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.
Farm businesses — operations where farming is reported as the operator’s primary occupation or that have at least $350,000 in annual sales — accounted for more than 94% of U.S. farm sector production in 2017.
While farm equity is only down 5% since 2014, farmers are tapping into their real estate equity to run operations and real estate debt hit a record high in 2018.
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.
While the unpredictability of commodity prices in the past year have given some cause for concern, the fact remains U.S. agricultural fundamentals continue to support the long-term health of the industry.
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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.