Farmers are optimistic despite economy
According to Steve Wear, general manager of Marion Equipment, farmers reflect much optimism despite the depressed agriculture economy.
Wear said that, while prices remain low and have limited farmers' ability to purchase all the equipment they need, they are continuing to increase the amount of business they bring to Marion Equipment.
The company has increased its staff to accommodate customers' needs, including two full-time and two part-time employees.
"We are looking forward to a very busy year in 2002," Wear said. "With only 10 days into January, sales are already double what they were for all of January 2001."
He added that John Deere has sought to help farmers by offering low interest financing and incentives.
"In my 25 years in this business, this is the first time I remember a manufacturer offering 0% financing for up to five years," he said.
Marlin Bartel, general manager at Straub International, Marion, wasn't quite as optimistic, but he said 2001 turned out to be a better year than expected. He said Case IH and New Holland equipment manufacturers are struggling to maintain profitability, and much of the success of Straub depends on whether or not they can offer good new programs, such as low-rate financing.
Bartel said Sept. 11, dry weather, and uncertainties about the new farm bill all will effect business in 2002.
Kevin Freuchting, president of Central National Bank, said farmers are managing the best they can given the state of the agricultural economy. Cheap grain prices continue and prices for feeder and fat cattle are down since Sept. 11 but are beginning to rebound.
Fruechting noted that net farm income continues to be pegged to government programs. "Schedule F, the farm sheet showing income and expenses, doesn't show a profit for most farmers and may show a break-even at best," he said.
However, he noted, borrowing money is cheaper. The prime interest rate dropped from 9 3/4 percent at the beginning of the year to 4 3/4 in December.
"The current low prices offer opportunity for price improvement in 2002," Fruechting added.
Bankers agree that farm program payments continue to be important. According to Bill Harmon, manager of Farm Service Agency, more than eight million dollars were distributed to farmers in Marion County during 2001. The current program is in its final year, ending in April, and a new one is in the process of being drawn up.
"We would be feeling better if we knew what the government payments will be," Chris Costello, president of Tampa State Bank said.
