There's a ritual every farmer reading this story is probably familiar with. It's that trip to the bank or Farm Credit Services office to talk about an operating loan. After 2019, what would the 2020 credit season look like? That's the question asked in the latest Farm Progress Panel, the new mobile-based survey tool aiming to take the pulse of farmers across the country.
In this latest survey, the panel question was simply "How easy did you find getting operating credit to farm for 2020?" It turns out that for nearly two-thirds of the respondents, the answer was simple with the reply "Same as every year."
Just under one-fifth reported that for 2020 they did need to provide their lender more information, which is becoming more common depending on farm size. Lenders may be seeking more information about your marketing plans and other financial information this year and going forward.
There were two questions looking at the tougher side of farm finance. The good news from this Panel Report is that less than 9% reported that they got credit, but it was less than they needed. It appears most respondents have the cash on hand they need to put their crop in for 2020.
Lender challenges
Another group, just under 7% of respondents, reported that for the 2020 crop year they had to change lenders.
Note that most farmers locked in their financing before COVID-19 slammed into most farm balance sheets. Later this year, this same Panel question will be asked again, during the winter when many are seeking that financing. It will be interesting to see how the results change.
To take part in the Farm Progress Panel, you need to sign up for Mobile Texts from Farm Progress. That's easy, simply text PANEL to 20505 and answer the question texted back to confirm your participation. The company asks your full permission to take part. Once that's done, you'll receive our daily news updates on hot topics in agriculture right to your mobile phone. And you'll get our Panel questions.
And if you're trying to keep up with how COVID-19 is impacting agriculture in your part of the country, visit farmprogress.com/coronavirus. This site section is being updated daily with local and national information targeted to farmers.