(Omaha World-Herald/Omaha.com) -- The Omaha World-Herald reports that "Midlands farmers are borrowing more to pay for seed, fertilizer, fuel and other supplies but less for equipment and land, an Omaha economist said Wednesday in Washington, D.C." Jason Henderson of the Omaha branch of the Federal Reserve Bank of Kansas City, "told a House of Representatives subcommittee that weakness in the farm economy could hurt farmers’ creditworthiness and tighten credit in rural areas." But Henderson noted that rural areas have healthier economies than urban areas and that "deposits in agricultural banks continue to grow. ... He expects less long-term borrowing for farm equipment and land in 2009 but more short-term operating loans." Farm production costs increase an average of 2% a year "but in 2008 they increased 11.7%, mostly because of fuel-related supplies." See the story at <http://omaha.com/index.php?u_page=1208&u_sid=10600689>
