens here and give it a few months or some time to work itself out through the system.”

Sinkula spoke to Brownfield during the WPS Farm Show in Oshkosh, Wisconsin.

AUDIO: Roger Sinkula with Nicolet National Bank discusses expansion and farm finances with Brownfield’s Larry Lee during the WPS Farm Show.