Drought, inflation and the lingering effects of the pandemic are making it harder for farms to make ends meet. Many are shifting to a direct-to-consumer model that relies heavily on digital payments and banking.
The U.S. Department of Agriculture expects farm profits to drop by 8% this year due to multiple factors, creating credit quality questions for ag banks.
The Federal Reserve and the FDIC are weighing changes to their policies for reviewing mergers and acquisitions, and that’s creating a sense of urgency among bankers to cinch deals now.
With their costs soaring, farmers may need credit to make ends meet. Bankers see this as a chance to offer more loans, but worry that some borrowers may not be able to make their payments.
Ag lenders more upbeat as crop prices soar americanbanker.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from americanbanker.com Daily Mail and Mail on Sunday newspapers.