Agriculture lenders learn skills for downturn

The price of corn was about $3.25 Friday as agricultural lenders huddled to discuss the industry in today's low-price environment. National estimates are calling for an average price of $4.20 for wheat planted this year, a 16 percent decrease from last year, and soybeans are expected to bring an average of $8.50.Ed Schafer, former North Dakota governor and U.S. secretary of agriculture, said loan officers will face pressure in ag lending, but the industry is cyclical.“We’ve lived through these before,” he said of the downturn.And Schafer said he believes most farmers will be able to handle it. As of 2015, producers were about 75 percent debt-free. Schafer told lenders to watch land values, which are sinking after several years of drastic increase. Land value accounts for most of farmers’ assets, and major decreases could cause those once steady balance sheets to erode.