The Kansas City Federal Reserve says higher commodity prices and additional government support improved the outlook for ag credit conditions in the third quarter.

Ag bankers in the Tenth District reported that, while farm income and credit conditions remained weak overall, the pace of deterioration slowed from the second quarter and the demand for farm loans was more subdued.

The bankers continued to express concerns, however, about the potential for renewed pressure in the months ahead, depending on the direction of commodity prices and government support programs.

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