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STATISTICAL

F E D E R A L

R E S E R V E

RELEASE
BANK

OF

DALLAS

Agricultural Credn Condnions at
Survey Banks in the Beventh District

Quarterly Survey of
·cultural
Credit Conditions in the
Eleventh Federal Reserve District

Demand for Loans
Fifty percent of responding banks
report no change in the demand for loans.
Percent
100

80

Fourth Quarter 1996

60

40

The Fourth Quarter Survey of Agricultural
Credit Conditions suggests that the financial
condition of the agricultural community has
strengthened, although the effects of the
drought linger in several parts of the Eleventh
District. Overall, fewer bankers reported an
increase in renewals or extensions or a decline
in the rate of loan repayment than in the third
quarter. These measures varied widely across
regions, however.

20

1991

1992

Less

1993

Same

1994

1995

1996

• Greater

Funds Available for Additional Lending
Nearly 75 percent of respondents report
no change in availability of funds for lending.
Percent
100

Here are additional details from the survey:
Quarter()' Suruey of
Agricullllml Credit
Co11ditio11s is compiled from

a survey of Eleventh District
agricultural bankers. This

80

• Forty percent or more of the responding
bankers reported a decline in the rate of
loan repayment in the Southern Low
Plains, Cross Timbers, orth Central
Texas, East Texas and Coastal Texas
regions.

60

40

20

publication is prepared by
the Federal Reserve Bank
of Dallas and is available
without charge by writing
co the Research Department,
Federal ReserYe Bank of
Dallas, P.O Box 655906,
Dallas, TX 75265-5906,
or by telephoning

• Fifty percent or more of the responding
bankers report an increase in renewals
or extensions in the North Central Texas,
East Texas, Coastal Texas, South Texas and
New Mexico regions.
• Twenty-seven percent of responding
bankers reported an increase in collateral
required. That number was down from
34 percent in the third quarter and 39
percent in the second quarter.

(214) 922-5254.

For questions regarding
information in the release.

0
1990

1991

1992

Less

1993

Same

1994

1995

1996

• Greater

Rate of Loan Repayment
The rate of Joan repayment increases for
17 percent of fourth-quarter respondents.
Percent
100

80

60

• Fifty-three percent of responding bankers
want to increase the volume of loans
available to farmers and ranchers.

40

20

contact Michelle Burchfiel,
(21 i) 922-5178.

0
1990

1991

1992

Less

1993

Same

1994

1995

• Greater

1996

STATISTICAL

RELEASE

Agricultural Credit Conditions at Survey Banks in the Eleventh District
Renewals or Extensions of Loans
Forty percent of respondents report
an increase in renewals or extensions.
Percent
100

Loan-Deposit Ratios at Survey Banks
Average actual and desired ratios

80

Percent
---------------~65

60

-----60
55

40

50
20

1992

1993

Less

• Same

1994

1995

1996

• Greater

45

II

Actual Ratio

II

Desired Ratio

40
35
1995:4

1996:1

1996:2

1996:3

1996:4

Amount of Collateral
Thirty-four percent of survey respondents
report an increase in collateral requirements.
Percent
100

DISTRIBUTION OF LOAN-DEPOSIT RATIOS
80

Banks Reporting (Percent)
60

Ratio

Less than 41%
41%to 50%
51% to 60%
61% to 70%
More than 70%

40

20

0
1990

1991

1992

Less

1993

• Same

1994

1995

1996

Jan. 1

34
23
14
21
9

Millions of dollars (seasonally adjusted)

37
24
20
14
5

29
24
15
22

11

Oct. 1

1997
Jan. 1

27
19
22
18
15

34
20
23
18
6

INTEREST RATES-FIXED

• Greater

Total Agricultural Loans at
Eleventh District Agricultural Banks
Agricultural lending fell 5 percent
in the third quarter of 1996.

1996
Apr. 1
Jul. 1

Average Rate (Percent)

Ratio

Feeder cattle
Other farm operating
Intermediate term
Long-term farm real estate

Jan. 1

1996
Apr. 1
Jul. 1

Oct. 1

1997
Jan. 1

10.68
10.84
10.79
10.55

10.41
10.58
10.43
10.04

10.45
10.56
10.51
9.96

10.48
10.56
10.41
9.90

10.45
10.55
10.44
10.05

5,000

4,800

INTEREST RATES-VARIABLE

4 ,600

4 ,400

4,200

4,000

3 ·800 -+-,-86~.87~.88~-.8-9~
.9-0~.9-1~.9-2~'9-3~'9-4~'-95~'~96

Average Rate (Percent)

Ratio

Feeder cattle
Other farm operating
Intermediate term
Long-term farm real estate

Jan. 1

1996
Apr. 1
Jul. 1

Oct. 1

1997
Jan. 1

10.56
10.70
10.56
10.39

10.34
10.50
10.25
10.13

10.37
10.53
10.31
10.04

10.32
10.53
10.33
10.02

10.45
10.54
10.37
10.14

STATISTICAL

RELEASE

CROPLAND-DRYLAND

Rural Real Estate values
January 1, 1997

Region
1

Number of banks reporting land values.
Nominal dollars per acre .
n.r.- Not reported.

2

NOTE: Regional land values based on a small
number of reporting banks should be used
with caution .
All figures are preliminary.

Beventh Federal Reserve District

Percent Changes
in Values from
Previous Previous
Quarter
Year

DISTRICT

119

571

2.7

2.1

TEXAS
Northern High Plains
Southern High Plains
Northern Low Plains
Southern Low Plains
Cross Timbers
North Central Texas
East Texas
Central Texas
Coastal Texas
South Texas
Trans-Pecos and
Edwards Plateau

110
14
12
8
10
8
22
4
11
6
3

565
278
325
307
378
481
814
679
1,036
793
485

2.9
- 0.9
2.0
2.5
- 1.4
- 5.6
2.9
3.1
9.7
0.5
9.1

1.6
-7.6
-6.0
-0.8
- 0.5
1.0
11.4
-8.3
9.7
1.7
-0.5

12

489

1.6

-3.6

6
3

680
225

1.6
n.r.

6.7
-4.3

Northern Louisiana
Southern New Mexico

CROPLAND-IRRIGATED

12
NEW

Average
Value 2
Banks'
Fourth-Quarter 1996

lll!XICO

Region

1 Northern High Plains

Southern High Plains
Northern Low Plains
Southern Low Plains
Cross 1i mbe rs
6 North Central Texas
7 East Texas

2
3
4
5

9
10
11
12
13

Coastal Texas
South Texas
Trans-Pecos and Edwards Plateau
Southern New Mexico
Northern Louisiana

Average
Value'
Banks'
Fourth-Quarter 1996

P ercent Changes
in Values from
Previous Previous
Quarter
Year

DISTRICT

76

701

- 0.7

-3.4

TEXAS
Northern High Plains
Southern High Plains
Northern Low Plains
Southern Low Plains
Cross Timbers
North Central Texas
East Texas
Central Texas
Coastal Texas
South Texas
Trans-Pecos and
Edwards Plateau

66
13
12
6
7
5
n.r.
n.r.
4
3
3

673
570
655
448
601
733
n.r.
n.r.
1,373
828
718

3.4
0.2
3.6
- 1.5
- 3.1
3.3
n.r.
n.r.
6.1
13.7
6.4

3.3
-1.3
4.0
1.8
- 0.4
0.2
n.r.
n.r.
8.6
n.r.
-4.2

11

927

2.9

9.7

6
4

907
905

- 1.8
- 22.9

4.2
- 34.9

Northern Louisiana
Southern New Mexico

RANCHLAND
Real Eleventh District Land Values
Dry- and ranch/and values
strengthened in the fourth quarter of 1996.

Region

Average
Value'
Banks'
Fourth-Quarter 1996

P ercent Changes
in Values from
Previous Previous
Quarter
Year

1992 dollars per acre

DISTRICT

124

326

2.3

0.5

1,600

TEXAS
Northern High Plains
Southern High Plains
Northern Low Plains
Southern Low Plains
Cross Tunbers
North Central Texas
East Texas
Central Texas
Coastal Texas
South Texas
Trans-Pecos and
Edwards Plateau

115
12
10
8
9
10
23
8
12
3
3

409
163
139
159
240
439
754
748
1,005
545
373

2.1
- 3.8
0.7
3.4
0.2
- 4.1
2.8
0.9
7.0
-0.5
-0.l

0.6
-12.5
-10.0
2.6
7.1
5.6
15.9
-20.5
14.4
-2.1
-7.7

16

353

3.8

1.3

5
4

424
89

2.2
4.6

2.6
-0.7

1,400
1,200
1,000

BOO
600
400

~

,,

-....

~-

''
'
Ranchland

200
0

--

Dryland

-----

Northern Louisiana
Southern New Mexico
'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

STATISTICAL

Fourth-Quarter
Comments
District bankers were asked for any
additional comments concerning agricultural land values or credit conditions.
These comments have been edited .

Region 2-Southem High Plains
Crop yields are significantly better
than projections from this summer.
Despite lower crop prices, fa rmers
should generally be in better financial
condition than they were 12 months ago.

Region 5-Cross Tnnbers
1996 agricultural income is p rojected to be 50 percent of the 1995
level. Most agricultural commodities
produced in our area in 1996 had low
yields and low prices.

RELEASE

Good fa ll rains filled stock tanks
and gave us excellent pasture wheat
and w inter grass. We currently need
one to two inches of rain to maintain
grazing conditions.
As the cattle market improves,
credit conditions will , too.

Region 8-Central Texas
The rainfall we have received
has been beneficial; however, re plenishment of subsoil moisture will take
more rain. Demand for hay has decreased dramatically.
Rains were too little, too late to
provide moisture for grazing and hay
production in our area. Cattle fa rmers
who depend on fa rm-raised hay were
forced to sell portions of herds normally kept for breeding stock or raised
to a more matu re market status. Cattle
were sent to market by necessity, not
because of marketability or local
de mand. This sell-off drove down
prices to an unprofitable level.

Region 9-Coastal Texas
The Coastal Bend area was severely hurt by the drought, as is
evident from the carryover of loans in
1997. Because of the large carryover,
numerous fa rmers have applied fo r
disaster assistance through FSA.
Obtaining these emergency loans is a
slow process, and w ithout these fu nds,
the 1997 operations of some producers
may be in jeopardy.

Region 12-Southem New Mexico
Summer's high grain prices did not
hold through the harvest. As a result,
bids for cash rents have returned to
normal levels. Land values are stable.
Low cattle prices still are de pressing
ranchland va lues.

Where to find economic data, banking research
and other useful information from the Dallas Fed
WWW

BBS

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