Farmers having little problem getting ag credit

[tannybogus]

WICHITA, Kan. (AP) -- The economic turmoil on Wall Street has not reached the dusty country roads in the nation's Heartland, where a rural economic boom has meant farmers are not having much trouble getting loans to plant crops, buy land and replace equipment.

''The fundamentals of agriculture right now, in terms of income and opportunities, is good. There are profits to be made, so I think that is underpinning the willingness to lend to that sector,'' said Jason Henderson, a branch executive with the Federal Reserve Bank of Kansas City.
http://www.nytimes.com/aponline/us/AP-Farm-Scene-Farm-Credit.html?_r=1&oref=slogin

I wonder who exactly is having credit problems and why?? I'd like to know instead of hearing about this general cloud of a credit crunch.

[lapfog_1]

1. Well, my sister for one..

She has lived in her house for 28 years, owes very little on it and wanted to take out some equity (re-finance) so she and her husband could make a few home improvements and consolidate some higher interest car loans. I told her a year ago May to do this but she waited and waited... until she needed to get it done early this spring. By then it was too late. She talked to a number of lenders but no soap (except one that offered it at credit card rates).
She has good credit but not a lot of income... but then she wasn't looking to borrow much each, $25,000 or so on a house and property that was worth $270,000, now maybe only $160,000. There first mortgage (which they have never been late with) is only $23,000 balance and $379 a month.

Here is a WSJ article on other credit issues:

http://online.wsj.com/article/SB118773982869404682.html

[tannybogus]

2. Thanks! That's what I'm look for! (not sarcasm) nt

[BR_Parkway]

4. Actually, the link you provided says that the reasons banks are giving

are more about the credit worthiness of the buyer and potential exposure to bad loans. So they're cutting back credit limits or freezing some accounts to reduce their risk if the person who has the loan or credit card decides to bail on them.

But the OP makes a good point - I can't think of any place that's having trouble getting credit - I can see banks being scared to loan on real estate right now simply cause no one really knows how far it's going to drop in value. But my partner and I own 3 small businesses and every day keep getting deluged with the telemarketers and junk mail trying to get us to try a new credit card.

Talking with all the shopkeepers, they're in the same boat. The only downside any of us are seeing (it's a tourist town) seems to be more from people not having as much "play" money because the costs of the everyday necessities is so much higher.

[lapfog_1]

5. If your lines of credit are through smaller banks...

you won't notice all that much at first. They are not directly tied into the sub-prime mess, they have their own deposits to access for revolving lines of credit and overnight loans.

But let's give it a week or two or even three.

[tama]

3. Let's see

How many ex Wall Street employees can a farmer hire for the cost of gallon of tractor diesel to dig up weed roots (yummy!) from the fields? With lipstick or without...