Information How are ag banks doing?
April 17, 2020 By Ken Anderson Filed Below: Ag economic system, Information
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 have been well-positioned heading into the coronavirus outbreak.
“Although agriculture has been in a reasonably lengthy downturn,
banks have been fairly nicely capitalized. Although delinquencies on loans
have been choosing 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 could possibly see a few of these banks
additionally having challenges as nicely—and particularly within the cattle trade. 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 issues in that market.”
The webinar was sponsored by the College of Nebraska ag economics division.
AUDIO: Excerpts from the webinar with Nathan Kauffman