Agricultural loan demand increased in 2023, and agricultural lending by U.S. farm banks grew 6.7 percent to $110 billion. The American Bankers Association’s (ABA) annual Farm Bank Performance Report credits elevated production costs, commodity price volatility, and a return to pre-COVID levels of direct government payments. The ABA says farm banks continued to enjoy solid performance in 2023, with robust …
Fewer Loans Issued to Farmers Limits Overall Lending Activity
The Kansas City Federal Reserve says 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, confirmed by statistical research from same day …
Farm Credit Loan Volume up One Percent
Combined net income for the Farm Credit System increased 1.8 percent to $1.27 billion for the first quarter of 2018, as compared with $1.24 billion for the same period last year. President and CEO of the Federal Farm Credit Banks Funding Corporation Tracey McCabe says the system remains “well-positioned” to support farmers as they face challenges this year. Net interest …
Farm Loan Rates Edging Higher
Interest rates on most types of farm loans continued to move higher. A Kansas City Fed report says, following modest increases in short-term rates, commercial banks raised interest rates on loans used to finance various farm-sector purchases. Following a period of historically-low rates, interest rates increased most significantly on loans used to finance operating expenses. Operating loan interest rates have …
USDA Announces a Near-Record Year for Farm Loans
Infusing Rural Communities with Stronger Businesses and Sounder Agricultural Economies The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) announced another year of high activity in its farm loan programs. Hard-working farm families across the country accessed nearly $6 billion in new credit, either directly or guaranteed through commercial lenders in 2017. At year end, FSA was assisting more …
USDA Offering Loans Targeted at Underserved Groups, Beginning Farmers
The Department of Agriculture’s Farm Service Agency is reminding the ag community of operating and farm ownership loans and installment loans for bad credit to underserved and beginning farmers. For decades now, the FSA has set aside funds, earmarked for these two specific groups. Houston Bruck of the Washington State FSA says not only do these loans help new farmers …
Pace of Young, Beginning and Small Farmer Loans Slowing
In 2016, the pace of new lending to Young, Beginning and Small Farmers, or YBS loans, remained relatively flat, according to a new report by the Farm Credit Administration. Regarding dollar volume, the pace of these loans slightly exceeded the pace of overall farm lending by Farm Credit System institutions. In terms of loan numbers, the pace of YBS lending …
Farm Lending Continues to Moderate
Lending activity at agricultural banks across the country continued to decline in the first quarter of 2017. A report from the Federal Reserve Bank of Kansas City says economic conditions in the farm sector are still weak, so borrowers and lenders have worked together to make adjustments in financing agricultural production across America. Ag lenders are making more adjustments to …
Farm Credit Officials Encouraging Help for Struggling Borrowers
Farm Credit Administration and Farm Credit bank officials told House Agriculture Committee lawmakers the system is sound, making credit available on flexible terms, and only technical tweaks and a strong safety net are needed in the next farm bill. But FCA Chairman and CEO Dallas Tonsager says the bigger issue seems to be the deteriorating creditworthiness of producers… Sponsored ContentCIR …