OMAHA, Neb.—The presence of drought and flooding in several Midwest and Western states is combining with higher production costs to weaken farm income.
The Federal Reserve Bank of Kansas City released a new survey Monday examining the economic health of agriculture in the region during the second quarter.
Most officials at the 246 banks surveyed say they expect farm income growth to slow in the coming months.
The 10th Federal Reserve District, based in Kansas City, Mo., covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.
The value of irrigated cropland in the district grew 3.9 percent over the first quarter while the value of nonirrigated land was up 2.3 percent. Overall, this year’s farmland values are about 20 percent higher than at the same time last year.
