Credit Becomes Gatekeeper

Farmers Confront a Cash Rent Crunch

About 22% of farm borrowers in the Kansas City Federal Reserve district were experiencing some sort of repayment difficulties by mid-2016. The situation could worsen as crop loans come due in early 2017. (Chart courtesy of Rabobank)
About 22% of farm borrowers in the Kansas City Federal Reserve district were experiencing some sort of repayment difficulties by mid-2016. The situation could worsen as crop loans come due in early 2017. (Chart courtesy of Rabobank)
Three consecutive years of losses have drained crop producers' liquid reserves. For 2017, borrowers' credit status may determine what rents they can afford.

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