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Farm Real Estate Loan Delinquencies Reach New Low

Agricultural Economics Insights

Despite falling net farm incomes , rising interest expenses , and generally low producer sentiment , farm loan delinquencies improved in 2023. Farm real estate loan delinquencies Across all commercial banks, the share of farm real estate loans classified as delinquent fell to just 0.91% in the fourth quarter of 2023 (Figure 1).

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Farm Real Estate Loans Trend Up Slightly

Agribusiness Blog

Chart 1 shows the rate of change for farm loans outstanding at banks. During 2019-2021 farm loans showed a negative rate of change. Real estate loans were up about 5% in the latest reading while operating and equipment loans were about flat. The percent of farm loans in this status sits at about 1.5%.

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Farm Interest Rate Spreads Go Extremes

Agricultural Economics Insights

Farm interest rates in 2023 and early 2024 reached the highest level since 2006 to 2008 (Figure 1). Average Interest Rate on Ag Operating and Real Estate Loans, 1991Q1 to 2024Q1. Farm Interest Rate Spread: Operating Loans Less Machinery Loans. Farm Interest Rate Spread: Operating Loans Less Real Estate Loans.

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Why you should consider investing in off-farm real estate

Western FarmPress

Diversify your portfolio with non-ag properties to create paper losses and passive income

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KC Fed: Smaller Loan Sizes Keep Farm Lending Activity Muted

AgWeb Farm Journal

New non-real estate farm lending activity at commercial banks continued to decline in the fourth quarter, according to the Federal Reserve Bank of Kansas City.

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Two Charts: Farm Interest Rates

Agricultural Economics Insights

Our recent article about soaring farm interest expenses generated a lot of great questions about interest rates and expenses. farm debt is real estate that has the benefit of long repayment terms and fixed interest rates. All Loans The first consideration is the interest expense across all debt in the farm economy.

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Farm Debt Increases Amid Strong Loan Performance and Margin Challenges

AgWeb Farm Journal

Farm debt continued to rise, particularly non-real estate loans, with outstanding agricultural loan balances at commercial banks increasing by about 5%, according to an ag finance update from the Kansas City Fed.