Dallas Federal Reserve Bank Ag Survey shows record yields, prices

The Dallas Federal Reserve Bank 2021 fourth-quarter survey reports improved conditions across most regions of the Eleventh District. Survey respondents noted record yields and prices for corn and cotton crops. However, they also noted extremely dry conditions and increased input costs as major concerns for 2022. Strong demand for agricultural real estate continues, with rural real estate prices increasing almost weekly in some regions. Demand for agricultural loans increased for the first time since third quarter 2015. Loan renewals or extensions fell for the fourth quarter in a row, while the loan repayment rate continued to increase. Loan volume decreased for feeder cattle loans, dairy loans and crop storage loans compared with a year ago. Meanwhile, irrigated, dryland and ranchland values rose during the quarter and increased year over year in Texas and southern New Mexico. The Dallas Federal Reserve district includes Southern Louisiana, Southern New Mexico and all of Texas.