April 9, 2010
WEAU TV 13

Many farmers are facing a difficult year before their crops are even in the ground. That's because more of them are having a hard time getting loans to cover their spring planting costs.

Bruce Drinkman is a farmer in that very situation who's working hard to save his farm: Some years back, Drinkman and his wife jokingly named their St. Croix County farm "Desperation Acres." It's a name that he now says is more fitting than it was ever intended to be.

"We were served our foreclosure papers a couple days before Christmas," Drinkman says.

He says his wife's retirement fund paid off last year's loans. This year, with his bank unwilling to work with him, he says all he has to offer is a handshake and his word.

"We're fortunate that I have vendors I’ve worked with my whole life who know I’ll pay them," Drinkman says.

A huge problem for Drinkman is the low price of milk and he's not alone; the University of Wisconsin—Madison estimates net farm income dropped 56% in Wisconsin last year to $1 billion, the lowest level since 2002.

"Most farmers require some loan to put crops in. Expenses have gone up quite a bit," says Terry Kohlhepp with AgStar Financial Services.

Kohlhepp says this is a difficult time for farmers. He says if they can't get their crops planted, farmers are often forced to sell.

“There's always a certain amount of risk in agriculture. With crops you're at the mercy of the weather and the market," Kohlhepp says.

The Federal Reserve in Chicago says a survey of banks found 11% of Wisconsin farmers with credit probably won't qualify for loans needed to plant. That survey found that's partly because 8% of agricultural loans in the state are severely delinquent.

But, for a man who grew up farming, Drinkman isn't ready to quit on his life-long passion.

"They say (farming is) in the blood and I believe it," Drinkman says. "You learn to just laugh and roll with the punches... and sometimes you punch back."

Drinkman says time is rapidly running out for farmers to secure loans for their spring crops. He says their season could be over if they can't plant in the next month of so.

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