Tighter margins force better management practices

Jeff Swanhorst, AgriBank, '12 NAFB Trade Talk

An ag lending specialist says the downturn in commodity prices has put farmers in what he calls an agricultural efficiency cycle.  Jeff Swanhorst, chief credit officer for AgriBank says tighter margins caused farmers to keep a closer eye on their budgets.  “Management of a farm operation is going to become much more critical and much more important than what it’s been the last 3-5 years,” he says.  “Because of this tight margin environment.”

He tells Brownfield the Farm Credit System, which AgriBank is part of, has one purpose, and that is financing agriculture.  “Our lending folks are spending a lot of time with producers, depending on their situation, to work through scenarios and changes in structures so that, as much as possible, we can be part of any solution,” he says.  “Helping farmers to bring their cost structures in line.”

Which, he adds, will help to keep farming operations successful through times of tighter margins and lower incomes.

The 15-state AgriBank District covers America’s heartland from Wyoming to Ohio and Minnesota to Arkansas and covers over 40 percent of all US farmland and more than half of US cropland.


Add Comment

Your email address will not be published.


Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!