FCA Board Receives Quarterly Report on Ag Economic Conditions

The Farm Credit Administration received a quarterly report on economic issues affecting agriculture and an update on the financial condition and performance of the Farm Credit System.

Rising interest rates have negatively impacted many of the finance-heavy sectors, including commercial real estate, banking, and farming. While many agricultural inputs are considerably less costly than last year, profit margins for many farmers are tighter this year. Crop producers continue to see lower commodity prices, especially for corn and wheat, compared to a year ago. Further price risk stems from lower water levels in key waterways used to transport cash grains.

Profit margins for some livestock and specialty crop producers are tighter due to weak commodity prices. The System reported solid financial results through the first nine months of 2023. System growth has slowed in 2023 against a backdrop of higher interest rates and tighter margins in a number of agricultural sectors.