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For Ag Lenders, Farm Outlook Warrants Watching

Abrigo

Any swing in income at the producer level may create additional ag credit needs for operating expenses or pressure credit quality. Farm businesses are farms with an annual gross cash farm income of at least $350,000 or where farming is the operator’s primary operation. Pandemic-Related Stimulus Ends. Commodity Prices Surge.

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Federal Reserve To Launch FedNow Instant Payments System 

PYMNTS

The move was described by Kansas Federal Reserve President Esther George as the biggest infrastructure upgrade embraced by the Federal Reserve since the ACH system went online in 1972. While the private service has a large part to play in this market, she noted, the Fed’s size, scale and long history in the U.S.

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Non-performing ag loans increase, says lender survey

Abrigo

Agricultural lenders are reporting increases in non-performing farms loans and decreased farmland values, according to the latest Agricultural Lender Survey conducted by the Kansas State University Department of Agricultural Economics. Lenders cited lower commodity prices, rising operating costs and the softening of cash rents.

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Ag lending demand increases as farm margins tighten

Abrigo

Commercial lenders could continue to see elevated demand for agricultural loans – particularly for short-term financing to cover operating expenses -- thanks to tight profit margins for many producers. Current operating loan volumes grew for the third year in a row following several quarters of depressed crop prices,” researchers said.

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Small banks: Big challenges and big opportunities

Abrigo

For smaller banks, longer-term industry consolidation trends and competition are also eroding deposit market share. According to the Federal Reserve Bank of Kansas City , community banks’ deposit market share dropped to 15% in 2022 from 22% in 2013. The result? The result? Worried about complying with the CFPB 1071 rule?

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Congress Presses Fed On Real-Time Payments Plan

PYMNTS

Despite some previous pushback, the Fed, represented by Federal Reserve Bank of Kansas City President and Chief Executive Officer Esther L. lags behind other markets in real-time payments adoption, and look to more advanced services in other markets for best practices. payments ecosystem.

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How to stress test your ag portfolio

Abrigo

The report, from the Federal Reserve Bank of Kansas City , stated that demand could remain high since futures markets for fall crops show prices are likely to remain low because of the potential for another record harvest. The challenge is that market conditions in this type of lending tend to be volatile. Production costs 3.

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