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.
The March 2020 Beige Book, released by the Federal Reserve System, included conditions impacting agriculture throughout the country. In this edition, mixed conditions were reported across the districts, including falling corn and soybean prices, decreased capital spending and worries about the potential impact of the coronavirus outbreak.
The January 2020 Beige Book, released by the Federal Reserve System, included conditions impacting agriculture throughout the country. In this edition, it was noted that agricultural conditions were mixed across the districts, impacted by low commodity prices, trade conflicts, drought and the signing of the USMCA.
Quarterly reports on surveys of bankers in three Midwestern Federal Reserve Bank districts indicate that rising interest rates and low commodity prices may impact farmers’ decisions on making larger, long-term investments in the near future. Farm equipment dealers should take note of this trend, as higher interest rates for farmers mean they will be less willing, or able, to take out a loan for capital expenditures.
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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.