Agriculture District corn and soybean producers expect a bumper crop, with some producers predicting corn yields 20 percent above normal. The exception to the strong conditions is Oklahoma, where producers may plow under fall crops due to drought damage, and ranchers face poor range conditions and low prices. Elsewhere in the district, pasture conditions are generally good, but most ranchers are losing money due to low prices for feeder cattle. Likewise, operators of cattle feedlots in the district are suffering large losses and have cut back on purchases of feeder cattle. In spite of low prices for most producers, district bankers are not overly concerned about the condition of their agricultural loan portfolios.
Most portfolios are only slightly weaker than a year ago.
In particular, most farmers and ranchers entered the current period of low prices with substantial equity to ride out the storm. Wages and Prices Labor markets remained very tight last month in much of the district, with continued, but not increasing, evidence of moderate wage pressures. Employers reported difficulties in hiring additional workers at almost all levels. Retailers complained mostly of a lack of entry-level and sales workers, while manufacturers reported labor shortages across the board, with production workers and engineers particularly scarce. Builders continued to face severe labor shortages as construction activity remained strong.