“Tough conversations are ahead": Ag lender warns as the capital shrinks

Bankers from across the country are warning tough conversations are ahead.

In a Senate Ag Committee hearing this week, one loan officer testified capital is running out across farm country.

“What we’re seeing is continued significant earned network losses across the board. Talking to lenders down in that area, and as well as what I’m seeing in the Midwest, is certain parts of the Southeast part of the country are on year 2-3, if not 4, of losses and having two bankers are starting to work out plans, and having uncomfortable conversations on ‘what is the end game here?’ When I look at the Midwest coming through renewal season, we were able to get all of our renewals completed this year, but those conversations are ‘what is the burn rate of working capital?’ It’s creeping up on us much faster,” said Caleb Hopkins with First Dakota National Bank.

While there could be a rocky road ahead, producer sentiment is up. Economists with Purdue University say the ag economy barometer rose 11 points last month. However, the report showed little change in how producers feel about future prospects.

Related Stories
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
Export strength is concentrated in corn and wheat, while soybeans and sorghum lag, keeping basis and logistics dynamics highly commodity-specific into late fall.
Pasture, Rangeland and Forage (PRF) interval selection—not just participation—drives protection levels as rainfall patterns become less predictable across the South.
A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.
ARC/PLC, marketing loans, and crop insurance each matter at different points in the price cycle — and the new Farm Bill strengthens the balance among them.
With port fees now lifted, economists believe that could help ease tensions. However, American Farm Bureau Federation (AFBF) economist Faith Parum said trade deals with smaller Asian countries are helping stabilize the ag economy.

LATEST STORIES BY THIS AUTHOR:

David Klein with the American Society of Farm Managers and Rural Appraisers (ASFMRA) shares an end-of-harvest update and a peek at the farmland market in Central Illinois.
Host of RealAg Radio Shaun Haney discusses how the proposed reductions to agriculture programs in Canada’s new budget could affect research and support programs that farmers need.
Highly Pathogenic Avian Flu (HPAI) cases are rising. In the last week, seven commercial turkey, duck, and egg layer flocks were culled across five Midwest states and California.
A SCOTUS ruling on Trump’s tariffs could have long-term implications on the authority of future administrations to control U.S. trade policy, according to RFD-TV legal expert Roger McEowen.
The Sheinbaum–Rollins meeting signals progress, but the focus remains on fully containing screwworm before cross-border movement resumes.