The number of Minnesota farmers defaulting on agricultural loans has swelled dramatically since 2008, reaching levels not seen since the 1980s farm crisis permanently altered the state's rural economy. Lenders have sent farmers more than 3,670 default notices in the past 12 months, according to the University of Minnesota's Farmer-Lender Mediation Program. That's up 83 percent in just two years...More at the link.
It's not only small family farms, she said: "It's everything." Most of the default notices are coming from small-town banks, where farmers often turn for at least some of their borrowing...
Jim Anderson, a farm financial analyst in Rochester who works with the mediation program, said he doesn't think banks are the bad guys in the current situation. Many rural banks have really worked with farmers in trouble. But in an age of intense bank scrutiny, some loans just smell too sour, he said...
"You could make the case that notices are up because regulators are taking a more aggressive stance on lenders taking action against delinquent borrowers," MacKay said. "The real question is: Is that an indicator of more challenging times or more aggressive banker management of farm credits?"
04 October 2010
Economic crisis in farm country
Excerpts from an article at the StarTribune:
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This breaks my heart. I live in a rural area and watch how hard our farmers work on a daily basis in all kinds of weather. I think farming is one of the most honorable of all professions. Who do people think is going to grow the food we eat? Bankers?
ReplyDeleteYes, bankers, in a way. Where do the funds come from to help farmers buy land, or equipment, or whatever it may be to help them run their farm? Banks.
ReplyDeleteAnd why the demonizing of bankers? Farmers are selling a product, just like every other business. Do you think people are going to stop demanding food?
It really says something about the poor structure of our economic system when the people who provide the nation's food are broke.
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