Farm Loans Highest in Years and Less Water Used for Irrigation
From the Ag Information Network, this is your Agribusiness Update.
**Farmers are taking out loans at a rate not seen in years as weakened crop prices weigh on the ag sector, according to a Federal Reserve Bank report.
The report says volume of new operating loans increased at its fastest pace since 2017, with commercial banks issuing 40% more of these loans over past year.
For the first time in two decades, loans larger than $1 million made up a majority of lending volume.
**To the surprise of many, the U.S. winter wheat crop is in much worse shape than expected.
Shipping News says drought conditions have strengthened since the middle of this year, but there may be a break coming as ample rains are slated for the central portion of the country.
That could mean wheat’s health struggle could be a shorter-lived issue, depending on how much rain is received.
**The 2023 Irrigation and Water Management Survey results showed over 212,000 farms with 53.1 million irrigated acres, which included 81 million acre-feet applied in the U.S.
Among the report’s highlights, that total amount of water used in 2023 was 2.8% below 2018.
Five states, California, Idaho, Arkansas, Nebraska, and Texas, accounted for almost half of the irrigated acres and more than half of all water applied.
