The Federal Reserve Bank of Chicago highlighted agriculture’s financial stress in a newly released report. It said agricultural credit conditions continued to deteriorate in the fourth quarter. Nearly six percent of the farm loan portfolio was at risk for major or severe repayment problems, the highest its been since the second quarter of 2020. Nearly four percent of the farm customers with operating loans were not likely to qualify for a new operating loan this year. Thirty percent of the bankers surveyed in portions of Iowa, Illinois, Indiana, Wisconsin and Michigan have tightened their credit standards for farm loans.
