Farm credit conditions continue to deteriorate across the Midwest, according to the Kansas City Federal Reserve Bank. The bank’s Agricultural Credit Survey published Thursday reveals the trend of steady deterioration in agricultural credit conditions continued in the first quarter of 2019. Reductions in farm income were sharpest in Nebraska and Missouri. While some areas were heavily affected by spring flooding and blizzards, it may be months before the full impact to farm income is determined, given immediate damage and implications for the 2019 operating cycle are still being evaluated.


The report says that as farm income remained low, demand for farm loans remained high and the ability of farm borrowers to repay loans weakened at a slightly faster pace than in previous quarters. In addition, carry-over debt increased again for many borrowers and bankers continued to restructure debt and deny a modest amount of new loan requests due to cash flow shortages.



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