CHICAGO, Il. (RFD-TV) — Farm finances tightened across the Chicago Federal Reserve’s Seventh District in the third quarter, with ag bankers reporting higher loan delinquencies even as farmland values posted modest year-over-year gains. The Chicago Fed’s latest AgLetter, led by policy advisor David Oppedahl, found credit conditions weakening further while crop farms remained pressed by narrow margins and rising costs.
Corn and soybean prices improved slightly late in the quarter, offering limited relief to crop producers who continue to face competition from Brazil and elevated input expenses. Bankers noted that weaker cash earnings are expected this fall and winter for most crop farms and dairy operations.
Operationally, more renewals and extensions signal increasing stress, and nearly half of the surveyed bankers anticipate a rise in forced liquidations. Some lenders are advising producers to tighten expenses or sell assets to rebuild working capital.
Regionally, farmland values rose about 3 percent from a year ago and held steady from the previous quarter, supported by strong demand and some interest from outside investors.
Looking ahead, livestock operations — particularly cattle and hog producers — may see stronger earnings as beef demand keeps prices elevated.
Farm-Level Takeaway: Credit stress is building for row-crop farms despite steady land values and slight price improvements.
Tony St. James, RFD-TV Markets Specialist
The distinction between co-tenancy and joint tenancy and why it matters — is the topic of today’s Firm to Farm blog post by RFD-TV Agri-Legal Expert Roger McEowen.
December 11, 2023 02:13 PM
·
In today’s production update, Total Acre Farming’s David Hula has an enlightening conversation with Jeremy Rountree about a new, industry-disrupting product from
Brandt Fungicide.
November 02, 2023 12:23 PM
·
What are the relative advantages and disadvantages of the split-interest transaction? And what are the rules when property that was acquired in a split-interest transaction is sold? That is the topic of today’s blog post by RFD-TV Agri-Legal Expert Roger McEowen.
November 02, 2023 09:00 AM
·
A split-interest transaction involves one party acquiring a temporary interest in the asset (such as a term certain or life estate), with the other party acquiring a remainder interest. That is the topic of today’s Firm to Farm blog post by RFD-TV Agrilegal Expert Roger A. McEowen.
November 01, 2023 09:00 AM
·
As I try to catch up on my writing after being on the road for a lengthy time, I have several recurring themes in my legal work. Another potpourri of random ag law and tax issues — that is the topic of today’s Firm to Farm blog post by RFD-TV Agrilegal Expert Roger McEowen.
October 31, 2023 02:21 PM
·
Gov. Sarah Huckabee Sanders spoke with RFD-TV’s own Susan Alexander this Monday morning on the Market Day Report to explain Arkansas’s recently passed giving lawmakers greater authority to sanction foreign ag-land ownership within the state.
October 30, 2023 12:51 PM
·
