Commodity prices and closed markets aren’t the only effects of the pandemic. Farm lending has slowed and lends to a more pessimistic outlook for agricultural economic conditions. The slowdown is consistent across all types of loans, and delinquency rates on farm loans have steadily increased.
Takeaway: Government lending programs likely supplemented the financing needs of some products, limited the severity of financial stress among farm borrowers, and direct aid payments may help offset declines in farm revenues in 2020.
Get the Stats: Agricultural Lending Consistently Slower