Center for Agriculture and the Economy
Leveraging expertise from the Kansas City Fed, the Center provides timely analysis of industry developments and conducts ongoing research on the agricultural economy.
Broader Economic Pressure from Weakness in the Farm Sector Remains Modest
By Ty Kreitman
October 15, 2026
According to agricultural lenders, the farm economy has had only a modestly negative effect on broader economic conditions in many local areas captured by the survey and has also been a source of support in others. Weakness in the crop sector during recent years has weighed on farm incomes, reduced capital spending and increased risks of broader economic implications in rural areas most heavily concentrated in agricultural production. Despite ongoing challenges, robust support from government payments and strong farm real estate values have helped limit farm financial stress and wider negative impacts. In other areas, strength in the cattle sector has likely been a positive boost to broader economic conditions.
Note: The above information is sourced from a panel of approximately 250 agricultural lenders throughout the U.S. during the third quarter Survey of Agricultural Credit Conditions conducted by the Federal Reserve Bank of Kansas City. Respondents were asked the following question: How have recent agricultural economic conditions affected broader economic conditions and business activity in your lending area?
Source: Federal Reserve Bank of Kanas City Survey of Agricultural Credit Conditions
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The Kansas City Fed's Continuing Commitment to Agriculture
Through regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on U.S. and global agriculture. Leveraging this expertise, the Center for Agriculture and the Economy serves as a resource within the Federal Reserve System by providing timely analysis of industry developments and conducting ongoing research on the agricultural economy. The Kansas City Fed is committed to understanding developments in the agricultural economy and gathering perspectives from rural America in order to include them in discussions on the national economy.
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Agriculture is central to the Kansas City Fed’s 10th District’s economy, from farm production and food manufacturing to agricultural banking and finance. Through its regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on the U.S. and global agricultural economy. At the same time, connecting with stakeholders and ag industry professionals through events, round tables and conversations is critical to the Bank’s work.