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FCS official says most producers are ‘in sound financial shape’

A Midwestern Farm Credit System official says although the farm economy is still struggling, the majority of producers are “in sound financial shape”.

“We, by far, still have the majority of our producers in really strong and sound financial shape. They’ve built equity and they have working capital reserves,” says Doug Stark, president and CEO of Omaha-based Farm Credit Services of America (FCSAmerica).

Stark says that’s demonstrated in land values as well.

“When land comes up for sale in these local areas, there’s still pretty active bidding on it—and that tells us that producers are still doing fairly well,” he says.

But there are still concerns, Stark says.

“There is a concern in the ag and farm economy, and with those producers though—every year as we look out, sitting here in March and April—what’s this year going to bring and what could we have to look forward to. So that is a key issue for us.”

Stark testified today at a House Agriculture Committee hearing reviewing the Farm Credit System. FCSAmerica serves Iowa, Nebraska, South Dakota and Wyoming.

AUDIO: Excerpt from Stark’s testimony