Search Results
Working Paper
Perceived Competition in Agricultural Lending: Stylized Facts and an Agenda for Future Research
This study examines agricultural lending by commercial banks and the competition they face from the Farm Credit System and non-traditional lenders, including merchants, dealers, and other input suppliers. We construct a measure of commercial banks’ perceived competition with FCS or non-traditional lenders using the individual responses to the Federal Reserve Bank of Chicago's Land Values and Credit Conditions Survey between 1999 and 2019. Our analysis shows that the two sources of competition have very different effects on commercial bank lending terms, loan portfolio riskiness, and ...
Journal Article
The Outlook for Farmland Values amid Higher Interest Rates
In 2018, the spread between returns to farmland owners and benchmark interest rates narrowed to its lowest level in more than a decade in the Tenth Federal Reserve District. At the same time, farmland sales increased in some states for the first time in several years. Together, the reduced spread and indications of increased sales in some regions suggest the potential for lower farmland values moving forward.
Journal Article
Increased Loan Demand and Higher Interest Rates May Benefit Ag Banks
Extreme weather, geopolitical conflicts, supply chain disruptions, and rising interest rates all directly affectU.S. agriculture, which may in turn affect banks that make agricultural loans. Demand for loans from agbanks could rise following events that reduce net farm income or increase banks’ ability to reprice loans,such as supply chain disruptions or higher interest rates. But competition with other banks and nonbankfinancial institutions may offset some of these benefits.
Journal Article
The Dispersion of Farmland Values in the Tenth District
Cortney Cowley examines the widening dispersion of farmland values in the Tenth Federal Reserve District and finds that land quality, climate, and commodity sales have played important roles.
Journal Article
Competition in Local Agricultural Lending Markets: The Effect of the Farm Credit System
Charles S. Morris, James Wilkinson, and Eric Hogue assess the effects of Farm Credit Association lending on measures of competition in agricultural banking markets.
Journal Article
Agriculture in a Global Economy: 2018 Agricultural Symposium
Similar to other segments of the economy, the agricultural sector is increasingly global. In some regions, the production of food and agricultural products has advanced well beyond what is required for consumption within that region. In other areas, agricultural production is more limited. The persistent gap between regions of excess and regions of scarcity has led to an increasing reliance on agricultural trade as global populations and incomes rise, but recent months have also pointed to increased uncertainty about the future of trade and implications for agriculture. Similarly, the ...
Journal Article
Agricultural Consolidation: Causes and the Path Forward: Agricultural Symposium 2017
The agricultural economy, both in the U.S. and internationally, continues to adjust to the sharp drop in commodity prices and profit margins from those of just a few years ago. The reduction in prices and profits has led farm producers, agribusinesses, and agricultural lenders to consider fundamental changes to their business models to maintain competitiveness, improve efficiency, and position their businesses for long-term growth. These decisions, however, require a pragmatic recognition of a new commodity price landscape, resulting in strategic realignments and consolidation across the ...
Journal Article
Agriculture’s Water Economy: Agricultural Symposium 2016
Agriculture’s water economy has demonstrated growing signs of strain. Recent and persistent extreme weather-related events have highlighted the vulnerability of food and agricultural production to substantial variations in water availability. Consistent water availability is critical to agricultural production everywhere, and intensifying scarcity presents global agriculture with a formidable long-term challenge. Agricultural production has evolved, to a significant extent, on the basis of available water resources, both surface water and groundwater. However, there are growing concerns ...
Journal Article
Agricultural Cycles and Implications for the Near Term: Agricultural Symposium 2019
While several indicators suggest that a repeat of the 1980s farm crisis is unlikely, the length of the current agricultural downturn may take a toll.
Journal Article
Long-Run Uncertainties for U.S. Agriculture : Agricultural Symposium 2019
Changes in global food and fuel demand, the effects of climate change, and regional depletion of groundwater resources for irrigation create uncertainty for U.S. farmers.