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Improving balance sheets could prompt machinery and land purchases
The rally in corn and soybean prices is generating revenue that many farmers were not expecting just a few months back.
Brownfield asked southwest Minnesota corn and soybean grower Bryan Biegler if an improved balance sheet will result in him pursuing new equipment or farmland.
“Probably ‘all of the above’ kind of fits in there. It’s been a while since we’ve had these good prices, and we’ve been keeping machinery around a little bit longer since 2012 and 2013. So it’s time to possibly be looking at upgrading some of the stuff that’s getting some hours on them.”
The current vice president of the Minnesota Corn Growers tells Brownfield he’ll need to balance short-term goals with a long-term safety net.
“It’s easy to look at what’s right in front of your face, but you definitely have to keep many years into the future in the back of your mind on how you’re going to be set up for that. Being prepared for any of that stuff.”
Nathan Kauffman with the Federal Reserve Bank of Kansas City says better profit opportunities for crop farmers, as well as additional government support, created more favorable conditions for farm finances in 2020 than earlier in the year.
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