Farm income is expected to remain under pressure this year. “It’s still slightly above what would be the longer-term average,” said Ty Kreitman, associate economist, Federal Reserve Bank of Kansas City. “This is primarily driven by lower commodity prices.” Kreitman pointed to a decline in row crop prices and the record-low cattle inventory as key takeaways for 2024. FDIC Supervisory Examiner Joe Koenigsman sees climbing interest rates as a key risk. “Going from four-and-a-half percent to nine and ten percent on ag loans is a substantial amount. That interest cost is going to have to be managed and coupled with low commodity prices at the same time.” Kreitman and Koenigsman testified at Thursday’s Commodity Futures Trading Commission Agricultural Advisory Committee meeting.
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