Report calls farm economy solid

The region’s farm economy “remained solid” in the second quarter of this year, a report from Federal Reserve economist Jason Henderson of Omaha said Friday, with expected strong income this year from corn and soybeans.

The report showed prices for nonirrigated farmland in Nebraska dropped 1.3 percent from a year ago, while irrigated farmland and ranchland gained 0.4 percent.

Lower energy costs and above-average rainfall have cut irrigation costs and improved growing conditions in corn and soybean fields, Henderson said, while wheat crops in Kansas and Oklahoma had weather damage.

Livestock operations expected lower farm income because of higher grain prices and soft demand for meat, he said, causing higher loan demand and declining loan repayments. The survey of 256 bankers said they had enough money to meet the loan demand.

Overall for the region, the survey showed nonirrigated farmland prices gained 0.4 percent, irrigated farmland prices gained 2.4 percent and ranchland prices gained 1.5 percent from a year ago, the report said. The Federal Reserve Bank of Kansas City, Mo., serves Nebraska, Kansas, Oklahoma, Wyoming, Colorado and parts of Missouri and New Mexico.

Henderson said the bankers reported renewed interest in farmland by nonfarmer investors, with fewer farms up for sale — a reduction in supply and increase in demand that is contributing to a strong farm real estate market.

Contact the writer:

444-1080, steve.jordon@owh.com

« Money

Share