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A.12. Characteristics of Bank Loans to Farmers -- Large Farm Lenders, by Risk Rating, November 4-8, 2002
Percent except as noted Loan characteristic
		  All
		  Minimal
		  Low
		  Moderate
		  Acceptable
		  Special
		  Not rated
		  Not reportedVolume of loans (thousands of dollars)
         689,089
         15,854
         121,043
         214,961
         235,040
         54,860
         36,033
         11,299Number of loans
         15,682
         308
         1,512
         6,166
         5,468
         978
         529
         721Weighted average maturity (months)1
         10.73
         11.54
         7.57
         10.13
         13.17
         5.04
         21.22
         10.27Weighted average repricing interval (months)2
         1.76
         4.66
         2.40
         1.47
         1.88
         .02
         1.14
         3.80Weighted average risk rating3
         3.30
         1.00
         2.00
         3.00
         4.00
         5.00
         n.a.
         n.a.Weighted average interest rate4
         4.74
         4.48
         4.21
         4.72
         4.98
         5.24
         4.00
         6.09Standard error5
         .26
         .20
         .49
         .39
         .19
         .45
         .52
         .50Interquartile range675th percentile
         5.39
         4.86
         4.60
         5.39
         5.48
         5.90
         4.59
         6.6625th percentile
         3.30
         3.56
         3.30
         3.30
         4.32
         4.33
         3.43
         5.60Purpose of loanFeeder livestock
         4.53
         5.68
         3.98
         5.32
         4.55
         4.51
         5.28
         6.63Other livestock
         4.44
         3.65
         5.42
         4.16
         4.51
         4.22
         5.10
         6.15Other current operating expenses7
         7
         5.36
         4.73
         6.10
         5.15
         5.34
         5.85
         3.90Farm machinery and equipment
         6.28
         8.40
         6.23
         6.21
         6.03
         n.a.
         5.82
         6.50Farm real estate
         5.12
         3.71
         6.85
         4.81
         5.42
         7.50
         4.38
         7.82Other8
         8
         4.17
         4.82
         3.37
         4.12
         4.80
         4.48
         3.98Share of total loan volumeFeatures of loanFloating rate
         90.75
         45.82
         87.25
         88.23
         95.43
         99.78
         98.04
         74.68Under commitment
         93.30
         65.88
         95.94
         93.97
         91.13
         99.72
         95.06
         99.02Callable
         12.71
         50.38
         13.79
         12.04
         11.51
         1.03
         1.07
         79.97Subject to prepayment penalty
         3.96
         2.47
         .84
         9.22
         1.41
         4.88
         .24
         n.a.Purpose of loanFeeder livestock
         9.82
         1.10
         21.41
         7.59
         9.74
         3.40
         .29
         3.52Other livestock
         10.67
         17.07
         3.80
         12.99
         13.63
         7.26
         .30
         19.20Other current operating expenses9
         7
         37.50
         49.38
         18.86
         44.83
         38.11
         56.83
         17.49Farm machinery and equipment
         1.41
         2.78
         2.32
         1.83
         .94
         .05
         .84
         n.a.Farm real estate
         3.09
         18.44
         1.50
         1.26
         4.63
         .01
         7.58
         1.90Other10
         8
         37.51
         11.23
         52.11
         31.50
         32.95
         32.50
         74.26Type of collateralFarm real estate
         5.40
         5.85
         3.07
         3.96
         7.46
         2.10
         13.73
         4.06Other
         84.12
         93.03
         93.58
         83.35
         80.28
         91.27
         69.99
         74.96 Note. Most large farm lenders that reported loans to farmers had more than $25 million in farm loans.
Data are from the Survey of Terms of Bank Lending to Farmers, which collects data on gross loan extensions
made during the first full business week in the mid-month of each quarter by a sample of 250 banks of all sizes.
The sample data are used to infer an estimate of the lending terms at all insured agricultural banks during that
week. The estimated terms of bank lending are not intended for use in collecting the terms of loans extended over
the entire quarter or those residing in the portfolios of banks. Loans of less than $1,000 are excluded
from the survey.

   1. Average maturities are weighted by loan size and exclude loans with no stated maturity. Return to table
   2. The repricing interval measures the period from the date the loan is made until it first may be repriced. For
floating-rate loans that are subject to repricing at any time--such as many prime-based loans--the repricing interval
is zero. For floating rate loans that have a scheduled repricing interval, the interval measures the number of days
between the date the loan is made and the date on which it is next scheduled to reprice. For loans having rates that
remain fixed until the loan matures (fixed-rate loans), the interval measures the number of days between the date the
loan is made and the date on which it matures. Loans that reprice daily are assumed to reprice on the business day
after they are made. Return to table
   3. A complete description of these risk rating categories is available from the Banking and Money Market Statistics
Section, mail stop 81, the Federal Reserve Board, Washington, DC 20551. The category 'Moderate Risk' includes the average
loan, under average economic conditions, at the typical lender. The weighted-average risk ratings are calculated by
assigning a value of '1' to minimal risk loans; '2' to low risk loans; '3' to moderate risk loans; '4' to acceptable
risk loans; and '5' to special mention and classified loans. In calculating the average risk rating, these values are
weighted by loan amount and exclude loans with no risk rating. Some of the loans are not rated for risk. Return to table
   4. Effective (compounded) annual interest rates are calculated from the stated rate and other terms of the loans and
weighted by loan size. Return to table
   5. The chances are about two out of three that the average rate shown would differ by less than this amount from
the average rate that would be found by a complete survey of lending at all banks. Return to table
   6. The interquartile range shows the interest rate range that encompasses the middle 50 percent of the total dollar
amount of loans made. Return to table
   7. Loans used primarily to finance such items as current crop production expenses and the care and
feeding of livestock (including poultry). Return to table
   8. Typically loans for which the lender does not know the purpose. Return to table
   9. Loans used primarily to finance such items as current crop production expenses and the care and
feeding of livestock (including poultry). Return to table
   10. Typically loans for which the lender does not know the purpose. Return to table

   n.a. Not available.


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