This year’s drought has had some devastating consequences. But, Farm Credit Services of America President and Chief Executive Officer Doug Stark says there is a positive side when it comes to the safety net crop producers have through crop insurance. Stark says between the crop that farmers did produce, higher prices and a strong crop insurance program, most producers are coming through the drought in good financial shape.
Stark says that unfortunately though, crop insurance doesn’t cover all producers. For example, livestock producers have taken a hit because of the shorter crop with higher feed costs. But Stark says they are still coming through the situation financially well.
Another growing concern across farm country this year has been farmland prices. Stark says fortunately, on the farm side of things, producers have the equity and cash to put into land. Stark says producers are being very responsible, even though they are paying higher prices for land.
Also, Stark says that agriculture is benefiting from the feds pushing down interest rates to stimulate the economy.
With drought being a key issue in agriculture, Stark says locking in interest rates and reserving some working capital are important…
Stark says the Farm Credit system is in good shape and ready to help producers deal with the many situations coming their way.