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Fed banks report differing outcomes for planting season

Friday, April 16, 2010

Planting conditions are varied across the country.
Planting conditions are varied across the country.

A recent report from the Federal Reserve System showed mixed results for agricultural activity in the country.

According to the Fed's Beige Book, Atlanta region saw cold temperatures affect crops negatively. Other Fed districts, including Dallas, Richmond and Kansas City, reported that wet weather stalled efforts to get farm equipment out for planting, although moist soil could prove beneficial for crops later on.

Meanwhile, the Federal Reserve Bank of Chicago said it predicts a normal planting season for its region, while the Minneapolis and San Francisco banks said weather has been favorable.

Favorable growing conditions could change in the coming months, especially for areas like the Northeast and Midwest. The National Weather Service has indicated that these parts of the country could experience heavy precipitation and flooding during the spring, which could hamper planting efforts.

If that happens, it would create a situation similar to what farmers faced last year, as getting farm equipment to fields was delayed by weather. As a result, the harvest was also delayed, leading producers to have to work later into the winter to finish up the 2009 season.
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