Bankers are making more ag loans
The President and CEO of the Wisconsin Bankers Association says more agricultural loans have been made recently. Rose Oswald-Poels tells Brownfield the number of agricultural loans grew more than any other sector, including commercial and home loans. “Farm loans grew about eight and a half percent year over year looking again at June 30th numbers, but quarter over quarter, they grew by over 26%, so not a concerning increase but a notable increase.”
Oswald-Poels tells Brownfield operating loans have gone up substantially for dairy producers in the last couple of months, but that’s not the only reason for more borrowing. “Either equipment purchases or to expand their herd, whether it was to simply add to the herd on their current farm or to acquire another farming operation.”
Oswald-Poels says she doesn’t see interest rates falling yet. “It’s expected to go up at least one more time sometime during the remainder of this calendar year. The debt coverage costs for farmers are going to increase, so I think looking into 2024, I think it presents a great deal of concern.”
Oswald-Poels says most producers entered the year in a financially strong position with a lot of liquidity from the previous two years, but many farmers used that cash to make input purchases earlier than usual.
She says financial institutions are healthy and strong and remain able to meet the needs of customers.
AUDIO: Rose Oswald Poels discusses ag lending with Brownfield’s Larry Lee