Industry Analysis & Industry Trends
The Agricultural Banks industry did not fare well through the recession. Five consecutive years of losses will be followed by one more in 2014, with positive growth returning to the industry in the next five-year period. Despite these negative losses, the industry managed to turn profit around sooner by restructuring to run a more efficient business. The next five years look to be more successful, as the economy recovers and the agricultural price index (API) rises. As the API rises, farmers will more readily pay loans in a timely manner, proving profitable for industry establishments.... purchase to read more
Industry Report - Industry Locations Chapter
According to the latest available information from the American Bankers Association, the Cornbelt and Plains regions dominate the Agricultural Banks industry.
The Cornbelt includes Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin. In 2014, the region is collectively anticipated to be home to 47.1% of the industry's enterprises. Yet, the typical enterprise in the region is small in size, with the median agricultural bank holding only $103.4 million in total assets in 2013, according to the latest available data from the American Bankers Association (ABA). Moreover, the region's return on assets is slightly below average, reaching 0.8% in 2013... purchase to read more