Beige Book: Conditions Improving in Mid-Section of Country

KANSAS CITY, KS – The Tenth Federal Reserve District based in Kansas City is reporting economic activity continued to strengthen in July and August. Overall, the economy expanded moderately, but activity in many sectors still remained below pre-pandemic levels. In the report, each Federal Reserve Bank gathers information on current economic conditions and summarizes the results into the Fed’s Beige Book. Weak conditions continue for Kansas, Missouri, Nebraska, and Colorado as the effects of the COVID-19 pandemic continued to constrain prices of key agricultural commodities, and profit opportunities remained limited. Prices for major crops and livestock increased slightly from the prior reporting period but remained below pre-pandemic levels. Drought in the western portion of the District could further reduce revenues for some producers. Dry conditions were most prevalent in Colorado, where nearly 30 percent of corn acres had poor or very poor quality through mid-August. Alongside lower revenues, farm income across all states in the District declined at a noticeably faster pace than the prior survey period.
(SOURCE: Federal Reserve Beige Book)