Ag lenders

Whether you spent 2009 raising cattle or raising grain chances are it wasn t your most profitable year Ag Reporter Sarah Gustin visits with area ag lenders about today s markets and the future of the grain and cattle industries Cary Anderson First Bank of Wilton As far as the cattle probably going to have a little tougher time as far as some of the term payments John Schmid Grant Co Bank It has been a little tougher this past year because cattle prices have dropped not tremendously but enough to effective the repayment a little bit It s a repetitive theme in the ag world this year profit margains are tight John Schmid works with producers in the Grant county area He says about 80 percent of their income comes from livestock operators John Schmid Grant Co Bank They are trying to maintain and move forward with their balance sheets When you compare dollar calves to dollar-forty calves that s huge difference when there isn t a lot of margain to start with Schmid says producers in his area are using borrowed money to increase their base herd upgrade their feeding and haying equipment and improve their facilities John Schmid Grant Co Bank Our number of customers hasn t grown a lot but the demands that they have had for the amount of operating money they need has increased especially because of the operating costs going up It is a lot tougher to make it with the higher operating costs They cut where they can and try to improve in their production to make up for it Cary Anderson lends north of Bismarck in the Wilton area Anderson says grain farmers are apprehensive with what they should do with low protein wheat and when they should be selling He estimates less than 1 2 of the grain his customers grow has been sold as producers try to hang on in hopes for higher prices Cary Anderson First Bank of Wilton There is definitely more lending now then there has been in previous situations because going back to the grain farming there is alot of prepayment of expenses before the end of the tax year much more so than in previous years In the end whether you grow grain or raise cattle the message is the same John Schmid Grant Co Bank It s not an easy business to be in for everyobody and there s not alot of margain for error In Bismarck for KX news I am Sarah Gustin Schmid says producers are starting to receive their disaster assistance program payments and that has been a very helpful boost