The decline in farm income in the central Plains intensified as crop prices remained weak this summer, according to 135 ag bankers who took part in a quarterly survey by the Kansas City Federal Reserve Bank. Six out of every 10 of the bankers said farm income during the third quarter was lower than a year earlier; only one in 10 reported an increase.
“Despite strong cattle prices, incomes in the region have contracted alongside sharply lower crop prices,” said the regional Fed in its Ag Credit Survey. “The outlook for the farm sector nearing the end of 2024 remained subdued alongside weak crop prices…The considerable reduction in profits for crop producers has weakened farm balance sheets, increased demand for financing, and could put further pressure on agricultural credit conditions in the months ahead.”
Despite lower income in the farm sector, the value of nonirrigated cropland was up 5 percent from the third quarter of 2023, irrigated cropland values rose by 0.3 percent, and ranchland values were up by 1.6 percent, said bankers. “Cash rents on irrigated and nonirrigated cropland were nearly unchanged from a year ago, while rents on ranchland increased about 4 percent and have been more volatile in recent periods,” said the Kansas City Fed,
The Kansas City Fed district covers Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico, and the western third of Missouri.