Agriculture banks are reporting higher profitability

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.

Related Stories
Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
Henning Strauss, CEO of STRAUSS, joins us to share his company’s commitment to crafting tools that farmers wear.
Buying a real Christmas tree directly supports U.S. farmers facing rising import competition, long production cycles, and weather-driven risks.
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.

LATEST STORIES BY THIS AUTHOR:

She joined us on Monday’s Market Day Report to share more about her new cookbook, “Dishes and Devotions: Make Every Day Delicious,” which recently hit #1 in Amazon’s Cajun & Creole Cooking category.
$11 billion will go to row-crop farmers immediately, with $1 billion set aside for specialty crops.
Eastern Region VP Joey Nowotny of Delaware joins us on FFA Today to talk about his new leadership role and an exciting year ahead for the National FFA Organization.
Cattle imports from Mexico remain stalled amid the New World screwworm outbreak. At the same time, Tyson closures add pressure on Nebraska producers and markets ahead of the USDA’s upcoming Cattle on Feed Report.
Georgia has regained its HPAI-free status after a swift response to October’s detection. Commissioner Tyler Harper urges producers to stay vigilant and maintain biosecurity.
While this month’s WASDE report will not include updated figures on U.S. crop size, officials say it will offer a clearer picture of crop conditions in the Southern Hemisphere.