• Sun. Dec 10th, 2023

Improved Credit Scoring for Agricultural Businesses


Nov 21, 2023

In recent quarters, the agricultural economy in the Tenth District of the Kansas City Fed has weakened due to a decrease in commodity prices. Despite this, agricultural loan performance has remained steady thanks to strong finances from previous years. According to NAFB.com, credit conditions in the region have softened slightly, with farm income and loan repayment rates lower than they were a year ago for the second consecutive quarter. This is particularly noticeable in areas heavily affected by drought, although less so in regions primarily focused on cattle production. Despite these challenges, agricultural real estate values have remained stable, indicating that interest rates and farm finances are not necessarily influencing property values in this region.

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