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KC Fed Survey Shows Ag Lending Increases
USAgNet - 02/05/2018

Lending at agricultural banks increased sharply in the fourth quarter, after appearing to stabilize in previous quarters, according to the Federal Reserve's Agricultural Finance Databook.

Large loans drove the increase in farm lending, which may heighten concerns about cash flow in 2018 as interest rates have continued to rise steadily. At the same time, farm income has stabilized somewhat, but at a low level.

While the farm economy has remained relatively steady, further increases in loan obligations could stretch borrowers' repayment capacity in the coming year.

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