Farm banks increased their agricultural lending by 5.3 percent in 2016 and held $103.4 billion in ag loans at year’s end, according to the American Bankers Association’s annual Farm Bank Performance Report. Despite overall declines in farm income, farm banks continued to maintain healthy asset quality and capital levels. More than 97 percent of farm banks were profitable in 2016, …
Everett Griner talks about a tough year ahead for farmers in today’s Agri View.
Net cash farm income and net farm income are two popular ways to measure farm sector profitability, but they aren’t the same thing. Net cash farm income tracks cash receipts and cash expenses, while net farm income includes non-cash transactions, including inventory changes, capital replacements costs, and others.
U.S. farmers will see their net incomes drop in 2016 for the third consecutive year. The U.S. Department of Agriculture says weaker cash returns on livestock, poultry, and dairy farms will drive income down 17.2 percent to $66.9 billion this year.
Farm sector profitability is forecast to decline for the third straight year. Net cash farm income for 2016 is forecast at $90.1 billion, down 14.6 percent from the 2015 estimate. Net farm income, a more comprehensive measure of profitability, is forecast to be $66.9 billion in 2016, down 17.2 percent. If realized, 2016 net farm income would be the lowest …
Everett Griner talks about the farm income outlook in today’s Agri View.
Financial stress in the farm sector is continuing to make a slow and steady climb. The stress continued to rise in the third quarter as income in the farm sector stayed low.
The Department of Agriculture this week changed its forecast for 2016 net cash farm income to $94.1 billion, up from its initial projection of $90.9 billion in February. While USDA increased the estimate, net cash farm income remains 13.3 percent lower compared to 2015.
Agriculture credit conditions in the Midwest continued to deteriorate in the second quarter of 2016 as farm income remained subdued. That’s according to the Federal Reserve Bank of Kansas City’s Survey of Agricultural Credit Conditions released Thursday.