A U.S. banking regulator says more farmers are falling behind on loans held by commercial banks when compared to last year. Nebraska Farm Bureau Senior Economist Jay Rempe isn’t surprised by that.

He says most local community banks are doing the bulk of their business with farmers and ranchers. Rempe says when those loan payments fall off it hurts the whole economy.

Rempe says it’s a combination of many factors driving the ag economy downward.

The Federal Deposit Insurance Corporation says it’s watching for more risks in the ag sector. The FDIC says the share of farm loans that are at least 90 days past due are up 13 basis points from last year.