Bloomberg writers Lydia Mulvany and Michael Hirtzer reported last week that, “In times of economic woe, one of the first luxuries to go is beef. That old adage is so far proving to be true as the global coronavirus outbreak dents demand.”
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.
Federal Reserve: Observations on the Ag Economy- February 2020
Last week, the Federal Reserve Board released its February 2020 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.
RFS Turmoil Persists as Administration Requests Additional Time to Consider Ruling
Bloomberg writer Jennifer A Dlouhy reported on Friday that, “President Donald Trump’s decision to defend the U.S. government’s power to broadly exempt oil refineries from biofuel-blending requirements is triggering a backlash in Iowa and other states that are top producers of ethanol and the corn used to make it.”
Multiple Dynamics at Play as Observers Assess Trade One Commitments by China
Bloomberg writer Isis Almeida reported last week that, “Crop traders obsessing over the deadly coronavirus in China may be overlooking another key challenge to the Trump administration’s phase one trade deal: the U.S. dollar.”
Change of Direction, Administration Plans to Appeal 10th Circuit Court Decision on RFS Waivers
Last week, Bloomberg writers Jennifer A Dlouhy and Jennifer Jacobs reported that, “Trump administration officials have decided to pare the number of oil refineries granted waivers from biofuel mandates, according to two people familiar with the matter.”
Secretary Perdue Discusses MFP at House Ag Committee Hearing
Bloomberg writer Mike Dorning reported on Wednesday that, “U.S. Agriculture Secretary Sonny Perdue sees a ‘less than 10%’ chance that U.S. farmers will get another round of trade aid this year, despite a tweet from President Donald Trump last month raising the possibility.”
A Closer Look at Phase 1 Commitments, as Coronavirus “Has Scrambled” the Outlook
Writing recently at the CARD (Center for Agricultural and Rural Development) Agricultural Policy Review, from Iowa State University (“The Phase One Trade Deal: Projections and Implications”), Chad Hart and Lee Schulz stated that, “The Phase One deal alters the agricultural trade landscape—China has agreed to specific targets for agricultural purchases for this year and next year.”
A Brief Look at Spring Flooding Variables
Bloomberg writer Brian K Sullivan reported on Friday that, “For the second year in a row, much of the U.S. is primed to suffer multi-billion dollar flood losses, with farmers already steeling themselves for planting delays.”
China Purchase of U.S. Sorghum Highlights Willingness to Buy When it Makes Economic Sense
Bloomberg writers Isis Almeida and Michael Hirtzer reported on Tuesday that, “China is back in the market for U.S. sorghum this week, signaling the world’s top food importer is willing to buy U.S. agricultural products only when they are cheaper.”
The 2020 Outlook for U.S. Agriculture From USDA’s Chief Economist
Speaking on Thursday at USDA’s Agricultural Outlook Forum in Arlington, Virginia, USDA Chief Economist Robert C. Johansson provided a broad outlook for U.S. agriculture. Today’s update provides an overview of key aspects of Dr. Johansson’s presentation.
Highlights from USDA Trade and Commodity Outlook Reports
Following this month’s release of the USDA’s Long-Term Projections, on Thursday, the Department released its quarterly Outlook for U.S. Agricultural Trade. This update provided an overview of agricultural trade based on the 2020 fiscal year, which began in October, months before the U.S. and China signed the Phase-One trade agreement. Recall that Phase One farm purchase commitments are based on the calendar year.
China Considering U.S. Farm Purchases by March as Coronavirus Impacts Persist
Bloomberg News reported this week that, “China is considering making some purchases of U.S. agricultural goods by early March as a way to show it’s still committed to its phase one trade deal, according to people familiar with the matter.”
Federal Reserve Ag Credit Surveys- 2019 Fourth Quarter Farm Economy Conditions
Last week, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the fourth quarter of 2019. And earlier this year, the Federal Reserve Bank of Dallas released its Agricultural Survey for the fourth quarter of 2019. Meanwhile, a recent update posted at the Federal Reserve Bank of St. Louis, which has also historically released quarterly farm credit conditions, stated that, “The St. Louis Fed’s Agricultural Finance Monitor has been discontinued.” Today’s update highlights core findings from the Fed reports.
USDA Agricultural Projections to 2029- Focus on Corn, Soybeans
On Friday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector. Today’s update highlights aspects of the report that focused on corn and soybeans.
Coronavirus Cases Increase, But More U.S. Soybean Sales Expected
Wall Street Journal writers Wenxin Fan, Natasha Khan, and Chao Deng reported this week that, “New cases of the coronavirus rose sharply after Chinese authorities changed the criteria for diagnosing the illness, raising questions about how soon the outbreak will peak.”
2020 Farm Sector Income Forecast, February
The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net cash farm income is forecast to decrease $10.9 billion (9.0 percent) to $109.6 billion in 2020, relative to the 2019 forecast. Net farm income, a broader measure of profits, is forecast to increase $3.1 billion (3.3 percent) from 2019 to $96.7 billion in 2020.”
China Reassures U.S. on Phase One Trade Purchase Goals
Bloomberg writer Peggy Collins reported late last week that, “China’s leader Xi Jinping reassured U.S. President Donald Trump in a phone call that Beijing would meet purchase goals outlined in the recent trade deal between the countries — despite the impact of the coronavirus on the Asian nation, White House economic adviser Larry Kudlow said Friday.”
China to Cut Tariffs on Some U.S. Imports as Coronavirus Worries Linger
Wall Street Journal writer Lingling Wei reported on Thursday that, “China said it would slash tariffs on $75 billion of U.S. imports in half as part of its efforts to implement a recently signed trade agreement with Washington.”
“Export Boom” From Phase One Deal Potentially Delayed by Coronavirus
Bloomberg writer Ana Monteiro reported on Tuesday that, “The ‘export boom’ from the U.S.’s trade deal with China will be delayed because of the coronavirus outbreak, but the economic impact ‘is going to be minimal,’ White House economic adviser Larry Kudlow said.”
Sec. Perdue Highlights EU Ag Trade Issues
Bloomberg writer Jonathan Stearns reported last week that, “Agriculture Secretary Sonny Perdue became the latest American official to face European Union complaints about U.S. threats to global trade rules and punitive tariffs on EU farm goods.”