South Dakota farmers finding it harder to get loans because of tougher banking regulations

SD farmers finding it harder to get loans

SIOUX FALLS, S.D. — Some South Dakota farmers say tougher banking regulations in response to last year’s financial crisis are making it more difficult for them to get operating loans.

Hayes rancher Todd Mortenson, past president of the South Dakota Cattlemen’s Association, says ranchers who borrow money to buy livestock are being required to put more cash down.

South Dakota Bankers Association President Curt Everson says banks are under increasing regulatory pressure to have more money on hand to back up loans. That means they have less money to loan out.

The lender of last resort for farmers is the federal government’s Farm Service Agency. The demand for FSA operating loans from farmers turned down by other lenders increased this year in many states, including South Dakota.