According to the Farm Credit Council money is available for farmers to obtain credit for spring planting. While most farmers will be able to get loans this spring, according to Darin Ihnen, a South Dakota farmer and vice president of the National Corn Growers Association, tight credit and other economic factors may come back to haunt them.
"We thought we were immune but you know with the global economy and everything so intertwined it really is going to come back to us I'm afraid," Ihnen says. "There are so many other things that are starting to come into play now with credit not being available for the ethanol industry - that's going to affect our markets. It's a lot bigger picture than just getting loans for the farms. You know we've got farmers that have sold grain that may not get those contracts honored and grain elevators that sold grain to some ethanol plants that those might not get honored, so we could have a domino effect."
At first it was rising input prices, and then it was falling commodity prices. Ihnen says though some input costs have come down others haven't and it just seems like the challenges keep coming."Land costs are not going to come down. It seem like once rents go up or the cost of land goes up it doesn't matter what the commodity price is, they just don't come back down," Ihnen says. "It's going to be challenging to try to balance out and try to lock in some profits. It's going to force us once again to become better marketers on how we market our grains."