farm lending

Growth in farm lending continued to show signs of slowing, even prior to the emergence of COVID-19 and the resulting economic conditions the outbreak caused. A report from the Federal Reserve in Kansas City says the volume of operating loans in the first quarter actually increased from 2019 ...

Farm lending activity dropped for a second consecutive quarter at commercial banks at the end of last year. A reduction in non-real estate farm lending, particularly for operating loans, was the primary contributor to a reduced volume of loans at banks with portfolios that concentrate heavily on agriculture...

It’s a common story line nationally and across the Northwest.  Some producers are succeeding while other are struggling, with some declaring bankruptcy.   So, what's the difference? Ag lender Tony Hotchkiss says for him it’s not so much geographical location or commodity, but those that understand operating a farm, while it may be a passion, it’s a business.   “They’re making bu...

Top U.S. banks like J.P. Morgan and Capital One are on the way out of ag lending.  But, Rabobank will be reportedly step in to fill that gap.   The nation’s top 30 banks saw a 17.5% decline, or about $3.9 billion, in their farm-loan portfolios between the peak of December 2015 and March of this year.  However, Rabo...

Federal Reserve Chair Jerome Powell told senators last week that banks remain in good shape to continue lending to farmers and ranchers. That’s despite deteriorating conditions across the agricultural economy.   “Our farm belt banks have a lot of experience in dealing with the issues farmers are confronting right now,” Powell said during a Senate Banking Committee hearing. “As a whole, the agri...

The Midwest and the Mid-South parts of the country saw farm income decline in the fourth quarter of 2018.  In spite of the pressure on farm incomes, the value of quality farmland, ranchland, and pastureland rose.   Those observations come from the latest Agricultural Finance Monitor, which is published by the Federal Reserve Bank of St. Louis.  Lende...

The Federal Reserve’s Agricultural Finance Databook says lending activity in the agricultural sector increased slightly in the second quarter of 2018.  The overall number of non-real estate farm loans was roughly 2% higher than at the same time in 2017.  The slight in...

Farm income and credit conditions continued to weaken in the first quarter of 2018, but at a slower pace than in previous quarters.   According to the Tenth District Survey of Agricultural Credit Conditions, compiled by the Kansas City Federal Reserve Bank, reduced farm income contributed to intensifying cash-flow concerns and tightening lending standards.  Cash-fl...

Farm lending at commercial banks increased during the fourth quarter of last year.  Demand for all types of loans, except for farm machinery and livestock, increased significantly over 2016.  Operating expenses continue to make up the majority of loan originations.  Loans for livesto...

A new survey of bankers shows 82% of agricultural lenders reported a decline in farm profitability in the last 12 months.  But the news is not all negative.  The survey produced by the American Bankers Association and Farmer Mac shows 51% of agricultural lenders noted an increase in the demand for agricultural operating loans, while there was no notable change in the demand for agricultural real e