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KC FED ECONOMIST ON HOW AG PRODUCERS ARE DOING
Nov. 12, 2019
Agri-Pulse reports:
Nathan Kauffman, lead economist and vice president of the Kansas City Fed, says persistently stable land prices, billions in trade mitigation payments, low interest rates and a long-term buildup of wealth from the good times have all helped U.S. agriculture weather the trade wars and stagnant commodity prices.
Another factor preventing conditions from getting worse in farm country: the strength of the U.S. economy in general, which has boosted employment opportunities for farmers.
"Off-farm income has played a substantial role" in mitigating on-farm difficulties, Kauffman told attendees of the American Bankers Association conference.
What's next? Kauffman said farmers and bankers would be forced to take a close look at their operations if there's any change in those factors that have been propping up the farm economy.
"If and when one of these items changes," he said, mentioning interest rates, trade payments and land values, "you will want to be thinking how it affects agriculture and how it affects your version of agriculture."
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