Agricultural lending went up in the second quarter of 2019 because of growth in the average size of farm operating loans.
A Kansas City Federal Reserve Bank report shows the volume of loans increased 11% compared to 2018. The pace of growth is the fastest in the second quarter since 2011.
Operating loans continue as the majority of non-real estate farm lending and increased by 16%. However, the volume of non-real estate loans more than a million dollars was much higher than normal and boosted the average size of loans.
According to the survey data, the volume of new non-real estate loans at commercial banks totaled more than $800 million in the second quarter.