World Perspectives
energy

Farm Credit Situation

Both Farmer Mac and commercial banks reported a 7 percent increase in agriculture-related loans last year versus 2014. With an outlook for depressed commodity prices to continue (absent a weather event), Farmer Mac sees cost containment as the primary strategy for profitability.The House Agriculture Committee’s subcommittee on Commodity Exchanges, Energy and Credit held a hearing last week on the topic of Tightening Credit Conditions, the second of many expected to eventually be held by each subcommittee in relation to farm policy (see Ag Perspectives, 18 April). Following are some key observations from this latest hearing:

Commodity prices are dropping faster than land rents, putting a number of producers under pressure to service their...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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