The Federal Reserve Board released its January 2024 Beige Book, a summary of its commentary on the current economic conditions in each Federal Reserve District.
In the sixth district around Atlanta, low cattle supply led to higher cattle prices, but consumers are substituting less expensive proteins and preventing full pass-through of prices. In the eighth district near St. Louis, ongoing drought continues to affect livestock and crop conditions. The ninth district of Minneapolis shows conditions unchanged, while most say farm incomes dropped substantially from last year. In Kansas City’s tenth district, profits narrowed during the past year as commodity prices moderated, particularly in areas hit by drought. Drought conditions continue to recede in the eleventh district of Dallas as soil moisture improves and crop production prospects look better in 2024. Conditions in San Francisco’s 12th district were solid in agriculture and resource-related sectors, with robust yields and inventories of various products.