Farm Banks Show Resilience, Strength

Despite widespread concerns that farmland values are headed downward, farm banks on the whole appear to be healthy and resilient. In an ABA Data Bank post on Friday, ABA's Hugo Dante looked at the performance of farm banks over the past decade, finding that farm banks have enjoyed lower delinquency rates and greater asset stability relative to the broader industry—even during the Great Recession.
Farm banks—defined by ABA as the 1,772 banks whose ratio of domestic farm loans to total domestic loans is greater than or equal to the industry average—tend to make high-quality farmland loans, Dante wrote. In addition, they have demonstrated remarkable resilience during turbulent financial conditions.

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