Banks have sufficient funds to make farm loans in 2009 and beyond; however, it is not going to be business as usual, with more conservative assessments in working with borrowers.

Ninety-eight percent of the over 8,400 banks are well-capitalized, with many being agricultural banks.

Farm equity now exceeds $2 trillion dollars, nearly doubling in this decade. Much of the increase is the result of appreciation in farmland values.

Farm debt is now $2.5 billion dollars and is being serviced by record profits of 2008, which are projected to be down by 17% in 2009. This is still much above average.

The percentage of farm assets financed by debt is now 9.1%, a record low, and down from 15% in 1991.

Land values nationwide increased by 8%, with much of the increase resulting from double-digit price increases in the Midwest.