Source: POLITICO'S MORNING AGRICULTURE 9/5/19

The central bank on Wednesday offered another assessment of widespread financial problems in farm country. "Agricultural conditions remained weak as a result of unfavorable weather conditions, low commodity prices and trade-related uncertainties," the Federal Reserve wrote in its Beige Book.

The challenging farm conditions stretched across Fed districts based in Kansas City, Minneapolis and St. Louis. Among the common findings: low commodity prices, trade woes and continued fallout from heavy rain and flooding during the spring planting season.

"Sharp declines in crop and livestock prices in August weighed on farm revenues" in the 10th district, according to the Kansas City Fed. "Hog and soybean prices declined moderately alongside ongoing trade disputes, and cattle prices decreased sharply following a substantial disruption at a major beef processing facility located in the District."

"Corn and wheat prices also declined sharply following higher-than-anticipated production estimates," the bank wrote.

The St. Louis Federal Reserve bank reported that corn and soybeans in the district were in worse condition than in July and also compared with last year's crop. As for agricultural credit conditions, industry contacts in the Minneapolis-based 9th district said that farm income and capital spending were down compared with a year earlier, with further declines expected in the months ahead.