The worst Midwest drought in 56 years has “significantly lowered” expectations for farm income in the third quarter, the St. Louis Federal Reserve Bank said.
Lenders in a new quarterly agricultural finance survey project lower third-quarter farm income and capital expenditures compared with the same period a year earlier, according to a statement on the St. Louis Fed website. Land values were projected to stay steady or rise over the next three months, the statement said.
The survey was conducted from June 15 through June 29 and based on the response of 88 agricultural banks within the boundaries of the eighth federal reserve district, which includes Arkansas and portions of Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee, the statement said.
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