Financial Times writers Emiko Terazono and Michael Pooler reported this week that, “After enduring the worst drought in nearly a century followed by a bout of cold temperatures, areas within Brazil’s farming belt are braced for further adversity as the La Niña weather phenomenon threatens to bring more dry conditions later this year.”
Keith Good
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
China’s Hog Herd Expands, But Sow Numbers Fall in July- U.S. Corn Exports at Record Levels
Earlier this week, Reuters writers Min Zhang, Shivani Singh and Dominique Patton reported that, “China’s sow herd declined for the first time in nearly two years, contracting 0.5% in July from the previous month, state media said, after a plunge in hog prices pushed many farmers to get rid of unproductive sows.”
Food Stamps Get Permanent Boost, as USDA Updates the Thrifty Food Plan
Jason DeParle reported on the front page of Monday’s New York Times that, “The Biden administration has revised the nutrition standards of the food stamp program and prompted the largest permanent increase to benefits in the program’s history, a move that will give poor people more power to fill their grocery carts but add billions of dollars to the cost of a program that feeds one in eight Americans.”
Global Wheat Supplies Contract, Impacting Exports, and Food Prices
Late last week, Bloomberg writers Megan Durisin, Kim Chipman, and Khadija Kothia reported that, “Crop losses in two of the world’s biggest wheat exporters and quality concerns in a third have pushed prices to multiyear highs, adding to worries about food price inflation for millions of the world’s most vulnerable.”
Federal Reserve Ag Credit Surveys- 2021 Second Quarter Farmland Values Climb
Last week, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2021.
Grocery Costs of Meats, Poultry, and Dairy Rise in July
Financial Times writer Colby Smith reported on Wednesday that, “The rapid pace of US consumer price increases steadied at a 13-year high in July while month-on-month gains moderated slightly, as inflationary pressures persisted because of supply-chain constraints and soaring demand.”
Chicken Prices Soar, as Tyson Projects Higher Meat Costs Ahead, and Two Rivals Combine
Wall Street Journal writer Jacob Bunge reported on Monday that, “Tyson Foods Inc. projected higher meat costs ahead, as the meat company seeks to pass along elevated prices for animal feed, increased wages and ongoing pandemic expenses to restaurants and supermarkets.”
China Seeks Policy to Stabilize Pork Production, as Chinese Soy Imports Fell in July
Late last week, Bloomberg News reported that, “China will initiate a warning guidance system for hog breeders that will encourage them to make changes to their population of sows in an attempt to maintain sustainable output of the meat.”
Recent USDA Reports Provide Perspective on the U.S. Farm Economy
Recent reports from the USDA’s National Agricultural Statistics Service (NASS) regarding farmland values, cash rental rates, production expenses, and farm prices provide perspective on the current state of the U.S. farm economy.
Kansas City Fed- Strong Outlook for Farm Sector, as Business Groups Seek Restart of U.S.-China Talks
An update yesterday from the Federal Reserve Bank of Kansas City (“kcFED Ag Bulletin”) stated that, “Agricultural commodity prices surged in the second quarter amid further increases in economic activity and robust global demand.”
World Food Prices Fall in July, as the Supply Outlook for Grain Tightens in Some Regions
Reuters News reported today that, “World food prices eased for a second month in a row in July, reflecting declines for cereals, vegetable oils and dairy products, but remained up nearly a third over the past year, the United Nations food agency said on Thursday.”
U.S. Hog Producers and California Consumers, Impacted by State’s Implementation of Animal Welfare Rule
Late last week, Associated Press writer Scott McFetridge reported that, “Thanks to a reworked menu and long hours, Jeannie Kim managed to keep her San Francisco restaurant alive during the coronavirus pandemic.”
Biosecurity and Pig Health in Focus to Combat African Swine Fever
Bloomberg News reported this week that, “China is taking hog biosecurity to new levels — 13 stories in fact.”
African Swine Fever Detected in the Dominican Republic, Raising Concerns
Reuters writers Julie Ingwersen and Tom Polansek reported last week that, “The U.S. Department of Agriculture confirmed the deadly hog virus African swine fever in samples from pigs in the Dominican Republic, the agency said on Wednesday, fueling concerns about the disease creeping closer to the United States.”
Bout of Higher Prices for Beef, Chicken and Other Products Could Continue
Bloomberg writer Michael Hirtzer reported this week that, “A little-known market, that of young cattle, is signaling that pricey beef could be here to stay awhile.”
House Ag Committee Passes Supplemental Farm Disaster Bill
DTN Ag Policy Editor Chris Clayton reported this week that, “The House Agriculture Committee on Tuesday advanced a bill to provide as much as $8.5 billion in supplemental disaster aid for farmers and ranchers who faced disaster both in 2020 and 2021.”
Fear of New Disease Outbreaks in Pigs Linger after China Floods
Reuters writer Emily Chow reported this week that, “[Chinese producer Cheng’s] farm is one of thousands in Henan, famous for agriculture, and pork production in particular. The province was struck by heavy rains last week that sparked the worst flash flooding in centuries, catching many by surprise.”
Threat of Food Inflation Persists, as Sec. Vilsack Sees Prices Moderating
At the end of last week, Bloomberg News reported that, “Extreme weather is slamming crops across the globe, bringing with it the threat of further food inflation at a time costs are already hovering near the highest in a decade and hunger is on the rise.”
Easing Protein Demand in China Could Slow Soybean Imports
Late last week, Reuters writers Hallie Gu and Gavin Maguire reported that, “China’s soybean imports are set to slow sharply in late 2021 from a record first-half tally, confounding expectations for sustained growth from the top global buyer and denting market sentiment just as U.S. farmers look to sell their new crop.”
Kansas City Fed: Outlook for Ag Economy in 2021 Remains Strong
In an update late last week from the Federal Reserve Bank of Kansas City (“Interest Rates for Operating Loans Rise Slightly From All-Time Lows”), Nathan Kauffman and Ty Kreitman pointed out that, “Interest rates on agricultural loans made by commercial banks increased slightly for some types of lending, but remained historically low through the first half of 2021.”