The Farm Economy Explained in 5 Charts
By Sara Schafer, The Packer
June 2, 2021
The tide has turned, and it turned rapidly. The latest round of agricultural credit condition surveys from the Federal Reserve banks shows improved strength in the agricultural economy.
This strength is exhibited in several key metrics, write Nathan Kauffman, Federal Reserve Bank of Kansas City vice president, economist and Omaha branch executive, and Ty Kreitman, Federal Reserve Bank of Kansas City assistant economist. Those metrics include farm income, farm loan repayment rates, overall farm loan demand, interest rates and farmland values.
“Strength in markets for most major agricultural commodities has led to higher prices and expanded profit opportunities across the sector in recent months,” write Kauffman and Kreitman. “Together with robust financial support from government aid programs related to the pandemic, conditions have led to a rapid improvement in farm finances.”
more, including charts