HASTINGS, Neb. (KSNB) – The Nebraska Farm Bureau delivered its state farm expenses report Monday morning, highlighting ongoing challenges for agricultural producers across the state. n nThe organization’s assessment revealed that commodity prices have not kept pace with farming costs, including equipment and maintenance expenses. However, the agricultural economy barometer showed improvement at the end of October, partly due to a new trade deal with China. n nFarm Bureau President Mark McHargue warned that weakened agriculture could create broader economic impacts across Nebraska communities. n n”If agriculture doesn’t continue to be profitable, we can’t pay our employees the wage that they need because their costs are going up too,” McHargue said. “Their cost for food is certainly going up. Their insurance is going up. All these things are going up. So, the people that work in the AG sector, along with the farming families, we’re feeling the things that the everyday consumer is feeling.” n nBanking sector shows strain n nFarm Bureau Economist Abygail Streff noted difficulties in the banking sector, particularly with operating loans. n n”As of 2024 and 2025, if you look at those numbers, we’re seeing quite the decline in repayment rates,” Streff said. “Not maybe at the point where we’re seeing a lot of bankruptcies or there is a huge agricultural recession at the forefront, but it is still of note that those repayment rates have gone down.” n nStreff said demand for various types of loans has increased, including capital loans, small loans and operational loans that help producers stay in business. Higher interest rates have compounded the financial pressure on farmers. n n”Interest rates have gone up, and with that, our loan demand has gone up as well, which, of course, the more loans you take out at higher interest rates, the more costs are,” she said. n nMcHargue advised farmers to focus on manageable aspects of their operations during difficult economic conditions. n n”End of the day, when you look at the things that you’ve been worried about, thinking about, if a lot of those things are outside of your control, see if you can shift your mind to the things that you can do,” he said. “Do the very best at taking care of the livestock. Do the things now that the harvest is about done. Make sure that grain is in the bin and it’s in good condition. Make sure that you’re working with a marketer to ensure that you can get the very best price for that crop.” n nClick here to subscribe to our KSNB Local4 daily digest and breaking news alerts delivered straight to your email inbox.
