According to a recent report from the Federal Reserve Bank of Kansas City, agricultural debt at commercial banks continued to decline in the first quarter of 2021 and farm loan performance improved.
Fewer new loans to farmers continued to drive a pullback in agricultural lending activity. A historically low number of new loans contributed to an increase in average loan size and drove a slight decrease in the overall volume of non-real estate loans at commercial banks in the fourth quarter.
Farm lending remained muted in the third quarter of 2020 but increased from last year according to the National Survey of Terms of Lending to Farmers. Despite growing 15% from the previous year, total non-real estate loan volumes in the third quarter were below the 20 year trend for that period.
Despite years of persistently low commodity prices and the COVID-19 pandemic, the mood of some Ninth District agricultural bankers is surprisingly upbeat, according to a recent Federal Reserve Bank of Minneapolis survey.
In recent years, farm real estate (land and structures) has typically accounted for about four-fifths of the total value of U.S. farm assets. Farmland values have stabilized since 2014, following a long trend of appreciation since the 1980s. However, there is regional variation in both farmland value levels and growth trends.
The July 18 Kansas City Federal Reserve Bank’s Ag Finance Databook reports that growth in the average size of farm operating loans boosted agricultural lending in the second quarter of 2019. The size of farm loans has continued to rise and loans exceeding $1 million recently have had a significant effect on the overall volume of new loan originations.
The latest episode of Ag Equipment Intelligence’s On the Record is now available! In this week's broadcast we look at how dealers' sales outlook for 2018 compares to that of the OEMs, cyber-based security threats to precision farming and an increase in non-real estate farm loans. In addition, we look into the University of Missouri's Food and Agricultural Policy Research Institute's forecast for net farm income in 2018 and 2019, North American ag equipment sales through the first three quarters of 2018 and an improvement in irrigation equipment sales for Lindsay.
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.
Loan volumes for almost all farming purposes rose at commercial banks, as many producers contended with tighter profit margins, according to the April 2015 edition of the Agricultural Finance Databook from the Federal Reserve Bank of Kansas City.
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There was plenty of technology on display at the World Dairy Expo in Madison, Wis., a few weeks ago. Farm Equipment editor Mike Lessiter caught up with Monarch Tractor’s John Issacson and got his take on the top 5 applications in autonomy right now.