Agricultural Economy

Earlier this week, Financial Times writers Emiko Terazono and Valentina Romei reported that, “Climate change and the war in Ukraine are set to keep food prices at far higher levels than before the Covid-19 pandemic, despite signs of moderation in global commodity markets, economists and agriculture experts have warned.”

The USDA’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to increase by $19.5 billion (13.8 percent) from 2021 to $160.5 billion in calendar year 2022.” 

Tony Romm and Lauren Kaori Gurley reported on the front page of today’s Washington Post that “The Senate on Thursday adopted a measure that forces a deal between warring national freight railroads and their unions, averting a potential Dec. 9 strike that could have crippled U.S. travel and commerce ahead of the busy holiday shopping season.”

Lauren Kaori Gurley and Liz Goodwin reported on the front page of today’s Washington Post that, “The House voted Wednesday to force a deal between freight rail carriers and unions, blocking a potential strike that threatened travel, supply chains and the busy holiday shopping season.”

On Wednesday, the Federal Reserve Board released its November 2022 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.

Lauren Kaori Gurley reported on the front page of today’s Washington Post that, “Democratic leaders vowed to take up legislation to force a rail contract deal early Wednesday, despite objections from union members — and some in their own caucus — who raised concerns that the plan would not provide any paid sick days for workers.”

Esther Fung and Andrew Restuccia reported in today’s Wall Street Journal that, “President Biden called on Congress to pass legislation that would avert a rail shutdown by imposing a proposed contract that members at four railroad unions had rejected.”

Earlier this week, Reuters writers P.j. Huffstutter and Bianca Flowers reported that, “Montana farmer Sarah Degn had big plans to invest the healthy profits she gleaned for her soybeans and wheat this year into upgrading her planter or buying a new storage bin.”

Esther Fung reported in today’s Wall Street Journal that, “One of the country’s largest railroad unions said Monday that its members voted to reject a new wage deal brokered by the White House, splitting with another large union and moving closer to a labor strike as soon as early December.”

Linda Qiu reported in today’s New York Times that, “Joel Gindo thought he could finally own and operate the farm of his dreams when a neighbor put up 160 acres of cropland for sale in Brookings County, S.D., two years ago.”

Yesterday, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the third quarter of 2022.  The Federal Reserve Bank of Dallas also released its Agricultural Survey for the third quarter last month.

New York Times writer Ana Swanson reported yesterday that, “Food prices continued to grow in October, inflating grocery bills for American households, though at a slightly slower pace than in previous months. The price of food rose 0.6 percent last month, down from 0.8 percent growth in September.”

Reuters writer Michelle Nichols reported yesterday that, “Top U.N. officials will meet a senior Russian delegation in Geneva on Friday to discuss extending a Ukraine Black Sea grain export deal and efforts to smooth shipments of Russian food and fertilizers to global markets, the United Nations said.”

Earlier this week, Reuters writer Julie Ingwersen reported that, “The USDA on Monday released unofficial annual ‘baseline’ forecasts projecting that U.S. farmers are likely to expand plantings of corn and wheat for the upcoming 2023/24 marketing year, while reducing seedings of soybeans.”

In a recent update from the Federal Reserve Bank of Kansas City, “Steady Growth in Farm Lending,” Nate Kauffman and Ty Kreitman indicated that, “Larger sized operating loans continued to boost farm lending activity. The volume of non-real estate farm loans increased by more than 10% for the third consecutive quarter.”

Ag Meteorologist Bryce Anderson reported on Friday at DTN that, “October was dry in many primary U.S. crop areas, including the Eastern Midwest and specifically the Ohio River valley. Precipitation totals in the Ohio Valley were no more than half the normal totals. This lack of moisture was a big contributor to low water levels on the Mississippi River system.”

Bloomberg writer Megan Durisin reported today that, “Global food prices steadied in October, as supply disruptions wrought by the war in Ukraine were partly offset by slowing demand for staples.”

Brady Dennis, Laris Karklis, Scott Dance and Tim Meko reported on the front page of today’s Washington Post that, “The nation’s mightiest, most mythic waterway has been strangled by months of dry conditions, which have sent water levels plummeting to historic lows.”

Reuters writer Michelle Nichols reported yesterday that, “United Nations aid chief Martin Griffiths said on Wednesday that he was ‘relatively optimistic’ that a U.N.-brokered deal that allowed a resumption of Ukraine Black Sea grain exports would be extended beyond mid-November.”

Cameron McWhirter reported in Saturday’s Wall Street Journal that, “Barge traffic continued to struggle along the Mississippi River and its tributaries as low water caused boats and barges to run aground on sandbars up and down the river system. Areas near Memphis and other cities saw record-low river levels this week.”