The Federal Reserve reports that farm finances remain a concern. The Fed鈥檚 Beige Book noted that 10 of the 12 districts reported slight or moderate growth in May, while the other two had no change in activity. Agricultural reports were mixed.
鈥淲hile drought conditions have eased in some districts, there鈥檚 still a concern about farm finances and incomes,鈥 the Beige Book says. 鈥淥verall outlooks grew more pessimistic due to reports of rising uncertainty and greater downside risks.鈥
In Atlanta鈥檚 Sixth District, agricultural conditions weakened slightly. Chicago鈥檚 Seventh District showed a slight increase in farm income during the reporting period. Some contacts in the Ninth District of Minneapolis reported some moderation in input costs was expected to benefit producer margins. Agricultural economic conditions in the Tenth District around Kansas City were softer through early May, and farm finances tightened slightly. Conditions were mixed in the Eleventh (Dallas) and Twelfth (San Francisco) Districts.
