Concerns About Farm Finances

The Federal Reserve reports that farm finances remain a concern. The Fed’s Beige Book noted that 10 of the 12 districts reported slight or moderate growth in May, while the other two had no change in activity. Agricultural reports were mixed. “While drought conditions have eased in some districts, there’s still a concern about farm finances and incomes,” the Beige Book says. “Overall outlooks grew more pessimistic due to reports of rising uncertainty and greater downside risks.” In Atlanta’s Sixth District, agricultural conditions weakened slightly. Chicago’s Seventh District showed a slight increase in farm income during the reporting period. Some contacts in the Ninth District of Minneapolis reported some moderation in input costs was expected to benefit producer margins. Agricultural economic conditions in the Tenth District around Kansas City were softer through early May, and farm finances tightened slightly. Conditions were mixed in the Eleventh (Dallas) and Twelfth (San Francisco) Districts.

Source: NAFB