Leave Me A Loan

It seems as if the shadow of 2008 continues to loom large over the U.S. economy. Just as the general economic climate seemed to be improving, the debt ceiling debate and country credit rating downgrade have seemingly sucked all the financial stability out of the stock market and are threatening to derail any real growth through the rest of 2011.

As for the world of agriculture, things don’t look near as bleak. Crop prices are up, and with flooding in parts of the Midwest and drought in parts of the South expected to keep harvests low, these are anticipated to remain high for the foreseeable future. Likewise, ag equipment and crop input sales remain steady based upon the early data from our CropLife 100 report and the buzz at this summer’s trade shows.

However, it’s doubtful the current health of the ag economy will remain completely unaffected by the nation’s overall economic slowdown. If I had to guess, I would keep an eye on the banking industry and its willingness (or lack thereof) to extend loans to grower-customers, ag retailers and smaller ag-related companies.

We all remember that this sector of the industry virtually ground to a halt during the economic crisis of 2008. Even with low debt and decent crop prices, banks were reluctant to loan funds to anyone in the ag market (and anyone else, for that matter). As economic fortunes again dry up on Wall Street, you could easily see this kind of scenario playing out once more during the fall. And this situation is made even more precarious by the recent merger of ag banks U.S. AgBank and CoBank, reducing the number of loan institutions in the Farm Credit System from five to four.

Hopefully, I’m wrong about this and the problems of the general economy won’t spill over into the vibrant world of agriculture. But it probably wouldn’t hurt companies that do business in the marketplace to have some Plan Bs and Cs in the works just in case their bankers decide to hole up in their financial bunkers as they did back in 2008.

Leave a Reply

Eric Sfiligoj Stories

Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Eric SfiligojReasons For Hope In Commodity Prices
May 2, 2016
For many months now, the doomsayers have ruled the day in agriculture. Too much supply with too little demand would Read More
Eric SfiligojMissing The Family Ties In Agriculture
April 25, 2016
By its nature, the agriculture market is cyclical. Up and down cycles come and go with a regular pattern. For Read More
Eric SfiligojBiotech Corn Drop More Economics Vs. Consumer Rejection
April 18, 2016
Since their introduction into the agricultural marketplace, biotech crops has steadily grown in acreage in the countries of the world Read More
Trending Articles
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
Aerial Drone
Precision AgA Deeper Dive Into The Future Of Precision Ag
May 9, 2016
For about two decades now, through the good and the bad times, the ups and the downs inherent in agriculture, Read More
Palmer amaranth in soybean stubble
HerbicidesWSSA: Billions In Potential Economic Losses From Uncontrolled Weeds
May 4, 2016
What losses would corn and soybean growers experience if they were forced to eliminate herbicides and other control techniques from Read More
Eric SfiligojReasons For Hope In Commodity Prices
May 2, 2016
For many months now, the doomsayers have ruled the day in agriculture. Too much supply with too little demand would Read More
Eric SfiligojMissing The Family Ties In Agriculture
April 25, 2016
By its nature, the agriculture market is cyclical. Up and down cycles come and go with a regular pattern. For Read More
HerbicidesHerbicide Resistance In Waterhemp Continues To Grow
April 22, 2016
Twenty-five years ago, waterhemp was virtually unknown to Illinois farmers. Today, the broadleaf weed blankets corn and soybean fields across Read More
Latest News
Dry and Liquid Plant
CropLife 100CropLife 100 Map
May 24, 2016
The new CropLife 100 map shows the locations of each of the headquarters of the 2015 CropLife 100 retailers. The interactive Read More
Southern States Cooperative
Corn Field
Industry NewsTiger-Sul Names Veteran Account Manager To Lead Central…
May 23, 2016
With the continuing growth of the sulphur bentonite and precision crop nutrient industry, global agriculture firm H.J. Baker has announced that Read More
Bayer sign
Industry NewsReuters: Bayer Defies Critics With $62 Billion Monsanto…
May 23, 2016
German drugs and crop chemicals group Bayer has offered to buy U.S. seeds company Monsanto for $62 billion in cash, Read More
Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Industry NewsCompass Minerals Hires Industry Veteran To Lead Plant N…
May 19, 2016
Compass Minerals has hired plant nutrition industry veteran Vatren Jurin to steer the company’s portfolio expansion into specialty liquid micronutrient Read More
ASMARK Retailers LIVE! Tour 2016 Group shot The Andersons
CropLife 100The Andersons Rejects Unsolicited Proposal From HC2
May 19, 2016
The Andersons, Inc. has announced that its Board of Directors has rejected two non-binding, highly conditional, unsolicited proposals from HC2 Read More
glyphosate
Crop InputsWHO: Glyphosate ‘Unlikely’ To Cause Cancer
May 16, 2016
Via Reuters.com reporter Kate Kelland: The weed-killing pesticide glyphosate, made by Monsanto and widely used in agriculture and by gardeners, Read More
dicamba, Roundup Ready 2 Xtend
Crop InputsASA: No Dicamba On Roundup Ready 2 Xtend In 2016
May 16, 2016
While Roundup Ready 2 Xtend (RR2X) are tolerant to dicamba and glyphosate herbicides, no dicamba herbicides will be approved for Read More
CPP, glyphosate, dicamba, atrazine,
Crop InputsReport: Congress Pressing EPA On Glyphosate Review Hand…
May 16, 2016
Via Reuters.com reporter P.J. Huffstutter: U.S. lawmakers have asked EPA to explain why it published – and then withdrew – Read More
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
ManagementAsmark Institute Tour Observations
May 12, 2016
Special Guest CropLife Field Editor Matthew Grassi discusses his week-long visit with 45 ag retailers as part of the Asmark Read More
MicronutrientsCompass Minerals Expands Trial Work For Wolf Trax Innov…
May 12, 2016
Fertilizer manufacturer Compass Minerals continues to expand the evaluation program for its Wolf Trax micronutrient fertilizer products, according to a Read More
Young Corn Closeup
Industry NewsArysta Adds To Marketing Team
May 12, 2016
Arysta LifeScience North America recently announced the addition of David Davies to its marketing team. As marketing manager, Davies will Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Crop InputsSyngenta Launches New Biological Seed Treatment
May 12, 2016
Syngenta has announced the launch of the EPIVIO brand family, a range of new biostimulants which address abiotic stresses through seed Read More
Crop Inputs2013 West Texas Tragedy Ruled A ‘Criminal ActR…
May 11, 2016
A 2013 fertilizer plant blast in West, TX, that killed 15 people and injured 160 others was caused by a Read More
Crop InputsLariat Partners Invests In Willowood USA
May 11, 2016
Lariat Partners, a Denver-based private equity firm, has made a significant investment in Willowood USA, a leading manufacturer of generic Read More
Anhydrous Ammonia tanks
LegislationARA: OSHA Announces PSM Formal Rulemaking Intentions
May 11, 2016
In separate communications earlier this week, the Occupational Safety and Health Administration (OSHA) announced plans to conduct formal rulemaking to Read More