Once a lifeline for farmers during the pandemic, government payments have dwindled, leading to a significant uptick in farm lending now surpassing $100 billion.
According to the American Bankers Association, heightened production costs and an end to pandemic subsidies for farmers has driven up demand for agricultural loans by nearly 7% in the last year. This surge has propelled total farm lending to a staggering $110 billion.
Farm banks are now emerging as vital pillars in supporting small-scale farmers, holding over $40 billion in credit. As of the end of 2023, banks nationwide collectively hold just shy of $200 billion in farm and ranch loans, underscoring the shifting financial landscape of American agriculture.
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