(NAFB.com) – Lenders responding to a fourth-quarter Ag Credit Survey by the Minneapolis Federal Reserve said farm incomes decreased broadly at the end of 2024. The outlook for the first quarter of 2025 was pessimistic, with survey respondents expecting a further decrease in incomes. District-wide, 89 percent of the agricultural lenders surveyed said incomes decreased in the third quarter from a year earlier, while only four percent reported increased incomes. Capital expenditures also dropped, with 69 percent of respondents reporting decreased investment in equipment and buildings from a year ago, though farm household purchases increased on balance. With weaker cashflows, loan demand increased, while the rate of loan repayment dropped, and loan renewal and extension activity increased. The district average cash rent for non-irrigated land decreased by almost two percent from a year ago, while irrigated land rents fell almost four percent. In contrast, cash rents for ranchland increased almost five percent.