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 […]

KC Fed: Fewer Loans Issued to Farmers

The Kansas City Federal Reserve said a slower pace of farm financing activity continued in the third quarter of 2020. The total volume of non-real estate farm loans remained subdued amid ongoing weakness in the ag sector, thanks in part to developments regarding COVID-19. The National Survey of Terms of Lending to Farmers says despite […]

Industry Expert Warns Of Consolidation Trend In Small, Rural Banks

Consolidation has been a big topic in agriculture during the last several years, primarily as it relates to some of the largest businesses in the Ag sector. However, some of the community banks that lend money directly to farmers have begun to consolidate their businesses too. Nathan Kauffman Vice President of the Omaha, NE, branch […]

Economist Warns Of A Prolonged Soft Farm Economy

Most if not all in the Ag industry would agree that 2019 was a rough year.  In fact for many, 2018 and 2017 weren’t much better.  But according to a variety of surveys and polls, many in farm country are feeling more positive about the road the Ag industry is on in 2020.  But one […]