Farm financial conditions are strong, but profits will by stressed this year by high input costs and the lack of government payments. Federal Reserve Bank of Kansas City economist Nathan Kauffman says most farmers have a strong equity position and should be able to buffer the tight margins. “At the end of 2019, we were a bit concerned about working capital and on how farmers were positioned for the possibility of more stress going forward, but the cash flow improved most farmers’ position.” Farmland values are record high in many areas. “Values are about 25 percent higher than they were last year and that’s another high-level indicator of the financial health for the farm sector.”
News Categories
Latest RRFN Podcasts
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.