Agricultural lending activity picks up in early 2022

Agricultural Lending Activity Accelerates in Early 2022 | Dakota News

( – The Federal Reserve Bank of Kansas City says agricultural lending activity at commercial banks increased in the first quarter of 2022 due to a significant increase in the size of operating loans. With some input costs soaring in recent months, operating lending volume was up sharply from a year ago, and non-real estate lending grew four rolling quarters for the first time since mid- 2019. While the outlook for the U.S. agricultural economy in 2022 remains strong alongside rising commodity prices, rising input costs are raising concerns about future profitability.

The escalation of the conflict in Ukraine and the resulting market disruptions are pushing commodity prices even higher. The turmoil is also causing rapid increases in the price of key inputs like fuel and fertilizer from Russia and Ukraine. Concerns about the cost and availability of agricultural inputs have intensified, and rising feed prices could also put pressure on profit margins for livestock keepers.


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