An economist says the outlook for the ag industry remains strong this year but has signs of softening in 2023.
Nathan Kauffman with the Kansas City Federal Reserve Bank says the farm economy rebounded rapidly after a slowdown at the start of the pandemic. “Commodity prices are still high, profit margins are still there, lending conditions are still there, credit quality is strong, land values are at record highs – all of that is to say that when we compare conditions prior to the pandemic, financial stress is substantially less than what it was in 2019.”
But, he says, skyrocketing input costs and inflation could put a strain on available capital for next year.
