2022 Farm Bank Performance Report

Key Findings

• The banking industry is the nation’s most important supplier of credit to agriculture, providing over a third of all farm loans in the U.S.—$190 billion outstanding as of December 2022.
• Small loans continue to make up over a third of banks’ farm and ranch lending with $69 billion in farm and ranch loans under $500,000 on the books at the end of 2022.
• The nation’s 1,488 farm banks recorded strong asset quality and capital levels in 2022 through serving their communities and commitment to strong banking practices: a focus on the fundamentals of credit, solid underwriting standards and knowledge of the customer’s business. 
• Farm banks have deep roots in their communities. The median farm bank was 112 years old in 2022. There were 2 new farm banks established in 2022. 
• Farm banks’ asset quality improved in 2022, as measures of loan delinquency remained low by historical standards. Noncurrent agricultural loans as a share of total agricultural lending dropped by 17 basis points to 0.37% in 2022.
• While equity capital at farm banks – a more conservative form of capital – fell 15.4% to $41.9 billion in 2022, high-quality capital continued to grow consistently. Tier 1 capital at farm banks rose 8.7%, to $50.9 billion in 2022.  
• Employment at farm banks grew by 1.1% in 2022, adding over 800 jobs, and employing over 75,000 rural Americans. Farm banks added nearly 15,000 jobs over the last ten years.
• In 2022, 98.4% of farm banks were profitable, with 48.7% reporting an increase in earnings. 

The ABA definition of “farm bank” for the purposes of this report has changed over time. In 2012, ABA made the decision to include institutions, previously excluded, with more than $1 billion in assets as these institutions grew in number and importance to our country’s farmers and ranchers. In addition, due to changing reporting requirements and improved availability of data, ABA began to include savings and loan associations in this report.