Moreover, publicly traded firms that are not dependent on trade with Asia continue to report generally strong revenue growth. Agriculture Farming is the most troubled sector of the district economy. In terms of output, prospects are good in most areas. Crop conditions are generally favorable, and late spring rains in Montana alleviated earlier worries about drought. Output of wheat, corn and soybeans should be at or above five-year averages for states as a whole.
Specific regions face less favorable conditions.
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.