Farm finances weakened further during the growing season| Federal Reserve Bank of Minneapolis

Fields may look healthy across the Upper Midwest, but the balance sheets tell a different story. Lenders in the Minneapolis Fed’s Ninth District say farm incomes are sliding for the second straight year, squeezed by high costs and weak grain prices. Equipment purchases are down, loan demand is climbing, and repayment rates are slipping. While land values held steady in some places, cash rents dropped overall. Looking ahead, most bankers expect incomes to fall further in the third quarter, deepening financial strain in farm country.