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KC FED: FARM LENDING ACTIVITY SLOWED IN THE FIRST QUARTER
Apr. 20, 2020
Source: Federal Reserve Bank of Kansas City news release
Prior to the emergence of global economic developments related to COVID-19, growth in farm lending continued to show signs of slowing. While the volume of operating loans in the first quarter of 2020 increased slightly from a year ago, overall demand for non-real estate loans declined.
At the end of 2019, delinquency rates on farm loans continued to increase slightly, but agricultural credit conditions and farmland values were holding steady. Capital cushions at agricultural banks, which have increased steadily in recent years, remained at historically high levels through 2019.
As the effects of recent economic disruptions materialize in coming months, the current stability of farm real estate values and financial soundness of farm banks may be key sources of support for the sector.
READ MORE IN THE AGRICULTURAL FINANCE DATABOOK
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