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Early signs of pressure in the ag economy

A senior economist at the Federal Reserve Bank of Kansas City says she’s seeing more pressure on the ag economy.

Cortney Cowley says farm income is declining.

“We say early signs because the way we measure farm income is by asking agricultural lenders if farm income in their lending area is higher or lower or unchanged from the previous year,” she says.

She tells Brownfield there has been uptick in more farm lending.

“Which is indicating to us that revenues for farmers are declining at the same time that their production expenses are staying elevated and so they’re needing more financing in order to cover those expenses,” she says.

Cowley says the signs are pointing to a longer-term decline in income levels due to low commodity prices and an increase in expenses.

Graphic provided by the Federal Reserve Bank of Kansas City.