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Local ag lender compares current ag economy to the “80’s”

Local ag lender compares current ag economy to the “80’s”
RRN Image/Joe Gangwish

Platte Valley Bank Ag Lender Galen Larson says the current ag climate in the state is similar to what producers faced in the tragic 1980’s.

Larson said “we’re in the 80’s” during Congressman Adrian Smith’s Farm Bill listening session in Scottsbluff. Larson told KNEB News afterward with farmers facing low commodity, falling land values and a more leverage financial position, the ag situation right now is comparable to 40 years ago.

Larson said some young producers have been caught off guard just a few years after record commodity prices. Larson said, ” We have some producers that did not go through the 80’s. I think they are having a hard time with prices dropping and how far they can drop.”

Using a baseball analogy to discuss how long this ag climate will last, Larson said we are in the “fourth or fifth inning, and we hope it does not go extra innings. So that puts us four to five years out.”

Larson says producers must take advantage of opportunities like upticks in prices or “something that is better than the projected cash flow” to help them survive.

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