As of June 30, agricultural loans past due 30 days or more or without accrual status reached 2.4% of total U.S. banks’ agricultural loans and problems as of June 30, compared with 2.1% in the same quarter in 2019, but down from 2.7% in the first quarter.
Defaults on agricultural production loans, which finance things like equipment and seeds, stood at 2.1%, up from 2.4% in March but up from 1.8% in June 2019. In addition, delinquencies on agricultural loans, which finance the land, stood at 2.6%. This was 26 basis points lower than the previous quarter, but 25 basis points higher than the same period last year.
Combined agricultural production and farm loans increased in the second quarter to $ 182.14 billion, up 1.5% from March, but down 3.2% year-on-year. the other.
Olney Bancshares of Texas Inc., based in Olney, Texas, saw the default rate on its farm loans climb to 25.9% in June, 24.4 percentage points higher than in June 2019. It s This is the largest year-over-year change in delinquencies on loans of this type. First Bank & Trust of Sioux Falls, SD reported the biggest change in delinquencies on agricultural production loans: 25.8% of the bank’s agricultural production loans were in arrears in the second quarter, up from 25.1 percentage points year over year. Olney Bancshares and First Bank & Trust did not respond to a request for comment.
John Deere Capital Corp. remained the largest holder of crop production and farm loans among U.S. banks and thrifts at $ 16.95 billion as of June 30. Its agricultural loan portfolio increased 6.7% compared to the same period last year.