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Ag Lender Survey: Farm • Concern levels spiked in 2024 for several sectors, including
Profitability Expected to Decline grains, fruits and tree nuts. On the other hand, concern levels
dropped for dairy, beef and poultry. The changes largely
in 2024 reflect how the farm income outlook has shifted within each

sector over the past year.
Agricultural lenders expect only 58% of borrowers will remain
profitable this year compared to 78% last year, according to the • According to the diffusion index, demand for loans secured
2024 Ag Lender Survey produced jointly by the American Bankers by farmland and agricultural production loans increased in
Association and Farmer Mac. 2024. Respondents anticipate that loan demand for both
categories will continue to increase over the next 12 months.
The combination of lower export demand for U.S. agricultural goods • Survey respondents reported that ag loan delinquencies and
and the rebound of global inventories has put significant downward charge-off rates remained stable in 2024. However, lenders
pressure on global commodity prices and U.S. farm incomes, expect credit quality to deteriorate over the next 12 months, as
according to the report. However, profitability expectations varied farmers may face a more challenging environment in the year
by region and major commodity types, with livestock producers ahead. As a result, a higher share of lenders plan to tighten
garnering more optimism from lenders than crop growers.
underwriting standards and loan terms for agricultural credit.
“Agricultural credit quality remained robust in 2024, but lenders • Lenders reported an average agricultural loan application
expect deterioration in the coming year as farmers face a more approval rate of 86% for new loans in the 12 months leading
challenging environment,” said Tyler Mondres, senior director up to August 2024 and expect the approval rate for renewal
of research at ABA. “Lenders are taking prudent steps to manage requests to be 88% in the following 12 months.
risk such as tightening underwriting standards, and they remain • Rate cuts would be beneficial for lenders that are more
committed to working with and supporting their borrowers.”
liability-sensitive, as funding costs come down. Lower rates
Among the survey’s findings: would also reduce unrealized losses on the balance sheet. It is
less clear, though, whether rate cuts will be a net benefit for
• Farmland values continued to rise in 2024, albeit at a slower
pace than in previous years. However, regional differences lenders with large variable rate loan portfolios that are more
abound, and headwinds have grown in many areas. As a sensitive on the asset side of the balance sheet. For agricultural
result, most lenders expect land values and cash rents may borrowers, rate cuts could help alleviate some of the pressures
plateau or decline over the next year weighing on farm profitability.
• Liquidity and farm income remained atop the list of lender Read more: https://www.aba.com/news-research/analysis-guides/
concerns for producers. Meanwhile, lenders expressed less agricultural-lender-survey
concern this year about inflation, weather and many other
factors affecting producers. Card Payments, Mobile Wallets
• The top concern facing lending institutions in 2024 was Showed Strong Growth In 2022
credit quality and agricultural loan deterioration. Lender
competition and interest rate volatility were the second and Credit and debit card payments continued to grow in 2022, reaching
third greatest overall concerns, respectively. 153.3 billion transactions and $9.76 trillion in value, according to

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