Banks increased farm and ranch lending in 2010, providing the majority of all farm credit, according to the American Bankers Association Center for Agricultural & Rural Banking’s annual Farm Bank Performance Review.
In 2010, the U.S. banking industry held $127.4 billion in farm loans, which includes $68.7 billion in small farms loans with $22.7 billion of that in very small farm loans, according to the report. In 2009, the banking industry held $126 billion in farm loans. The number of small farm loans in 2010 reached nearly 1.2 million, with the vast majority – almost 900,000 – under $100,000.
“Banks continue to meet the credit needs of both large and small farms,” says John Blanchfield, senior vice president and director of the ABA Center for Agricultural & Rural Banking. “Farm income was up in 2010 on the strength of high commodity prices. This has translated into a solid performance on the part of our nation’s farm banks.”
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