Fed Breaks Down Agricultural Economy of Mid-American Region

KANSAS CITY, MO – Agricultural economic conditions in the Tenth District generally remained weak according to the latest Federal Reserve Beige Book. Major row crop and cattle prices were generally stable following sharp declines in the prior period. Corn and soybean production were expected to decline slightly in 2019, but not enough to materially reduce large outstanding supplies. In contrast to other areas of the U.S., a slight increase in corn production was expected throughout the region and could contribute to a slight improvement in revenues. Conversely, soybean production was expected to be moderately lower, and prices continued to be damped by on-going trade disputes. In the livestock sector, recently disrupted beef production channels continued to put downward pressure on cattle prices, but stronger pork exports drove a moderate increase in hog prices. In addition, the distribution of 2019 USDA trade relief payments could provide additional short-term support to farm cash flows.