Farm Economy Growth May Slow

The Tenth Federal Reserve District’s farm economy had a stable Q2 2022. Rising farm loan interest rates preceded an increase in farm real estate values. Although valuations have continued to increase recently, and all the region’s farmland values have increased roughly 20 percent from 2021, valuations moderated in Q2, while agricultural commodity prices declined. The Tenth District’s survey responses reflected some negative expectations of slowed growth that may continue into Q3 2022 even while the strength of farm income has shown annual increase. Along with the rising farm loan interest rates — with increased costs most notable in Nebraska, up from its 2015 to 2019 average — this is attributable to rising input costs while commodity prices have lowered. Read more HERE.