A new report from the Federal Reserve Bank of Kansas City concludes something many Iowa farmers already know, the farm economy has yet to rebound. Fed economist Nathan Kauffman says farm income and credit conditions continue to deteriorate across the region.
The report says the agricultural economy continues to suffer from high yields and and lower demand, which Kauffman says is primarily due to the trade war with China.
Kauffman, who is based in Omaha, says farmers have been cutting expenses, some are even taking off-the-farm jobs to cope. He says a resolution of the trade disputes would give commodity prices a boost. Kauffman says the silver lining in the agricultural downturn is strong farmland values.
Kauffman says crop prices have pulled down the agricultural economy with the livestock sector holding stable. This is the fifth year of the economic downturn in the ag sector.