On Wednesday, the Federal Reserve Board released its August 2017 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
Yesterday, the USDA's Economic Research Service (ERS) released its August 2017 Farm Income Forecast. This was the first revision of the initial net farm income forecast released by ERS in February. Today's update provides a recap of highlights from the farm income forecast. As the discussion over the next Farm Bill continues, the ERS update provides an important reference point regarding the current status of the U.S. farm economy.
On Thursday, the Federal Reserve Banks of Chicago, St. Louis and Kansas City each released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of this year. Today’s update provides a brief overview of yesterday’s reports.
Last week, USDA's National Agricultural Statistics Service (NASS) released three important updates that provide current insight into the state of the U.S. agricultural economy. The releases focused on land values, cash rents, and production expenditures. Meanwhile, USDA's Economic Research Service (ERS) recently updated its monthly agricultural trade data, and on Monday, included an article related to farm household income in its Amber Waves magazine publication. As lawmakers and the executive branch continue to gather perspective in preparation for the next Farm Bill, today's post looks briefly at some of the key findings from these recent USDA updates on the farm economy.
In an update last week at The Wall Street Journal Online ("Disaster Looms on America's Waterways"), Shane Shifflett reported that, "For American producers who rely on the nation’s waterways to export and distribute billions of tons of grains, coal and chemicals each year, aging locks systems on rivers and the frequent delays they cause cost more than just time."
Last week, Billings Gazette writer Tom Lutey reported that, "The life had been fading from Grant Zerbe's stunted chickpeas for the better part of a month, and now drought’s hot breath was burning through the final green inch of every plant stem. The Montana farmer’s worst growing season in 30 years was coming to a brutal end. There are few crops to harvest in the region, and with a lack of food and water, unwanted livestock are headed to auction."
On Friday, Nathan Kauffman and Matt Clark, of the Federal Reserve Bank of Kansas City, penned an update titled, "Farm Lending Steady, but Risks Remain," which noted that, "Agricultural lending at commercial banks was steady in the second quarter, but risks in the farm sector continued to weigh on loan growth and credit conditions." Today's post looks at the Kansas City Fed article in more detail.
Associated Press writer Blake Nicholson reported on Saturday that, "Drought in North Dakota is laying waste to fields of normally bountiful food and hay crops and searing pastures that typically would be home to multitudes of grazing cattle. Some longtime farmers and ranchers say it’s the worst conditions they’ve seen in decades — possibly their lifetimes — and simple survival has become their goal as a dry summer drags on without a raincloud in sight."
On Wednesday, the Federal Reserve Board released its June 2017 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
Earlier this week, the Federal Reserve Bank of Dallas released the results of its 2017 Second Quarter Agricultural Credit Survey, which stated that, "Demand for agricultural loans overall decreased for a seventh consecutive quarter. Loan renewals and extensions continued to increase, albeit at a slower pace. The rate of loan repayment stabilized after declining for two years. Overall, the volume of non-real- estate farm loans was lower than a year ago, as was the volume of farm real estate loans. The volume of operating loans increased; all other loan categories’ volumes fell year-over-year this quarter."