From sticky input prices to falling commodity output prices, U.S. farmers are working their way through some of the most difficult financial times in recent memory. Purdue’s Ag Economy Barometer showed that after a slight July uptick, producer sentiment has turned decidedly lower. As we noted in a previous post this summer banker attitudes about agricultural credit conditions were turning as negative as they had been in some time. We thought that now would be a good time look at credit conditions. Continue reading →
Last week I thought that it would be a good time to look at farm sector financial conditions, particularly some ratios of repayment capacity. My timing could have been a little better because only a couple days after I wrote the post, USDA made an update to its farm sector income forecast. Usually you can count on these updates to be relatively minor. Not this time.