After a few years of riding higher, the agriculture industry is seeing signs of slowing down. We aren’t immune to this trend, as the whole economy is experiencing negative pressures currently. Farmers know that the costs of inputs are higher, prices of grains are getting lower, and it is tightening our bottom line.
The Minneapolis Federal Reserve just released its Agricultural Credit Conditions Survey based on the first quarter of 2023. Joe Mahon is the regional outreach director of the Minneapolis Fed. He says that lenders in the Ninth District feel that Farmers are still in a solid condition.
Mahon adds that a lack of increase in capital spending is affected by two factors.
However, as they look to the second quarter, they are finding less to be optimistic about. They are factoring in the prices at the marketplace are lowering day by day.