More farmers falling behind on loans this year - Entrepreneur Generations

"A U.S. banking regulator on Thursday said more farmers were falling behind on loans held by community banks compared to a year earlier and that it was watching risks in the agriculture sector," Jason Lange reports for Reuters. 

The Federal Deposit Insurance Corporation noted in its quarterly report on the health of U.S. banks that some farmers were struggling because of low commodity prices and farm incomes. Though the FDIC report did not discuss causes, the trade war has depressed commodity prices over the past year as China, once the top buyer of U.S. soybeans, has severely reduced its purchases, Lange reports.

"The FDIC said the share of long past-due farm loans held by community banks, which are major agricultural lenders, was 1.28% in the April-June period, up 13 basis points from the same period in 2018," Lange reports. "The ratio captures the share of farm loans that are at least 90 days past due or which no longer accrue interest because of repayment doubts."

from The Rural Blog https://ift.tt/2UINSWl More farmers falling behind on loans this year - Entrepreneur Generations

Posted by Entrepreneur Generations

Tweet