Kansans’ personal income grew 1.7 percent in second quarter

The strong agricultural economy again boosted Kansas in the second quarter as personal income in the state grew 1.7 percent from the first quarter, the fastest rate in a year and a half, according to the U.S. Bureau of Economic Analysis.

That put Kansas above the national average of 1.5 percent growth for the quarter and ranked it 14th among states.

Personal income includes all wages, benefits, rental income, dividends and government payments, such as Social Security and unemployment benefits.

Farming generated $560 million of the $1.54 billion in new income for Kansas in the quarter. That accounted for more than a third of the state’s income growth.

The cow-calf and feeder cattle segments of the state’s beef cattle industry have seen extraordinary increases in the prices for their cattle in the past year – even as some of their costs for feed and hay were falling. That brought strong, even record incomes. Ranchers are right now beginning to rebuild their herds.

Although the wheat crop harvested in the second quarter was well down from previous years, prices for wheat remained relatively high through June.

Crop prices, particularly for corn, have since fallen sharply because of bountiful global harvests, indicating drops in farm income for crop farmers in future quarters.

Other sectors of the Kansas economy that contributed income growth included durable goods manufacturing, health care, entertainment and recreation, and administrative and waste management services.

Although Kansas surpassed the national average, it lagged most other Plains states. North Dakota, South Dakota, Nebraska, Iowa and Minnesota all finished in the top 10 nationally, at least partly because of their farm-heavy economies. Missouri income grew by 1.6 percent.

“Well, we beat Missouri,” said Donna Ginther, director of the Center for Economic and Business Analysis at the University of Kansas. “It was low growth compared to the other Plains states, which are better than the nation. So, not horrible but not great.”

This story was originally published September 30, 2014 at 9:28 AM with the headline "Kansans’ personal income grew 1.7 percent in second quarter."