Rate of Farm Loan Rejections Almost Doubles Among Banks

In reaction to weak farm income, the percentage of banks increasing farm loan rejection rates expanded from 23.9 percent to 42.9 percent over the past year. Almost two-thirds of bankers indicated their banks had increased collateral requirements on farm loans in reaction to weak farm income. On average, bankers expect farmland prices to decline by 2.1 percent over the next 12 months. This is less than the 3.1 percent projected fall recorded last year at this time.