Agricultural loan volumes continue to increase, according to an ag finance update from the Federal Reserve.
That’s causing more ag banks, especially smaller ones, to reduce their risk by syndicating loans—selling or sharing loans with outside organizations.
Cortney Cowley, ag economist with the Kansas City Federal Reserve Bank, says it could be another indication of elevated financial stress in the farm sector.
“Small ag banks have really increased their usage of loan participations and syndications,” Cowley says.
Continue reading Fed report: Ag banks adjust as loan volumes increase at Brownfield Ag News.
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