Farmer Mac and the American Bankers Association (ABA) has released its first biannual survey of agricultural lenders. More than 350 agricultural lenders, representing all sizes from across the country, were asked what they were most concerned about including commodity prices and farm income.
Jackson Takash, economist with Farmer Mac, spoke with AgriTalk host Mike Adams about the main takeaways from the survey.
Takash said while it might not come as a surprise, lender attitudes showed pessimistic outcomes for grain, cattle, and dairy. On the other hand, lenders are more optimistic about hogs, poultry, vegetables, and fruit.
To Takash, there was a surprise in the survey. In terms of staffing, ag lenders have aged alongside the borrowers. As a result, there’s not many people to back fill. According to Takash, 1/3 of ag lenders are expected to turn over in the next five years.
Those lenders, he said, have 20 or more years of experience, which is something the banking industry will have to handle in the coming years.
Instead of focusing efforts and attention on knowing one specific person at the bank, Takash suggests farmers get to know more people at the bank to build relationships.
Hear what the survey said about demand for ag loans, how lenders feel about cash rents and land prices, as well as how lenders feel about commodity groups on AgriTalk above.