Published:
Views: 1861

Cash Crunch Squeezes Farm Operators

Farmland values in the Tenth District dropped an average of 3 percent, according to the Kansas City Fed’s Ag Credit Survey. Blame it on decreased farm income, which fell for the fifth consecutive year. –The Editors The Kansas City Fed

Farmland values in the Tenth District dropped an average of 3 percent, according to the Kansas City Fed’s Ag Credit Survey. Blame it on decreased farm income, which fell for the fifth consecutive year. –The Editors

The Kansas City Fed recently presented its survey of Agricultural Credit Conditions covering the first quarter of 2018.

Researchers began on a high note, pointing out that in the first quarter of 2018, crop prices for corn and soybeans rose to their highest levels since  2016.

Due to reduced farm income, however, cash-flow issues persist. District bankers report that more than 8 percent of farm loan requests were denied because of customer cash-flow shortages.

This was especially the case in Oklahoma. The largest share of denials occurred in the Sooner State where wheat production makes up a larger share of farm revenue.

Two additional trouble spots? Higher interest rates and increased collateral requirements.

“[T]he continuing trend of increasing collateral requirements suggests that agricultural lenders are maintaining tight lending standards to curb risks that remain amid weaker levels of farm income and liquidity.”

Read the complete report at www.KansasCityFed.org.

Tagged with: , , , , ,
Posted in Agriculture, Colorado, Farming, Feature, Federal Policy, Great Plains, Kansas, Midwest, Missouri, Nebraska, New Mexico, News Desk, Oklahoma, Southwest, West, Wyoming

EMAIL SIGNUP

Please sign me up to receive breaking news and updates from the Land Report!

Latest Tweets

News By Region

The Land Report | 2019 America's Best Brokerages
The Land Report is proudly partnered with: Hall and Hall Bates Land Consortium Mossy Oak Properties United Country Real Estate Live Water Properties Fay Ranches Inc. Mirr Ranch Group californiaoutdoorproperties.com Whitetail Properties TerraStone Land Company Hayden Outdoors Real Estate Western Ranches LandLeader

Contact to Listing Owner

Captcha Code
Pacific West Great Plains Great Lakes Midwest Southwest South Northeast Pacific West Great Plains Great Lakes Midwest Southwest South Northeast