Total farm debt outstanding (dark grey line in chart below) at U.S. commercial banks shrunk in 2020 for the first time since the late 1980s. Non-real estate loans (green line in chart below) have now declined for six consecutive quarters. According to the federal reserve's banker survey, farm loan demand is soft and requests for renewals have fallen across most of farm country. High commodity prices and government stimulus have reduced the need for financing at this time. In addition, repayment rates during the quarter improved across all ag districts for the first time in nearly a decade.

Loading...

The material provided is for informational purposes and should not be viewed as a recommendation to buy, sell, or hold any commodity contract, investment, or security or to engage in any risk management strategy or transaction. This information is taken from sources which we believe to be reliable but is not guaranteed by us as to accuracy or completeness. The information and opinions represented are those of the author, are subject to change and may be inconsistent with the views of CHS, Inc. or any of its subsidiaries. If applicable, this material should be considered a solicitation by CHS Hedging, LLC and not any other CHS entity. Trading Futures or Options on Futures involves substantial risk of loss and is not suitable for all investors. Past Performance is not indicative of future results.