National Farm Credit System, “Safe And Sound”, Smith Says

The farm economy is soft, which has many economists worried.  However, the nation's farm credit system is 'safe and sound', that according to Farm Credit Administration Chair, Glen Smith.  With higher farm debt levels, continued low commodity prices, Smith says we re not yet at the crisis levels of the late 1980's, however, he noted, "I think we're at a level that's comparable to the early 80's.

"Decreasing farm incomes, decreasing margins, eroding current ratios. And at that time in the Midwest we lost 15-20% of our land values,"Smith continued.  "Guess what, today we've lost 15-2% of our land values in the Midwest. The late 70's and early 80's were typified by trade wars.  At that time it's the Soviet Union with the grain embargo."

Now it's China.  In fact, Smith said approval of the USMCA, Japan trade agreements, and some kind of a deal with China would help improve the farm economy, and help the farmers who are struggling to hold on.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com