Federal Reserve survey: Agricultural conditions unchanged since fall report

CHICAGO — Agricultural economic conditions are largely unchanged from mid-November through early January, according to surveys conducted across Federal Reserve Districts in the Corn Belt.

The most recent Beige Book, a Federal Reserve System publication about current economic conditions, is based on information collected on or before Jan. 5.

Each Federal Reserve Bank gathers information on current economic conditions in its district through reports from banks and branch directors, plus interviews and online questionnaires completed by businesses, community groups, economists, market experts and other sources.

This document summarizes comments received and is not a commentary on the views of Federal Reserve officials.

Here are what the Corn Belt districts reported regarding the agricultural conditions.

Chicago

“Seventh District net farm income for 2025 was about the same as in 2024 and was higher than previously expected, after corn and soybean prices rallied in the fourth quarter despite a large harvest,” the report said. “Most livestock operations maintained their profitability.”

Contacts were “cautiously optimistic” about the recent announcement of federal government financial support.

Still, with input costs elevated, contacts expected tight margins for crop operations in 2026, with some concerned that input costs could be boosted further by demand generated by government support.

Farm borrowers felt some relief from lower interest rates.

Specialty crop yields varied in 2025, but were mostly lower, with contacts citing labor costs and availability as major challenges.

Cattle prices increased while hog and dairy prices declined. Egg prices were down modestly despite minor outbreaks of avian influenza.

Contacts again mentioned trade concerns as uncertainty about tariff negotiations lingered and South American growers were on track for a large crop of corn and soybeans.

The Seventh District of Chicago includes the northern two-thirds of Illinois and Indiana, all of Iowa, the southern two-thirds of Wisconsin and Michigan’s Lower Peninsula.

St. Louis

Eighth District agriculture conditions have not changed since our previous report, with supply still outpacing demand.

Mississippi River water levels continue to remain low, with reductions in barge capacity. However, port contacts reported no meaningful disruptions.

Farmers have wrapped up the 2025 row crop season and are still struggling to sell crops they harvested in the fall.

Winter wheat crops are fully planted, and crop farmers have begun to prepare for the spring planting.

The St. Louis Federal Reserve District includes the southern parts of Illinois and Indiana and eastern half of Missouri, as well as parts of Tennessee, Arkansas, Kentucky and Mississippi.

Minneapolis

Agricultural conditions in the Ninth District remained weak since the last report.

The overall level of prices for most crops remained low, despite some recent improvement for certain crops, such as soybeans.

Contacts reported that strong cattle prices benefited district ranchers more than slaughter plant operators.

The Minneapolis-based 9th District includes all of Minnesota, the Dakotas and Montana, the northern one-third of Wisconsin and Michigan’s Upper Peninsula.

Kansas City

Weakness in the crop sector continued to weigh on the Tenth District farm economy while strength in the cattle sector provided support in some areas.

Crop profits remained limited as soybean prices declined in December, while corn and wheat prices remained stable.

“While persistently low cattle inventories continued to support strong profit opportunities for cow-calf operations, margins for beef processors remained compressed from underutilized capacity and a large meatpacking plant in Nebraska announced plans to close in January 2026. The plant accounts for about a quarter of its county’s employment and could have a considerable impact on the local economy,” the report said.

“Agricultural lenders continued to report that strength in cattle prices was supporting farm finances, and the recently announced ad hoc government assistance was expected to help ease some stress for crop producers.”

The Kansas City-based district includes the western part of Missouri, Kansas, Nebraska, Oklahoma, Wyoming, Colorado and the northern New Mexico.