Ag Lending Continues Growing in Q2

Agricultural lending at U.S. commercial banks continued to grow during the second quarter of 2026, while farm loan performance remained relatively stable.

The Federal Deposit Insurance Corporation shows total outstanding agricultural loans reached $206.27 billion, up 2.1% from the first quarter and 3.8% from a year earlier.  Farm real estate loans totaled $122.26 billion, increasing 4.5% year over year.  Non-real estate farm loans, which help finance production, equipment, and livestock, reached $84 billion, up 2.8% from a year ago.

At banks specializing in agricultural lending, delinquency rates declined from the first quarter but remained close to year-earlier levels.

Those banks also reported wider net interest margins during the quarter. Higher yields on earning assets supported the quarterly improvement, while lower funding costs accounted for much of the increase over the year. The figures point to continued growth in farm credit, with loan quality showing little change from last year.

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