By: NATHAN STUEDLE
Agricultural lending at U.S. commercial banks continued to expand during the second quarter of 2026, while farm loan performance remained relatively stable. FDIC data shows total outstanding agricultural loans reached 206-point-27 billion dollars, up 2-point-1 percent from the first quarter and 3-point-8 percent from a year earlier. Farm real estate loans totaled 122-point-26 billion dollars, an increase of 4-point-5 percent year over year.
Non-real estate farm loans, used for production expenses, equipment and livestock, reached 84 billion dollars, up 2-point-8 percent. At banks specializing in agricultural lending, delinquency rates improved from the first quarter and remained close to year-earlier levels. Those banks also reported wider net interest margins. Overall, the numbers point to continued growth in farm credit without a major deterioration in loan quality.