Farmland values in the seven-state Tenth District Federal Reserve District generally held steady in the fourth quarter of 2014 despite further declines in farm income, according to the Federal Reserve Bank of Kansas City’s quarterly Survey of Agricultural Credit Conditions. Most bankers surveyed, however, said they expect cropland values to fall in 2015 alongside reduced expectations for farm income.
Although farmland values remained relatively stable, farm income continued to weaken across most of the Tenth District. Overall, more than half of survey respondents reported lower incomes in the fourth quarter than a year ago. While overall farm income continued to soften, livestock producers have experienced record profits.
Profit margins remained particularly strong for cow/calf operators due to low feed costs and persistently high feeder cattle prices, which have been supported by reduced U.S. cattle inventories.
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