Farm loans on the rise as farmers look for help on cash flow

Large loans used to finance operating expenses remained the primary driver of demand for non-real estate loans.

Highly leveraged farm businesses are continuing to rise as farmers deal with persistently weak profit margins and constricted cash flow.

According to the Ag Finance Databook released by the Kansas City Federal Reserve Bank, farm income remained suppressed in the first quarter of 2016, keeping farm lending activity high.

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