News

KC Fed: Farm economy tightens further

The Federal Reserve Bank of Kansas City reports farmland values in the Fed’s Tenth District continued to soften in the fourth quarter of 2015.

Respondents to the bank’s quarterly survey of ag credit conditions indicated that year-to-year prices for nonirrigated cropland were down four percent while irrigated cropland values declined two percent.

Growth in the value of ranchland also stalled in the fourth quarter as cattle prices declined. And survey respondents said they expect the values of all types of farmland to fall further in the coming months.

The report says farm credit conditions also showed some deterioration as farm incomes continue to decline.

The Tenth District includes Nebraska, Kansas, western Missouri, Colorado, Oklahoma, New Mexico and Wyoming.