Yesterday, the Senate Finance Committee held a hearing to consider the nomination of Robert Lighthizer to be United States Trade Representative. With respect to agricultural trade issues, China, the North American Free Trade Agreement (NAFTA), and Japan were all topics that were touched on.
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.
Trade: On The Minds of Farmers, and Senators
Recall that last month, at a press conference before the Senate Ag Committee’s first Farm Bill hearing in Kansas, Committee Chairman Pat Roberts pointed out that, “And trade — trade is on the minds of every farmer, every rancher. And I can assure you that trade is on the minds of my Senate staff and myself.”
House Ag Subcommittee Hearing: Specialty Crops
A news release from the House Agriculture Committee on Thursday indicated that, “[T]he Subcommittee on Biotechnology, Horticulture, and Research, held a hearing to evaluate the effectiveness of the 2014 Farm Bill programs aimed at benefiting specialty crop production.” The meeting was part of the Committee’s ongoing series of hearings that are setting the stage for the next farm bill. Although not under the Committees’s jurisdiction, immigration and labor issues were also highlighted.
House Ag Subcommittee Hearing: Rural, Energy Issues
As part of its ongoing preparation for the 2018 Farm Bill, the House Agriculture Committee held a Subcommittee hearing yesterday delving into rural development issues and energy programs.
Federal Reserve: Observations on the Ag Economy- February ’17
Last week, the Federal Reserve Board released its February ’17 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.
House Ag Subcommittee Examines Conservation Issues
Last week, the House Agriculture Committee continued laying groundwork for the next Farm Bill by holding a Subcommittee hearing covering conservation issues.
Waters of the U.S. Rule: Trump Executive Order
Evan Halper reported in Wednesday’s Los Angeles Times that, “President Trump stepped up his attack on federal environmental protections Tuesday, issuing an order directing his administration to begin the long process of rolling back sweeping clean water rules that were enacted by his predecessor.”
USDA Report Examines Farm Household Income Volatility
Last week, USDA’s Economic Research Service (ERS) released a report titled, “Farm Household Income Volatility: An Analysis Using Panel Data From a National Survey.” The report noted that, “There has long been information tracking farm income at the national level, yet little information exists about income variability of individual farm households.” Due to the volatility associated with agricultural production, federal lawmakers have worked to craft policies that minimize farm household income fluctuations. House and Senate Ag Committees in the 115th Congress have already begun the process of continuing this goal as they conduct hearings relating to the next Farm Bill. Today’s update looks at some of the highlights of the ERS report.
Farm Bill: Senate Ag Committee Hearing, Chairman Conaway Speech at USDA Forum
Following on the heels of the House Agriculture Committee, which held its first Farm Bill hearing earlier this month, the Senate Ag Committee of the 115th Congress convened its first Farm Bill discussion on Thursday in Manhattan, Kansas. Committee Chairman Pat Roberts (R., Kan.) explained that, “We start the journey to a successful and timely 2018 Farm Bill in the Heartland, because that is where it matters most..” Also on Thursday, House Ag Committee Chairman Mike Conaway (R., Tex.) addressed attendees at USDA’s Agricultural Outlook Forum in Arlington, Virginia.
Today’s update provides a brief overview of testimony provided during last week’s Senate Ag Committee discussion, with a specific focus on trade issues and crop insurance; as well highlights from Chairman Conaway’s speech.
The Outlook for U.S. Agriculture From USDA’s Chief Economist
Speaking yesterday 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.
USDA Releases Agricultural Projections, Focus on Corn and Soybeans
On Thursday, the U.S. Department of Agriculture released its 10-year projections for the food and agriculture sector. The report noted that, “Over the next several years, the agricultural sector continues to adjust to lower prices for most farm commodities. Although reduced energy prices have decreased energy-related agricultural production costs, lower crop prices result in declines in planted acreage. Lower feed costs provide economic incentives for expansion in the livestock sector.” Today’s update highlights aspects of the report that focused on corn and soybeans.
U.S. Corn Exports to Mexico: Will Policy Rhetoric Turn into Concrete Action?
On Monday, February 13th, Patrick Gillespie reported at CNN Money Online that, “Mexico is one of the top buyers of American corn in the world today. And Mexican senator Armando Rios Piter, who leads a congressional committee on foreign relations, says he will introduce a bill this week where Mexico will buy corn from Brazil and Argentina instead of the United States.”
115th Congress Starts Farm Bill Discussions by Focusing on the Farm Economy
The House Agriculture Committee of the 115th Congress began laying the ground work for the next Farm Bill yesterday by holding a hearing to “review the economic challenges facing rural America.” Although the majority of federal agricultural appropriations are related to nutrition issues, yesterday’s hearing signaled that the rural and farm economy are priorities for the Committee and current economic conditions in the heartland “must be front and center” as the Farm Bill process begins.
Trump Administration Immigration Policies Could Hamper Some Ag Sectors
In addition to trade issues, potential uncertainty associated with Trump administration immigration policies has some sectors of the agricultural economy anxious.
Fed Reports Show Declining Farmland Values, Tighter Credit Conditions
On Thursday, the Federal Reserve Banks of Chicago, St. Louis and Kansas City each released updates regarding farmland values and agricultural credit conditions from the fourth quarter of last year. The Fed reports, which contained concerning news for farmers, came on the heels of USDA’s forecast that U.S. farm incomes will drop 8.7% in 2017, and on the same day that The Wall Street Journal ran a front page story titled, “The Next Farm Bust is Coming.”
U.S. Farm Income Forecast Released
Jesse Newman reported yesterday at The Wall Street Journal Online that, “U.S. farm incomes will drop 8.7% in 2017, a fourth consecutive year of declines amid a deep slump in prices for many crops.”
Trade Policy Uncertainty: Lingering Concern for Farmers
Recent news items suggest that anxiety in the agricultural community over Trump administration trade policy is not going away. After promising to renegotiate the North American Free Trade Agreement (NAFTA), floating the the idea of a 20% border tax adjustment or a tariff on Mexican imports, and pulling out of the Trans-PacifcPartnership (TPP), farmers are on edge about disruptions in export markets. In the past couple of days, from California specialty crops, to the U.S. livestock sector, to row crop growers in Nebraska and Illinois, agricultural reporters have scrutinized the potential impact of obstacles in agricultural trade flows. Other articles have shown that the future outcomes of trade policy remain uncertain.
Farm Economy Variables – A Checkup
A complex mix of agricultural economic variables help form the basis of what farmers and ranchers consider essential policy priorities. As Farm Bill conversations have already begun, today’s update looks very briefly at several issues such as farm lending, production costs, commodity stock levels, and biofuels that have gained recent attention in the news.
Trade Policy with Mexico- Farmer Apprehension
Reuters writers Tom Polansek and Mark Weinraub reported on Tuesday that, “U.S. food producers and shippers are trying to speed up exports to Mexico and line up alternative markets as concerns rise that this lucrative business could be at risk if clashes over trade and immigration between the Trump administration and Mexico City escalate.”
The Importance of the Non-Farm Rural Economy to Farm Household Income
A recent study (“Income Trends for Iowa Farms and Farm Families 2003-2015”) by David Peters, associate professor and extension rural sociologist with Iowa State University, summarized current trends in farm income by type of farm operation and pointed to more specific issues regarding the importance of non-farm income to the financial picture of farm households.