Please Wait a Moment

The Voices of Land blog

Get insight on current land trends and issues from experts across the land real estate industry.

01Aug

Has Wall Street Abandoned Farm Producers?

The Chairman of the Federal reserve told a group of senators that in spite of the deterioration of the farm economy, banks are in good shape to make ag loans. This is in stark contrast to the top 30 banks showing a nearly four billion dollar decline in agriculture loans held in there collective portfolios. For example, back in 2008, JP Morgan began growing its ag holdings which reached nearly 75% by 2015. Now, with incomes being reduced and Chapter 12 bankruptcy filings on the rise, they seem to be pulling back from the farm economy despite what the Federal Reserve Chairman says.

Many rural banks are now in a hard spot having to turn away longtime customers because they cant accept any more risk on there balance sheets. However, this may well force some of these producers into the Chapter 12 that the lenders fear. This is reflected in FDIC reports that 1.5% of farm loans were 90+ days late or lenders had stopped charging interest because they were nonperforming and not likely to be paid as agreed.

If you have a local bank that is still lending, shake their hand because they are having a hard time as well!

About the Author: Tim Hadley, ALC, is an agent with Keller Williams Realty in Gladstone, MO. He joined the REALTORS® Land Institute in 2017, serving on the 2019 Future Leaders Committee.

 

About the Author

Related

Shift Your Brokerage into High Gear

Shift Your Brokerage into High Gear

David Zawalich shares his tips for taking your brokerage to the next level with branding, social med...

Read More >
Seven Land Real Estate Social Media Marketing Tips

Seven Land Real Estate Social Media Marketing Tips

When used correctly, land real estate social media marketing can be a great (and free or low cost!) ...

Read More >
COVID-19 Land Real Estate Trends: Update

COVID-19 Land Real Estate Trends: Update

A panel of Accredited Land Consultants (ALCs) and seasoned land professionals of the REALTORS® Land ...

Read More >
Unleashing Your Social Media Strategy

Unleashing Your Social Media Strategy

The top tips on how to make sure your social media strategy fits into your overall marketing strateg...

Read More >
The Land Market: Current Conditions & Outlook

The Land Market: Current Conditions & Outlook

The latest economic activity shows clear signs of improvement ahead.

Read More >
Does Your Forestland Have Curb Appeal?

Does Your Forestland Have Curb Appeal?

As with residential property, there are steps a landowner can take to add value and make forest acre...

Read More >
You need to login in order to comment