Credit Tightening in Agricultural Loans - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

Credit Tightening in Agricultural Loans

By Camaron Abundes   
NewsWest 9

WEST TEXAS- The credit crunch may force local farmers and ranchers to tighten their already snug belts.

"It's depressing it's not a lot of good news," Rancher Guy Bell at the annual Beef Expo, said. "Not everybody can survive it."

Jason Henderson, Vice President and Branch Executive of the Federal Reserve Bank of Kansas City, Omaha Branch gave the forecast to a crowd of ranchers on Tuesday.

"Thinner profit margins in 2009," he said. Henderson says land values will dip slightly, while banks ask for more collateral of clients to offset risks in the market.

"It is a gamble every time a farmer plants a crop, and it's a gamble when he comes to harvest a crop and that's what he and the banker are trying to sort out when they decide to loan him money," Jim Brueggen with the New Mexico Branch of the USDA, said.

Brueggen says the number of small farms fell last year.

"The credit issue is huge right now," he said.

Brueggen says the issue of keeping farmers in business is deeper than the growing recession.

"I think food is a security issue," Brueggen said. "I think the day that we're dependent on another country for our food, we're in real trouble."

While profits are expected to fall in 2009 the cost of fertilizer and equipment continue to grow. Energy costs are yet another unknown in a business based on the biggest unknown of all, the weather.

"Your whole livelihood is dealt around moisture," Bell said.

Henderson tells NewsWest 9, it's important for everyone to start saving more and paying down their debt.

"I think in 2009 there is so much uncertainty any forward outlook is more of a guess," Henderson said.

  • NewsMore>>

  • Trump adviser says 'nobody likes' family separation policy

    Trump adviser says 'nobody likes' family separation policy

    Sunday, June 17 2018 10:49 AM EDT2018-06-17 14:49:42 GMT
    Sunday, June 17 2018 7:10 PM EDT2018-06-17 23:10:43 GMT
    (Butch Comegys/The Times-Tribune via AP). U.S. Attorney General Jeff Sessions speaks on immigration policy and law enforcement actions at Lackawanna College in downtown Scranton, Pa., on Friday, June 15, 2018.(Butch Comegys/The Times-Tribune via AP). U.S. Attorney General Jeff Sessions speaks on immigration policy and law enforcement actions at Lackawanna College in downtown Scranton, Pa., on Friday, June 15, 2018.

    A White House adviser is distancing the Trump administration from responsibility for a jump in the number of migrant children being separated from their parents by authorities at the U.S.-Mexico border.

    A White House adviser is distancing the Trump administration from responsibility for a jump in the number of migrant children being separated from their parents by authorities at the U.S.-Mexico border.

  • 17 shot at New Jersey art festival; prosecutor says it was gang related

    17 shot at New Jersey art festival; prosecutor says it was gang related

    Sunday, June 17 2018 8:22 AM EDT2018-06-17 12:22:51 GMT
    Sunday, June 17 2018 6:35 PM EDT2018-06-17 22:35:34 GMT

    Police say that one person is dead and multiple people injured following a shooting at a festival in New Jersey.

    Police say that one person is dead and multiple people injured following a shooting at a festival in New Jersey.

  • A trade war looms as Trump slaps tariffs on Chinese imports

    A trade war looms as Trump slaps tariffs on Chinese imports

    Friday, June 15 2018 12:38 AM EDT2018-06-15 04:38:06 GMT
    Sunday, June 17 2018 5:10 PM EDT2018-06-17 21:10:16 GMT
    (Thomas Peter/Pool Photo via AP, File). FILE - In this Nov. 9, 2017, file photo, U.S. President Donald Trump China's President Xi Jinping arrive for the state dinner with the first ladies at the Great Hall of the People in Beijing, China. Trump is clos...(Thomas Peter/Pool Photo via AP, File). FILE - In this Nov. 9, 2017, file photo, U.S. President Donald Trump China's President Xi Jinping arrive for the state dinner with the first ladies at the Great Hall of the People in Beijing, China. Trump is clos...

    President Donald Trump has approved a plan to impose tariffs on tens of billions of dollars of Chinese goods.

    President Donald Trump has approved a plan to impose tariffs on tens of billions of dollars of Chinese goods.

Powered by Frankly