Kansas City Bankers Say Ag Economy Still Strong

The Federal Reserve Bank’s Kansas City district ag bankers said the overall farm economy remains solid, despite continued weakness in the hog and dairy sectors, Brownfield Ag News reports. The Fed’s quarterly survey of ag credit conditions shows little changed in the second quarter, and that lenders expect conditions to improve somewhat in the next three months.

Jason Henderson with the Kansas City Fed’s Omaha branch says while loan delinquency rates have edged up slightly, they still remain at historical lows. The survey also shows that farmland values held firm, Henderson says, with some renewed interest from non-farm investors and robust farmer demand. Compared to last year, non-irrigated cropland values were flat, while irrigated cropland and ranchland values posted slight increases.

The Fed’s Tenth District includes Nebraska, Kansas, Wyoming, Montana, Colorado, Oklahoma and western Missouri.