The Hidden Truth Behind “Strong” Ag Credit Markets

If you read most headlines today, you’d think the agricultural credit market in the U.S. is thriving. Articles boast about strong lending environments, plenty of money flowing, and banks eager to support farmers with new loans.

But beneath the surface, the story isn’t so optimistic.

Here’s the truth: many of those real estate loans being issued right now aren’t actually for expansion or growth. They’re being used to refinance losses piling up on farmers’ operating lines of credit.

On paper, it makes everything look healthier than it really is. But inside the bank? It’s a different reality.

Banks are restructuring debt to avoid having 90-day or 120-day past-due loans sitting on their books. They’re shifting debt from one category to another so the numbers look cleaner — not because farm finances are improving.

And unless you understand what’s happening in those closed-door conversations with lenders, it’s easy to fall into the trap of believing everything is fine.

It’s not fine.

This environment is creating a dangerous illusion — one that convinces farmers the pressure they feel isn’t widespread or systemic. But it is. And ignoring it doesn’t make it go away.

The more we shine a light on what’s really happening, the faster we can help farmers take control before the debt restructuring stops… and the banks stop saying “yes.”

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