Low commodity prices are plaguing producers and the Farm Credit System reports loan volumes were up 10-percent for the first half of this year. SDSU Extension Risk Business Management Specialist Matt Diersen says the economic downturn has caused producers who have used up their cash reserves to seek more help from lenders.

He says lenders are carefully watching collateral values.

Diersen says the best advice he can give producers is to communicate early and often with their lenders.

Diersen says the pressure seen lately on rental rates and land values will likely continue. He says if there’s a silver lining to the ag economy it’s the livestock expansion with hog and cattle numbers up. Diersen says that means more corn and soybean meal used for feed.

https://soundcloud.com/wnax-radio/matt-diersen-on-loan-volume-up