Agricultural Economics
Ag Lender Survey

Click here to open the March 2014 Kansas State Agricultural Lender survey results.

Click here to open the Fall 2013 Kansas State Agricultural Lender survey results.

Click here to open the March 2013 Kansas State Agricultural Lender survey results.

The research team for this survey includes:
Brady Brewer
Brian Briggeman
Allen Featherstone
Christine Wilson

Click here to view the survey questionnaire.

Click here to view the online survey.


K-State Agricultural Lender Survey: Start of 2014 Shows Expected Increases for Future Ag Lending

May 28, 2014 - Agricultural lenders indicated less optimism early this year than they did near the end of last year, according to the results of the March 2014 K-State Agricultural Lender Survey. Lenders were not as optimistic as they were in the fall 2013 survey, although one area of continued optimism is farm loan volume. Results show that respondents expected an increase in interest rates, farm loan volume and non-performing loans, and land values are expected to decrease.

Allen Featherstone, interim department head and professor of agricultural economics at Kansas State University, said the survey gives farmers an idea of the current and future state of agricultural credit conditions. As with the survey conducted in the fall of 2013, the purpose of the spring 2014 K-State Agricultural Lender Survey is to not only answer questions about the evolution of agricultural credit conditions, but also to provide a broader overview of all agricultural lenders.

There were noticeable differences between the spring and fall survey responses, Featherstone said.

  • Interest rates are expected to increase in the short term and long term, while the spread over cost of funds is expected to increase in the long term. Loan interest rates for farm real estate rose slightly, but decreased slightly for operating loans.
  • Land prices continued to increase in the last three months, although future expectations have weakened since the last survey. The current survey shows expectation for the short and long run suggest more sentiment that land values will fall than expressed in the fall 2013 survey. More respondents expect land prices to decrease during the next year than those who expect it to increase.
  • Although agricultural lenders indicated that they were not as optimistic as they were in the fall of 2013, one area where they were optimistic was farm loan volume. Lenders indicated that they expect farm loan volume to increase for all categories. The sentiment that non-performing loans will rise also increased as respondents indicated that they expect non-performing loans to increase in the short and long term.

The survey was developed by K-State's Department of Agricultural Economics' Brady Brewer, doctoral candidate; Brian Briggeman, associate professor and director of the Arthur Capper Cooperative Center; Allen Featherstone; and Christine Wilson, professor and assistant dean of academic programs, for the College of Agriculture.


K-State Agricultural Lender Survey: A second look at 2013 and future agricultural lending conditions

November 25, 2013 – Agricultural lenders indicated that 2013 credit conditions held, but they look for future conditions to soften, according to the results of the September 2013 K-State Agricultural Lender Survey. Respondents expected loan interest rates to rise, non-performing loans to increase slightly from their current low level and farmland value gains to slow and then dip in the longer term.

Allen Featherstone, interim department head and professor of agricultural economics and program director of the Master in Agribusiness degree at Kansas State University, said this survey gives farmers an idea of what the current and future state of agricultural credit conditions. As with the survey conducted in the spring of 2013, the purpose of the fall K-State Agricultural Lender Survey is to not only answer questions about the evolution of agricultural credit conditions, but also to provide a broader overview of all agricultural lenders.

There were noticeable differences among the spring and fall survey responses, Featherstone said.

  • Unlike the spring results, fall survey respondents expected interest rates to increase in the short term and long term for operating, real estate and intermediate loans.
  • Non-performing loans during the past three months for the crop sectors of corn, soybeans and wheat experienced a decrease; however, non-performing loans are expected to increase in the long term for these sectors. One reason for the increase in non-performing loans in the long run is that currently many lending institutions have few, if any, non-performing loans.
  • Responses to a new question for the fall survey indicated that land prices increased during the past three months. While this upward trend is expected to stay in the short term, respondents believe land prices will start decreasing in the longer term.

Introducing the K-State Agricultural Lender Survey: A new look at agricultural lending conditions

June 6, 2013 - With today’s volatile commodity market and questions surrounding the quality of credit for various agricultural sectors, information about the current and future state of agricultural financial conditions is in high demand by those interested in and following agriculture.

However, information about these evolving conditions is somewhat limited, especially on the short- and long-term outlook. To track and forecast these credit condition developments, agricultural economists at Kansas State University have created the K-State Agricultural Lender Survey.

“A recurring question asked by farmers is, ‘what does the future hold for agricultural credit conditions?’” said Allen Featherstone, professor of agricultural economics and program director of the Master in Agribusiness degree at Kansas State University. “We set out to find answers to this and other questions for the agricultural lending industry, by working with our industry partners and other colleagues at K-State to conduct this survey.”

The purpose of the K-State Agricultural Lender Survey is to not only answer questions about the evolution of agricultural credit conditions, but also to provide a broader overview of all agricultural lenders. While information about agricultural financial conditions does exist, most of it is from the commercial bankers’ viewpoint and limited information is available on expectations or forecasts of the short- and long-term evolution of credit conditions. Ultimately, the survey should help producers, agribusinesses and lenders make more informed and sound financial decisions.

While the March 2013 survey results provide many insights into agricultural credit trends, one really stands out – competition for agricultural loans is rising. One respondent went as far as to say, “Competition is fierce for agricultural loans.”

This is especially relevant because the survey respondents stated that farm loan volumes rose and are expected to rise in the short-term. In addition, large lending institutions, those with more than $50 million in agricultural loans, reported the largest gain in farm loan volumes, with the expectation for further increases in the near-term.