Ag credit conditions improved in the final quarter of 2020 with the uptick in commodity prices and government payments. The Minneapolis district had a stronger loan repayment rate in the fourth quarter than other areas of the country. “The Minneapolis Federal Reserve District has a higher share of farm income and farm revenues coming from crops, specifically, those crops that had an increase in commodity prices,” said Cortney Cowley, economist, Federal Reserve Bank of Kansas City. For the first quarter of 2021, there are stronger farmland values, lower interest rates and ag lenders are watching planting intentions. “Industry analysts expect planting and production for some of the major production crops to be high again. What will that do to markets and can demand keep up? We won’t know a lot until the second quarter.”
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