Agricultural banks are in good shape

corn southeast nebraska 6-15The chief executive of the nation’s agricultural bankers says, despite the downturn in the ag economy, most ag banks are in good shape.

Steve Apodaca, senior vice president of the American Bankers Association’s Center for Agricultural and Rural Banking,  says most ag banks are in a very strong, well-capitalized position.

“As a result of that, if there is some impact from farm income in which some of the farmers struggle to pay back their loans—because the banks are well-capitalized, I think they can survive the downturn in pretty good form,” Apodaca says.

In an interview with Brownfield at the National Agricultural Bankers Conference in Kansas City, Apodaca said the biggest challenge facing ag and rural banks right now is the regulatory burdens created by the Dodd-Frank Act. The bankers are asking Congress to pass legislation that would reduce the frequency of on-site examinations and the number of regulatory reports that smaller banks must file.

AUDIO: Steve Apodaca

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