Farm income and loan repayment have declined across a seven-state region that includes most of Missouri, according to a second-quarter report published Thursday by the Federal Reserve Bank of St. Louis.
The report asked agricultural banks whether they saw a decline in farm income compared to the same period a year ago. For the 18th consecutive quarter, respondents on net reported a decline.
Demand for loans increased during the second quarter, and loan repayment slowed.
One Missouri respondent noted that lack of rain is pushing up the price of hay, and will reduce income from grain sales.
Compared to a year ago, the value of quality farm land fell during the second quarter of 2018. In contrast, values for ranchland or pastureland rose during the same period.
The report covers the Eighth Federal Reserve District, which is headquartered in St. Louis, and includes all of Arkansas and parts of Missouri, Illinois, Indiana, Kentucky, Tennessee and Mississippi.