KANSAS CITY, Mo. (RFD-TV) — Farm credit conditions tightened again in the third quarter as weaker crop margins eroded working capital across much of the Midwest and Plains, according to the Kansas City Federal Reserve’s Ag Credit Survey. The KC Fed reported continued declines in farm income and loan repayment rates, alongside rising renewal activity that signals growing financial strain for many operations.
Non-real estate loan demand increased steadily, driven by higher operating needs and tighter liquidity among crop farms. The KC, Chicago, and Minneapolis districts reported the strongest upticks in financing needs, while fund availability slipped modestly in several regions as lenders became more cautious.
Capital spending fell at the fastest rate since early 2020, underscoring tighter budgets, though household spending stabilized after years of growth. These shifts reflect limited profit opportunities for crop producers, despite some recent price improvements.
Regionally, farmland real estate values provided a key stabilizing force. Non-irrigated cropland values held firm or increased in more than half of the surveyed states, with Oklahoma and Texas showing the strongest gains.
Looking ahead, the KC Fed notes that financial stress remains contained overall, supported by firm land values and earlier relief funding — but highly leveraged crop farms face the greatest pressure as credit conditions continue to tighten.
Farm-Level Takeaway: Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
Tony St. James, RFD-TV Markets Specialist
Falling feed costs and strong demand for butter could be good news for dairy farmers looking to get their finances back on track.
November 03, 2023 12:38 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
·
In today’s blog post, RFD-TV Agri-Legal Expert Roger A. McEowen shares some random thoughts on land value and transitioning your farming or ranching business to a new generation.
October 13, 2023 11:31 AM
·
Acquiring farm or ranch land, as well as the key concepts and issues are the topics of today’s blog post by RFD-TV Agri-legal Expert Roger McEowen.
October 12, 2023 03:01 PM
·
The classification of persons conducting farming operations for a farm landowner—that is the topic of today’s blog post by RFD-TV farm-legal expert Roger A. McEowen.
October 02, 2023 02:27 PM
·
Seven out of the eight major fertilizers saw recent price decreases. However, one key type of fertilizer bucked the overall trend with an 11-percent rise.
September 21, 2023 11:02 AM
·
