With the current farm economy, farmers and lenders are more cautious. American Bankers Association chief economist Jim Chessen is still seeing positive attitudes. “What we saw in the survey ABA conducted with Farmer Mac, profits are not great, but they are still expected to be okay. Loan demand is okay, but it is improving.” The ABA survey found ag bankers expect loan delinquencies to rise. “Credit quality is always a concern, particularly when a lot of the cash flow is based on government programs.”
