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- W291544986 abstract "In January, ABA's Center for Agricultural and Rural Banking began a tour of farm country. Robert Fouberg and I set out to meet with agricultural bankers, farmers, state association executives, congressional staff, state legislators, and federal government officials to ask a simple question: should new federal farm be? Robert is ABA's senior counsel for Agriculture and Rural Banking. Four months, 14 states, and 25,000 miles traveled later, we are acutely aware that the problems faced in farm country will not be easily solved. Ames, Iowa March 20 Dear Diary: Iowa, I am told, produces more corn than the rest of the world combined. The current farm programs have worked fairly well here. That's because for the past five years, Iowa farmers have enjoyed some of the largest corn and soybean yields in history. Big crops in Iowa have resulted in high loan deficiency because the spread between the local price and the federal loan rate has been wide. As a result, federal payments in Iowa greatly exceed 50% of net cash farm income in Iowa, as they do around the country. They bankers are uneasy about the linkage between big crops and big federal payments. One drought, and farmers will experience greatly diminished incomes. Give us a consistant policy What quickly became apparent to us is how incredibly complicated it is to design an agricultural for a nation that has some of the most diverse agriculture in the world. Drought, foreign competition, changes in consumer habits, emerging technology, energy shortages, and incomprehensible government policies all conspire to make the business of financing agriculture one of the most challenging. Of all the many options that we discussed during 19 meetings, the need to create a farm that is consistent and allows for some level of certainty, for the farmer and the bankers that finance them, was the primary desire. I wish that we had something more exciting to report, but for bankers, being able to work with their customers to predict an outcome, early on, for the next operating cycle is at the heart of the matter. It became clear to us, and to the majority of the bankers we talked to, that the additional supplemental payments that Congress authorized in 2000 made the difference between customers being able to make their scheduled payments and not having adequate cash flow. It was also the consensus view that if economic conditions remain the same, there will be an urgent need for an additional supplemental payment in 2001. …" @default.
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- W291544986 date "2001-06-01" @default.
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- W291544986 title "What They're Saying in Farm Country" @default.
- W291544986 hasPublicationYear "2001" @default.
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