Crop Export Prices Surge Amid Drought-Stricken Harvest

Agricultural export prices have seen their largest 12-month increase since 2022, according to federal data. The year-over-year bump in July was a significant 5.7%. This news is welcome for farmers like Ben Brown's family in west central Missouri, who are wrapping up their corn harvest.

However, experts caution that higher export prices may not be enough to offset the challenges facing farm revenues. Droughts in parts of the Midwest have led to lower crop yields, while fertilizer and fuel costs skyrocketed after the start of the Iran war.

Even with above-average harvests, Cortney Cowley, assistant vice president at the Kansas City Fed, notes that rising diesel prices near record highs create uncertainty for farmers. 'Not knowing where prices might be next month or in a year, I think that just makes planning difficult,' she said.