Surveyed bankers indicated farm machinery and grain storage construction loan volumes were anticipated to increase, while the volume for operating loans was anticipated to be flat.
In its August 2020 Ag Letter, the Chicago Federal Reserve Bank of Chicago reported that repayment rates for non-real estate loans in the second quarter were down vs. the same period of 2019.
There’s a big push right now for “regenerative” or “sustainable agriculture” practices. With little or no perceived value to their production though, growers are unlikely to change their cropping practices. Some in the sustainable ag space, however, say that certain sustainable practices can provide increased productivity, including crop yields and return per acre.
The quarterly report shows the availability of funds for lending by agricultural banks was lower than in 2017 for the fifth quarter in a row. At the same time, the demand for non-real estate farm loans was higher than a year earlier.
The volume of loans for farm machinery and equipment purchases dropped to the lowest level in more than 2 years, according to the January 2014 Agricultural Finance Databook from the Federal Reserve Bank of Kansas City.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.