From the ox and plow to today's sophisticated and technologically advanced harvesters, farmers have long sought to improve the science of farming. In that spirit, the Office of Advocacy is giving farmers a new financial tool with its bank lending research. The study also raises some troubling concerns regarding the supply of credit to small farms, due to the declining number of small banks in the United States.
Farms are the heart of rural America.
By publicizing this information, bank competition should increase for serving the important farming sector. Advocacy's study shows smaller banks hold a greater percentage of small farm loans, so bank acquisitions and mergers may pose access to capital problems in the future. Small farm loans made up 70.6 percent of total farm loan dollars. These banks were in Idaho, North Dakota, North Carolina, South Dakota, Nebraska, and Wyoming. These banks were in Alaska, Hawaii, North Carolina, Rhode Island, and Vermont.