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The KansasCity Fed reported in May that wheat and corn prices were 60% and 30% higher, respectively, than a year earlier at the end of the first quarter. KansasCity Fed researchers in late May reported, “Farm production expenses, which had already been on the rise, increased even more sharply in the first quarter….
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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%
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