Agricultural Economy

Associated Press writer Scott McFetridge reported on the front page of Saturday’s Des Moines Register that, “A long stretch of hot, dry weather has left the Mississippi River so low that barge companies are reducing their loads just as Midwest farmers are preparing to harvest crops and send tons of corn and soybeans downriver to the Gulf of Mexico.”

Chris Kenning reported on the front page of today’s USA Today that, “In the wheelhouse high atop the rumbling, 240-foot boat, James Garner perched in a chair surrounded by levers, dials and screens. Below him, the Dredge Potter inched up a remote stretch of khaki-colored water between Missouri and Illinois.”

Reuters writer Mark Weinraub reported yesterday that, “The U.S. government cut its forecast for the soybean crop on Tuesday after hot and dry conditions during key growth stages but raised the corn harvest view due to expectations for large acreage harvested despite adverse weather this summer.”

DTN Managing Editor Anthony Greder reported yesterday that, “The 2023 U.S. corn harvest is slightly outpacing the five-year average so far as the crop continues to reach maturity ahead of normal, USDA NASS stated in its weekly Crop Progress report on Monday. Soybeans, too, continue to reach maturity ahead of the five-year average.”

The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. farm income and government costs on Monday.

Dow Jones writer Kirk Maltais reported on Friday that, “The effect of scorching heat on maturing U.S. crops is driving the price debate in grain markets, with trading volume of grain futures muted as observers are split over the extent of crop damage.”

Bloomberg writer Agnieszka de Sousa reported today that, “Global food prices resumed declines to the lowest in more than two years amid ample supplies of cooking oils and dairy, even as worries persist over flows of key staples from some regions.”

On Wednesday, the Federal Reserve Board released its August 2023 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.

Reuters News reported today that, “Chicago soybean futures rose on Wednesday, recouping the last session’s losses, after a weekly U.S. report showed that crop conditions had deteriorated more than expected due to high temperatures.”

The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. agricultural markets on Tuesday.

The USDA’s Economic Research Service (ERS) indicated on Thursday that, “Farm sector income is forecast to fall in 2023 after reaching record highs in 2022. Net farm income, a broad measure of profits, reached $183.0 billion in calendar year 2022, increasing $42.9 billion (30.7 percent) from 2021 in nominal dollars.” 

Bloomberg writer Tarso Veloso Ribeiro reported yesterday that, “The cost to transport America’s harvest from the Midwest to the rest of the world is soaring as shrinking water levels on the Mississippi River drive up barge freight rates — and the forecast for below-than-average rainfall offers no relief.”

DTN writer Todd Neeley reported yesterday that, “The EPA removed the term ‘significant nexus’ from the waters of the U.S. (WOTUS) rule in a final revision announced by the agency Tuesday after the Supreme Court in May declared unconstitutional the jurisdictional test that has been the subject of intense opposition and litigation for nearly a decade.”

Reuters writer Julie Ingwersen reported yesterday that, “Weekly condition ratings for the U.S. soybean and corn crops declined in the past week after a spell of sweltering heat in the Midwest, government data showed on Monday, but not by as much as most analysts expected.”

Reuters writer Ana Mano reported yesterday that, “Brazil is set to overtake the U.S. this year as the world’s top corn exporter, reflecting both a bumper harvest and logistical breakthroughs such as the consolidation of northern export routes, which are boosting the competitiveness of the South American grains powerhouse.”

Reuters writer Mark Weinraub reported yesterday that, “The condition of the U.S. spring wheat crop dropped in the latest week, the government said on Monday, as forecasts for hot and dry weather continued in the northern Plains this week.”

In a recent update from the Federal Reserve Bank of Kansas City (“Farmland Values Stay Resilient as Farm Economy Moderates”), Francisco Scott and Ty Kreitman indicated that, “Strength in farm real estate values persisted in the second quarter despite some moderation in the farm economy and higher interest rates.”

In its monthly Livestock, Dairy, and Poultry Outlook report yesterday, the USDA’s Economic Research Service (ERS) indicated that, “According to the USDA, Monthly Cage-Free Shell Egg Report, the cage-free table egg layer flock (nonorganic and certified organic) added more than 10.5 million layers in the first 6 months of this year.”

Reuters writer Mark Weinraub reported on Friday that, “U.S. corn and soybean harvests will be smaller than previously expected as dry conditions early in the growing season robbed the crops of yield potential, the government said on Friday.”

Yesterday, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2023.  The Federal Reserve Bank of Dallas released its Agricultural Survey for the second quarter in July.