A quarterly report submitted to the Farm Credit Administration shows growth in the Farm Credit System was slower at the beginning of this year compared to the last three, something economists attributed to rising interest rates and seasonal lending fluctuations.
The report states that overall, the FCS is “financially sound” and institutions are able to meet borrower needs.
The report also catalogs economic issues affecting agriculture. It shows drought across the nation has declined and spring planting commenced on schedule. However, drought conditions in the Great Plains and Southwest should continue to be monitored.
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Due to strong production prospects, the report projects tight margins for crop producers in 2023 despite falling input costs. Hog producers are in the same boat — dealing with higher feed costs that impact returns compared to last fall.
However, the report shows cattle producers are faring better due to improved pasture conditions and higher prices.
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