A new survey of bankers shows 82 percent of agricultural lenders reported a decline in farm profitability in the last 12 months. However, the pace of the decline has slowed.
The survey produced by the American Bankers Association and Farmer Mac shows 51 percent of agricultural lenders noted an increase in the demand for agricultural operating loans, while there was no notable change in the demand for agricultural real estate loans. Despite the findings, the survey of more than 580 agricultural lenders revealed that the agricultural loan approval rate is 84 percent.
An ABA spokesperson says that overall, the data shows that lenders are â€śa little more optimistic about whatâ€™s ahead,â€ť compared to last year. The survey, conducted twice per year, is a joint effort to provide a look at the agricultural economy and market forces from the perspective of ag lenders. The next survey is scheduled to launch in December 2017.