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Any swing in income at the producer level may create additional ag credit needs for operating expenses or pressure credit quality. Farm businesses are farms with an annual gross cash farm income of at least $350,000 or where farming is the operator’s primary operation. Pandemic-Related Stimulus Ends. Seed purchases: -0.3%
The report, from the Federal Reserve Bank of KansasCity , stated that demand could remain high since futures markets for fall crops show prices are likely to remain low because of the potential for another record harvest.
As farmers adjust their credit needs in response, banks with a higher share of agricultural loan activity (“ag banks”) may see demand for loans increase,” KansasCity Fed economist Francisco Scott said in a recent research report. Department of Agriculture projects a 4.5%
This leaves federal crop insurance support as a key risk-management tool. It’s a crucial risk-management tool” for 1.7 The volume of agricultural loans used to cover current operating expenses “remained historically high” in the fourth quarter of 2015, the Federal Reserve Bank of KansasCity reports.
Dion Kidd Johnson, President, Chief Operating Officer and Chief Risk Officer, Western Bank, Alamogordo, NM. Trent Sorbe, President, Central Payments Division, Central Bank of KansasCity, KansasCity, MO. Cal Ratcliff, Senior Vice President, Chief Compliance Officer, Bank of North Carolina, High Point, NC.
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