Improved Agricultural Economy Prompts Loosening of Credit Restrictions

In recent quarters, the agricultural economy in the Tenth District of the Kansas City Fed has weakened alongside a decrease in commodity prices. This has led to a reduction in farm income, particularly in areas heavily affected by drought. Despite this, agricultural loan performance has remained steady, with continued support from strong finances over the past two years. Interestingly, despite the softening of farm finances and much higher interest rates, agricultural real estate values in the region have remained stable.

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