Farmers feel less need to borrow money from the bank
The strong agricultural economy, fueled by high commodity prices, has reduced farmers' reliance on farm lenders, despite concerns about rising input costs, according to a Federal Reserve survey of ag bankers. "Higher costs are likely to put upward pressure on demand for credit, but strong farm income and working capital could also supplement financing for some borrowers," said the Kansas City Fed on Thursday.
Economic recovery depends on ‘the path of the virus’ — Fed official
The U.S. recovery from the pandemic will depend in part on success in managing the coronavirus through steps such as therapeutics and a vaccine, the president of the Kansas City Federal Reserve Bank told an agribusiness conference on Monday. Also at the meeting, two Trump administration …
Farm sector in Plains is in ‘prolonged downturn,’ says Kansas City Fed chief
U.S. economic growth is likely to slow this year after a strong expansion in 2018, said Esther George, president of the Kansas City Federal Reserve Bank on Tuesday. In a speech, George pointed to emerging stress throughout the economy and said in the Plains, "the farm sector is in a prolonged downturn as a result of declining agricultural prices, made worse by retaliatory tariffs on U.S. farm products."
Farmers increasingly pledge land as collateral to get a loan
With profit margins weak due to low commodity prices, farmers and ranchers are offering their land as collateral to obtain short-term operating loans — and banks are demanding it amid "a growing sense of risk in the farm sector," said the Kansas City Federal Reserve Bank.