U.S. agriculture was on the mind of central bankers when the Federal Open Market Committee (FOMC) meet December 10-11, according to the minutes of that session released Friday.
Agriculture is not typically something that gets much focus by Fed officials. But Agriculture and energy sectors were a concern point for Fed members. “A number of participants commented on challenges facing the energy and agriculture sectors,” the minutes said. “A few participants remarked that activity in the energy sector was especially weak, reflecting low petroleum prices, low profitability, and tight financing conditions for energy-producing firms.”
As for agriculture, the minutes indicated “several participants noted that the agricultural sector also faced a number of difficulties, including those associated with trade developments, weak export demand, and challenging financial positions for many farmers.”
But “a couple” of FOMC participants pointed out that “farm subsidies from the federal government were offsetting a portion of the financial strain on farmers.”
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