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Farm Credit system prepared for more economic challenges

Farm Credit Administration (FCA) officials say while it’s a challenging time for many producers, the credit system is prepared to handle another year of financial stress.

FCA chief economist Steve Gabriel tells Brownfield relatively low commodity prices continue to drag net farm incomes down.

“USDA just updated their net farm income numbers for 2016, and it’s estimated to be down about 17 percent relative to 2015.  And that’s after a drop of almost 13 percent in 2015.”

FCA chief examiner Robert Coleman says farm credit system institutions were prudent during recent times of higher prices.

“And are very well-positioned right now for the stress we anticipate, and are certainly prepared financially for that.”

In its semi-annual report, the Farm Credit Administration Board noted farm debt levels remain high as interest rates slowly increase.