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.