Farm loans soar as ag economy deteriorates

Farmers are taking out loans at a rate and scale not seen in years as weakened crop prices weigh on the agricultural sector, according to a report from the Federal Reserve Bank of Kansas City. The volume of new operating loans increased at its fastest pace since 2017, the report said, with commercial banks issuing 40% more of these loans to farmers over last year. Farmers are not only taking out more loans, but also borrowing higher amounts.