Farm bank lending increased to $99.6 billion in 2021

At the end of 2021, banks held $179 billion in farm and ranch loans.

 

Source: American Bankers Association

via Feedstuffs - Jun 22, 2022

 

Agricultural lending by U.S. farm banks increased 5.5% in 2021 to $99.6 billion, according to the American Bankers Association's annual Farm Bank Performance Report. The report attributed the change to a 7.5% increase in outstanding loans secured by farmland and a 2.9% increase in agricultural production loans. According to the report, farmland continues to provide a strong equity base for producers to tap as land values saw strong growth in 2021 after plateauing for several years.

 

"In 2021, farm banks continued to perform strongly amid ongoing challenges from the COVID-19 pandemic," says ABA's Chief Economist Sayee Srinivasan. "As we look ahead to the second half of 2022, the ag sector will continue to face challenges resulting from the war in Ukraine, inflationary pressures and ongoing supply chain disruptions. Nevertheless, farm banks are well-positioned to continue supporting their customers and the communities they serve well into the future."

 

The report—an analysis by ABA's economic research team based on FDIC and USDA data—examines the performance of the nation's 1,553 banks that specialize in agricultural lending. ABA defines farm banks as banks whose ratio of domestic farm loans to total domestic loans is greater than or equal to the industry average.

 

According to the report, farm banks also supported rural communities via the Paycheck Protection Program. In 2021, farm banks originated 538,154 PPP loans worth $14.6 billion. Farm banks distributed these loans via more than 7,500 branches across rural America, preserving jobs at local small businesses and providing an important lifeline to the communities they serve...

 

more

https://www.feedstuffs.com/news/farm-bank-lending-increased-996-billion-2021