Financial Conditions in Central Plains Remain Under Pressure

KANSAS CITY, MO – Federal Reserve Bank of Kansas City reports the Tenth District farm economy generally remained subdued despite a modest increase in agricultural commodity prices. The prices of most major crops increased moderately since the previous reporting period and crop production in the Tenth District was expected to be similar to a year ago, resulting in expectations of slightly higher revenues compared with the previous year. In the livestock sector, cattle prices also increased modestly in December and hog prices remained relatively stable, which could provide additional support. The slight increase in agricultural prices and revenues, however, was not expected to significantly improve the financial condition of producers in the District. Details were outlined in the latest Federal Reserve’s Beige Book relating conditions during the fourth quarter of 2019.