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Farmers face more scrutiny from their ag lender

Many farmers are facing increased scrutiny from their lenders with another year of tight margins on the horizon. 

Southwest Minnesota farmer Bob Worth says he’s had the same banker since the 1980’s.

“It used to be you could tell them I have so many bushels sold on a futures contract (but) not anymore. You have to deliver the contract to them, and they have to have copies of it in their file.”

He tells Brownfield lenders are also asking for proof when submitting five-year yield averages.

“You can’t just do it at home and that put it on the paper. You have to have documentation of how you did it.”

Worth doesn’t blame the lenders, saying bank examiners are probably demanding more information.

“I can understand why they’re doing it, but sometimes I think they’re just making more stress for us.”

And he says the government shutdown is adding to that stress.

“This is creating a nightmare for the banks, and it’s going to create a huge nightmare for the FSA once they get back up and running.”

Brownfield spoke to Worth at the MN Ag Expo in Mankato, Minnesota.

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