Federal Reserve: Agricultural Conditions Improving Across Southern U.S.

DALLAS, TX – Bankers responding to the first-quarter agricultural survey reported overall better conditions across most regions of the Eleventh District. According to the Dallas branch of the Federal Reserve Bank, respondents noted good crop yields and rising prices, while also expressing caution about continued dry conditions. Demand for agricultural loans continued to decline, with the loan demand index registering its 22nd quarter in negative territory. Loan renewals or extensions also fell during the first quarter while the rate of loan repayment increased for the first time since 2014. Loan volume decreased across all major categories compared with a year ago except for farm real estate, non-real-estate farm, and operating loans. Irrigated and ranchland values increased, but dryland values were flat this quarter. The anticipated trend in farmland values index grew in the first quarter of 2021, suggesting respondents expect farmland values to continue increasing. The credit standards index remained in positive territory, indicating a further tightening of standards on net.
(SOURCE: All Ag News)