Agricultural Economy

On Thursday, in the Federal Reserve Bank of Chicago’s quarterly AgLetter, David Oppedahl explained that, “The District had a year-over-year gain of only 5 percent in its agricultural land values in the third quarter of 2023.”

Bloomberg writer Kim Chipman reported on Friday that, “Corn futures extended losses, trading near a three-year low, on forecasts that the US farmers will collect a record harvest this season.”

Reuters writer Tom Polansek reported yesterday that, “U.S. farmers will produce a record corn crop this year, the government said on Thursday, sending futures prices to a three-year low.”

Earlier this week, the U.S. Department of Agriculture released the U.S. focused portion of its upcoming Agricultural Projections to 2033 report.  The full report is due to be released in February 2024.

Reuters writer Nigel Hunt reported on Friday that, “The United Nations food agency’s world price index fell in October to its lowest level in more than two years, driven by declines in sugar, cereals, vegetable oils and meat.”

DTN writer Russ Quinn reported earlier this week that, “Average retail prices for all but one fertilizer were higher during the third week of October 2023 compared to last month, according to sellers surveyed by DTN.”

DTN writer Katie Micik Dehlinger reported yesterday that, “The average daily close of the December corn futures contract was $4.88 during October, while the November soybean contract was $12.84 per bushel.”

DTN writer Todd Neeley reported yesterday that, “Retail prices of all eight major fertilizers continued to climb in the third week of October, with anhydrous leading the way while farmers continued to hit the fields.”

Donnelle Eller reported on the front page of Tuesday’s Des Moines Register that, “Following two years of record highs, Iowa farmland values have plateaued: Rising interest rates, declining profits and drought are cooling buyers’ enthusiasm, experts say.”

In an update late last week from the Federal Reserve Bank of Kansas City (“Smaller Operating Loans Slow Lending Activity”), Nate Kauffman and Ty Kreitman indicated that, “Farm lending activity at commercial banks slowed further in the third quarter alongside a drop in operating loan volumes.”

On Wednesday, the Federal Reserve Board released its October 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 writer Karl Plume reported yesterday that, “Low water levels on the lower Mississippi River are likely to persist through at least January despite expected above-normal precipitation across the southern United States this winter, forecasters with the National Oceanic Atmospheric Administration (NOAA) said on Thursday.”

DTN Farm Business Editor Katie Micik Dehlinger reported yesterday that, “The retail prices of all eight major fertilizers climbed higher in the second week of October, with anhydrous, MAP and UAN32 posting the largest gains.”

DTN Managing Editor Anthony Greder reported yesterday that, “The nation’s soybean harvest jumped to a 10-point lead over the five-year average, and the corn harvest also remained slightly ahead of the average pace by the end of last week as farmers in some areas rushed to get in as much fieldwork as they could ahead of heavy rains, USDA NASS reported in its weekly Crop Progress report on Monday.”

Peter S. Goodman reported in Sunday’s New York Times that, “Farmers are grappling with shocks that made fertilizer scarce and unaffordable, diminishing harvests, raising food prices and spreading hunger.”

In its monthly Grain: World Markets and Trade report on Thursday, the USDA’s Foreign Agricultural Service indicated that, “Since June 2023, hot and dry conditions along the Mississippi River valley caused river levels to dip well below historical averages.”

Reuters writer Mark Weinraub reported yesterday that, “U.S. corn and soybean harvests will be smaller than previously forecast, with hot and dry weather during critical parts of the growing season dragging on yields, the government said on Thursday.”

DTN writer Russ Quinn reported yesterday that, “Retail fertilizer prices continued to be evenly split the first week of October 2023 with half lower and half higher compared to last month, according to sellers surveyed by DTN.”

Emily Anthes reported on the front page of today’s New York Times that, “Scientists have used the gene-editing technology known as CRISPR to create chickens that have some resistance to avian influenza, according to a new study that was published in the journal Nature Communications on Tuesday.”

Late last week, Reuters writer Tom Polansek reported that, “The U.S. has detected its first case of avian flu on a commercial poultry farm since April, in a flock of 47,300 turkeys in Jerauld County, South Dakota, the U.S. Department of Agriculture (USDA) said.”