In recent quarters, the agricultural economy has weakened and declining commodity prices have added to this weakness. Increased production costs have also contributed to falling prices for many key commodities over the past year, which is likely to reduce farm incomes in 2023. Despite these challenges, the performance of farm loans has remained stable, supported by continued strong finances over the past few years. According to NAFB.com, credit conditions at the Kansas City Fed’s Tenth District have eased slightly after two years of significant improvement due to the state of the agricultural economy. Income and loan repayment rates are lower than a year ago for the second quarter in a row, particularly noticeable in areas heavily affected by drought but less so in areas primarily concentrated in livestock production. However, despite easing farm finances and significantly higher interest rates, agricultural real estate values in the region have remained stable.