Housing construction is strong in most urban areas. Many sources report that low interest rates are heating up buyer interest in both new and existing housing, and lenders are bracing for a spate of refinancing. The mild winter has fostered energy development, with a record 35 rigs drilling for oil or gas in North Dakota and Montana at the new year. North Dakota oil production is up 11 percent over year-earlier levels. After registering strong or moderate growth in the last two years, iron ore mining officials expect essentially stable output in 1998.
Output is similarly stable for most forest product producers.
One small Wisconsin paper plant may be closed as a result of post-merger restructuring. These comments illustrate the mixed financial conditions in agriculture. Corn, soybean and hog farmers in eastern South Dakota, southern Minnesota and western Wisconsin are enjoying good profitability and favorable weather. Cattle ranchers and feedlot operators generally report moderate profitability after 2 years of losses. Wheat and dairy producers are squeezed by prices that do not allow them to cover all costs.