Fed: Farm Economy Steady to Weakening

While the farm economy seems to have stabilized in the Midwest and Northern Plains, it weakened in the rest of the U.S. this fall.  Producers are dealing with high costs and lower commodity prices.  According to the Federal Reserve’s Beige Book, “Agricultural activity was flat to down modestly, with some crop prices remaining unprofitably low.”

For the 12th district, which includes the entire west, the Fed said the ag sector was largely unchanged.  Exports remained subdued, particularly to Asian markets, despite a slightly weaker U.S. dollar relative to the last reporting period.  Domestic demand was stable overall, but sales reportedly fell at the retail level for some produce, such as apples.  The supply of produce, including tree fruit and nuts, remained solid, largely owing to healthy harvest yields and stored inventory from the prior harvest.

Materials and agricultural inputs were readily available. While demand for logs remained low, demand for forested land for investment and conservation purposes was robust.

Farmers in parts of the 6th District of Atlanta are having a hard time.  Farmers in South Georgia and parts of Florida noted significant damage and losses resulting from Hurricane Helene.

Chicago’s 7th District farmers had stable farm income expectations despite above-average harvest projections.

The 8th District (St. Louis) notes that while agricultural production has been stable, overall sector conditions have weakened.

In the 9th District; Minneapolis conditions remained stable at lower levels.

Kansas City’s 10th District says activity in the ag sector continued to decline.

The 11th District, around Dallas, reported a similar situation, as farmers in the Lone Star state continued reporting tough financial conditions.

For additional numbers and details about each District, visit the Federal Reserve's Website.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com