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Wednesday, March 12, 2014

ABA: Farm Banks Report Strong 2013 Performance

Farm banks’ agricultural lending grew 9 percent in 2013 -- a significant increase, according to the American Bankers Association’s annual Farm Bank Performance Report released this week. At the end of the year, farm banks held $87.8 billion in farm loans.

The nation’s farm banks, which ABA defines as banks whose ratio of domestic farm loans to total domestic loans is greater than or equal to the industry average, also reported continued improvement in asset quality in 2013. Non-performing loans declined to 1.22 percent of total loans, close to pre-recession levels.

“There are some headwinds forecasted for the agricultural economy in 2014, but farmers and their bankers are in good shape to weather any storm that may be brewing,” said John Blanchfield, ABA SVP and director of ABA’s Center for Agricultural and Rural Banking. “Banks remain the most important source of ag credit, holding nearly half of all farm loans.”

Read the full press release. Read the 2013 Farm Bank Performance Report.

Watch ABA’s John Blanchfield and two ag bankers – Kreg Denton, senior vice president, First Community Bank, Fancy Farm, Ky. and Nate Franzen, president, Ag Division, First Dakota National Bank, Yankton, S.D – discuss the report and the outlook for 2014 below.

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