Get insight on current land trends and issues from experts across the land real estate industry.
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.
A number of characteristics make timberland brokerage a unique specialty.
The latest Dynamic Duo is cost segregation (CS) and Section 453, and it provides farmers and rancher...
Internal Revenue Code Section 1031, which allows taxpayers to defer, not eliminate, payment of capit...
America is a land of wide-open spaces. With all its natural wonders, how can you ever decide where t...
Expert real estate economist Lawrence Yun, PhD, gives his insights on the 2020 land market outlook f...
A U.S. District Court for the District of North Dakota halted the 2023 WOTUS Rule in 24 states on Ap...