The newest Kansas City Fed report states ag credit conditions remain strong through the second quarter, but risk factors continue to grow. Kansas City Federal Reserve Vice President Nate Kauffman says commodity prices and input costs are just some of the added risks. “I think in general, the economy has still be pretty strong, but we are seeing some risks grow because of declining commodity prices, high input costs, and interest expenses picking up.” Kauffman says to watch your profit and cost statements. “The main thing is thinking about profitability. Costs have been rising, and the decline in prices have put more pressure on profit margins.”
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