URBANA, Ill. (RFD-TV) — Agricultural lending at U.S. commercial banks increased during the second quarter of 2026, while farm loan delinquency rates at agricultural banks improved from the first quarter, according to farmdoc daily at the University of Illinois.
Gerald Mashange reports total agricultural loans reached $206.27 billion, up 2.1 percent from the first quarter and 3.79 percent from a year earlier. Farm real estate loans climbed to $122.26 billion, while non-real estate farm loans reached $84 billion.
At agricultural banks, non-real estate farm loan delinquencies fell to 1 percent from 1.3 percent in the first quarter. Farm real estate delinquencies declined to 1.45 percent from 1.78 percent. Both remained close to year-earlier levels.
Agricultural banks held $86.92 billion in farm loans, about 42 percent of commercial-bank agricultural lending. Their net interest margin increased to 3.94 percent as yields on earning assets rose while funding costs remained relatively steady.
The farmdoc analysis shows credit demand continues growing while loan performance remains relatively stable, giving lenders and producers an important measure of financial conditions heading into the second half of the year.
