American farmers and the banks that serve them have seen good years. Unfortunately, there are signs that the good times may be coming to an end.
With commodity prices expected to fall, many agricultural lenders anticipate their clients could have trouble making loan payments this year and Farm banks are bracing for a tough year ahead — and hoping that it’s no more than a one-year dip.
Net farm income across the country is expected to drop 26% this year, to about $96 billion, according toprojections from the USDA. The projections are based on laregely on falling crop prices, particularly corn, wheat and soybeans — three cornerstone crops in the national economy that the USDA predicts will fall back close to their 2010 prices.