“This could be the best crop year we have had in several years,” exclaimed one banker in the 11th Federal Reserve District’s quarterly survey when asked about current conditions last month.
Farm loan demand remained muted at commercial banks in the first quarter of 2021.
According to the Dallas branch of the Federal Reserve Bank, ag lenders noted good crop yields and rising prices, while also expressing caution about continued dry conditions.
Agricultural loan balances at commercial banks reached a five-year low in the fourth quarter and continued to shift toward farm real estate.
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