Federal Reserve Says Southwest Producers Facing Mixed Bag

DALLAS, TX – The Federal Reserve released its latest Beige Book, and according to the Dallas Federal Reserve Bank, soil moisture conditions remained favorable across most of the district, except for the Texas Panhandle area where there was drought.

Wheat remained a bright spot within the Eleventh District, with production up from last year, though prices were lower. While overall crop conditions were favorable, lower-than-profitable prices were leading agricultural producers to rely on government support payments to supplement farm income.

On the livestock side, meatpackers were adjusting to the new operating environment and have ramped production back up. Dairy prices rose as the industry made a concerted effort to curb production in response to lower restaurant demand.
(SOURCE: Federal Reserve Bank Beige Book)