The number of agricultural loans apparently is rising with the prices of crops and farmland.

Kearney banker Vaughn Duncan said he's seen steady increases in loan activity.

He said production costs are up, as are crop prices. Farmers need the money now so they can make that income later, so many of the loans are to cover operating costs.

Duncan also said his and other banks are making lot of loans for supplies and equipment. Crop prices were so low for so long that many farmers waited to upgrade equipment, Now, he says, with the higher crop prices they can get new tractors or planters.

Costs are up, though. The USDA said livestock, feed, rent and other expenses averaged just over $309,000 per farm in 2007, up 15 percent from 2006.