January Beige Book Contains Observations on the Ag Economy

The Federal Reserve Board released its January 2023 Beige Book Update, which summarizes current economic conditions in each district. The summary includes agricultural conditions in several districts. The Fed in Atlanta said ag conditions were little changed from the previous report but did note Florida citrus yields were down notably due to Hurricane Ian. The Chicago Fed says after a strong year in the district, agricultural income will be lower in 2023 but still see solid returns. The St. Louis branch says inflation-adjusted farm incomes are near a 50-year high and leading to optimism for this year despite rising input costs. The Minneapolis Fed says ag conditions were stable as farm incomes and working capital remained strong heading into this year. Ag conditions in the San Francisco district remained in generally weak condition. Dollar sales were up but down in volume. Rainfall continued to improve soil moisture in the Dallas Fed’s district.