Charge-Off Rate on Farmland Loans, Booked in Domestic Offices, All Commercial Banks
CORFLACBN • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.01
Year-over-Year Change
-75.00%
Date Range
1/1/1991 - 1/1/2025
Summary
The Charge-Off Rate on Farmland Loans measures the percentage of agricultural loans that banks have written off as uncollectible. This metric provides critical insight into the financial health of the agricultural sector and the risk exposure of commercial banks.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator tracks the percentage of farmland loans that commercial banks have determined to be unrecoverable, reflecting agricultural sector financial stress and lending risk. Economists use this trend to assess agricultural economic conditions, bank lending practices, and potential systemic financial vulnerabilities.
Methodology
The data is collected by aggregating charge-off rates from all commercial banks in the United States, tracking the proportion of farmland loans deemed unrecoverable in a given period.
Historical Context
Policymakers and financial regulators use this trend to monitor agricultural economic health, assess banking sector risk, and potentially develop targeted financial support or intervention strategies.
Key Facts
- Represents the percentage of farmland loans written off by commercial banks
- Indicates financial stress in the agricultural sector
- Provides insights into agricultural lending risk and bank performance
FAQs
Q: What does a high charge-off rate indicate?
A: A high charge-off rate suggests significant financial stress in the agricultural sector, with farmers struggling to repay loans due to factors like poor crop yields, low commodity prices, or economic challenges.
Q: How often is this data updated?
A: The Federal Reserve typically updates this data quarterly, providing a current snapshot of farmland loan performance across commercial banks.
Q: Why do banks charge off farmland loans?
A: Banks charge off loans when they determine that the debt is unlikely to be collected, often due to prolonged non-payment, bankruptcy, or significant decline in the underlying asset's value.
Q: How do charge-off rates impact agricultural lending?
A: High charge-off rates can lead banks to tighten lending standards, reduce loan availability, or increase interest rates for agricultural borrowers.
Q: What factors influence farmland loan charge-off rates?
A: Factors include agricultural commodity prices, weather conditions, global market dynamics, interest rates, and overall economic health of rural communities.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Farmland Loans, Booked in Domestic Offices, All Commercial Banks [CORFLACBN], retrieved from FRED.
Last Checked: 8/1/2025