High Volumes of Farmer Operating Loans Persist; Interest Rates for Equipment Rising

As farmers’ profit margins remain low going into 2016, levels of non-real estate farm lending at commercial banks persisted at high levels at the end of fourth quarter 2015. In a recent report, USDA notes while farm sector real estate debt is forecast to increase 6.1% in 2015, non-real estate debt is forecast to grow slightly quicker, rising 6.5%, but will not close the historically large gap between real estate and non-real estate debt.

USDA…

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