Minneapolis’ Federal Reserve on “Mother of All Disasters”

MINNEAPOLIS, MN – The Federal Reserve Bank of Minneapolis reports District agricultural conditions remained weak during the fourth quarter of 2019. Industry contacts reported that trade conflicts combined with poor weather put continued pressure on farm households, with federal aid payments and insurance the only source of relief for many producers. One contact called 2019 “the mother of all disasters.” In contrast, a dairy industry source reported that the sector has begun to rebound, and producers were becoming more bullish; Montana wheat producers also had a strong year.