Analyst Looks At How Lumber Prices Will Impact The Farm Economy

Market conditions, including the COVID-19 pandemic, brought more volatility to commodities in 2020, along with higher demand and prices for things like lumber. But, what does the market action in lumber mean for agriculture? Mike Zuzolo of Global Commodity Analytics and Consulting LLC, said it’s important to watch all commodities because of their interconnection. “No, […]

Interest Rates for Operating Loans Rise Slightly

Interest rates on agricultural loans made by commercial banks increased slightly for some types of lending. However, the Federal Reserve of Kansas City says rates stayed historically low through the first half of this year. The average rate on non-real estate loans was about 30 basis points higher than the all-time low reached at the […]

Regional Farm Credit Conditions Improving

Further strengthening of the U.S. ag economy bolstered farm credit conditions in the first quarter of 2021. A Federal Reserve survey of agriculture credit conditions shows farm loan repayment rates continue to improve rapidly. After many years of growing financial stress and weakness in the ag economy, bankers reported that farm income was higher than […]

Farm Credit Conditions Show Additional Strength

Agricultural credit conditions in the Tenth District of the Federal Reserve continued to strengthen in the first quarter of 2021. After a sharp rebound at the end of 2020, conditions in the broad agricultural economy continued to improve alongside additional increases in crop prices. Stronger profit potential for farm borrowers supported a second consecutive quarter […]

KC Fed: Farm Lending Remains Muted in Early 2021

Farm loan demand remained muted at commercial banks in the first quarter of 2021. The Kansas City Federal Reserve Bank reported this week that a reduction in the volume of operating loans led to an overall decline in total non-real estate lending. Financing activity also declined more notably at banks with relatively large farm loan […]

Farm Lending Pullback Continues

Agricultural debt at commercial banks eased further at the end of 2020, and loan repayment problems moderated slightly. According to the Kansas City Federal Reserve Bank, general improvement in the farm economy likely drove the pullback in farm lending activity and strengthened credit conditions. Higher crop prices and an influx of government payments in 2020 […]

Ag Banks Trim Farm Lending

Farm loans outstanding at commercial banks declined in the third quarter and non-performing loans edged slightly higher. The Kansas City Federal Reserve said reduced lending at agricultural banks contributed most significantly to the further decline in outstanding loan balances. Alongside lower farm debt levels, delinquency rates on agricultural loans continued to trend higher at a […]

What Can The Ag Economy Expect In 2021?

While there are still some areas of concern in the farm economic sector, the Federal Reserves Nathan Kauffman says the outlook is much better now compared to six months ago. But, will this recent  momentum continue going in to 2021? Kauffman said there are a variety of reasons to ben encouraged when looking at commodity […]

Ag Credit Conditions Recover in Third Quarter

Farm income and loan repayment rates recovered from sharp declines in the second quarter, and demand for credit softened according to Federal Reserve Ag Credit Surveys. Although farm income generally remained low, loan repayment rates stabilized, and farmland real estate markets remained strong. Farm loan demand moderated in all Federal Reserve districts for the first […]