AgCarolina Farm Credit, ACA’s Post

Calling all community ag lenders, it's time to register for the highly anticipated Agricultural Lending Conference 2024. You can find a list of this year's topics, presenters, and get your team registered here: https://lnkd.in/echajebT A virtual option is available, but we encourage you to join in person. #bankinglaw #aglending

A new report from Croatan Institute and Self-Help explores the lending practices of Farm Credit – the largest lender in the agricultural sector, making approximately 45% of all agricultural loans. 85% of Farm Credit’s borrowers hold only 17% of the total amount of loans outstanding, averaging less than $500,000 per loan. The loans held by the top 1% of Farm Credit’s borrowers average over $28.5 million, and approximately $206 billion of the $373 billion outstanding in Farm Credit’s loan portfolio is held by only 1.2% of its borrowers. This imbalance in lending across Farm Credit’s loan portfolio is a deviation from its initial mandate as a Government Sponsored Enterprise designed to support small farmers. Read more:https://lnkd.in/gxJnTsYF

A new report from Croatan Institute and Self-Help explores the lending practices of Farm Credit – the largest lender in the agricultural sector, making approximately 45% of all agricultural loans. 85% of Farm Credit’s borrowers hold only 17% of the total amount of loans outstanding, averaging less than $500,000 per loan. The loans held by the top 1% of Farm Credit’s borrowers average over $28.5 million, and approximately $206 billion of the $373 billion outstanding in Farm Credit’s loan portfolio is held by only 1.2% of its borrowers. This imbalance in lending across Farm Credit’s loan portfolio is a deviation from its initial mandate as a Government Sponsored Enterprise designed to support small farmers. Read more:https://lnkd.in/guB42aqx

USDA overhauls lending programs to expand access for farm loans - In this latest Dive Brief, Agriculture Dive details the significance of the updates and changes made by the U.S. Department of Agriculture on August 7, 2024 and the impact it will have on improving and streamlining farm loan programs. Dive in here for the details - https://bit.ly/46IbMpD

Our latest report, in collaboration with Center For Community Self-Help explores the lending practices of Farm Credit – the largest lender in the agricultural sector, making approximately 45% of all agricultural loans. The report, authored by Joshua Humphreys with contributions from David Beck, Athena Owirodu, Bill Harrington, John Fenderson, and James Smith, challenges Farm Credit's rigidity in failing to incorporate ESG factors into its lending practices - lagging behind similar Government Sponsored Enterprises (GSEs). 85% of Farm Credit’s borrowers hold only 17% of the total amount of loans outstanding. The loans held by the top 1% of Farm Credit’s borrowers average over $28.5 million, and approximately $206 billion of the $373 billion outstanding in Farm Credit’s loan portfolio is held by only 1.2% of its borrowers. This imbalance in lending across Farm Credit’s loan portfolio is a deviation from its initial mandate as a Government Sponsored Enterprise designed to support small farmers. Read the full report: https://lnkd.in/gyrYdi9d

In the ever-evolving world of agribusiness, the frequent change of bank managers can present unexpected challenges, impacting the financial continuity crucial for our businesses. At Brown & Co Finance, we understand the unique pressures faced by agribusiness owners and the importance of maintaining a stable financial relationship amidst this revolving door of banking personnel. Our latest blog post delves into how we navigate these transitions, ensuring that our clients’ financial goals and needs remain a top priority, regardless of changes in bank management. From farm lending to livestock finance, we're dedicated to providing consistent, informed support that keeps your agribusiness moving forward. Discover our approach to overcoming these challenges and how our expertise in agribusiness finance can ensure the continuity of your financial dealings, fostering growth and stability for your business. 🔗 Read the full article here. #AgribusinessFinance #FinancialContinuity #FarmLending #LivestockFinance #CommercialLending #BrownAndCoFinance #ToowoombaMortgageBroker

In a recent interview with The Daily Star, Selim R. F. Hussain, the Managing Director & CEO of BRAC Bank, shared more details about the bank's agriculture financing and how it empowers farmers as well as fosters financial literacy. #CorporateUpdate

The Q4 2023 Report on the Farm Credit System (FCS) Conditions was recently released by the Farm Credit Administration (FCA). Key takeaways: 1.    The FCS loan portfolio growth declined almost 7% YoY, but total portfolio increased: •       total assets climbed 6.5% to $508B and total loans increased 6.7% to $398B •       Rural infrastructure loans, the smallest loan type at 14% of total portfolio, increased most in 2023 at a 23% rate 2.    Portfolio credit risk remained low, but nonaccruals and less than Acceptable loans increased 0.45% in non-performing assets to $1.8B total 3.    System capital increased $4.7B (6.9% YoY), with capital-to-assets ratio at 14.4% 4.    FCA expects a challenging operating environment moving forward: •       Declining net farm income and margin compression (especially for cash grains) resulting from lower commodity prices •       Increased stress in certain industry segments including swine, dairy, tree nuts, and poultry •       Higher interest rates during a period of declining liquidity and increased reliance on operating lines  #FarmCredit #AgLender #AgricultureLoans #FarmCreditSystem #GSEs #Agsystems  #farmlending  #Economy #finance  #interestrates #liquidity #liquidityrisk #creditrisk https://lnkd.in/g2zxGv3d

#Farmers and #ranchers need to work with bankers who understand their unique line of work. Does your bank understand the #agricultural industry? That's one key consideration to take into account when looking for a financial partner: https://lnkd.in/gXEaN4v2

Ag Bankers, this is your crop operating loan portfolio by farm REVENUE: - In a rising 🌽 corn market, what are the opportunities to expand lending? - Do you relax because the paper 📜 profits are projected? - What is the actual value 💸 of the grain your farmers store in the spring? - Are you confident in the marketing 📈 plans your farmer provided? #fintech for #ag #communitybanks and #farmers