RMIFed Reserve Bank Discovers Care Amongst Farmers Over Economics Of 2015
A survey of Midwestern agricultural lenders conducted by the Federal Reserve Bank finds a lot of cautious farmers throughout Iowa and the area. Nathan Kauffman, with the Omaha branch office of the Feds 7-state 10th District, says not too numerousfew farmers and livestock producers are frettedstressed over this year, but 2015 is another matter.
ThinkingThinking of 2014, the crop insurance coverage rate for corn, for example, was set at $4.62 which is rathera fair bit higher than where money rates are right now, Kauffman states. Going into early next year, February could be another crucial month, just thinkingthinking of what the crop insurance coverage rate may be set entering into next year.
Kauffman states most rural bankers reported solid credit conditions, but likewise state farmers are being very cautious about making devices purchases or other capital expenses. The pertinent thing to keep in mind in the meantime is that it looks like credit quality is still strong, Kauffman says. Payment rates, though theyve softened a bit, are still reasonably strong, although that does present some issues going forward.
Analysts say this careful method by farmers will certainly cause an economic ripple result that could be felt by businesses throughout Iowa and across the area.
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