Today’s update highlights recent information on U.S. agricultural exports from the U.S. Department of Agriculture, and also explores agricultural related trade issues that have been identified in recent news articles.
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.
Farmland Values From 2017 Iowa Land Survey; NASS Cash Rent County Estimates
Donnelle Eller reported on the front page of Friday’s Des Moines Register that, “After three years of decline, Iowa farmland values bumped nearly 3 percent higher this year, but experts say it’s unlikely a signal the ag downturn has turned a corner. Iowa farmland values are climbing because of limited supply of farms for sale, outweighing concerns about low corn and soybean prices that drive income from the land, experts say.”
Senate Ag Committee Farm Bill Hearing: SNAP Quality Control Issues
On Thursday, the Senate Agriculture Committee held a Farm Bill hearing that focused on nutrition programs and the 2018 Farm Bill. This was the Committee’s eighth Farm Bill hearing, and followed field hearings in both Kansas and Michigan, as well as Committee meetings on the farm economy, agricultural research, conservation issues and commodity, credit, and crop insurance programs. The hearing focused on fraud in the SNAP program (food stamps), and specifically highlighted program payment error rates and misreporting of program costs by some states.
Crop Farmers: Faint Hope For a Rebound in Ag Economy
Cole Epley and Barbara Soderlin reported on the front page of the Money section in Friday’s Omaha World-Herald that, “Farmers heading into harvest season have reason to believe the nation’s struggling agriculture economy won’t get much worse. Still, there is only faint hope that it will get much better anytime soon.”
FAPRI Baseline Update: A More Nuanced Outlook for Agricultural Markets
Last month, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. agricultural markets. Recall that in its March baseline report, FAPRI indicated that, “The latest analysis of national and global agricultural trends from the University of Missouri indicates continued financial pressure on United States farm sector.” Today’s post summarizes highlights from the August FAPRI baseline report, which noted that, “the outlook now is more nuanced.”
Federal Reserve: Observations on the Ag Economy- August ’17
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.
NAFTA Renegotiation: Round Two Complete; While Concerns Surface on Korean Trade Pact
The U.S., Mexico and Canada concluded a second round of NAFTA discussions yesterday as President Trump has continued to criticize the trade measure. Meanwhile, concerns surfaced over the weekend about the possibility of a U.S. withdrawal from the South Korean trade pact that went into force in 2012. However, subsequent remarks from U.S. Trade Representative Robert Lighthizer yesterday appeared to mitigate the likelihood of that happening. President Tump’s recent trade activity was strongly criticized in an opinion column today by Robert B. Zoellick, a former World Bank president, U.S. trade representative and deputy secretary of state. Today’s update provides an overview of recent news articles highlighting these trade issues, which have important implications for U.S. agricultural producers.
2017 U.S. Farm Income Forecast Updated
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.
Lawmakers Offer Perspective on the Farm Bill
Today’s update continues the focus on news items highlighting the attention Representatives and Senators placed on Farm Bill issues during the August recess. As lawmakers get set to return to Washington, D.C. next week, today’s update provides an overview of some of this summer’s Farm Bill constituent engagements, and also looks briefly at news articles describing the current state of the agricultural economy.
Farm Safety-Net Payments Through the First Three Years of the 2014 Farm Bill, CRS Report
Earlier this month, the Congressional Research Service (CRS) released a report titled, “Farm Safety-Net Payments Under the 2014 Farm Bill: Comparison by Program Crop,” which stated in part that, “Through the first three years of the 2014 farm bill (2014 through 2016), USDA has spent over $38 billion on commodity-specific farm program outlays. Annually, commodity-specific outlays are estimated at $12.7 billion per year, including $7.5 billion for CCC [Commodity Credit Corporation] programs and $5.2 billion in FCIC [Federal Crop Insurance Corporation] crop insurance premium subsidies.” Today’s update focuses on several highlights of the CRS report.
NAFTA Renegotiation: Round One Complete, President Trump Reiterates Threat to Pull Out of the Agreement
Sara Schaefer-Munoz and Bob Davis reported in Monday’s Wall Street Journal that, “[In the opening-round of talks to remake the North American Free Trade Agreement] which concluded Sunday, the [U.S., Mexico, and Canada] said in a trilateral statement they had made ‘detailed conceptual presentations’ of their positions and were working toward ‘an ambitious outcome’ through a fast-paced schedule of negotiations. Early tensions over areas such as the so-called rules of origin—a major issue for the automotive industry—signaled the tough bargaining that lies ahead as the three nations try to wrap up a deal by early next year.”
Rural Broadband Issues- Farms Connecting to the Internet
Today’s update discusses rural broadband issues and federal regulatory action that was taken this month to help close the digital divide in Rural America. The update also touches on a couple of legislative proposals regarding broadband expansion, and highlights a recent USDA survey that documents how many farmers are using the Internet and how they are currently connecting.
On August Recess, Lawmakers Listen and Comment on Farm Bill
Today’s update looks at recent news articles highlighting agricultural economic variables, as well as Farm Bill observations from lawmakers, and some of the ag related activities Members have held with constituents during the August recess. Today’s overview also includes observations from Bloomberg writer Alan Bjerga on the link between these current economic conditions and policy perspectives lawmakers may take back with them to Washington, D.C. when the Farm Bill debate gets more focused this fall.
NAFTA 2.0: Renegotiations Begin
William Mauldin and Paul Vieira reported earlier this week at The Wall Street Journal Online that, “The Trump administration launched the renegotiation of the North American Free Trade Agreement Wednesday by laying out a starkly different vision from that of its two continental trading partners of how the pact has worked and how radically it should be rewritten. The wide gap between the administration’s opening rhetoric and the positions of Mexico and Canada suggests a difficult road ahead in redoing the 23-year-old accord, even discounting for the posturing at the opening of any negotiation.”
NAFTA Negotiations Set to Begin: Background– Pork, Corn Issues Noted
Today’s update looks at recent news items that focus on the first round of NAFTA trade negotiations that are scheduled to start this week. Along with some general background, the articles also highlight perspective from both Canada and Mexico, and explore agricultural concerns associated with the NAFTA discussions, particularly with respect to pork and corn.
Lawmakers Hear a Variety of Farm Bill Concerns- Localized Drought an Issue
Lawmakers are hearing a variety of Farm Bill concerns from constituents and agricultural interest groups as work on formulating policies for the reauthorization of the omnibus measure continues. Today’s update looks at recent news articles that highlight some of these issues, including the negative ramifications of localized drought in North Dakota and parts of Iowa.
Federal Reserve Ag Credit Surveys- Second Quarter Farm Economy Conditions in the Midwest
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.
Recent USDA Updates Provide Snapshot of Farm Economy Variables
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.
Farm Bill Issues- House Ag Committee “Listening Sessions” Continue, Sec. Perdue Visits Midwest
Following Monday’s House Agriculture Committee Farm Bill Listening Session in Texas, lawmakers headed north to Minnesota on Thursday, the home state of Committee ranking member Collin Peterson, to host another forum to gather unfiltered input on farm policy issues from agricultural stakeholders. And members of Congress went west, to California on Saturday, to hold their fourth Farm Bill listening session. Meanwhile, in Wisconsin on Thursday, Secretary of Agriculture Sonny Perdue kicked off the Department’s “Back to Our Roots” RV tour that is focusing “on getting input on the 2018 farm bill as well as working to increase rural prosperity.” Also, the second Iowa Ag Summit was also held on Saturday in Des Moines where audience participants heard Sec. Perdue, Iowa GOP Senator Chuck Grassley, and other agricultural leaders discuss policy related issues. Today’s update recaps some of the highlights from these recent farm policy linked activities, as well as some general background regarding the Farm Bill and House Ag Committee Chairman Mike Conaway (R., Tex.).
Infrastructure: Aging River Locks in the Corn Belt Prove Costly
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.”