Most ag bankers surveyed in the St. Louis Federal Reserve district report declines in farm income compared to a year ago and expect farm income to go down again in the next quarter.
Both farm income and expenses fell in the third quarter. A Missouri lender says the low price of grain and the falling of cattle prices are going to make it hard on low-leveraged farmers and nearly impossible for young, highly leveraged farmers.
Quality farmland values feel nearly 2% in the third quarter but ranch and pastureland values increased more than 10%.
Seventy percent of the ag bankers expect operating lines of credit will have the largest increase in re-payment problems.
The St. Louis Fed district includes the eastern two-thirds of Missouri, southern Illinois, southern Indiana and the western third of Tennessee.
