Takach: Farm Economy Looks Good Nationally
The nation's farm economy in general is showing signs of improving health. Jackson Takach, Chief Economist for Farmer Mac, says the obvious signs are found in commodity prices. But from a lender perspective, the signs are also pretty striking.
"Chapter 12 bankruptcies, for example, either if you're looking at it by percentage, by farms, or just by number of farms going through the very difficult chapter 12 process those are both down dramatically in 2020 and 21. A lot of that has to do with some of the excess cash that came from the government support program payments but then also followed up by really strong commodity prices this year. SO both of those things helping cure some of these delinquency and bankruptcy issues that were popping up in 2020"
And, he noted, second quarter of this year delinquent loans with payments 90 days behind are down almost across the board.
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