Banker survey shows COVID-19 is weighing on farm finances
Ag bankers in the Federal Reserve Bank’s Tenth District—the Kansas City district—say developments surrounding the COVID-19 pandemic have weakened the outlook for the ag economy considerably.
The bank’s latest ag credit survey shows the share of bankers reporting lower farm income and lower loan repayment rates has increased sharply. Expectations for coming months have also turned more pessimistic.
On the positive side, interest rates on ag loans have declined and farm real estate values remain relatively stable. And the bankers say government payments will likely provide some relief to certain segments of the farm sector again in 2020.
The Tenth district covers Nebraska, Kansas, western Missouri, Colorado, Oklahoma, Wyoming and northern New Mexico.