Rabobank will transfer the food and agriculture loan portfolio from its California retail banking operation, Rabobank North America, to St. Louis-based Rabo AgriFinance.
“Continued low prices, high production expenses and extreme weather is leading to more farm stress, including higher chapter 12 bankruptcies," says a March 22, 2019, report in the Minneapolis Federal Reserve Banks’s recent issue of Fedgazette.
The volume of non-real estate farm debt continued to increase in the fourth quarter of 2018, according to Nathan Kauffman, vice president and Omaha branch executive and Ty Kreitman, assistant economist at the Kansas City Federal Reserve Bank.
Demand for loans for ag equipment and other capital expenditures continued to decline in the first quarter of the year, the volume of large non-real estate farm loans continued to have a significant effect on changes in farm lending, according to the Federal Reserve Bank of Kansas City.
While some industry people are still fretting that the current slowdown in the sale of farm machinery is setting the stage for a return of the farm crisis of the early 1980s, in large part because of declining land values, Ryan Larsen says, “Perhaps we should be more concerned with the impact of falling intermediate asset prices.”
In the August issue of its “Agricultural Finance Databook,” the Federal Reserve Bank of Kansas City reports that agricultural banks nationally were able to sustain strong profits that continue to support favorable loan terms to the ag sector.
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We’ve been busy over here in the Technology Corner preparing for the 10th annual Precision Farming Dealer Summit, taking place Jan. 6-7 in downtown Louisville, Ky. Skip Klinefelter, CEO of Ag Technology Solutions Group in Greenville, Ill., will be one of several speakers sharing their unfiltered perspective on the state of precision ag.