June 6, 2013 – With today’s volatile commodity market and questions surrounding the quality of credit for various agricultural sectors, information about the current and future state of agricultural financial conditions is in high demand by those interested in and following agriculture.
However, information about these evolving conditions is somewhat limited, especially on the short- and long-term outlook. To track and forecast these credit condition developments, agricultural economists at Kansas State University have created the K-State Agricultural Lender Survey.
“A recurring question asked by farmers is, ‘what does the future hold for agricultural credit conditions?’” said Allen Featherstone, professor of agricultural economics and program director of the Master in Agribusiness degree at Kansas State University. “We set out to find answers to this and other questions for the agricultural lending industry, by working with our industry partners and other colleagues at K-State to conduct this survey.”
The purpose of the K-State Agricultural Lender Survey is to not only answer questions about the evolution of agricultural credit conditions, but also to provide a broader overview of all agricultural lenders. While information about agricultural financial conditions does exist, most of it is from the commercial bankers’ viewpoint and limited information is available on expectations or forecasts of the short- and long-term evolution of credit conditions. Ultimately, the survey should help producers, agribusinesses and lenders make more informed and sound financial decisions.
While the March 2013 survey results provide many insights into agricultural credit trends, one really stands out – competition for agricultural loans is rising. One respondent went as far as to say, “Competition is fierce for agricultural loans.”
This is especially relevant because the survey respondents stated that farm loan volumes rose and are expected to rise in the short-term. In addition, large lending institutions, those with more than $50 million in agricultural loans, reported the largest gain in farm loan volumes, with the expectation for further increases in the near-term.
For more information about the outlook for agricultural credit conditions, go to the K-State Agricultural Lender Survey.
This survey was developed by K-State’s Department of Agricultural Economics’ Brady Brewer, doctoral candidate; Brian Briggeman, associate professor and director of the Arthur Capper Cooperative Center; Allen Featherstone; and Christine Wilson, professor and assistant dean, Academic Programs, for the College of Agriculture.
Story by: Amanda Erichsen, email@example.com
For more information, contact Allen Featherstone at firstname.lastname@example.org.
K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.