Skip Header

Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Since 1933, no depositor has lost a penny of FDIC-insured funds

Financial Institution Letters

FIL-5-2020
January 28, 2020

Advisory: Prudent Management of Agricultural Lending During Economic Cycles

Printable Format:

FIL-5-2020 - PDF (PDF Help)

Summary:

Between 2010 and 2015, the U.S. agricultural industry enjoyed generally robust economic conditions. More recently, the industry has been experiencing low commodity prices, trade and tariff uncertainties, impacts from adverse weather conditions, and global supply and demand issues. This advisory reminds financial institutions engaged in agricultural lending to maintain sound underwriting standards, strong credit administration practices, effective risk management strategies, and appropriate allowances for losses and capital levels through the credit cycle. When agricultural borrowers experience financial difficulties, the FDIC encourages financial institutions to work constructively with borrowers to strengthen the credit and mitigate loss.

Statement of Applicability to Institutions with Total Assets under $1 billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.

Highlights:

Suggested Distribution:

Suggested Routing:

Related Topics:

Attachment:

Contact:

Note:

Access FDIC Financial Institution Letters (FILs) on the FDIC's website

Subscribe to receive FILs electronically

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

Skip Footer back to content