Farmers Borrowing Cash with Interest Rates at Historic Lows - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Farmers Borrowing Cash with Interest Rates at Historic Lows

Posted:

Interest rates at never seen before lows have many people borrowing more money--including farmers.
Reporter Sarah Gustin visits with Ag lenders in Napoleon about the need for larger lines of credit.

Interest rates are low and it takes a lot of cash to farm. 
(Bruce Wentz / Stock Growers Executive VP) "Crop operating, would be number one. The operating inputs then the livestock and then the machinery."
Those are a few of the purchases farmers have been making.
Bruce Wentz is the  Executive Vice President at Stock Growers Bank in Napoleon.
Wentz says there is more borrowing going on in this bank than he can ever remember in the past 3 decades.
(Bruce Wentz / Stock Growers Executive VP) "We are doing lines of credit that are in the upwards of 1 million dollars or more. When I first started in banking if a guy borrowed a 100 thousand dollars that was a lot." 
Down the street at First Community Credit Union Branch Manager Norman Kleppe says many of his clients are taking advantage of interest rates hovering around the 3% mark.
(Norman Kleppe / Ag Lender) "We've seen land rent especially jump. 30-40% increase from where it was following these land values. So the overall input costs have tripled on most guys in the last 2-3 years here. Commodity prices have been good, but the demand for operating keeps increasing as these prices keep rising."
(Sarah Gustin / sgustin@kxnet.com) "With land prices at historic highs. Acres like these are part of the reason for those high lines of lending credit."
(Norman Kleppe / Ag Lender) "Towards the end of 2012 we saw a lot of increase in Ag real estate requests. I think a baulk of that was on capitol gains changing. So a lot of land owners decided if I am going to sell land now is the time to look at doing it." 
(Bruce Wentz / Stock Growers Executive VP) "The Ag economy has been awesome." 

Kleppe says machinery has been some of the most popular purchase for producers.  

 

  • Bismarck/Mandan NewsMore>>

  • Boy Scouts Clean Construction Sites for Community Service

    Boy Scouts Clean Construction Sites for Community Service

    Friday, April 18 2014 8:21 PM EDT2014-04-19 00:21:26 GMT
    Boy Scouts know when they sign up they'll be doing some community service. So, when a couple of crews signed up to collect trash at some local construction sites, it was expected. What they didn't expect,
    Ethan Porter and Scout crews 123 from Bismarck and 54 from Mandan brought about 30 people to clean up garbage near some construction sites.
  • Killdeer Residents Speak About Oil Boom Effects

    Killdeer Residents Speak About Oil Boom Effects

    Friday, April 18 2014 7:08 PM EDT2014-04-18 23:08:27 GMT
    A day after the Dyad shutdown, Killdeer residents share the impact of the oil boom on their community. The oil business brings all types to this once quiet town. Everything is affected... from restaurants
    A day after the Dyad shutdown, Killdeer residents share the impact of the oil boom on their community. The oil business brings all types to this once quiet town. Everything is affected... from restaurants
  • Dyad Environmental Statement on Health Dept. Order

    Dyad Environmental Statement on Health Dept. Order

    Friday, April 18 2014 6:44 PM EDT2014-04-18 22:44:51 GMT
    "Dyad Environmental is a new company, who began processing TENORM less than 30 days after posting a $1.25M bond, and spending two years obtaining appropriate permits and licenses.
    "Dyad Environmental is a new company, who began processing TENORM less than 30 days after posting a $1.25M bond, and spending two years obtaining appropriate permits and licenses.
  • AgricultureMore>>

  • Money Awarded for More Grape Wines in ND

    Money Awarded for More Grape Wines in ND

    Friday, April 18 2014 11:10 AM EDT2014-04-18 15:10:16 GMT
    Whether you like it sweet or dry...More local wines could soon be hitting the shelves. 80-thousand dollars in research grants have been awarded to support and promote the state's grape and wine industry. These
    Whether you like it sweet or dry...More local wines could soon be hitting the shelves. 80-thousand dollars in research grants have been awarded to support and promote the state's grape and wine industry. These
  • Net Farm Incomes

    Net Farm Incomes

    Monday, April 14 2014 11:48 AM EDT2014-04-14 15:48:37 GMT
    2012 was a banner year for farmers. Wheat reached 20 dollars a bushel. Corn more than 7 dollars a bushel. 2013 wasn't as glorious. Ag Reporter Sarah Gustin explains. The numbers are in.. After tallying
    2012 was a banner year for farmers. Wheat reached 20 dollars a bushel. Corn more than 7 dollars a bushel. 2013 wasn't as glorious. Ag Reporter Sarah Gustin explains. The numbers are in.. After tallying
  • Land Enhancement Grants

    Land Enhancement Grants

Quick Clicks
Closings/Delays
View list
Calendar
What's happening?
Lottery Results
Feeling lucky?
Viewer Photos
Submit yours!
Road Report
Current conditions
TV Listings
See what's on
Gas Prices
Check near you
E-Mail Newsletter
Signup now

Most Popular

Stories
Videos
loading...
Powered by WorldNow
General information or questions:
kxinfo@kxnet.com

News:
Bismarck:
Phone: 701-223-9197
News Fax: 701-223-1985

News:
Minot:
Phone: 701-852-2104
News Fax: 701-838-1050
All content © Copyright 2000 - 2014 WorldNow and KXNET. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.