![]() ![]() More than half inquired about government programs like the CFAP/MFP (68%) and PPP (58%). Lenders reported sustained interest from borrowers in hemp and alternative energy financing.ĬOVID-19 Economic Downturn – While concern about the pandemic was lower than that for borrower financials, 87.4% of respondents noted that ag borrowers’ reliance on government payments in 2020 increased. Concerns declined for vegetables, poultry, and fruits and nuts. Sector concerns – Respondents expressed the most concern for the grain, dairy and cattle sectors.Concern regarding weak loan demand was the third highest ranked concern reflected across most regions except in the West. Top concerns for lenders – Lenders across all regions and sizes remained concerned with credit quality and competition for loans in 2020.Uncertainty regarding tariffs and trade, the weather and the impacts of the COVID-19 pandemic and resulting economic downturn are close behind. Top concerns for producers – Lenders continue to be most concerned about the liquidity, income and leverage of producers.The majority of agricultural lenders surveyed noted compression in farm profitability (79.2%). Profitability expectations – The agricultural economy and farm income remain stressed in 2020.These findings are a reflection of the prior year and early part of 2020.Įstadt and Zoller identified the following Key Takeaways from the report: It should be noted that the survey and this report were done prior to this fall’s run up in commodity prices. The Farm Credit System is not a member of this association and were not participants in the survey. There is also a wide geographic distribution of respondents. ![]() Responses represent lending institutions that range in assets of less than $50 million to large institutions with assets in excess of $5 billion. The American Bankers Association and Farmer Mac have collaborated on a national survey of ag lenders since 2016 to gauge lender sentiment of the farm economy, expectations of land values and an outlook for the agricultural economy for the coming year.Īccording to a recent article in the Ohio State University – Ohio Ag Manger newsletter by Mike Estadt, Ag/NR Educator, Pickaway County & Chris Zoller, Ag/NR Educator, Tuscarawas County, nearly 500 loan officers respond to a survey via email between August and September each year. Farmer Mac has been delivering capital to rural America for over 30 years. Member banks working with Farmer Mac provide the agricultural industry with low-cost financing and risk management tools. The group of lenders surveyed belong to the American Bankers Association, a membership association comprised of small, regional, and large banks that account for nearly $11 trillion in loans and $17 trillion in deposits. In a recent 2020 agricultural lender survey, the results signal there may be some concerns we should be paying attention for the agriculture industry. So how is the farmer of today doing? Are there concerns that farmers should be looking at from beyond the tractor? Here is another one I have seen before that hits home pretty well still today: “The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.” – John F. ![]() Or “Farming looks mighty easy when your plow is a pencil and you’re a thousand miles from the corn field.” - Dwight D. How many of you have seen slogans that state, “If you ate today, thank a farmer”? Sentinel-Tribune – Survey shows ag industry concerns ![]()
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