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Report: Farm Income Fell Across Rural States Despite Trade Aid, Higher Prices - ABI

The Federal Reserve Bank of Kansas City reported that farm finances deteriorated across a swath of agricultural states during the summer and early fall, despite the Trump administration’s second round of trade aid payments and slightly higher prices, Bloomberg News reported. Farm income fell in the third quarter from a year ago in each of the seven rural states covered by the Kansas City Fed, according to its survey of agricultural credit conditions. The report cited the trade war, volatile crop prices and disruptions at a major beef processing facility. Bankers contacted by the Fed said the drop in farm income was sharper than they expected going into the summer. Respondents expect income to decline further and credit conditions to worsen in the coming months despite trade aid payments. The USDA started issuing payments from its 2019 trade aid program in August. ABI

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