A 1980s bust seems unlikely, but cash flow is becoming a more significant concern and farm consolidation could intensify as some producers face intensifying financial stress, according to Nathan Kauffman, assistant vice president of the Omaha branch of the Federal Reserve Bank.
The National Agricultural Bankers Conference last week by the American Bankers Association brought forth the concerns of the banking industry heading into 2016.
While at the Kansas City, Missouri conference, bankers say farmers have enough reserves and good enough credit ratings to make it through this year, even though commodity prices are low.
However, 2016 will be the year to see how the future looks, according to the Hagstrom Report.
Bankers did note some relief in cropland values, as they have pulled back somewhat.
However, ranchland values have continued rising.
The bankers reported they have seen an increase in the request for loans greater than $100,000 this year.
