Federal Reserve survey says farm economy weaker in Midwest, Western states as income drops

Federal Reserve says Midwest farm economy weakens

OMAHA, Neb. — The Federal Reserve Bank of Kansas City says lower income contributed to a weaker farm economy during the third quarter in some Midwest and Western states.

The Fed’s survey of banks in the 10th district says falling crop prices and weak demand for meat contributed to lower income.

As a result of the lower income, bankers reported the lowest loan repayment rates since 2003, and the number of loan extensions jumped.

The 10th Federal Reserve District in Kansas City covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.

Across the district farmland values remained steady from the second quarter to the third quarter, but compared to a year ago, farmland values were down 2 percent to 4 percent.