In the castle I own, the production was positive at the start, but over time slowly became negative, and it now constructs negative buildings, preventing me from building anything. Link to Screenshot of Production Page
I'm having this same issue with certain settlements. It seems once prosperity hits a certain low point, nothing can be done to bring the town back from this state.
EDIT: So, it seems the most important thing for bringing a town back is to get your loyalty up a bit, then spam prosperity. Eventually, the production will come out of the negative.
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