The Federal Reserve’s Beige Book offered a sobering snapshot of the U.S. economy — particularly the farm sector. The national summary stated that “economic activity has declined slightly since the previous report,” reflecting a broad slowdown across several industries.
Agriculture emerged as a notable area of concern. Six of the twelve regional Federal Reserve Banks included updates on agricultural conditions, with most describing weakening conditions tied to low commodity prices, persistent drought and falling demand from overseas buyers.
Takeaways from the agricultural sections:
- Chicago and St. Louis Districts reported reduced farm income due to falling crop prices and high input costs.
- Kansas City and Dallas cited severe drought conditions and lowered cattle herd numbers.
- Minneapolis noted financial strain on dairy producers, especially those facing higher feed and energy costs.
- San Francisco highlighted water shortages and rising labor costs as challenges for West Coast growers.
The report underscores growing unease in rural America, as farmers grapple with volatile markets, tightening credit conditions and policy uncertainty related to trade and tariffs.
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