Farm Credit System

all?Right.

I, I've used the Farm Credit System, you know, over a broad scope of, uh, over things.

Uh, our farm, our personal farm, we use, uh, Farm Credit System for our, our, uh, capital needs and lending and so on.

You know, at CHS, obviously, they use CoBank.

Um, so-

Mm-hmm

... you know, over my career, I've used the total Farm Credit System in all aspects actually, [laughs] so and they're, they're great in that, you know, um, what a great value and benefit for, for agriculture.

Yeah.

I'm lucky to work for a mission-based lender and, um, i- in many, many, many respects, we exist, Capital Farm Credit exists, my job exists for times just like this.

Producers not getting renewed, I view that slightly different is, what do we have to do different and what do they have to do different to make sure they can get renewed? And so it puts a lot of pressure on that relationship for sure, but, but I do think it's an opportunity for, for the Farm Credit system to shine right now.

So let's talk about things that we are trying to do different or things that we're asking our producers to do different to make sure that they get renewed, to make sure that this crop has as good a chance to be successful as possible.

None of it's fun.

And, and I...

It, it impacted, uh, us and banks and everybody.

Some of the little banks that I saw too, and, and, you know, correct me if I'm wrong, the Farm Credit System was all in a better position than commercial lending because of the way y'all get y'all's funding versus the way the, the community banks do.

Because during COVID-19, not only did that yield curve invert, liquidity dried up in the industry, and all of those liquid deposits that they had, and the requirements that they were, that they had in place to maintain those, that cash, they had to go borrow that money at the overnight funds rate, the higher rate, which put a lot of their loans, um, losing money.

From the Western Ag Network, I'm Bob Larson with your agribusiness update.

Well, the farm credit system remains financially sound, but rising credit risk is becoming a concern as farmers continue facing higher expenses.

The Farm Credit Administration Board received an update on agricultural conditions and the system's performance through June 30th.

FCA says the agricultural economy remains pressured by higher costs, although weather and geopolitical supply shocks have created marketing opportunities that could help crop producers' liquidity this fall.