Click here to watch a video summary of the report by John Blanchfield on ABA’s YouTube channel.

"Farm banks" are defined by ABA as FDIC-insured banks whose ratio of domestic farm loans to total domestic loans is greater than or equal to 14.61 percent in 2011.

The focus in 2011 at farm banks was farm production loans. Outstanding production loans grew at a pace of 6 percent, or $2 billion, to a total of $35.5 billion.

Farm real estate loans grew at a slower rate than farm production loans – despite reporting in 2011 that there is a bubble in farmland lending. Farmland loans rose by 5.3 percent, or $1.85 billion, to $36.8 billion.

Small loans made up a majority of bank farm and ranch lending with nearly $67 billion in small and micro-small farm and ranch loans on the books at the end of 2011.

New this year, the Farm Bank Performance Report now provides regional summaries:

  • The Northeast region (264 banks) increased farm loans 6.5 percent
  • The South region (585 banks) reported improved profitability
  • The Cornbelt region (641 banks) increased farm loans by 6.6 percent
  • The Plains region (491 banks) increased return on equity by 50 basis points
  • The West region (196 banks) noted improved capital and profitability

Click here to read the 2011 Farm Bank Performance Report.  end_mark

—From American Bankers Association news release