Survey: Agricultural lenders report lower farmland values

Tractor (KSN File Photo)

MANHATTAN, Kansas (AP) – Agricultural lenders are reporting lower farmland values and an uptick in delinquent farm loans.

That is according to a survey conducted in March by the Kansas State University’s Department of Agricultural Economics that was released Thursday.

The university says its results are a continuation of a trend it found in the end-of-year survey done in 2014.

Lenders cited lower commodity prices, rising operating costs and softening cash rents. All that combined with a decrease in farmland prices is behind the concern about the long-term financial health of the farming sector.

Department head Allen Featherstone says he believes the market is just cycling back to a normal state in regards to the loan delinquencies.

The survey included responses from 39 lending institutions.

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