An aerial view of a farm in Minnesota

Demand for farm loans continues to fall as farm debt shrinks

June 18, 2021 1:38 p.m.

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.



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