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 Key Buyers Chapter
The Agricultural Banks industry operates with a low level of market share concentration. In 2014, the four largest companies are estimated to represent 20.4% of the market, representing a slight increase from 20.3% in 2009. The number of domestic agricultural banks has been declining consistently since at least 1999. While this has not stopped total farm lending from rising consistently over the same period, it has caused the industry's market share concentration to rise.
Tempering the industry's concentration significantly has been the declining interest income garnered by AgriBank; from 2009 to 2014, the company's revenue is expected to decline at an annualized rate of 5.5%, causing its share of the market to fall from 10.5% to 8.2% over the same period... purchase to read more