Community Banking Month: How Local Lenders Power Rural America
Throughout the month of April, Agri-Access is proud to join in the celebration of Community Banking Month. In rural America, community banks are more than places to get business done — they keep our farms, families and local businesses thriving.
Need proof? We’ve gathered key facts and statistics that highlight how community lenders power agriculture and local economies.
Keeping investments closer to home
First, it’s worth noting how community banks operate differently than national banks. Big banks often centralize their lending decisions in distant corporate offices, whereas community banks reinvest directly in the towns and rural areas where their depositors live and work.
This local connection also means that community bankers make financing decisions using firsthand knowledge of the unique challenges and opportunities in their backyards.
That focus on local investment makes all the difference.
For the professionals who work at community banks, economic success isn’t just about profits — it’s personal. These lenders and bankers are deeply rooted in the communities they serve, often living, raising families and even farming alongside their customers.
Because community banks reinvest where their depositors and borrowers live and work, they create a ripple effect of economic growth:
- Farmers can expand their operations, invest in new technology and weather unpredictable market conditions.
- Main Street businesses — such as equipment dealers, co-ops, and processors — thrive because of their ties to agriculture.
Whether they’re supporting a Main Street business, helping a family farm secure generational stability, or funding new agricultural innovations, community banks are invested in your success. When customers succeed, so do the bankers who serve them — creating a cycle of growth and shared prosperity.
The numbers tell the story
Look at the data, and it’s clear: community banks play a dominant role in agricultural financing.
According to the Independent Community Bankers of America (ICBA):
- Community banks are four times more likely to operate in rural counties compared to national banks.
- More than one-third of all U.S. counties rely solely on community banks as their only banking presence.
- Community banks fund $155 billion annually in farm and ranch loans.
According to the FDIC,
- Community banks hold 81% of farm real estate debt and 74% of farm operating debt, which underscores their role in keeping American farms running.
The financial strength of community banks
Meanwhile, demand for agricultural lending remains strong, and ag banks continue to demonstrate financial stability. Some 98.1% of ag banks are profitable, with 53.5% reporting increased profits, according to the American Banking Association.
Farmers favor community banks
Farmers prefer community banks due to their deep understanding of agricultural needs and their commitment to personalized service. Customer satisfaction scores reflect this trust: on a 1-100 scale, community banks score 83, compared to 79 for national banks.
Celebrating Community Banking Month
As a community lender, your contributions to rural communities and agriculture are truly invaluable. Your commitment to reinvesting in local businesses, supporting family farms and strengthening Main Street economies makes a lasting difference.
At Agri-Access, we’re proud to recognize the vital role you play in moving rural America forward. Thank you for your dedication, expertise and the countless ways you help communities thrive!
Happy Community Banking Month to ag banks everywhere!
