The Oklahoma City Branch of the Federal Reserve Bank of Kansas City published an assessment finding that Oklahoma’s farm economy has remained solid and grown faster than the rest of the Tenth Federal Reserve District. The state’s concentration in cattle production has supported farm income and broader business activity as historically high cattle prices strengthen producer margins, while low crop prices and elevated expenses weaken conditions elsewhere in the district. The outlook remains uneven. Higher feed costs, cattle prices and interest rates are making it harder for some producers to maintain or restock herds, while fertilizer and diesel costs remain elevated. Expanding drought is another broad concern, with increasingly dry conditions creating particular risks for western Oklahoma.
Federal Reserve Bank of Kansas City finds Oklahoma farm economy outpacing district amid high cattle prices
The Federal Reserve Bank of Kansas City found that Oklahoma’s cattle sector has helped its farm economy grow faster than the rest of the Tenth Federal Reserve District. High input costs, elevated interest rates and worsening drought, particularly in western Oklahoma, pose risks to the outlook.