A financial expert forecasted to lawmakers Thursday the current agriculture economic conditions will continue.
During a Senate Agriculture Committee on the rural economy, Nathan Kauffman of the Federal Reserve Bank of Kansas City informed the committee that a farm crisis does not appear imminent, but there are still risks that could lead to more widespread challenges in the coming years. He noted the downturn began in 2013 during a sharp drop in commodity prices that has lingered. He says reduced profitability in agriculture has gradually intensified the level of financial stress among farm borrowers.
Kauffman expects the trends to continue in the near term as global supplies are likely to continue to weigh on agricultural commodity prices and profit margins.