As farmers across the U.S. are on track to harvest some of their biggest corn and soybean crops ever, the Federal Reserve says the ongoing decline in commodity prices is putting farm income in questionable territory.
“Regional Fed banks in Chicago and Minneapolis say the farm income outlook had weakened in recent months,” according to the Federal Reserve’s Beige Book. “Agricultural conditions in the Kansas City Fed’s District says farmers faced headwinds from weak crop prices. Elevated production costs, interest expenses and farm household expenditures remained primary concerns for many agricultural lenders.”
The Sixth District of Atlanta said agricultural conditions have improved slightly in recent weeks as cattle and poultry sales remained strong. Farmers in Chicago’s Seventh District have been slow to sell crops from storage and were holding back selling ahead of the fall harvest because of low prices.
The Eighth District of St. Louis reported soil conditions have improved relative to the drought conditions during the last growing season. In addition, crop conditions in the 11th District around Dallas broadly improved in most areas.
Source: NAFB News Service
