Ag lenders are reducing exposure to lending risks by requiring more farm real estate as collateral for large, non-real estate farm loans. â€”The Editors
Using responses from 213 banks, economists with the Kansas City Federal Reserve Bank presented a survey of Agricultural Credit Conditions covering the first quarter of 2016. A selection of observations by some of these bankers follows:
â€œGood quality land has still brought a premium at auctions. Marginal soil types have reduced in price or â€˜no soldâ€™ at auctions. Cash rents have remained steady.â€ â€” Southeast Nebraska
â€œLeveraged farmers are beginning to see their debt load increase and becoming harder to manage.â€ â€” Southeast Colorado
â€œProduction expenses have not decreased in proportion to decreased market prices.â€ â€” Southeast Colorado
â€œDebt repayment on real estate and equipment loans is a big problem.â€ â€” Western Missouri
â€œCow-calf areas have plenty of margin after annual debt service and living costs.â€ â€” Southeast Wyoming
Read the complete report at www.KansasCityFed.org.