The Ag industry is keeping a close eye on the financial health of the entire ag sector as November gets underway. The Federal Reserve Bank of Kansas City says farm lending at commercial banks fell in the third quarter, but is still high. The volume of farm loans starting in Q3 fell 19 percent from 2015, but remained elevated by historical standards.
Operating loans continue to make up a large number of requests, counting for 60 percent of all loans in 2016. Banks have also been increasing their use of farm real estate as collateral for these loans.
A third of all operating loans are now being backed by farms.
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