Feedback from farmers, agricultural lenders, suppliers, and other interests in the ag sector, gathered informally by the Minneapolis Fed over the past year or so in meetings and other venues, has suggested that farm balance sheets are increasingly stressed.

2018 has been the year of not only a base-building, but has shown some real strength in the larger tractor categories and in combines. 2019 is not going to be a year of dynamic growth in the markets but it is going to be one that will have growth equal to 2018, or better.

Nathan Kauffman, vice president and Omaha Branch executive with the Federal Reserve Bank of Kansas City, says this is due to a number of reasons such as the gradual deterioration of ag credit conditions, intensifying trade disputes and low commodity prices. Kauffman dove deep into the numbers during a webinar presentation, hosted by Ag Equipment Intelligence. Kaufmann shared some key economic indicators for both the ag economy and the broader U.S. economy. The period of 2007-13 was definitely an economic low point for the aggregate economy, as consumer spending and the Federal Funds Rate (the interest rate banks lend to each other, as set by the Federal Reserve) declined during that period.

Producers’ views of making large farm investments — such as the purchase of new machinery — improved in October, though they still remain cautious about making such investments.

The Equipment Leasing & Finance Foundation released its October 2018 Monthly Confidence Index for the Equipment Finance Industry today with results indicate that overall, confidence in the equipment finance market eased in October.