News

St. Louis Fed district bankers on farm income decline

Most ag bankers surveyed in the St. Louis Federal Reserve district report declines in farm income compared to a year ago and expect farm income to go down again in the next quarter.

Both farm income and expenses fell in the third quarter. A Missouri lender says the low price of grain and the falling of cattle prices are going to make it hard on low-leveraged farmers and nearly impossible for young, highly leveraged farmers.

Quality farmland values feel nearly 2% in the third quarter but ranch and pastureland values increased more than 10%.

Seventy percent of the ag bankers expect operating lines of credit will have the largest increase in re-payment problems.

The St. Louis Fed district includes the eastern two-thirds of Missouri, southern Illinois, southern Indiana and the western third of Tennessee.

  • Farmers will have to expand . When you have low commodity prices which barely cover costs of production . And the government comes in to help with checks . The Checks are always big checks for big farmers and small checks for small farmers . How else would you do it ? No checks at all would be more equal treatment . Big checks big enough to live on and even expand a little has been what makes the size of the average farm grow .Where small checks for everyone would protect the small farms more

Add Comment

Your email address will not be published.


 

stay up to date

Subscribe for our newsletter today and receive relevant news straight to your inbox!