According to a recent report from the Federal Reserve Bank of Dallas, bankers responding to the first-quarter survey reported overall better conditions across most regions of the Eleventh District.
Surveyed bankers indicated farm machinery and grain storage construction loan volumes were anticipated to increase, while the volume for operating loans was anticipated to be flat.
Fewer new loans to farmers continued to drive a pullback in agricultural lending activity. A historically low number of new loans contributed to an increase in average loan size and drove a slight decrease in the overall volume of non-real estate loans at commercial banks in the fourth quarter.
The outlook for agricultural credit conditions in the Tenth District improved in the third quarter alongside increases in commodity prices and the announcement of additional government aid.
The effects of the COVID-19 pandemic continued to pressure the agricultural economy and weighed on farm finances in the Tenth District. Farm income declined in the second quarter at the quickest pace since 2016, and weaknesses in both income and borrower liquidity were expected to carry into the coming months.
Bankers responding to the second quarter survey reported overall weaker conditions across most regions of the Eleventh District. They noted that dry conditions are putting a strain on agricultural production despite some rainfall in late May.
In this week’s podcast, we dig into a report from the University of Illinois that projects an $89 per acre decline for the 2020 corn crop, which could point to a drop in tractor sales. And we take a look at preliminary results from both the latest Precision Farming Dealer and Strip-Till Farmer benchmark surveys. Also in this episode we look at deteriorating ag credit conditions and Deutz’s latest earnings.
The latest episode of On the Record is now available! In this week’s episode we dig into a report from the University of Illinois that projects an $89 per acre decline for the 2020 corn crop, which could point to a drop in tractor sales. And we take a look at preliminary results from both the latest Precision Farming Dealer and Strip-Till Farmer benchmark surveys. Also in this episode we look at deteriorating ag credit conditions and Deutz’s latest earnings.
Javier Grasso, commercial manager of Metalfor, one of the largest companies in Argentina, believes this summer’s drought was not the main cause of the sales bust in the country.
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In this episode we look at the potential impact Hurricanes Helene and Milton will have on ag production as well as the dealers and manufacturers in the impacted region.