In just a few years the farm financial pendulum swung from shaky to stable, according to the 2022 Agricultural Lender Survey report by the American Bankers Association and Farmer Mac, which surveyed 300 agricultural lenders.
While most lenders saw overall farm profitability increase in the past year, they are projecting a decline in the next 12 months.
FUTURE CONCERNS
“Many of America’s farmers and ranchers experienced a strong recovery in 2021 and 2022, driven by higher commodity prices and robust sales,” says Jackson Takach, chief economist at Farmer Mac. “But they are now facing a third consecutive year of
rising expenses.”
Listen to Jackson Takach discuss the survey results with Andrew McCrea on the Farming the Countryside podcast:
The impact inflation and increasing interest rates will have on liquidity are the top concern bankers have for farmers in 2023. See what else is on their minds.
