Agricultural Banks in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS OD4739Revenue
$20.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
78,570
Businesses
1,468
Wages
$X.Xbn
Agricultural Banks in the US industry analysis
The industry has a strong run of year-over-year growth through the end of 2023 up until the onset of the pandemic. Normally, a financially distressed Agricultural sector would cause industry revenue to climb, but the Federal Reserve dropping interest rates to near-zero in response to the pandemic and the staggering amount of fiscal aid provided to farmers via the United States Department of Agriculture Emergency Food Purchasing Plan and the Paycheck Protection Plan has greatly reduced farmers' demand for agricultural loans. This simultaneously caused revenue to decline in 2020 and show tepid growth in 2021. Overall, industry revenue shrank at a CAGR of 1.1% to reach $20.5 billion through the end of 2023, including expected growth of 8.1% in 2023 alone, as government stimulus dwindles.Because of such strong increases in governmental aid as a share of total farm income, net farm income has risen strongly in the past 18 months, which has reduced the sector's reliance on bank loans, with the industry exhibiting a revenue slide in 2020 as a result of a surprising fiscal stability agricultural sector, barring difficulties in the live-cattle segments because of strong increases in government transfer payments. Moreover, industry profitability has had mixed performance amid the pandemic, due to the fact that while declining interest rates will lower overall profitability, they will also lower the carrying cost of debt. Though industry revenue has declined during the period, industry profitability has risen due to rapid decreases in interest rate costs to agricultural banks.The industry is expected to continue sliding through the end of 2028 as the farm economy is expected to exhibit an overall improvement. Due to rising agricultural prices and returns to farmers, it's expected that the sector will need to rely on this industry less. Also, barring an interest rate hike, there isn't much the industry can do to rapidly increase revenue if there is little demand for farm credit, since the farm economy is expected to improve through the end of 2028. The industry is anticipated to decline at a CAGR of 0.7% through the end of 2028 to reach $19.8 billion.
Trends and Insights
- Short-term loans have propped up the industry in times of economic strife. The pandemic resulted in a boom in these types of loans.
- Farmers are the industry’s bread and butter. Farm bank loans are the main source of income for agricultural banks.
- Rural areas with vast farmlands are the main source of income for the industry. Following this, agricultural banks congregate in farm country, like the corn belt.
- Commercial banks are the largest competition agricultural banks face. Commercial banks like Wells Fargo are better funded and have the benefit of being household names.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $20.5bn in 2024.
Trends and Insights
Agricultural woes push farmers to seek short-term loans
- Cash-poor farmers turned to short-term loans offered by agricultural banks to cover current operating expenses as agricultural commodity prices faced volatility in the last five years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
External competition will be a bigger problem moving forward
- Larger commercial banks and savings institutions will likely continue to use their size and scope to attract deposits away from agricultural banks.
Biggest companies in the Agricultural Banks in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Federal Farm Credit Banks Funding Corporation | 11,409.7 | 1,101.5 | 9.7 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Farm real estate loans, Production and intermediate-term loans and Agribusiness loans. Farm real estate loans is the largest segment of the Agricultural Banks in the US.
Trends and Insights
Farm real estate loans
- Farm real estate loans represent the Agricultural Banks industry's primary service.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Commercial Banking in the US
Complementors
- Savings Banks & Thrifts in the US
- Credit Unions in the US
- Real Estate Loans & Collateralized Debt in the US
International industries
- Global Investment Banking & Brokerage
Table of Contents
About this industry
Industry definition
Operators in this industry specialize in lending to the agricultural sector. More specifically, banks in this industry dedicate at least 18.3% of their total loans to agriculture.
What's included in this industry?
Providing farmland loansProviding farm production loansProviding nonfarm personal and commercial loansCompanies
Federal Farm Credit Banks Funding CorporationPurchase this report to view all 1 major companies in this industry.
Related Terms
NONINTEREST INCOMELOAN LOSS PROVISIONSRETURN ON ASSETSIndustry Code
NAICS 52211 - Agricultural Banks in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Short-term loans have propped up the industry in times of economic strife. The pandemic resulted in a boom in these types of loans.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Farmers are the industry’s bread and butter. Farm bank loans are the main source of income for agricultural banks.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Rural areas with vast farmlands are the main source of income for the industry. Following this, agricultural banks congregate in farm country, like the corn belt.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Commercial banks are the largest competition agricultural banks face. Commercial banks like Wells Fargo are better funded and have the benefit of being household names.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Federal Farm Credit Banks is by far the industry’s largest bank. Despite having only an estimated 50 employees, it controls over 50.0% of the market.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Federal Farm Credit Banks Funding Corporation's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Federal Farm Credit Banks Funding Corporation, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Heavy federal regulation characterizes the industry. Banks are closely monitored by the Fed to ensure sound business practices.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit has risen slightly since 2018. This is mostly because of rising interest rates.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Agricultural Banks in the US industry in United States in 2024?
The market size of the Agricultural Banks in the US industry in United States is $20.5bn in 2024.
How many businesses are there in the Agricultural Banks in the US industry in 2024?
There are 1,468 businesses in the Agricultural Banks in the US industry in United States, which has declined at a CAGR of 3.7 % between 2019 and 2024.
Has the Agricultural Banks in the US industry in United States grown or declined over the past 5 years?
The market size of the Agricultural Banks in the US industry in United States has been declining at a CAGR of 1.1 % between 2019 and 2024.
What is the forecast growth of the Agricultural Banks in the US industry in United States over the next 5 years?
Over the next five years, the Agricultural Banks in the US industry in United States is expected to decline.
What are the biggest companies in the Agricultural Banks in the US market in United States?
The biggest company operating in the Agricultural Banks market in United States is Federal Farm Credit Banks Funding Corporation
What does the Agricultural Banks in the US in United States include?
Providing farmland loans and Providing farm production loans are part of the Agricultural Banks in the US industry.
Which companies have the highest market share in the Agricultural Banks in the US in United States?
The company holding the most market share in United States is Federal Farm Credit Banks Funding Corporation.
How competitive is the Agricultural Banks in the US industry in United States?
The level of competition is moderate and increasing in the Agricultural Banks in the US industry in United States.
