Overall U.S. economic activity remains below pre-pandemic levels and ag conditions vary across the country, according to the Federal Reserve's “Beige Book” report that recaps economic conditions. The report is issued two weeks ahead of the next Fed policy meeting.
In the Atlanta Fed district, the report said that “agricultural conditions remained weak.” There were some reports of hurricane damage. USDA reported that in August, year-over-year prices paid to farmers were up for cotton, rice, soybeans, and milk, but down for corn, cattle, broilers, and eggs.
In the Chicago Fed update, they noted, “Rising prices for key agricultural commodities and additional government support lifted expectations for farm income for the year.” But the report also cautioned, “There were reports that improved income prospects had eased stress on agricultural borrowers somewhat, though concerns remained for next year, when government support was expected to drop substantially.”
The Minneapolis Fed reported “agricultural conditions improved going into the harvest season, however low prices depressed the outlook for farm incomes.”
The Kansas City Fed struck a similar tone, noting, “Alongside government payments that were expected to help offset revenue losses, prices for most of the region's major agricultural commodities increased slightly in late September. However, apart from soybean and hog prices, agricultural prices generally remained low.”