Ag credit look to have recovered in the third quarter

Ag credit conditions appear to recover in the third quarter.

Farm income and loan repayment rates bounced back from shard declines in the second quarter.

Demand for credit softened, according to Federal Reserve ag credit surveys. Farmland real estate markets remained strong. Farm loan demand moderated in all federal reserve districts for the first time since 2013 in the third quarter.

The Fed says that an influx of government payments and higher prices for agricultural commodities provided greater support for farm finances in the third quarter and seemed to limit demand for financing.