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.
In its most recent list, Ag Equipment Intelligence has gathered financial data from the filings of the ag industry’s key publicly-traded manufacturers and compiled its own list of these companies’ executives’ compensations.
Ag equipment manufacturers reported industry recovery continued to move forward in the third quarter with significant improvement in the latest Agriculture Industry Conditions survey conducted by the Assn. of Equipment Manufacturers (AEM) in October 2020.
In 2020, USDA’s Economic Research Service (ERS) expects the inflation-adjusted median household income for the principal operators of commercial and intermediate U.S. farms to increase by an estimated 29.6% and 4.9%, respectively.
Farm loans outstanding at commercial banks declined in the third quarter and non-performing loans edged slightly higher. Reduced lending at agricultural banks contributed most significantly to the further decline in outstanding loan balances.
Most Federal Reserve Districts have characterized economic expansion as modest or moderate since the prior Beige Book period. However, four Districts described little or no growth, and five narratives noted that activity remained below pre-pandemic levels for at least some sectors.
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Happy New Year! The latest episode of On the Record is now available. In this week’s program we discuss dealers’ record low used equipment inventory levels. In the Technology Corner, Jack Zemlicka discusses how the lifecycle of precision services are evolving. Also in this episode, the latest earnings reports from Buhler, manufacturer of the Versatile and Farm King brands of equipment, and Claas, as well as an improvement in farmer sentiment and farm equipment purchasing plans and the Dallas Federal Reserve Bank reports weaker ag conditions in the fourth quarter of 2020.