Ag Industry Keeping Watchful Eye on Financial Health

November 1, 2016 03:24 PM

The ag industry is keeping a close eye on the financial health of the entire ag sector as November gets underway.

The Federal Reserve Bank of Kansas City says farm lending at commercial banks fell in the third quarter, but is still high. The volume of farm loans starting in Q3 fell 19 percent from 2015, but remained elevated by historical standards.

Operating loans continue to make up a large number of requests, counting for 60 percent of all loans in 2016.

Banks have also been increasing their use of farm real estate as collateral for these loans.

A third of all operating loans are now being backed by farms.

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Spell Check

Gary Giesen
Godley, TX
11/3/2016 07:39 AM

  Yeah farm loans fell because banks turned a record amount of producers away this year. It's not the farmers or ranchers not wanting loans or refinance its the banks not lending. This stretches through the whole U S.


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