Despite numerous headwinds in 2022, agricultural lending by U.S. farm banks increased by 8.1% last year to $103.1 billion.  The American Bankers Association’s annual Farm Bank Performance Report said the change is due to a 9.7% increase in outstanding loans, secured by farmland and a 5.9% increase in agricultural and production loans.  The report also says farmland continues to provide a strong equity base for producers to tap as land values saw strong growth in 2022 after staying flat for several years.


Small loans continue to make up over a third of banks’ farm and ranch lending with $69 billion in farm and ranch loans under $500,000 on the books at the end of 2022.  The bankers said the ag sector will face continued challenges this year due to monetary policy actions targeting persistent inflation in the U.S. and continuing geopolitical uncertainty.  The report also shows farm banks are a major source of credit to America’s small farmers.


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