Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Short-Term Financing Needs Still Rising According to Federal Reserve Bank of Kansas City

Tue, 27 Oct 2015 11:44:10 CDT

Short-Term Financing Needs Still Rising According to Federal Reserve Bank of Kansas City Reduced farm income continued to drive demand for short-term financing to cover operating costs according to the Federal Reserve Systemís Agricultural Finance Databook.

Both the number and volume of operating loans originated increased in the third quarter of 2015. The largest increase in demand was for operating loans of more than $100,000.

Large, ongoing increases in operating loan volumes have raised concerns about liquidity in the farm sector. The increase in operating loan volumes the past two years has coincided with a period of declining farm incomes. In 2015, the ratio of operating loan volumes to U.S. net farm income has reached a level last seen in the mid-1980s. This suggests that the farm sector is more exposed to short-term debt obligations and cash flow difficulties than in recent years.

Increased farm sector lending has boosted loan-to-deposit ratios for agricultural banks, and profitability has remained strong. Yet, increased debt leverage and reduced liquidity have continued to intensify concerns about future financial stress for some agricultural producers.

The Agricultural Finance Databook is a quarterly compilation of national and regional agricultural finance data. The complete release is available by clicking here.



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • OKFB's Steve Thompson Says August Area Meetings will Tackle Important Topics for Producers   Sun, 01 Aug 2021 12:02:12 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m, Friday, July 30  Fri, 30 Jul 2021 14:11:55 CDT
  • Friday, July 30, 2021 Market Wrap-Up with Justin Lewis  Fri, 30 Jul 2021 14:09:38 CDT
  • US Wheat Associates Weekly Harvest Report for July 20, 2021  Fri, 30 Jul 2021 11:35:12 CDT
  • Oklahoma Stateís Leon Spicer awarded National Animal Science Honor  Fri, 30 Jul 2021 10:41:47 CDT
  • Request for Information on Drinking Water Contaminants of Emerging Concern for Research Initiative  Fri, 30 Jul 2021 10:22:12 CDT
  • Individuals and Great Plains Kubota Recognized for Achievements at 2021 OCA Convention  Fri, 30 Jul 2021 10:20:15 CDT
  • Research Is Finding Solutions For Human/Black Bear Coexistence  Fri, 30 Jul 2021 10:17:07 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.