(NAFB) – Conditions for farm income and farm loans improved significantly in the fourth quarter, according to data from farm lenders in much of the United States.
Despite turbulent conditions related to the ongoing pandemic, the prices of several agricultural commodities rose sharply in the last few months of the year. Drastic improvements in crop prices marked the sharpest turn in agricultural loan terms in more than a decade, according to the Kansas City Federal Reserve Bank. On average, the repayments of agricultural loans rose again for the first time since 2013.
The loan repayment rate increased year over year in all participating Federal Reserve districts except Dallas, with the fastest increases recorded in Minneapolis and Chicago districts. Other financial indicators also changed quickly in the fourth quarter as borrowers rebounded from the financial pressures of previous years. According to agricultural banks, the demand for credit has contracted the fastest since 2013 and the availability of funds has increased the fastest since 2013.
Mozilla / 5.0 (Macintosh; Intel Mac OS X 10_14_6) AppleWebKit / 537.36 (KHTML, like Gecko) Chrome / 83.0.4103.116 Safari / 537.36