• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / Agriculture / Federal Reserve economists: farm income drop is lower than past years

Federal Reserve economists: farm income drop is lower than past years

November 17, 2017 By Matt Kelley

The harvest in Iowa is nearly over and now farmers face an agricultural economy which has stabilized, but has yet to rebound.

Economists with the Federal Reserve Bank of Kansas City report farm income is down from a year ago, but the decrease is smaller than in recent years. Nate Kauffman, in the Omaha office, says farmers continue to operate under stressful conditions.

“In most cases though it hasn’t led to a lot of widespread default rate increases,” Kauffman says. “So, even though we’re continuing to see some of that increase in financial stress, it doesn’t seem to be so far that it’s affecting the entire sector.”

Kauffman says a survey of bankers in Iowa and six other Midwestern states indicates they’re optimistic long-term, even in the midst of a challenging farm economy.

“I think a lot of lenders might have some borrowers who are facing increasing financial stress and a decent share of their portfolio maybe that’s still actually making money,” Kauffman says. “So, I think that it really depends on a case-by-case basis.” Livestock producers seem to be faring the best and Kauffman says every indication is that the harvest is strong this year.

“That’s good in one sense, that it can help improve cash flow, especially for producers who really saw strong yields,” Kauffman says. “On the other hand, it’s likely to increase inventories even further, which ultimately weighs on prices. We continue to see fairly strong demand for agricultural products but because supply has been so strong, it’s likely to continue to weigh on prices.”

Commodity prices haven’t begun to trend upwards, not yet. “On one hand, it’s positive farm income is showing some signs of stabilizing but on the other hand, because prices are still relatively low and costs are still quite high in some places, there’s not a strong expectation that income is going to be increasing a lot,” he says.

While some producers continue to struggle, Kauffman says those with equity in their operations have been faring the best.

Share this:

  • Facebook
  • Twitter

Filed Under: Agriculture, News

Featured Stories

All bodies of missing now recovered from rubble of collapsed Davenport building

Governor signs child care expansion into law

Iowa seniors have until July 1 to apply for new property tax break

Smoke from distant fires creates colorful sunrise in Iowa

DOT’s Motor Vehicle Enforcement Division to merge into State Patrol

TwitterFacebook
Tweets by RadioIowa

Hawkeye women to play Virginia Tech

Radio Iowa/Baseball Coaches Association High School Poll 6/5/23

Iowa eliminated at NCAA regional

Iowa names Beth Goetz interim AD

Cyclone Trio Invited to USA Basketball U19 Training Camp

More Sports

Archives

Copyright © 2023 · Learfield News & Ag, LLC