The Federal Reserve Bank of Kansas City says weakness in U.S. agriculture could spill over into other parts of rural economies. Nathan Kauffman, with the Federal Reserve Bank, says, with the decline in agricultural income and farm jobs, there is a potential for declines in Main Street activity. Kauffman says a strong U.S. dollar and softening demand from China will continue to pressure the agricultural sector this year. He spoke at last week’s USDA Agriculture Outlook Forum. He stated that “There seems to be less uncertainty about where things are headed,” as most forecasters expect the supply glut of crops to continue to weigh on prices. Kauffman added the struggles in the farm economy do not rival the collapse of the 1980s, saying he wants to be careful not to suggest that the sky is falling.
Source: NAFB News Service