But, despite the outlook that projects increased farm lending and decent cash income, the report finds that farm banks will struggle to generate higher future earnings. One barrier to earnings includes a struggle for farm banks to comply with a more onerous regulatory environment.
-The Northeast region increased farm loans by 10% to $350 billion. Ag production loans rose 11.3% and farmland loans rose 9.3%.
-The South region improved profitability and increased farm loans by 3.7% rising to $6.1 billion in 2012. Farm banks in the South employ more than 11,200 men and women.
-The Cornbelt region increased farm loans by 15.6% and improved profitability. Farm banks in the Cornbelt employ more than 37,200 men and women.
-The Plains region increased farm loans 13.9% to more than $31.5 billion. Farm banks in the Plains region employ more than 33,800 men and women.
-The West region increased farm loans by 14.9% to $8.1 billion and increased employment by 2.7%, or 7,500 men and women.
A majority of the American Bankers Association members are banks with less than $185 million in assets. Click here to download the ABA full report.