The USDA is forecasting farm sector profitability to weaken in 2015. At the same time, however, farm lending has steadily increased each year since 2010. Is this a recipe for a crisis? Well, that depends in large part on farm bank asset quality and capitalization; and according to the American Bankers Association’s 2014 Farm Bank Performance Report, farm banks are ready and able to weather the USDA’s forecast.
You can read the full report here.