Agricultural Economy

On Wednesday, the Federal Reserve Board released its May 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 writers Julie Ingwersen and Tom Polansek reported yesterday that, “The condition of the drought-hit U.S. winter wheat crop has improved more than analysts expected, while the nation’s corn is in worse shape than last year, U.S. Department of Agriculture data showed on Tuesday.”

In an update last week from the Federal Reserve Bank of Kansas City (“Credit Conditions and Farmland Values on Solid Footing as Farm Economy Moderates”), Nate Kauffman and Ty Kreitman indicated that, “Agricultural credit conditions remained strong in the first quarter, but improvement slowed alongside some moderation in the farm economy.”

Jan Wolfe and Jess Bravin reported on the front page of today’s Wall Street Journal that, “The Supreme Court limited the Environmental Protection Agency’s authority over wetlands in a decision with broad ramifications for the environment, agriculture, energy and mining.”

DTN Farm Business Editor Katie Dehlinger reported yesterday that, “The average cash rental rate for Iowa farmland climbed 9% in 2023 to $279 per acre, according to an annual survey conducted by Iowa State University Extension.”

Reuters writers Dominique Patton and Naveen Thukral reported today that, “A surplus of cheap wheat in China is replacing significant volumes of corn in its huge animal feed market, say feed makers and analysts, curbing consumption of both corn and soymeal and potentially reducing demand for imports.”

Reuters writer Julie Ingwersen reported yesterday that, “The U.S. Department of Agriculture’s weekly crop progress report rated 31% of the U.S. winter wheat crop in good to excellent condition, up 2 percentage points from a week earlier and above an average of analysts’ expectations.”

Reuters writer Tom Polansek reported on Monday that, “Farmers in Kansas, the biggest U.S. producer of wheat used to make bread, are abandoning their crops after a severe drought and damaging cold ravaged farms.”

DTN writer Russ Quinn reported last week that, “Retail fertilizer prices moved in opposite directions the second week of May 2023, according to sellers surveyed by DTN.”

Dow Jones writer Yusuf Khan reported yesterday that, “Global production of wheat, corn, barley and other grains is forecast to hit an all time high in the forthcoming season, as strong supplies of corn in particular drive food production to record levels.”

In its monthly Oil Crops Outlook report yesterday, the USDA’s Economic Research Service (ERS) indicated that, “U.S. soybean production for the 2023/24 marketing year (MY) is projected to climb by more than 5 percent to a record high of 4.5 billion bushels based on higher yield and marginally higher planted area.”

Bloomberg writers Michael Hirtzer and Tarso Veloso Ribeiro reported on Friday that, “America’s wheat fields have become so plagued by drought that farmers are now poised to abandon crops at the highest rate in more than a century.”

Late last week, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2023.  The Federal Reserve Bank of Dallas also released its Agricultural Survey for the first quarter in late March.

DTN writer Russ Quinn reported last week that, “For the first time in several months retail fertilizer prices are somewhat varied, according to prices tracked by DTN for the first week of May 2023.”

Adam Liptak reported in Friday’s New York Times that, “The Supreme Court on Thursday upheld a California law that sought to address cruelty to animals, saying the state could require pork sold there but produced elsewhere to come from breeding pigs housed in spaces that allow them to move around freely.”

Gabriel T. Rubin reported on the front page of today’s Wall Street Journal that, “Inflation edged slightly lower in April, likely keeping the Federal Reserve on course to pause interest-rate increases at its next meeting.”

DTN writer Russ Quinn reported last week that, “Most average retail fertilizer prices continued to be down from the previous month in the fourth week of April 2023, according to sellers surveyed by DTN.”

Bloomberg writers Megan Durisin and Mumbi Gitau reported today that, “Global food prices rose for the first time in a year, just as the rampant run-up in grocery costs begins to cool in some countries.”

Donnelle Eller reported on the front page of the Sunday Des Moines Register that, “Iowa farmers have a lot on their minds as they hook tractors onto planters this year: Skyrocketing interest rates are helping drive a 20% hike in the cost to plant the crop, along with higher seed, fertilizer, chemical and land costs, said Chad Hart, an Iowa State University agricultural economist.”

DTN writer Russ Quinn reported last week that, “Most retail fertilizer prices continued to shift lower the third week of April 2023, according to retailers tracked by DTN. However, for the first time in several months, multiple fertilizers were slightly higher.”