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Larger livestock loans indicate uncertainty in cattle country

The Kansas City Federal Reserve says demand for livestock loans grew in the third quarter and that could signal uncertainty in cattle country.

Nathan Kauffman tells Brownfield the average size for loans reached an all-time high despite a lower number of loans issued. “The cattle industry has faced more pressure than some others in agriculture partly because of higher feed costs,” Kauffman says. “At least part of what we’re seeing, we think is attributed to increases costs and the increased need for financing among livestock producers.”

Kauffman says producers are having other financing concerns. “There are also other costs associated with land and machinery.  We know of supply chain disruptions that are probably causing some pressure and increased prices that way as well.”

He says producers have been through similar economic challenges in the past with high commodity prices and drought.