Posted: May 13, 2011 1:33 PM by Greg Boyce
OMAHA, Neb. (AP) - The Federal Reserve Bank of Kansas City says the farm boom is continuing this year as high crop prices and improved livestock prices combine to drive farm income higher.
The Fed said Friday that robust farm income in region helped drive cropland values up roughly 20 percent over last year. The 10th Federal Reserve District, based in Kansas City, Mo., covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.
The Federal Reserve says farmers are using their improved income to invest in land and equipment. Bankers throughout the district reported an increase in the number of farmers using cash as a down payment on land purchases.
And demand for loans remained weak in the first quarter because many farmers had enough cash to cover their production expenses.