Farm Economy Seeks Footing

Farm income in the Federal Reserve’s Tenth District decreased in the third quarter, but at a slower rate. For the 13th consecutive quarter, a majority of bankers reported that farm income was lower than a year ago, but that the pace of the decline was less significant than recent quarters (Chart 1). In fact, only 52 percent of bankers reported that farm income had fallen from a year ago, the lowest share in two years. Moreover, slightly less than half of survey respondents expected farm income to decrease in the fourth quarter. Similarly, bankers expected capital and household spending in the farm sector to continue to decline in the third quarter, but also at a slower pace.