The Federal Reserve Bank of Kansas City says weakness in U.S. agriculture could spill over into other parts of rural economies.
Nathan Kauffman says with the agriculture decline in income and farm jobs, there is a potential for declines in Main Street activity, according to Reuters.
Kauffman says a strong U.S. dollar and softening demand from China will continue to pressure the agriculture sector this year.
He spoke at last week’s USDA Agriculture Outlook Forum.
He told attendees “there seems to be less uncertainty about where things are headed,” as most forecasters expect the supply glut of crops to continue to weigh on prices.
Kauffman added the struggles in the farm economy do not rival the collapse of the 1980s, saying he wants to be careful not to suggest that the sky is falling.
