Depressed commodity prices, poor weather, and trade war ramifications aren’t just worrying for the nation’s farmers.
The second quarter Agriculture Credit Conditions Survey from the Federal Reserve Bank of Minneapolis says ag bankers are worried as well. The report, which covers April through June, says farm income, spending on capital equipment, and household purchases all decreased.
Nearly half of the lenders located within the Fed district, which stretches from Wisconsin through Montana, reported a decrease in farm income. Only eight percent reported an increase in farm income. Wisconsin, one of the nation’s most prominent dairy states, has the highest number of lenders reporting falling incomes, coming in at 71 percent. Lower incomes did slightly hurt the rate of loan repayments.
Survey respondents also said cropland values increased somewhat.
About half of the survey respondents are also predicting that conditions will worsen further by the time the third quarter of 2018 rolls around.
Source: National Association of Farm Broadcasting News Service.