An ag lender says he’s preparing for substantial margin compression as commodity prices soften and interest rates rise.
Paul Anderson, executive vice president and chief credit officer with GreenStone Farm Credit Services, describes credit quality among their members as excellent.
“Balance sheets are very healthy,” he shares.
But Anderson tells Brownfield projections by USDA and other entities have him concerned a significant change could be coming.
“That net farm income for the next several years is going to fall into the range of $80-100 billion, versus the current level of $148 billion,” he says.