The volume of non-real estate farm loans rose sharply in the third quarter. According to the Federal Reserve’s Agricultural Finance Book, The total loan volume was up 30 percent from one year ago. Nathan Kauffman, who is a vice president with the Kansas City Fed, says the loan volume is due to the current market environment. “Cash flows are still relatively weak; producers need financing and some seem to be needing it in larger amounts.” The number of loans larger than $1 million nearly doubled and accounted for nearly 40 percent of non-real estate lending during the quarter. Loan delinquency rates on farm loans at commercial banks remained low. Kauffman says the big test for agriculture will be in this fourth quarter. Trade concerns were seen in the second and third quarters, but this is the time of the year when soybean exports typically happen.
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