Journal Article

Agriculture rides out the storm


Abstract: Harsh weather pummeled U.S. agriculture in 1993, destroying crops and threatening a downturn in the farm economy. But while the rough weather took a large toll from many farmers, others prospered. Overall, the industry ended the year in solid financial condition.> Barkema and Drabenstott explain why agriculture is well-positioned for a better year in 1994. With a return to normal weather, crop production should rebound. Higher crop prices, pushed up by lean crop inventories, may reward farmers for bringing larger crops to market. But higher crop prices will also push up feed costs for livestock producers. Overall, prospects for farm earnings are relatively bright, although little change is expected in the industry's already strong balance sheet.

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 1994

Volume: 79

Issue: Q I

Pages: 29-43