Economic crisis in farm country

Excerpts from an article at the StarTribune:

The number of Minnesota farmers defaulting on agricultural loans has swelled dramatically since 2008, reaching levels not seen since the 1980s farm crisis permanently altered the state's rural economy.  Lenders have sent farmers more than 3,670 default notices in the past 12 months, according to the University of Minnesota's Farmer-Lender Mediation Program. That's up 83 percent in just two years...

It's not only small family farms, she said: "It's everything." Most of the default notices are coming from small-town banks, where farmers often turn for at least some of their borrowing...

Jim Anderson, a farm financial analyst in Rochester who works with the mediation program, said he doesn't think banks are the bad guys in the current situation. Many rural banks have really worked with farmers in trouble. But in an age of intense bank scrutiny, some loans just smell too sour, he said...

"You could make the case that notices are up because regulators are taking a more aggressive stance on lenders taking action against delinquent borrowers," MacKay said. "The real question is: Is that an indicator of more challenging times or more aggressive banker management of farm credits?"

More at the link.