Source: POLITICO'S MORNING AGRICULTURE, 11/15/19

Farm finances continued to spiral during the summer and early fall, and bankers expect credit conditions and farm income to keep dropping in coming months, according to a report from the Kansas City Fed.

Farm income fell in the third quarter compared with a year ago in each of the seven states monitored by the Kansas City Fed. The trade war, volatile crop prices and disruptions at a major beef processing facility were cited as causes.

Trade aid payments from USDA provided some relief to farmers, the report noted, but weren't enough to remove all of their financial stress. Facing a cash pinch, producers have cut back on spending and equipment purchases.

"Extreme weather conditions and commodity prices continue to adversely effect the financial condition of our producers. These conditions are potentially setting up a difficult renewal season this fall," said one banker from Central Nebraska.