Signed Trade Deals Lifting Agricultural Optimism, Challenges Remain

DALLAS, TX – Federal Reserve Bank of Dallas reports more than half of Texas remained abnormally dry or in drought, although drought severity eased somewhat over the reporting period. Agricultural producers expressed concern over dry conditions damping crop production next year. This is especially pertinent given relatively low crop prices, as above-average production is needed in order for farmers to achieve profitability. Cotton exports were quite strong, and lower U.S. and world supplies boosted price outlooks. The signing of the USMCA alleviated some uncertainty among agricultural producers, and progress on U.S. and China trade disputes added optimism.