Wisconsin Agricultural Bankers Provide Market Insight

While loan restructures have risen from the previous year, the overall agricultural lending market in Wisconsin is healthy, according to ag bankers surveyed at the recent WBA Agricultural Bankers Conference. The brief, 12-question survey covered a variety of topics, including loan portfolio health, term lengths, and use of guarantee programs. 

Wisconsin's banks are ready and willing to help fund their credit-worthy ag customers, with an overwhelming 96% of respondents indicating there were no instances in 2017 of a credit-worthy applicant being denied a loan. In fact, 90% responded that they are actively pursuing new ag business. In addition, 86% of respondents said less than 2% (or none) of their farm loans are on interest-only payments. 

However, there are risks on the horizon. Commodity prices and interest rates were the most cited, but respondents are also concerned about land values and government oversight/regulation. 

Insights from the survey are detailed below: 

percentage of ag customers with loan restructures in 2017Loan restructures in 2017 compared to 2016volume of ag loans in 2017 compared to 2016Guarantee programs usedlargest risks in ag lending