By Kevin Kim, a Ph.D. student and Ani Katchova, Professor and Farm Income Enhancement Chair, Department of Agricultural, Environmental, and Development Economics, The Ohio State University
The US banking sector and local community banks faced great uncertainty in 2020 due to the pandemic. The consolidation intensity within US banking sector continued in 2020. Ohio experienced a similar trend, with continued decrease in the number of community banks. However, Ohio banks remained highly profitable relative to the national average, and the credit availability increased significantly as the increase in the amount of bank deposits outpaced the increase in the amount of loans. Overall Ohio banks slightly increased bankruptcy risks in 2020 but are still more resilient than the national average.
By Ani Katchova, Associate Professor and Farm Income Enhancement Chair, Department of Agricultural, Environmental, and Development Economics, The Ohio State University
Farmers deal with many stressors, most of which are out of their control: extreme weather, market changes, COVID-19, trade wars, fluctuating market prices, and environmental challenges. In 2019 particularly, a harsh winter followed by high spring and early summer rainfall led to damaged hay fields, delays in the planting of corn and soybean crops, and an inability to harvest early season crops in a timely manner.
Tariffs on exported farm products led to declines in soybean and corn prices and contributed to uncertainty about the long-term security of global trade relationships. Growing attention to harmful algal blooms and other water quality challenges has increased pressure on farmers to reduce nutrient runoff from farm fields. Is this an unprecedented time in history, or have farmers experienced similar levels