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Get an update on credit conditions in the agricultural sector by the Federal Reserve in the RightRisk Newsrelease at: RightRisk.org/news.
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#RightRisk.org #RiskInAg #AgRiskMgt
Get an update on credit conditions in the agricultural sector by the Federal Reserve in the RightRisk Newsrelease at: https://RightRisk.org/news.
Interest rates on agricultural loans made by commercial banks increased slightly for some types of lending, but remained historically low through the first half of 2021.
#RightRisk.org #RiskInAg #AgRiskMgt
Get an update on the agricultural sector by the Federal Reserve in the RightRisk Newsrelease at: https://RightRisk.org/news.
The Beige Book is a Federal Reserve System publication covering current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from District sources. The latest update was posted July 14th.
Agricultural debt at commercial banks continued to decline from the first quarter of 2021 and farm loan performance improved. Both real estate and production loans decreased, reducing farm debt by more than 5 percent from a year ago, contributing to a decline in the number of banks classified as agricultural banks.
The Beige Book is a Federal Reserve System publication covering current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from District sources. The latest update was posted June 2nd.
Agricultural credit conditions in the Tenth District continued to strengthen in the first quarter of 2021. After a sharp rebound at the end of 2020, conditions in the broad agricultural economy continued to improve alongside additional increases in crop prices. Stronger profit potential for farm borrowers supported a second consecutive quarter of significant increases in farm income, loan repayment rates and farmland values.
The Beige Book is a Federal Reserve System publication covering current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from District sources. The latest update was posted April 14th.
From 2010 to 2019, fertilizer was a major expense in U.S. corn production, accounting for 33 to 44 percent of operating cost. Fertilizer also comprised 16 to 24 percent of the average corn producer’s total costs, which include overhead charges like land costs, machinery depreciation, and farm taxes. Prices for fertilizer have risen since August 2020, with an even more pronounced surge starting in January 2021.
Agricultural debt at commercial banks eased further at the end of 2020, and loan repayment problems moderated slightly. General improvement in the agricultural economy likely drove the pullback in farm lending activity and strengthened credit conditions. Higher crop prices and an influx of government payments in 2020 also contributed stronger growth in deposits, which supported a sharp increase in liquidity at agricultural banks.
Prospects for farm income and agricultural credit conditions rebounded sharply in the fourth quarter of 2020. The average price of corn, soybeans and wheat increased more than 20% from the previous quarter, and reached six year highs in December. Livestock prices, while still less than a year ago, also improved from lows reached earlier in the year. Government payments provided broad support through the year and, together with recent price increases, the near-term outlook for the farm sector improved dramatically.
