The American Bankers Association provided testimony before the House Ag Committee and offered the association’s views on the financial conditions in farm country.
Tony Hotchkiss, chair of the Agriculture and Rural Bankers Committee, emphasized the critical role banks play in the agricultural economy as the primary source of credit to farmers and ranchers across the U.S. He said that at the end of 2023, more than 3,800 banks in the U.S. had agricultural loans on their books with a total outstanding portfolio of $198.6 billion. While farm banks are prepared to manage potential economic headwinds, Hotchkiss explained that many producers have worked through the liquidity and working capital they built up in recent years due to rising input prices and lower commodity prices.
“Across the industry, many bankers believe they may be looking over a cliff in regard to the agricultural economy without changes to current government policy,” said Hotchkiss.
