Smaller Average Loans Cut Q3 2026 Commercial-Bank Farm Lending Volume
farmdoc daily reports that non-real-estate farm loan volume at commercial banks fell 25.0% year over year in the third quarter of 2026 as average loan sizes declined, despite an increase in loan originations.
AI-generated source brief by USFarms.ag
In its October 29, 2026 article, farmdoc daily examines third-quarter non-real-estate farm lending at commercial banks using the Federal Reserve’s Survey of Terms of Bank Lending to Farmers. Loan originations increased 11.1% year over year, but average loan size fell 32.5%, reducing total volume from $75.33 billion in the third quarter of 2025 to $56.47 billion in 2026. The source says operating loans accounted for most of the decline; the survey estimates the pace of new originations at insured commercial banks, not outstanding loan balances.
Key takeaways
2 things worth knowing
- 01
Operating loan volume fell from $60.67 billion in the third quarter of 2025 to $42.96 billion in 2026; the source says this decrease accounted for a substantial share of the $18.86 billion reduction in total non-real-estate loan volume.
- 02
Average interest rates on all non-real-estate farm loans fell from 7.11% in the third quarter of 2025 to 6.77% in 2026, but the 2026 rate was 351 basis points above the third-quarter 2020 rate.
Why it matters for agriculture
The figures provide context on non-real-estate farm lending volume and terms at insured commercial banks. The source does not establish effects on farm costs, returns, rents, or land values.
Reader context does not establish a local impact or state-level finding.
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