A Kansas City Federal Reserve Bank economist says agricultural credit conditions are improving.
Vice President and economist Nathan Kauffman tells Brownfield he has seen the improvement in credit conditions for about six to nine months, and there are many factors that led to the stronger financial outlook. “The rapid increase in prices, of course, government payments from last year that had helped, farm finances, and that environment really has continued this year as in many segments of the farm economy, prices and profits have remained pretty strong.”
Kauffman says loan repayment rates are up, and higher land values are helping most farmers but he’s monitoring the severity of the drought in some sectors.
