Source:  POLITICO'S MORNING AGRICULTURE, 7/12/19

Banks remain in good shape to continue lending to farmers and ranchers despite deteriorating conditions in the agricultural economy, Federal Reserve Chairman Jerome Powell told senators on Thursday.

"Our farm belt banks have had a lot of experience in dealing with the issues that farmers are confronting right now," Powell said at a Banking Committee hearing. "As a whole, the agricultural sector is in a difficult place. It's a tough time. I know that banks are trying to work through those difficulties with farmers."

Farm income has dropped about 50 percent since 2013, and the default rate for farm loans hit its highest level in seven years in the first quarter of 2019, as President Donald Trump's trade war has put extra stress on producers and lenders. But Powell said ag banks are well versed in managing financial challenges in the farm sector.

Wall Street banks bailing: Meanwhile, big banks like JPMorgan Chase are scaling back their ag lending activity as farm income falls and the trade war drags on, Reuters reports.