KC Fed: 2021 ag economy remains strong
The Federal Reserve Bank of Kansas City says the outlook for the 2021 ag economy remains strong.
The KC Fed said while interest rates on ag loans increased slightly the first half of this year, they remained at near record low levels. It said the low interest rates and ‘muted’ demand for ag lending suggests interest expenses have remained low.
The KC Fed points to a slight decline in financing cost and strong commodity prices providing ongoing support to the ag economy and farmland values.