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Farm Lending Stabilizes, but Bank Liquidity Tightening 3Q – Fed Reserve Bank of Kansas City

Ernst Undesser
By Nathan Kauffman, Federal Reserve Assistant Vice President and Omaha Branch Executive and Matt Clark, Assistant Economist October 20, 2017

Farm Lending Stabilizes, but Bank Liquidity Tightening 3Q – Fed Reserve Bank of Kansas City

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Lending at agricultural banks appeared to stabilize in the third quarter of 2017, but risks in the sector have remained alongside a persistently weak agricultural economy. After declining in the winter months, the volume of loans used to finance non-real estate farm purchases rebounded in the third quarter to a level similar to a year ago.

Despite the rebound in lending activity, however, risk ratings on new farm loans have increased somewhat, interest rates have edged higher and loan-to-deposit ratios—a key measure of bank liquidity—also have increased.


Source: : https://www.kansascityfed.org/research/indicatorsdata/agfinancedatabook/articles/2017/10-18-2017/ag-finance-dbk-10-18-2017

Ernst Undesser
By Nathan Kauffman, Federal Reserve Assistant Vice President and Omaha Branch Executive and Matt Clark, Assistant Economist October 20, 2017