Bankers responding to the Dallas Federal Reserve Bank’s first quarter survey noted that the negative impact on commodity prices from the coronavirus (COVID-19) outbreak has changed the outlook for 2020 from one of challenge to one of extreme concern.
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.
Results of its first quarter 2019 survey of ag bankers indicated that prices were “generally weak, particularly for cotton, although livestock prices were more mixed.” At the same time, demand for agricultural loans overall declined for a 14th consecutive quarter.
A survey of bankers in the 11th Federal Reserve District say that, that while loans for farm equipment fell sharply in the fourth quarter of 2018, so did the loan demands in other areas of agriculture. The district covers all of Texas, northern Louisiana and southern New Mexico and 100 bankers responded the this most recent survey.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, Deere Director of Investor Relations Josh Beal told JP Morgan analysts that the OEM is confident it will be “producing to demand” in fiscal year 2025.