Areas of Minnesota and North Dakota which had severe plant disease problems over several years expect similar damage this year to wheat and barley. Dry conditions in grazing areas this spring reduced hay yields and will force some ranchers to buy hay sooner or later. Prices rather than crop conditions are the main concern. Wheat growers are under the greatest pressure in terms of output price relative to costs, but corn and soybean prices have also fallen to a point where many producers will find it difficult to pay all costs. Farm bankers report that increasing proportions of customers have reached debt limits.
Many bankers require higher levels of collateral than a year ago.
Farm implement dealers report extremely slow sales. Returns to hog raising improved somewhat in late spring, but remain unfavorable. Many cattle feeders lost money on animals fed over the past winter and spring, but may face somewhat more profitable feeder cattle and feed prices for animals put on feed this year. One area of concern is adequacy of transportation and storage facilities for the new crop. Much on-farm and commercial storage remains tied up with the 1997 crop.