Agricultural Economy

CoBank’s Knowledge Exchange division, in partnership with the University of Missouri, released a report yesterday titled, “The Importance of Off-Farm Income to the Agricultural Economy.”  

Wall Street Journal writer Ken Thomas reported today that, “The White House said Thursday it had reached a tentative agreement to avoid a potential railway strike that threatened to shut down a crucial vein of the U.S. economy.”

Jeanna Smialek reported on the front page of today’s New York Times that, “Price increases remained uncomfortably rapid in August as a broad array of goods and services became more expensive even as gas prices fell, evidence that the sustainable inflation slowdown the Federal Reserve and White House have been hoping for remains elusive.”

Bloomberg writers Kim Chipman, Michael Hirtzer, and Tarso Veloso Ribeiro reported yesterday that, “Soybean futures climbed 5.4%, the most in more than a year, after a closely watched crop report signaled shockingly tight supplies.” 

On Wednesday, the Federal Reserve Board released its August 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.

The USDA’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to increase by $7.3 billion (5.2 percent) from 2021 to $147.7 billion in calendar year 2022.”

Bloomberg writer Agnieszka de Sousa reported today that, “Global food prices fell for a fifth month after demand for some products weakened and there was a seasonal uptick in supplies.” 

Earlier this week, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. agricultural markets.

In an update last week from the Federal Reserve Bank of Kansas City, “Ag Credit Conditions Remain Strong as Risks Grow,” Nathan Kauffman and Ty Kreitman stated that, “Agricultural credit conditions remained strong in the second quarter, but slower improvement was expected in the coming months.”

Kirk Maltais reported today at The Wall Street Journal Online that, “The worst drought in a decade is posing fresh challenges to farmers in the Corn Belt who already are struggling with surging costs, the dark side of a post-Covid commodities boom.”

Dow Jones writer Paulo Trevisani reported yesterday that, “Initial reports from the Pro Farmer crop tour point to disappointing yield potential.”

Matthew Dalton, Jim Carlton and Sha Hua reported on the front page of today’s Wall Street Journal that, “Severe droughts across the Northern Hemisphere—stretching from the farms of California to waterways in Europe and China—are further snarling supply chains and driving up the prices of food and energy, adding pressure to a global trade system already under stress.”

Tony Briscoe reported on the front page of Wednesday’s Los Angeles Times that, “After Colorado River Basin states failed to meet a deadline for emergency drought reductions Tuesday, the U.S. Bureau of Reclamation announced new emergency water cuts for Arizona, Nevada and Mexico as the nation’s two largest reservoirs decline to perilously low levels.”

In its monthly World Agricultural Production report Friday, the USDA’s Foreign Agricultural Service (FAS) indicated that, “European Union (EU) (MY) 2022/23 corn production is forecast at 60.0 million metric tons (mmt), down 12 percent from last month, 15 percent below last year’s crop, and 10 percent below the 5- year average.”

On Thursday, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2022.

Don Lee reported on the front page of today’s Los Angeles Times that, “After months of steadily climbing to a 40-year high, the pace of inflation slowed notably in July as gas prices fell sharply and Americans got relief on the cost of clothing, used cars and some other necessities.”

Rachel Siegel reported on the front page of today’s Washington Post that, “Inflation soared in June, continuing to climb at the fastest pace in 40 years across many sectors of the economy, driven in large part by higher energy prices.”

On Wednesday, the Federal Reserve Board released its July 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.

Washington Post writer Rachel Siegel reported on the front page of Saturday’s paper that, “Inflation in May reached a new pandemic-era peak of 8.6 percent compared with a year earlier, with soaring energy, housing and food prices driving up costs at the fastest pace in 40 years.”

Yusuf Khan reported in today’s Wall Street Journal that, “The European Union faces a disappointing wheat harvest this year, dimming hopes that one of the world’s biggest producers might help fill a widening global grain gap left by the war in Ukraine.”