Agricultural Economy: Land Values, Value of Production, and Number of Farms

Today's update looks briefly at recent publications from the Federal Reserve Bank of Minneapolis, and the USDA's National Agricultural Statistics Service.  These reports give additional insight into the state of the U.S. agricultural economy by providing information on agricultural credit conditions and land values, the value of agricultural production, and the number of farms in the U.S.
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USDA-ERS Report: Farmland Values, 2000-2016

Today's update looks briefly at farmland values in the United States, with a specific focus on a recent report from USDA's Economic Research Service (ERS) that examined farmland values from 2000 to 2016.  The ERS report noted that, "The value of farm real estate accounts for over 80 percent of the value of farm-sector assets and is an important indicator of the sector."
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USDA Releases 10-Year Agricultural Projections- Focus on Corn, Soybeans

On Thursday, 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 continues to adjust to lower prices for most farm commodities. Planted acreage drops slightly despite continued low energy costs. However, marked shifts occur – most notably strong global demand for soybeans is expected to induce soybean plantings that exceed corn acreage. Lower feed costs and continued strong global demand provide economic incentives for expansion in the livestock sector."  Today’s update highlights aspects of the report that focused on corn and soybeans.
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2018 U.S. Farm Income Forecast Released

The U.S. Department of Agriculture's Economic Research Service (ERS) indicated on Wednesday that, "Net farm income, a broad measure of profits, is forecast to decrease $4.3 billion (6.7 percent) to $59.5 billion in 2018, which would be the lowest level in nominal terms since 2006."
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House Ag Committee Hearing with Sec. Perdue: Trade Issues

Secretary of Agriculture Sonny Perdue testified before the House Agriculture Committee on Tuesday morning  at a hearing on the “State of the Rural Economy.”  Recall that back in May, shortly after his confirmation, Sec. Perdue also provided lawmakers on the Committee with an update on rural economic issues.  Trade issues with China and the ongoing renegotiation of the North American Free Trade Agreement (NAFTA) were among the key concerns that emerged on Tuesday.
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Kansas City Fed: Ag Lending and Interest Expenses Increase for Farmers

An update on Friday from the Federal Reserve Bank of Kansas City ("Agricultural Lending Increases, As Do Interest Expenses for Farmers," by Cortney Cowley  and John McCoy) stated that, "Lending at agricultural banks increased sharply in the fourth quarter, after appearing to stabilize in previous quarters. Large loans drove the increase in farm lending, which may heighten concerns about cash flow in 2018 as interest rates have continued to rise steadily."
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Ag Economy: 2018 Outlook from CoBank; and Farmland Values

CoBank recently released a new report that explored a variety of issues that will impact the U.S. rural economy in 2018.  In addition, recent newspaper articles have discussed reports relating to the value of U.S. farmland.  This update briefly highlights core points from the CoBank report, and also looks at the new information on farmland values.
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