ADVERTISEMENT

Happy State Bank Is the Only Game in Town for These Texas Farmers

Happy State Bank Is the Only Game in Town for These Texas Farmers

(Bloomberg Markets) -- The loan office at Happy State Bank, the only bank in Silverton, Texas, has barely changed in the 73 years it’s been open. About 90 percent of the farmers in Briscoe County rely on loans to pay for each season.

“Once a year, we’ll do equipment, cattle, and crop inspections,” says Kyle Fuston, branch president. “After the crop is up and running, come midsummer, we’ll go out and look at it just to make sure. If we go out there and there’s hardly any crop out, and the farmer’s still borrowing money, then we have a problem.”

Happy State Bank Is the Only Game in Town for These Texas Farmers

Lane Garvin, a local farmer, says the water level has been dropping since wells were drilled in the 1950s. “We started rotating crops and using drip irrigation so we can grow more with less water,” he says. “When the water’s gone, we’ll figure out a way to make a living dry-land farming. We’ll cross that bridge when we get there. You know, sad thing is, we won’t need a bridge.”

Drought, lower crop prices because of the trade war with China, and rising interest rates have hurt farmers, Fuston says. “Eventually, they’ll run out of water for irrigation. Running out of farmers is our biggest fear.”

Happy State Bank Is the Only Game in Town for These Texas Farmers
Happy State Bank Is the Only Game in Town for These Texas Farmers
Happy State Bank Is the Only Game in Town for These Texas Farmers
Happy State Bank Is the Only Game in Town for These Texas Farmers
Happy State Bank Is the Only Game in Town for These Texas Farmers

For agricultural commodity price forecasts, go to {CPFC AGS } on the Terminal. Run {CFARDMND Index GP } to graph the Federal Reserve Bank of Chicago’s Index of Demand for Agricultural Loans.

To contact the editor responsible for this story: Donna Cohen at dcohen91@bloomberg.net, Christine Harper

©2019 Bloomberg L.P.