News items continue to highlight the ongoing impacts of African Swine Fever (ASF). In addition to explaining some of the market effects of the disease, recent articles have also addressed under-reporting issues in China, the spread of ASF, and the importance of keeping ASF out of the United States.
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.
ERS Analysis: Southeast Asia- Growing Meat Demand, Feedstuffs Imports
Earlier this month, the USDA’s Economic Research Service (ERS) published an article (“Southeast Asia’s Growing Meat Demand and Its Implications for Feedstuffs Imports,” by Tani Lee and James Hansen) which explained that, “Southeast Asia’s rising incomes, growing population, and increasing urbanization have contributed to growth in livestock production and meat consumption, particularly poultry and pork.”
U.S., China Trade Talks- Planned Timeline and Agricultural Issues
Recent news developments point to a potential timeline for ongoing U.S., China trade negotiations. More narrowly, articles have also discussed agricultural variables that have arisen in the talks; and as the trade war persists, farmers are feeling unease about the potential outcome. Meanwhile, tariffs continue to impact the flow of soybean exports.
Pork and Soybean Markets Adjust to African Swine Fever
Recent news items have focused on the impacts that African Swine Fever (AFS) in China is having on pork and soybean markets. Today’s update looks briefly at these issues in more detail.
Federal Reserve: Observations on the Ag Economy- April 2019
On Wednesday, the Federal Reserve Board released its April 2019 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.
Farmland Values Currently Steady Economic Concerns- But Potential for Declines Exist
Recent news items from the Corn Belt point to several economic challenges facing producers as spring planting approaches. Nonetheless, relatively steady farmland values continue to be a bright spot. But a recent update from the Federal Reserve Bank of Kansas City noted that: “If farmland sales continue to increase in 2019 alongside persistently low agricultural commodity prices and higher interest rates, farmland values could decline further.”
African Swine Fever: Market Impacts Persist
Articles last week documented some of the recent impacts that African swine fever is having on hog markets, including in the U.S. Today’s update looks at key points from several of these news items.
Disaster Aid Issues
On Tuesday, the House Appropriations Subcommittee on Agriculture held a hearing regarding the Administration’s FY 2020 Agriculture Department Budget Request, and heard testimony from Secretary of Agriculture Sonny Perdue. During the discussion part of the meeting, significant attention was focused on recent flooding in the Midwest, and disaster aid legislation. Today’s update highlights that discussion, as well as other developments associated with disaster aid legislation.
FAPRI Baseline: Pressure on Farm Finances Likely to Continue
A news release yesterday from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri indicated that, “Pressure on farm finances appears likely to continue according to the latest analysis of national and global agricultural trends from the University of Missouri. While the analysis shows a projected net farm income increase in 2019, farm income remains below the average of 2014-17. Longer-term projections suggest little change in real net farm income over the next decade, resulting in continued increases in the farm sector’s debt-to-asset ratio.”
U.S.-China Trade Talks: “Great Progress,” Yet “Some Way to Go.”
Late last week, Los Angeles Times writer Don Lee reported that, “Despite hopes that a U.S.-China trade deal is at hand, President Trump said Thursday that some key issues have yet to be resolved and that they are not close enough for him to announce a summit with Chinese President Xi Jinping.”
House Appropriations Subcommittee on Agriculture Hearing on the Rural Economy
On Tuesday, the House Appropriations Subcommittee on Agriculture held a hearing titled, “The Rural Economy.” Today’s updates provides a brief recap of some of the issues that were discussed at the Subcommittee meeting.
U.S. Soybean Exports to China Increased in February; Trade Negotiations Return to Washington, D.C.
A recent news article reported that Chinese imports of U.S. soybeans increased in February, contributing to a narrowing of the trade deficit between the two countries. Nonetheless, the imports were significantly lower than last February. Meanwhile, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin continued trade negotiations with China in Beijing last week. Chinese Vice Premier Liu He travels to Washington, D.C. this week, as the talks continue.
Diminished Optimism in the Corn Belt
Flooding and gloomy price prospects for corn and soybeans are diminishing optimism in the Corn Belt as spring planting nears. Recent news articles continue to discuss the ongoing negative impacts of Midwestern floods on an already battered farm economy. Meanwhile, corn and soybean prices fell on Friday after the U.S. Department of Agriculture released data relating to prospective planting intentions and grain stocks.
African Swine Fever in China Helps Boost U.S. Hog Prices
A Wall Street Journal article Wednesday stated that, “Hog prices have surged in recent weeks on signs that Chinese buyers have turned to the U.S. to make up for the dwindling of China’s pig herds because of African swine fever.” Today’s update explores this development in greater detail.
Flooding Brings Additional Concerns for Struggling Ag Economy
A Reuters news article this week stated that, “Frustration is building across farm country at what feels like a never-ending season of bad news.” And an update from the Federal Reserve Bank of Minneapolis recently noted that, “Farmers are dealing with a host of compounding problems.” As spring planting in the Corn Belt approaches, today’s update looks at recent news items that shed light on the condition of the agricultural economy.
Farmland Values and Debt: Illinois, Iowa and Nebraska
Today’s update looks briefly at how relatively steady farmland values are impacting farm financial variables, and then discusses recent developments relating to farmland values in Illinois, Iowa and Nebraska.
U.S., China Trade Talks Persist, While Flooding Compounds Stress on the Ag Economy
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to travel to China next week to start a new round of face-to-face trade talks. As the negotiations continue, many Corn Belt producers face substantial financial losses due to flooding in the Midwest. The ongoing trade uncertainty and flooding come at time when the agricultural economy is struggling to rebound from its peak in 2013.
USDA Agricultural Projections to 2028- Focus on Corn, Soybeans
On Wednesday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector. The report noted that, “Over the next several years, the agricultural sector will continue to adjust to the ongoing China-U.S. trade dispute (which is assumed to last the duration of the projection period). This results in an expected shift away from soybean production in the U.S. due to lower prices and towards corn and wheat which are expected to generate relatively higher returns.” Today’s update highlights aspects of the report that focused on corn and soybeans.
U.S., China Trade Deal Cannot Be Taken for Granted
In testimony last week before the Senate Finance Committee, U.S. Trade Representative Robert Lighthizer displayed a more cautious tone in describing U.S., China trade negotiations. Meanwhile, recent news items provided perspective on variables impacting the trade flows of soybeans and pork to China.
Trump Budget Seeks Subsidy Cuts to Farmers
The executive branch released its Federal budget proposal this week. Like previous Trump administration budget outlines in 2017, and last year, Monday’s framework sought cuts to U.S. Department of Agriculture programs. Today’s update highlights recent news reports that discuss some of the specific items contained in the President’s Fiscal Year 2020 budget request.