Agricultural credit conditions in the Kansas City Federal Reserve District continued to strengthen in the first quarter of 2021. The increase started last year according to Courtney Cowley, Economist with the Kansas City Federal Reserve. She says that was impacted by federal pandemic payments and the continued strength is more tied now to higher commodity prices.
She says those states in their region that have more corn and soybeans are seeing better economic strength.
Cowley says another thing that bears watching is what happens with farmland values which remain steady across all Federal Reserve Districts despite some recent pressure.
Overall, farm borrowers in the Kansas City Federal Reserve District are in a better financial position than at the beginning of 2020.
The KC Federal Reserve District includes : Nebraska, Kansas, Oklahoma, Western Missouri, Northern New Mexico, Colorado and Wyoming.
