KC Fed shows strong farm economy through Q1 of 2022
The Federal Reserve Bank of Kansas City says the ag economy has remained strong through the first quarter in the face of headwinds.
Omaha Branch Executive Nate Kauffman tells Brownfield solid farm profitability remains despite strong concerns like high input costs.
“It has led to a pretty significant increase in the financial position of many of our farm borrowers and farmland values are also quite high,” Kauffman said. “So, that trend has continued to play out despite some of the more recent disruptions and concerns.”
He said while farmer expectations seem to be toward softening land values…
“That said, the increase that we saw in the region that we cover for the Kansas City Fed from the fourth quarter to the first quarter was still an additional five percent.”
But Kauffman said it’s possible rising interest rates and other broader economic concerns could start to soften farmland values in coming months.
The Kansas City Fed says most Midwestern and Western Plains nonirrigated cropland values are up 13 to 29 percent year over year.