A recent Federal Reserve Bank of Minneapolis survey showed farm income continues to decline across the Upper Midwest, including Minnesota, the Dakotas, and parts of Wisconsin and Michigan.
A regional economist said farmers are facing a pessimistic spring outlook due to persistently low crop prices. As a result, producers are scaling back on equipment purchases and other capital investments.
Despite high interest rates, demand for ag loans remains strong, reflecting tighter cash flow and a decline in loan repayment rates. The survey also found that household spending is up, land values are higher than a year ago, but cash rents have decreased — painting a mixed picture of current farm finances in the region.
Photo Credit: Utah State University Extension
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