The Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan and Wisconsin continue to play a key role in the agricultural economy of the United States, as well as the world. Although agriculture's share of the total Seventh District economy is decreasing, it remains a very important part of the larger economy.
Notes: For the indexes plotted in the second chart, bankers responded to each item by indicating whether conditions during the current quarter were higher or lower than (or the same as) in the year-earlier period. The index numbers are computed by subtracting the percentage of bankers who responded "lower" from the percentage who responded "higher" and adding 100. These indexes exclude real estate loans.
In the third chart, averages of interest rates for the District are plotted. The green line indicates rates for farm operating loans, and the orange line indicates rates for farm real estate loans. Since farming is a very capital-intensive industry, many farmers make extensive use of borrowed funds. Higher interest rates mean larger expenses and less profit.
Source for all charts: Chicago Fed staff calculations based on data from the Federal Reserve Bank of Chicago, Land Values and Credit Conditions Survey.
Data on credit conditions at Seventh District agricultural banks and on farmland values in the Seventh District are available for download as spreadsheets. Recent data for credit conditions are also available on the third page of the AgLetter.
Agriculture Conference Series
Visit the Agriculture Conference Series to learn about past issues discussed and our speakers.