The results of the latest survey of ag lenders in the Kansas City Fed's district shows a 1.4% rise in total ag loan volume, with non-real estate loans leading the way at 3% higher.
The survey shows more farmers are making capital investments on their farms, says the Fed's Omaha Branch Executive Jason Henderson.
"Farmers continue to invest heavily in farm machinery, equipment and structures, such as grain bins, machine sheds and land improvements," he says.
That's a pretty big contrast from the trend in operating loans, the volume of which continues to trend lower in the latest Fed data, Henderson adds.
"Farm operating loan demand remained sluggish as farmers paid off operating debts and used cash to prepay input costs," he says.
