News

Ag lender survey finds increased loan demand

Almost 90 percent of agricultural lenders report declines in farm profitably and expect increases in loan demand this year.

Brittany Kleinpaste Director of Economic Policy and Research with the American Bankers Association, tells Brownfield they have created a biannual joint survey with Farmer Mac to take a pulse on the ag lending environment amid a declining farm economy.  “Our respondents noted that they expect about 60 percent of their agricultural borrowers to be profitable in 2016 and that number to decline slightly into 2017.  We’re really eager to see how that lines up with future surveys.”

Kleinpaste says lenders reported cash rents have dropped at a faster rate than land values, but continued declines for both are expected.

She says 66 percent of lenders anticipate increasing ag operating loan demand for the first half of 2017.

The next survey will be sent out later this month.

AUDIO: Interview with Brittany Kleinpaste