Banks focusing on agriculture loans are reporting higher profits recently.
Researchers at the University of Illinois crunched the numbers and found that ag banks on average have a return on assets at 1.07 percent, which is compared to non-ag banks at 1.03 percent.
They also found ag banks are more efficient, too, with the efficiency ratio up several points during the fourth quarter.
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Perdue’s Dr. Michael Langemeier said the increase was driven mainly by stronger future expectations, with producers expressing greater confidence in their operations and in short-term farmland values.
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