Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   

Agricultural News


FCA Board Considers Impact of Drought on Farmers and Farm Credit System

Thu, 09 Aug 2012 12:42:27 CDT

FCA Board Considers Impact of Drought on Farmers and Farm Credit System
The FCA Board received a report from staff in the Office of Examination and the Office of Regulatory Policy on the impact of the drought on farmers and ranchers and, by extension, on the Farm Credit System.

To measure the initial impact of the drought, FCA staff surveyed System associations with high concentrations of corn and soybean producers. The associations reported that a majority of its customers have federal crop insurance contracts. This protection mitigates much of the impact of the drought on grain producers and on their ability to repay their loans. The drought will also affect producers who rely on grain products, such as dairy, livestock, poultry, and ethanol producers. Although some borrowers may face significant challenges as a result of this year’s drought, FCA does not believe the drought will affect the System’s overall safety and soundness or its ability to serve farmers and ranchers.

Associations reported they are taking steps to work with borrowers affected by the drought. In addition, they are stepping up communication with their borrowers, including holding meetings to make sure they have the information they need. Some associations are contacting customers directly to make sure they know the steps involved in filing crop insurance claims.

FCA regulations give System institutions flexibility to provide borrowers with relief in the aftermath of floods, droughts, and other disasters. FCA’s Board Policy Statement 71 outlines steps institutions may take to provide such relief.

“I am pleased that FCS institutions are already taking measures consistent with their individual disaster assistance programs and with FCA’s Board Policy Statement on disaster relief,” says Leland A. Strom, FCA’s Chairman and CEO. “And although the widespread use of crop insurance will mitigate the impact of the drought on grain producers and on System institutions with exposures to these producers, the protein, dairy, and ethanol sectors will face an increasingly challenging operating environment. We will continue to watch the situation closely.

Throughout this period, we want to ensure the System continues to provide a stable source of credit to farmers and ranchers.”


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2 p.m. Friday, October 22, 2021  Fri, 22 Oct 2021 15:19:14 CDT
  • Friday, October 22, 2021, Market Wrap-Up with Justin Lewis  Fri, 22 Oct 2021 15:15:18 CDT
  • Labor Shortages are the Root Cause of Stagnant Cattle Prices Says Justin Benavidez  Fri, 22 Oct 2021 13:14:24 CDT
  • OSU Inks Head Football Coach Mike Gundy to New Contract  Fri, 22 Oct 2021 13:11:06 CDT
  • Dairy Management Inc. 2020 Annual Report Available Online  Fri, 22 Oct 2021 12:40:03 CDT
  • Sign Up Now for the 2022 National Farmers Union Women's Conference  Fri, 22 Oct 2021 12:33:48 CDT
  • OSU Agriculture Honors Distinguished Group During Ceremony  Fri, 22 Oct 2021 11:54:25 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

       
       

    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.