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.
In its August 2020 Ag Letter, the Chicago Federal Reserve Bank of Chicago reported that repayment rates for non-real estate loans in the second quarter were down vs. the same period of 2019.
There’s a big push right now for “regenerative” or “sustainable agriculture” practices. With little or no perceived value to their production though, growers are unlikely to change their cropping practices. Some in the sustainable ag space, however, say that certain sustainable practices can provide increased productivity, including crop yields and return per acre.
The quarterly report shows the availability of funds for lending by agricultural banks was lower than in 2017 for the fifth quarter in a row. At the same time, the demand for non-real estate farm loans was higher than a year earlier.
The volume of loans for farm machinery and equipment purchases dropped to the lowest level in more than 2 years, according to the January 2014 Agricultural Finance Databook from the Federal Reserve Bank of Kansas City.
Each monthly issue of Ag Equipment Intelligence is like getting one-on-one personal advice from the world's most trusted ag equipment industry experts. Advice that hasn't been watered down or distorted by outside influence, providing the latest and most insightful farm equipment analysis. AEI explores where the ag equipment industry is going — not just where it's been. No filler. No bias. No conflict of interest. You can access the PDF issue archive by clicking here.
Precision ag pioneer Al Myers is a member of the Farm Equipment Shortline Legends Hall of Fame 2024 class. It’s been almost 35 years since the Ag Leader founder introduced the groundbreaking Yield Monitor 2000.