Banker Comments from the Tenth District
Late planted crops made it especially hard to project farm income before harvest is complete. – Southwestern Missouri
MFP payments and plentiful rainfall have generally improved our farm loan conditions. – Central Kansas
Commodity prices are still low, but increased production is offsetting some of the effect of low prices. – Southeastern Colorado
The MFP has helped alleviate some stress in our area and nearly all in our area expect to meet their obligations. – Central Missouri
Some producers have indicated the need to upgrade equipment but are trying to wait for better prices and a better outlook. – Central Missouri
Extreme weather conditions and commodity prices continue to adversely effect the financial condition of our producers. These conditions are potentially setting up a difficult renewal season this fall. – Central Nebraska
In addition to weather issues, our area suffered a collapse in a large irrigation tunnel that resulted in over 100,000 acres not receiving water during the heart of the summer. It will likely have a significant impact of borrower finances and the extent of production losses is still unclear. – Western Nebraska
Since farm commodity prices are so down and we don't know when the trade war with China will end, there is uncertainty in the farm sector. – Southwestern Oklahoma
Cattle prices are below breakeven for some producers and that is an issue. – Southeastern Oklahoma
Cash flow will decline this year but our operators are well collateralized. – Southern Wyoming
Long term depressed commodity prices continue to erode liquidity and equity in operations. We continue to see reluctance from most borrowers to replace equipment or expand their operations and expect further deterioration in customer financial positions as we begin renewal season. – Eastern Wyoming
Government MFP payments helped producer cash flows this year. – Southwestern Kansas
The MFP payment was a saving grace for a lot of farm operations and was used to pay down line of credit balances. – Eastern Nebraska
A total of 182 banks responded to the Third Quarter Survey of Agricultural Credit Conditions in the Tenth Federal Reserve District—an area that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri. Please refer questions to Nathan Kauffman, economist or Ty Kreitman, assistant economist, at 1-800-333-1040.
The views expressed in this article are those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System.