Farmers have continued to find new ways of producing agricultural commodities. For many years, the adoption of new technologies and modernized farming practices have allowed producers across the world to generate more output with their available resources. These far-reaching gains in productivity have been crucial in satisfying the needs of a growing population. Moreover, despite concerns about slower productivity growth in other sectors of the global economy and unprecedented challenges from the pandemic of the past year, productivity in agriculture has continued to increase in many regions and across numerous commodity groups.

The 2021 Agricultural Symposium, “The Roots of Agricultural Productivity Growth” explored the key drivers of the persistent growth in agricultural productivity, linkages to other industries, and environmental considerations. The topic was originally planned for 2020 but was delayed due to the pandemic. Disruptions connected to the...

By External LinkDell Gines, Senior Community Development Advisor, and External LinkChad Wilkerson, Oklahoma City Branch Executive_

One hundred years ago, on May 31 and June 1, 1921, violence erupted in the streets of north Tulsa. An estimated 150-300 deaths occurred during the destruction of the Greenwood area, known as “Black Wall Street.” In addition to the loss of life, the Tulsa Race Massacre destroyed a previously thriving local economy. And while the devastated community rebuilt many of their businesses over time, the economies of Greenwood and other primarily Black communities of north Tulsa have continued to experience economic challenges into the 21st century. This edition of the Oklahoma Economist reviews the history of Black Wall Street, its economy in recent years and current efforts that hold promise for its future.

The rate of new business formation has declined sharply in recent decades, raising concerns among economists about job and productivity growth. This observed decline in business formation is likely to be juxtaposed to changes in characteristics such as household wealth that affect households’ propensity to become entrepreneurs. Economic theories of business formation suggest that wealthier households are more likely to start a business because wealth allows them to more easily reach a profitable scale.

Justin Barnette and Andrew Glover use data from the Panel Study of Income Dynamics from 1989 to 2015 to estimate the effect of wealth on the probability of a household starting a business while taking other observable characteristics into account. They find a puzzling divergence: business formation declined over the past three decades even as household wealth increased. However, they find no evidence that the relationship between business formation and...

June 2, 2021 12:00 p.m. – 2:30 p.m. ET | 11:00 a.m. – 1:30 p.m. CT Virtual video event presented by all 12 District Banks of the Federal Reserve System

Welcome to the Federal Reserve Bank of Kansas City’s Money Museum; a billion-dollar experience! See how the Bank processes millions of dollars in currency each day, lift a real gold bar, view the historic Harry S. Truman coin collection and enjoy fun, interactive exhibits while learning about the U.S. economy. Explore a variety of digital exhibits and activities here on our website.

When people notice the Federal Reserve Bank, it often is when it has adjusted interest rates to keep prices stable and grow the economy. Less visible is the work it does daily to assist low- and moderate-income Americans. That is changing with External LinkFed Communities, a new website launched in April that tells the story of the Federal Reserve Bank’s work in communities.

The first series of stories examined San Francisco's Richmond district, Arizona's Navajo Nation and Philadelphia's Chinatown and the struggle of small businesses in those areas to remain open and make payroll during the pandemic. The External LinkStruggle for Access series talks with business owners around the country and the community-based lenders that offered them a Paycheck Protection Program loan lifeline. With headlines such as, "I never lost hope," "I can't believe I got a real person," and "Like family," these relatable stories convey the vital role in the nation’s financial system...

First quarter energy survey results revealed that Tenth District energy activity continued to increase moderately. Activity moved higher than year-ago levels for the first time since early 2019, and expectations also increased further. Firms reported that oil prices needed to be on average $53 per barrel for drilling to be profitable, and natural gas prices needed to be $2.94 per Btu.

If the pandemic has taught us anything, it is that every dollar counts for your low- and moderate-income (LMI) clients, customers and employees. Encouraging them to file their taxes could bring them much needed relief. The general guidance is people do not need to file if they earn less than $12,400 (single) or $24,800 (married), but not filing taxes could be leaving money on the table.

The 2020 federal tax filing deadline recently was extended to May 17. All states across the Tenth District also extended their filing deadlines. The extra month should not be wasted.

Please note that the Federal Reserve Bank of Kansas City is not a tax expert. Each situation is unique. Please consult a tax expert if you have questions.

Benefits to filing taxes

When LMI workers file their taxes, they typically benefit from two programs:

Pent-up demand among consumers may support a swift recovery in employment at restaurants, hotels and entertainment venues over coming months. However, persistent declines in business travel and ongoing work-from-home postures may delay the return to peak employment levels in the leisure and hospitality sector.

The Federal Reserve Bank of Kansas City launched a survey on housing, open through April 28. It asks people to rank the importance of various challenges to housing and to answer a few open-ended questions. The survey takes less than 10 minutes to complete.

We are looking for a mix of knowledgeable opinions. What we learn will help the Kansas City Fed help communities respond to housing challenges in the Tenth District. The District includes Colorado, Kansas, western Missouri, Nebraska, northern New Mexico, Oklahoma and Wyoming.

There are many challenges. From rising materials costs to low wages, the racial wealth gap to unfair lease provisions – and more – these challenges mean a safe and affordable place to live is External Linkincreasingly out of reach.

We want to hear from affordable housing funders, builders and providers, groups that work with tenants and homeowners, elected officials, business and neighborhood leaders, and more.

We plan to...

A job is the most effective anti-poverty program, as the old saying goes. However, even with a job the road out of poverty often is full of potholes and roadblocks. The job itself may create difficulties, with low wages, schedules that conflict with family needs, and limited benefits. And, for many, the public policies developed to help people be self-sufficient also create barriers.

We expect people to be happy when they get a raise. Imagine, though, that a 50 cent an hour raise is costing you hundreds of dollars in assistance for food, housing, health care or childcare. For low-wage workers, a raise may result in being disqualified from programs that help with basic needs. Too often, the raise doesn’t nearly make up for the lost benefits. And the cutoff is abrupt, like a cliff. Even $5 over the limit can be disastrous. This so-called “benefits cliff” results in the worker being worse off after a raise in pay.

Rules governing eligibility for benefit programs...

You’re invited to a free webinar on the Emergency Broadband Benefit, a $3.2 billion program designed to help cover the cost of internet subscriptions for low-income households and those affected financially by the pandemic.

Social-distancing policies to combat the spread of COVID-19 led to an initial spike in work from home. We use high-frequency cell phone geolocation data to assess how work from home has evolved since then. We show that work from home declined as restrictions eased but remains above pre-pandemic levels. In addition, we find that differences across income, race, and education in work from home that emerged with the pandemic persist a year later.

The energy industry has changed over the past few years and continues to evolve. Chad Wilkerson, Oklahoma City Branch Executive, Vice President and Economist, discussed the outlook for oil and gas, the opportunities and risks of energy transitions to renewables and how it all affects the regional economy.

Oil prices have fluctuated widely since the 1970s. Historically, consumers have tended to increase spending on non-oil goods and services when oil prices decline and cut back on such spending when oil prices rise. However, this relationship may have changed more recently. The U.S. oil sector has increased in importance in the last decade, and consequently the United States has become less reliant on oil imports. Moreover, gasoline expenditures have fallen as a share of households’ budgets. As a result, price swings may no longer have the same effect on U.S. consumption.

Nida Çak?r Melek and Robert J. Vigfusson look at two channels through which oil price changes affect consumption—the discretionary income channel and the oil producer channel—and provide evidence that the effect of oil price changes on consumption has become more muted. Their analysis suggests changes in oil prices are less likely to yield major changes in consumption, even among lower-income...

In an update earlier this month from the Federal Reserve Bank of Kansas City (“Farm Lending Remains Muted in Early 2021“), Nathan Kauffman and Ty Kreitman stated that, “Farm loan demand remained muted at commercial banks in the first quarter of 2021. A reduction in the volume of operating loans led to an overall decline in total non-real estate lending. Financing activity also declined more notably at banks with relatively large farm loan portfolios, while lending was more stable among small and mid-size lenders.

“Factors specific to the pandemic in 2020 likely contributed to the reduced lending activity as the year progressed. Substantial government aid through various programs in 2020 provided financial support, which may have mitigated some producers’ financing needs toward the end of the year. In addition, the Small Business Administration’s Paycheck Protection Program accounted for a sizable share of loans reported, and likely displaced a portion of typical...

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Although the U.S. payments industry has long anticipated contactless payments taking off, consumer adoption has been slow. In 2020, however, the COVID-19 pandemic and ensuing demand for more hygienic, touch-free payment alternatives led to a significant increase in contactless payment adoption. Has contactless technology met the moment with an attribute consumers and merchants prefer over other available payment options? This Briefing looks at near-field communication (NFC) and quick response (QR) code contactless payment technologies and their prospects for greater adoption.