by David A. Widmar
As farm incomes decline and financial conditions erode, concerns about farmers’ ability to repay farm debts mount. The Kansas City Federal Reserve Bank provides great insight into the health of the farm economy – and specifically farm loans- through its Ag Finance Databook. This post considers the latest farm loan delinquency data and evaluates conditions at the end of 2016. Continue reading
by Brent Gloy
From sticky input prices to falling commodity output prices, U.S. farmers are working their way through some of the most difficult financial times in recent memory. Purdue’s Ag Economy Barometer showed that after a slight July uptick, producer sentiment has turned decidedly lower. As we noted in a previous post this summer banker attitudes about agricultural credit conditions were turning as negative as they had been in some time. We thought that now would be a good time look at credit conditions. Continue reading
by Brent Gloy
Last week I thought that it would be a good time to look at farm sector financial conditions, particularly some ratios of repayment capacity. My timing could have been a little better because only a couple days after I wrote the post, USDA made an update to its farm sector income forecast. Usually you can count on these updates to be relatively minor. Not this time.