News

Report suggests farm sector may be stabilizing

A new report from the Kansas City Federal Reserve suggest conditions in the farm sector may be stabilizing.

The report says the while the farm economy continues to decline, the prolonged slide in farm income appears to be slowing and credit conditions, including loan repayment rates, declined less in the second quarter than in previous quarters.

“With the fall harvest approaching, agricultural lenders and borrowers remain concerned about prospects for the farm economy in the Federal Reserve’s Tenth District, particularly in regions with limited potential for high crop yields,” the reports says. “However, bankers were generally less pessimistic about economic conditions in the farm sector in the second quarter than in each of the past two years.”

The Fed’s Kansas City district includes Nebraska, Kansas, western Missouri, Colorado, Oklahoma, New Mexico and Wyoming.