Nebraska Bankers Association chairman-elect Jerry Catlett of Bruning says low commodity prices may mean grain producers see revenues half what they were in 2013.
Catlett says he’s hopeful big crops and the triggering of farm program payments will help to offset that.
“But it is going to be down and we feel it’s going to be down pretty considerably from what it’s been the last few years,” Catlett says. “It is a concern. We’ll know more as we get into harvest and get through renewal season but it’s still something as bankers and producers we’ve got to keep an eye on and get people in if there’s going to be trouble with that cash flow.”
Catlett says while cow-calf producers are still making money, there will be losses this year for both hog producers and feedlot operators. He says livestock producers should protect their risk with some type of option strategy.
“The fat cattle or the feeders and those folks, it’s been a pretty tough year,” Catlett says. “I think maybe 2015 into ’16, might be the toughest years the cattle feed business has seen for a long time. We might be seeing a couple hundred dollars a head loss on these fat cattle.”
The U.S. Department of Agriculture is projecting a 53% drop in farm income nationally this year.
By Jerry Oster, WNAX, Yankton