Pace of Ag Lending Slowed in the Second Quarter; PPP Supplemented Farm Financing

By Nathan Kauffman, Vice President and Omaha Branch Executive and Ty Kreitman, Assistant Economist, Federal Reserve Bank of Kansas City

Farm lending slowed alongside the initial effects of the pandemic and a more pessimistic outlook for agricultural economic conditions. The volume of total non-real estate farm loans continued into a yearlong trend of declines during the second quarter of 2020. The slowdown in lending generally was consistent across all types of loans.

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