2009 Will Be A Hard Year

Had 2007 not been such a good year for agriculture, 2008 would have been an utter train wreck. That's probably the reason 2009 will be tough, but not impossible for farmers and ranchers in Texas.

Joe Parker is President and Chairman of the Board for First National Bank in Byers, Texas and also servers as 2nd Vice President for Texas & Southwestern Cattle Raisers Association. He says "they will continue to underwrite loan applications but will look at them with a tougher eye because of the declining values of so many things". Parker agrees one of the challenges is the correlation between the stock market and commodity prices. However the three most difficult areas facing cattlemen today are: cost of fertilizer, fuel and feed. "It's really hard to budget and project" where any of the three could be going this year.

As for a bit of optimism, the wheat farmer/cattle producer from Byers (about 20 miles Northeast of Wichita Falls) says there might be some stocker and replacement cattle that can be bought at lower prices. "I feel like that it will be a chance for some cattlemen to improve their inventories". "We feel like that the operators who have a good handle on their budgets and can take opportunities to clean up on some efficiencies, will find some good buys out there on equipment and operating inputs" he added. "It's going to be a tough year" Parker adds, offering a dose of reality. "2009 - economically - will be a tough year."

Producers looking for suggestions and ideas for weathering the storm will want to attend the TSCRA's Annual Convention & Trade Show in Fort Worth March 20 - 22. For more information CLICK HERE.