A sharp jump in U.S. farmers seeking operating and equipment loans of at least $1 million fueled a spike in agricultural lending in the third quarter of 2018, as trade worries added to economic strain in the farm sector, the Federal Reserve Bank of Kansas City said on Friday.

The increase in the size of loans also boosted the share of agricultural lending at large banks, adding potential risk to their loan portfolios as lenders are concerned about the longer-term impact of the U.S.-China trade war on their farmer customers, said Nathan Kauffman, the bank’s lead economist.

Lending is the latest sector of U.S. agriculture to be impacted by the trade dispute between the world’s two largest economies which has slashed U.S. soybean exports to China and dragged some crop commodity prices to decade lows.

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