2012
LOGA
N COUNTY FARM OUTLOOK MAGAZINE. LINCOLN DAILY NEWS.com October 23, 2012
18
The economic impact of a drought
on agriculture and loans
T
he drought of 2012 will no doubt
be remembered.
This year’s agricultural scene
was a lot like following a Chicago Cubs
season. Initial seasonal rains brought high
hopes. With each month of excessive heat
and lack of rain, hopes for a World Series
playoff diminished. By midseason
field checks, expectations for a
penant shot dropped. Gradually,
it became a concern of having
any win and the ability to stay in
the game.
Then, end of season in the
ninth inning, many grain trucks
coming into home base for the final
count were tagged out at the elevators by
referees with black lights and aflatoxin test
kits.
But, the larger question to be answered
yet remains: What will happen to the
farmers financially? It is easy to speculate
that the losses in this year’s crops will have
an impact on the finances of all those who
work throughout agriculture.
One of the important financial aspects of
farming is the availability of farm loans. Eli
Klokkenga, loan officer and farm manager
at State Bank of Lincoln, gave his opinion
of what will happen next year in the area of
farm loans.
“
You will probably see a lot of
short-term loans going out,” said
Klokkenga.
His reasoning for a large
number of short-term loans being
issued is that farmers may need
a little extra money to get by until
they receive insurance payments
for their crops. Farmers who have their
crops insured will likely be waiting longer
than usual to receive payments.
“
Because there have been so many
claims, there may be a delay in insurance
payments to the farmers,” said Klokkenga.
However, while the insurance payments
may be later than usual this season, the