Feedback from farmers, agricultural lenders, suppliers, and other interests in the ag sector, gathered informally by the Minneapolis Fed over the past year or so in meetings and other venues, has suggested that farm balance sheets are increasingly stressed.
The Federal Reserve Banks of Kansas City and Dallas are reporting that demand for farm loans held steady or declined slightly in the second quarter, but renewals and extensions increased somewhat. At the same time, the banks report the interest rate on some loans, including ag machinery, has risen modestly.
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.
On average, lenders in the Eighth Federal Reserve District reported that 55% of the value of recent farmland transactions was financed with new debt, 30% supported by a pledge of existing equity and 15% paid in cash, according to latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis on Feb. 12.
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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.