Article: Agricultural banks called safest; farm credit system also healthy. (Douglas Duncan of the U.S. Department of Agriculture) (Brief Article)

Agricultural Banks Called Safest; Farm Credit System Also Healthy

WASHINGTON -- Agricultural banks are financially sound and should be willing and able to make loans to creditworthy farmers, according to a U.S. Department of Agriculture economist, Douglas Duncan.

"Agriculture banks are currently the safest and most liquid banks in the system," Mr. Duncan said Wednesday during the department's annual Agricultural Outlook Conference.

Commercial banks held $53 billion in agricultural real estate and production loans as of June 30, up 7% from a year before. Less than 2.2% of the loans were nonperforming, he said.

Small Farm Banks in Lead

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