URBANA, IL – Agricultural lending at U.S. commercial banks increased during the second quarter of 2026, while farm loan delinquency rates at agricultural banks improved from the first quarter, according to farmdoc daily at the University of Illinois.
Gerald Mashange reports total agricultural loans reached $206.27 billion, up 2.1% from the first quarter and 3.79% from a year earlier. Farm real estate loans climbed to $122.26 billion, while non-real estate farm loans reached $84 billion.
At agricultural banks, non-real estate farm loan delinquencies fell to 1% from 1.3% in the first quarter. Farm real estate delinquencies declined to 1.45% from 1.78%. Both remained close to year-earlier levels.
Agricultural banks held $86.92 billion in farm loans, about 42% of commercial-bank agricultural lending. Their net interest margin increased to 3.94% as yields on earning assets rose while funding costs remained relatively steady.
The farmdoc analysis shows credit demand continues growing while loan performance remains relatively stable, giving lenders and producers an important measure of financial conditions heading into the second half of the year.
Farm-Level Takeaway: Farm borrowing continues to increase, while lower quarterly delinquency rates suggest repayment stress has not accelerated sharply.
LINK: https://farmdocdaily.illinois.edu/2026/10/agricultural-lending-by-commercial-banks-2026-second-quarter.html