Banker Comments from the Tenth District
Farm ground is beginning to back up in most areas. Pasture land is still selling high but trending a little lower as too much has hit the market recently and affected supply and demand. – Southeast Nebraska
Higher interest rates, low commodity prices and higher input costs are going to create more carryover and cause some farmers to go out of business. – Northeast Colorado
Low commodity prices are taking a toll. I anticipate several irrigated farmers to sell out this year as some are trying to salvage equity instead of seeing it continue to decrease year after year. – Southwest Kansas
Good farmland values are still stable in this area and a recent sale at auction brought considerably more than our present market value. – Central Missouri
A lot of land has been offered for sale and sold in our area. There has been a buyer for every farm with prices being paid that we have not seen before. – Southern Oklahoma
Recent trade talks between China and U.S. and a temporary truce on tariffs has given a slight boost to attitudes about commodity prices and market stability. – Central Kansas
Farmers that are not highly leveraged are maintaining, but those with significant leverage continue to proactively reduce assets to get out in front of struggles. – Central Kansas
Loan demand from farmer and non-farm customers continues to be very strong and deposits seem to be nearly impossible to attract. We have not declined any loans over funding issues, but that may change. – North Central Missouri
Cash flows look very tight and higher rates will apply further pressure. The trends of more stress on liquidity and earnings are very concerning, especially in the sugar industry. – Northern Wyoming
Many farmers in our portfolio seemed to out produce the low price environment again this year and USDA Market Facilitation Program payments helped those with more soybeans. – Southeast Nebraska
A total of 190 banks responded to the Fourth Quarter Survey of Agricultural Credit Conditions in the Tenth Federal Reserve District—an area that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri. Please refer questions to Cortney Cowley, economist or Ty Kreitman, assistant economist, at 1-800-333-1040.
Visit the Ag Credit Survey page for more information.
The views expressed in this article are those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System.