Lower 4Q Farm Loans Reported by Kansas City Fed; Credit toTighten

The volume of loans for farm machinery and equipment purchases dropped to the lowest level in more than 2 years, according to the January 2014 Agricultural Finance Databook from the Federal Reserve Bank of Kansas City. This drop occurred despite attractive loan terms of low interest rates and longer average loan maturities, says Nathan Kauffman, Omaha branch executive, and Maria Akers, associate economist.

“Elevated farm income and a decline in input costs dampened short-term lending…

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