The initial effects of the coronavirus pandemic have been felt in agriculture. The Federal Reserve Bank of Kansas City’s quarterly ag survey found a larger decline in farm income and loan repayment rates than in recent quarters. The reduction in farm income also put modest pressure on liquidity. The survey, which was conducted in mid-March, cites a decline for interest rates on agricultural loans and relatively stable farm real estate values. The bankers surveyed were pessimistic about the economic outlook, but said government payments should provide significant relief to farmers again this year.
