The Kansas City Fed's quarterly Survey of Agricultural Credit Conditions provides current indicators of the financial performance of Tenth District agriculture. The accumulated results also help trace longer term trends.

The survey panel consists of about one-third (360) of the Tenth Federal District's agricultural banks selected according to geographic distribution and size. Agricultural banks are those with a greater percentage of agricultural loans in their loan portfolios than the national average of about 15 percent. Survey results summarize several indicators of farm financial conditions, including farmland values, interest rates on farm loans, and credit supply and demand.

Credit Conditions Remain Solid Despite Lower Farm Income
August 14, 2014

Most agricultural bankers in the Tenth District reported solid credit conditions in the second quarter of 2014, but longer-term concerns about credit quality have begun to emerge. Although bankers reported very few past-due farm loans, loan repayment rates have weakened since last year. Credit standards, however, were little changed and bankers indicated funds were available to satisfy a sharp rise in loan demand. Despite continued strength in the livestock sector, District farm income remained well below year-ago levels due to falling crop prices and poor winter wheat yields. With summer rains easing drought conditions, the potential for record crop production this fall could keep prices low and shrink profit margins further, potentially affecting future debt repayment capacity.

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Banker Comments from the Tenth District
August 14, 2014

Read what bankers have to say about the latest agricultural credit conditions in the Tenth District.