Conditions for farm credit in the Federal Reserve’s Tenth District worsened in the third quarter of 2019 in spite of a modest price increase in various commodities. Other support, including government payments and loan repayment rates, likewise declined, though it did so at a slower rate. The Tenth District includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, Northern New Mexico, and Western Missouri. While irrigated cropland in the Tenth District showed a slight uptick in 2019, ranchland and non-irrigated cropland saw values dip. Across all of the seven states in the region, farm income decreased, with Missouri the hardest hit. New research also charts how cattle prices plummeted in August as a result of disruptions at a major beef processing facility. The expectation of the bankers in the Kansas City Fed region: “Agricultural credit conditions and farm income [are] to continue to decline in the coming months.”
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