Crop Prices Give Slight Boost to Weak Farm Economy

The Kansas City Federal Reserve Bank says farm income and credit conditions show signs of stabilizing. In its second quarter survey of farm lending conditions, the bank says higher corn prices and trade relief payments could have contributed to a slower pace of decline in expectations for farm income and credit. Although farm income was is expected to decrease in the third quarter of 2019, the pace of decline is expected to be the slowest since 2014. Slightly more than 40 percent of bankers reported that farm income was lower, compared with almost 75 percent and 60 percent at the same time in 2016 and 2017. In addition, district bankers reported that deposits grew at a faster pace in some states while farmland values remained steady. Demand for agricultural lending in the district remained high, but bankers anticipated slower growth in future months. The 10th District includes Parts of Missouri and New Mexico, along with Colorado, Kansas, Oklahoma and Nebraska. It is the second-largest Federal Reserve district.