According to the Agricultural Newsletter from the Federal Reserve Bank of Chicago:
“There was a quarterly decrease of 6 percent in the value
of “good” agricultural land—the largest quarterly decline
since 1985—according to a survey of 227 bankers in the
Seventh Federal Reserve District on April 1, 2009.”
Needless to say this is not a good sign for farmers in the Heartland of America. In all likelihood, this will lead to less money to invest in crops and eventually a reduced yield.
The Federal Reserve also indicates the charge-off rates, in the first quarter of 2009, for all banks on ag loans is 0.42 (a ratio), whereas for the for the first quarter of 2008, the rate was 0.08.
Loan delinquency rates also increased to 1.71 in the first quarter of 2009 versus 1.06 in the first quarter in 2008.
“Oh the farmer comes to town
With his wagon broken down,
Oh the farmer is the man who feeds us all;”
The above link is to a song from the 1800s. It is worth clicking the link to read the entire lyrics.