Friday, April 17, 2020

How are ag banks doing?


How are ag banks doing?

Nathan Kauffman, ag economist with the Kansas Metropolis Federal Reserve

Throughout a webinar Thursday, Kansas Metropolis Federal Reserve ag economist Nathan Kauffman was requested how he thinks ag and rural banks are doing, contemplating agriculture’s struggles associated to the coronavirus outbreak

Kauffman indicated most banks are presently in fairly good
form. He says they had been well-positioned heading into the coronavirus outbreak.

“Despite the fact that agriculture has been in a fairly lengthy downturn,
banks have been fairly effectively capitalized. Despite the fact that delinquencies on loans
have been selecting up a bit bit, it hasn’t led to systemic issues in
banking—even in ag banking,” Kauffman says.

“When you do see challenges with liquidity and if money stream is
low and also you begin to see fee issues, you might see a few of these banks
additionally having challenges as effectively—and particularly within the cattle business. When you’re
a financial institution or an entity that’s lending into cattle, or hogs for that matter, there
could also be some actual considerations in that market.”

The webinar was sponsored by the College of Nebraska ag economics division.

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