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Farm Progress America, December 5, 2023

Mike Pearson tells us how many farmers in the Plains will be reporting lower farm income in 2024 due to the drought and increased costs.

December 5, 2023

Mike Pearson takes a look at the farm economy in the Plains thanks to a report out from the Federal Reserve Bank of Kansas.

The area has had strong economic performance the past two years but the drought hit hard this year.

The area the bank serves is known for growing wheat and corn as well as cattle production.

The Federal Reserve Bank of Kansas City publishes an ag credit report 4x a year.

While some producers will be able to boast about high farm income this year, others will not.

One surprise is that land values remain strong even though more acres are on the market and income is down which means there is stability in the ag sector.

Some good news on market-- are high fed and feeder cattle prices earlier this year-- many producers were able to cash in on the higher prices.

There have been increases in farm income but drought was a key factor-- and those in the drought reported low farm income.

There has been a large decline in farm liquidity and 20% of ag lenders expect loan repayments to decline in the coming months.

Many farms will be faced with operating loans with 10 percent interest rate this year.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.

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