OMAHA, Neb. – The Federal Reserve says demand for farm loans is still growing because cattle and crop prices are lower than they were a year ago and farm profits are shrinking.
The Federal Reserve Bank of Kansas City, Missouri, said Thursday that over 87 percent of bankers in the region reported a decline in farm income in the third quarter.
The changing conditions have bankers expecting loan demand to continue growing while repayment rates decline.
The 10th Federal Reserve District covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.
The value of irrigated farmland in the region fell 7 percent while
non-irrigated land declined 6.1 percent and pastures declined 6.5 percent.