Agricultural Economy

David Gelles reported on the front page of today’s New York Times that, “Depressed property values. Flickering shadows. Falling ice. One by one, a real estate appraiser rattled off what he said were the deleterious effects of wind farms as a crowd in an agricultural community in central Illinois hung on his every word.”

Bloomberg writers Tatiana Freitas and Megan Durisin reported yesterday that, “Soybean futures jumped to the highest in six months on expectations for greater demand from China and as dry conditions in parts of South America threaten supply.”

DTN writer Russ Quinn reported on Wednesday that, “Average retail fertilizer prices have begun to move noticeably lower for the fourth week of December 2022, according to sellers surveyed by DTN.”

Tony Romm reported on the front page of today’s Washington Post that, “The Senate on Thursday adopted a sprawling, roughly $1.7 trillion bill that would fund the government through most of 2023, as Democrats and Republicans resolved a last-minute standoff over immigration and voted to avert a shutdown in the final days of the year.”

Jesse Newman and Jacob Bunge reported in today’s Wall Street Journal that, “High prices for crops and livestock are fueling a boom in the U.S. Farm Belt, making farmers, ranchers and agricultural companies rare winners as the broader American economy softens.”

Bloomberg writers Megan Durisin and Elizabeth Elkin reported earlier this week that, “The bird flu outbreak ravaging global poultry flocks is now the worst since records began, driving a spike in the price of eggs, threatening free-range chicken and risking long-term impacts to animal health.”

The USDA’s Economic Research Service (ERS) recently released its annual report exploring characteristics of U.S. farms: “America’s Farms and Ranches at a Glance, 2022 Edition.”  Today’s update includes highlights from the report, which was written by Christine Whitt, Noah Miller, and Ryan Olver.

A news release Tuesday from the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach indicated that, “One year after skyrocketing 29%, the average value of an acre of Iowa farmland jumped another 17%, or $1,660, to $11,411 per acre.”

Jeanna Smialek reported on the front page of today’s New York Times that, “Inflation slowed more sharply than expected in November, an encouraging sign for both Federal Reserve officials and consumers that 18 months of rapid and unrelenting price increases are beginning to meaningfully abate.”

In a recent update from the Federal Reserve Bank of Kansas City, “Farm Debt Climbs but Financial Stress Remains Limited,” Nate Kauffman and Ty Kreitman indicated that, “Farm real estate debt continued to climb and led to a notable increase in agricultural loan balances at commercial banks.”

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.”