Reports from the Federal Reserve Banks of St. Louis, Kansas City, and Chicago last week noted demand for bank loans, loan extensions, and renewals is surging among U.S. farmers. Agriculture is facing its third consecutive annual drop in farm incomes. Pro Farmer’s First Thing Today reports access to such credit tightened in the final quarter of 2015 and is expected to continue to be squeezed in 2016. The squeeze comes as the value of farmers’ land slips and their rate of repaying existing loans slows. This month, USDA projected a two percent decrease in farm income for 2016 compared to last year. Farm income is down more than 50 percent since hitting a record high in 2013.
Source: NAFB News Service