Kansas City Fed: Farm finance, credit conditions weaken

Farm finances and credit conditions continued to weaken in the second quarter in the 10th Federal Reserve District composed of Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri, the Kansas City Federal Reserve Bank said in a report released today.

The report was based on a survey to which 105 lenders responded.

“Farm income deteriorated most in areas more heavily concentrated in crop production,” the report said. “The share of lenders that reported farm income was lower than a year ago was highest in Nebraska, Missouri, and Kansas, where corn and soybeans comprise a comparatively larger share of aggregate state farm revenues. In Oklahoma, however, half of respondents indicated that farm income was higher than the same time last year.”

Agricultural credit conditions for the Seventh District were slightly weaker in the second quarter of 2025 than a year ago, the Federal Reserve Bank of Chicago said in its August agricultural newsletter.

That district is composed of Illinois, Indiana, Iowa, Wisconsin and Michigan.