Source: American Bankers Association

Banks are successfully managing agricultural loan risk associated with rising farmland prices, said Matthew Williams, president of Gothenburg State Bank in Gothenburg, Neb., and vice chairman of the American Bankers Association at an FDIC symposium on U.S. farmland prices held last week.

The demand for U.S. farm products world-wide is very strong and continues to grow, and that demand has driven up farmland prices.

"Farmers, especially those who produce crops, are enjoying some of the best profitability they've seen in a generation," Williams said. "As a result, farmers are carrying less leverage today than they did just a few years ago." 

Read the original news release