Farm lending activity increased slightly in the second quarter. According to a survey conducted by the Federal Reserve Bank of Kansas City, livestock loans reached a historical high in the second quarter. After three years of increases, the volume of farm machinery and equipment loans declined nearly 30 percent. However, loans to finance farm equipment is the smallest category of agricultural loans for commercial banks. Farm debt at commercial banks grew from the fourth quarter to the first quarter. That’s unusual since loan volumes typically pay down annual operating lines of credit after the fall harvest.