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RELEASE: New CAP Report Examines the Implications of Climate Change to the Agricultural Lending Sector
Date: January 14, 2021
Contact: Julia Cusick
Washington, D.C. A new report from the Center for American Progress examines the mounting threat of climate change for the agricultural finance sector.
From emerging pests and diseases to changing weather patterns, the climate crisis poses extreme risks to farmers and ranchers. If left unchecked, climate change will likely devastate the agricultural economy, with dire implications for the agricultural and rural credit market. The report explores the agricultural lending sector’s exposure to climate change-related risk. It finds that a climate-related agricultural downturn would ripple throughout the financial system but would most acutely harm firms that specialize in agricultural lending, especially smaller community banks potentially leaving some rural communities without access to credit. Moreover, if the magnitude of the cl