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Ms banks hobby farm loans11/22/2023 ![]() The Federal Reserve Bank of Kansas City (April 19, 2023). In comparison, more than half of farm loans had rates below 5% on average from 2011 through 2020.” “Interest Rates Rise and Farm Lending Softens,” by Nate Kauffman and Ty Kreitman. In contrast to the average over the past two decades, three fourths of new loans in the first quarter had an interest rate above 7%. The Fed report noted that, “The range of interest rates available to borrowers has also shifted rapidly. The average rate charged on all types of farm loans increased for the fifth consecutive quarter and reached the highest level since 2007.” “Interest Rates Rise and Farm Lending Softens,” by Nate Kauffman and Ty Kreitman. Kauffman and Kreitman pointed out that, “ Interest rates on agricultural loans rose alongside further increases in benchmark rates. The outlook for farm finances remained favorable alongside elevated commodity prices, but higher interest rates, increased production costs and drought remained key ongoing concerns. Lending activity was pushed down by fewer new loans and smaller-sized operating loans. Non-real estate farm loan volumes decreased about 10% from the previous year in the first quarter of 2023, following average growth of 15% in 2022. The rapid rise has shifted the range of rates offered to borrowers upward considerably. Alongside additional increases in the federal funds rates, interest rates on farm loans rose sharply. In an update last week from the Federal Reserve Bank of Kansas City (“ Interest Rates Rise and Farm Lending Softens“), Nate Kauffman and Ty Kreitman indicated that, “Growth in farm lending activity at commercial banks was limited in the first quarter of 2023 as interest rates climbed higher. Illinois Farmland Leasing & Rental Forms.Illinois Crop Budgets & Historic Returns.Farmland Leasing Facts Sheets & Pricing Information.Illinois Soil Productivity & Yield Utilities.Biomass Crop Budget Tool – Miscanthus & Switchgrass. ![]()
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