Agricultural Economy

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.

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.”