Agricultural Economy

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.

Reuters writer Mark Weinraub reported yesterday that, “The U.S. corn harvest could be the second-largest on record as rains during July shepherded the crop through its critical development phase, offsetting dry conditions early in the season and hot summer temperatures, analysts and farmers said.”

DTN Managing Editor Anthony Greder reported yesterday that, “Beneficial widespread rains this past weekend and a break from the extreme heat across much of the country helped corn and soybean conditions rebound from the previous week, USDA NASS reported in its weekly Crop Progress report on Monday.”

In its annual Agricultural Land Values report on Friday, the USDA’s National Agricultural Statistics Service (NASS) indicated that, “The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $4,080 per acre for 2023, up $280 per acre (7.4 percent) from 2022.”

Bloomberg writer Megan Durisin reported on Friday that, “Global food prices rose for the first time in three months, as trade disruptions from India to the Black Sea and extreme weather stoke supply concerns anew.”

DTN Managing Editor Anthony Greder reported yesterday that, “U.S. corn condition fell for the first time in several weeks as intense heat baked much of the country last week, according to USDA NASS’ weekly Crop Progress report on Monday. Soybean conditions also declined for the second week in a row.”

In its annual Farm Production Expenditures report on Friday, the USDA’s National Agricultural Statistics Service (NASS) indicated that, “Farm production expenditures in the United States are estimated at $452.7 billion for 2022, up from $392.9 billion in 2021.”

Bloomberg writer James Poole reported today that, “Wheat fell for a third day from the highest close in five months as the outlook for ample near-term supplies outweighed concerns over the impact of Russian attacks on Ukrainian port facilities.”

Reuters writer Julie Ingwersen reported yesterday that, “Weekly condition ratings for the U.S. corn crop held steady in the past week while soybean and spring wheat crops deteriorated, U.S. government data showed on Monday, and ratings for all three crops fell short of trade expectations.”

Earlier this month, in an update from the Federal Reserve Bank of Kansas City (“Farm Lending Slows as Interest Rates Rise”), Nate Kauffman and Ty Kreitman indicated that, “Farm lending activity at commercial banks slowed through the first half of 2023 as interest rates continued to push higher.”

Reuters writer Tom Polansek reported on Friday that, “U.S. farmers are raising the fewest beef cows since at least 1971, government data released on Friday showed as drought conditions whittled herds, likely boosting costs for meatpackers that slaughter the animals into steak and hamburgers.”

Shannon Najmabadi reported in today’s Wall Street Journal that, “Rows of wheat fall like waves under the combine Laura Haffnerdrives in a 320-acre field in far west Kansas, leaving stalks stripped of kernels in its wake.”

DTN Managing Editor Anthony Greder reported yesterday that, “U.S. corn and soybean conditions improved again last week, according to USDA NASS’ weekly Crop Progress report released Monday. Both crops also continued to mature at a slightly ahead-of-average pace.”

On Wednesday, the Federal Reserve Board released its June 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.

Dow Jones writer Kirk Maltais reported yesterday that, “Corn for September delivery rose 3.5% to $5.00 1/2 a bushel, on the Chicago Board of Trade on Thursday, with rainfall over the next few days expected to give way to hot and dry weather that may stress crops.”

Reuters News reported yesterday that, “The government said on Wednesday that U.S. farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during early stages of development.”

Bloomberg writer Tarso Veloso Ribeiro reported yesterday that, “Wednesday is WASDE day, when the US government releases its monthly World Agricultural Supply and Demand Estimates report.”