RMI Reveals Farm Loan Rejection Rate Nearly Doubles Among Banks

For the fifth straight month, Creighton University’s Rural Mainstreet Index (RMI) has remained above growth neutral.

There was a slight drop in the index from 56.3 to 56.1, however it remains above 50, which represents growth neutral.

While there was a meager increase in farmland and ranchland from 42.2 in May to 42.7 in June, it is the 55thconsecutive month land values have remained below growth neutral.

Farmer borrowing rose as well in June. According to the RMI, the loan-volume index saw an increase from 76.3 from 74.3 in May. According to nearly two-thirds of the bankers surveyed, collateral requirements on farm loans increased.

40.5 percent of survey respondents mentioned their banks “rejected a higher percentage of farm loan applications.” This rate has nearly doubled in the last 12 months.

The RMI survey respondents are bank CEOs in rural areas in a 10-state region dependent upon agriculture and/or energy.


Latest News

Is There Anything New from the Latest Farm Bill Debate?

We need to know the final funding level in the debt limit debate before there are can be any attempt to mix and match farm bill titles and funds.

Big Oil is Teaming Up With Big Ag, And it Could Turn Cover Crops Into the New Cash Crop for Farmers

Renewable diesel is revving up interest from both agriculture and the oil industry, and now oil and agriculture companies are teaming up to find additional crop sources to fuel the growing demand.

Tyson Foods Plant Closure Raises Antitrust Concerns Among U.S. Farmers and Experts

Tyson Foods gave its chicken suppliers two months' notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about Tyson's compliance with antitrust regulations.

The Scoop Podcast: Overcome Barriers, Instill Confidence, and Improve Performance

Tim McArdle is working as the ResponsibleAg Industry Ambassador. He highlights how ResponsbileAg is an industry program for the industry that “lights the way for you to be in compliance.”

Southern States: Rebuilding for The Next 100 Years

This year marks the cooperative’s 100th year in business. And as Steve Becraft describes, there’s more to celebrate than the centennial milestone.

The Carbon Games: Agricultural Producers Still Looking for the Leaderboard

“What we need to do to move carbon past the starting line is to show farmers the scoreboard and tell them exactly what they need to do to earn their points,” said Mitchell Hora.