Wheat pasture is an important source of forage for many district ranchers. District bankers reported that their overall farm portfolios have deteriorated from a year ago, and concern is rising. However, most bankers do not expect significant repayment problems or foreclosures this fall, as many producers are expected to carry over operating debt into next year. Farmland values and cash rents in the district are weakening due to the low commodity prices. Wages and Prices Labor markets remained very tight in most of the district last month, with continued evidence of moderate wage pressures.
Employers complain that information technology workers remain scarce throughout the district.
In addition, retailers continue to experience a lack of entry-level and sales workers, and manufacturers are still facing difficulties finding skilled laborers such as welders and machinists. Builders report that nearly all kinds of construction workers are in short supply, including carpenters, framers, and electricians, yet wage pressures in this sector do not appear to be any greater than in previous surveys. Retail prices edged up last month but are expected to remain stable in the near future. Prices for most manufacturing materials continued to decline and are likely to drop further. Prices of some construction materials, such as insulation and gypsum, were up slightly, while the cost of wood edged down last month.