News

Report: Large loans drive further increases in farm lending

A new report compiled by the Federal Reserve Bank of Kansas City shows the volume of non-real estate farm loans in the second quarter of this year increased 11 percent over last year.

That’s the fastest pace of growth for those loans, in the second quarter, since 2011.

Operating loans, which comprise the majority of non-real estate farm lending, increased 16 percent over last year. The report says non-real estate farm loans exceeding one million dollars were “notably higher” than in previous years.

Despite increased pressure from weaker farm finances and recent increases in interest rates on farm loans, Midwest farmland values continue to hold relatively steady, the report says.