8 Numbers to Understand Today’s Farm Bank Landscape

Agricultural lending by U.S. farm banks increased 8.1% in 2022 to $103.1 billion. That’s according to the American Bankers Association's annual Farm Bank Performance Report.

"Moving forward in 2023, the agricultural sector will continue to face challenges due to monetary policy actions targeting persistent inflation in the United States, and increased uncertainty from geopolitical factors,” says ABA's Chief Economist Sayee Srinivasan. “Nevertheless, farm banks remain well-positioned to continue serving the needs of their customers and communities, with strong asset quality and healthy capital levels."

Here are a few key statistics about the ag lending landscape:

• $190 billion: The amount of farm and ranch loans at the end of 2022.
• 98.4%: The percentage of farm banks that were profitable in 2022.
• $427 billion: The amount of deposits held by farm banks in 2022, up 4.8% from the previous year. In comparison, deposits for the overall banking industry fell 2.5% in 2022.
• 0.49%: The percentage of noncurrent loans in the portfolio of farm banks.
• 1,488: The number of farm banks in the U.S.
• 112: The median farm bank age in 2022.
• 2: The number of new farm banks established in 2022.
• 75,000: The number of farm bank employees in 2022, which is up 800 from the year before.