Top U.S. banks like J.P. Morgan and Capital One are on the way out of ag lending.

However, Banking Dive magazine says Rabobank will be stepping in to fill that gap.

The nation’s top 30 banks saw a decline of 17.5 percent, or about $3.9 billion, in their farm-loan portfolios between the peak of December 2015 and March of this year.

However, Rabo AgriFinance, which only lends to farmers, saw its business jump seven percent during that same time frame.

 

“In my opinion, the big banks have never played a significant role in ag lending, even when they’ve had exposures to it,” says Executive Vice President Curt Hudnutt.

“We’re solely focused on food and agribusiness, so we know we have to be in this sector in the good times and bad.”

 

He says when things don’t go well for clients, Rabo AgriFinance is even more active than normal because the company believes it can bring the right solutions to the right producers and help them weather downturns.

The U.S. Department of Agriculture says farm debt will rise to approximately $426.7 billion this year, levels that are approaching the 1980’s farm crisis.

Hudnutt says Rabo AgriFinance has about $15 billion in total loans outstanding.