Agricultural activity ‘flat to down modestly’ this fall, says Beige Book
The farm economy stabilized in the Midwest and northern Plains but weakened in much of the country this fall as producers nationwide confronted high costs and lower commodity prices, said the Federal Reserve’s Beige Book on Wednesday. “Agricultural activity was flat to down modestly, with some crop prices remaining unprofitably low,” said the national economic summary.
Farm income is down in Plains, say ag bankers
More than six of every 10 ag bankers in a Kansas City Federal Reserve Bank survey said that farm income was lower than a year ago and demand for loans was up. “Strong cattle prices have supported profit margins in the cattle sector, but prices for crops have declined faster than production expenses,” said the regional Fed on Tuesday.
Ag bankers say farm income is down from 2023 in Central Plains
Farm income "retracted at a sharp pace" in the Central Plains ahead of the spring planting season, said the Kansas City Federal Reserve Bank, based on a quarterly survey of ag bankers. Sixty percent of the lenders — the highest percentage since early 2020 — said income was lower than a year earlier.
After run-up, farmland prices may become more stable
Higher interest rates and weaker commodity prices may slow the momentum for ever-higher farmland values, said the Chicago and Kansas City Federal Reserve banks in quarterly reports on Thursday. "After this unusual period of large farmland gains, it wouldn't be too surprising if we were back to that general stable [land value] scenario for a while," said David Oppedahl, policy adviser at the Chicago Fed.