U.S. farmers are preparing for excellent crop yields but it is no surprise that prices are not following the trend. Economists are warning that it is putting farm income in a tough spot.
Regional fed banks in Chicago and Minneapolis show that the farm income outlook has been taking a turn recently. The Kansas City Fed is also seeing a trend, saying ag conditions face headwinds because of low crop prices. The Fed’s ninth district in Minneapolis recently released a condition report, saying ag lenders are beginning to notice a shift.
The bank wrote, “Lenders responding to an agricultural credit conditions survey overwhelmingly reported decreased farm incomes in the second quarter of 2024 relative to a year earlier, with expectations for further declines in the coming three months.”
