Omaha, Neb. ? The Federal Reserve Bank of Kansas City says farm income should improve in some Midwest and Western states during the second quarter because livestock businesses will benefit from lower feed costs.

But the Fed’s survey of banks in the 10th District says total farm income fell slightly in the first quarter as crop prices declined, so that will reduce income that farmers can expect this year.

The 10th Federal Reserve District, based in Kansas City, Mo., covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.

The Fed says farmland values increased about 2 percent across the district during the first three months of 2010 as demand remained strong.