About half the respondents in Boston saw the availability of bank credit as problematical for their own or other businesses. San Francisco notes similar views by a few respondents, though businesses and bankers in the District disagree about the extent of tighter standards and its impact on lending activity. Businesses in the Atlanta and Philadelphia Districts report problems with collecting on receivables. Agriculture and Natural Resources District reports suggest that the outlook for agricultural production generally appears good at this point, though poor weather conditions are hurting crops in some areas. Kansas City indicates that wheat production in Kansas, the largest producing state, is the highest on record and more than twice last year's output.
Prices are down sharply.
St. Louis reports that wheat yields are lower by 12 to 26 percent due to disease. Chicago said that heavy rains earlier in the year had delayed planting. While Richmond said that rain brought relief to earlier drought conditions, Atlanta reported that hot and dry weather is reducing corn, soybean, and forage production by as much as 25 percent. Dallas also said that District crops, including cotton, corn and grains, were adversely affected by the heat and that prices in June averaged 6 percent above those a year earlier. Minneapolis noted that production costs for corn and soybeans were up 6-10 percent from last year.