Historically and persistently low interest rates extensively damaged interest income for the Agricultural Banks industry early in the five-year period to 2017 and constrained later growth. According to the latest available data from the Federal Deposit Insurance Corporation, both total agricultural bank lending and loans to the agricultural sector increased moderately from 2012 to 2016. However, low interest rates have caused interest income to remain volatile during the same period. Over the five years to 2022, industry revenue is forecast to rise. Anticipated increases in domestic interest rates largely explain the industry's improving interest income. However, the industry is expected to continue the consolidation trend that has persisted since at least 1999.
Operators in this industry specialize in lending to the agricultural sector. More specifically, banks in this industry dedicate at least 14.4% of their total loans to agriculture.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.