Agricultural Economy

Jesse Newman and Jaewon Kang reported on the front page of Monday’s Wall Street Journal that, “The U.S. food system is under renewed strain as Covid-19’s Omicron variant stretches workforces from processing plants to grocery stores, leaving gaps on supermarket shelves.”

Wall Street Journal writer Jon Emont reported last week that, “From South America’s avocado, corn and coffee farms to Southeast Asia’s plantations of coconuts and oil palms, high fertilizer prices are weighing on farmers across the developing world, making it much costlier to cultivate and forcing many to cut back on production.”

DTN writer Russ Quinn reported this week that, “Retail fertilizer prices continue to be mostly higher the second week of January 2022, according to retailers surveyed by DTN.”

In an update last week from the Federal Reserve Bank of Kansas City, “Smaller Loans Limit Agricultural Lending,” Nathan Kauffman and Ty Kreitman stated that, “Smaller sized loans limited agricultural lending activity at the end of 2021.”

Late last week, Bloomberg writers Elizabeth Elkin and Allison Smith reported that, “North American farmers could be looking at less expensive crop nutrients this year, potentially easing the pressure on food costs that have pushed up consumer prices.”

On Wednesday, the Federal Reserve Board released its January 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.”

Wall Street Journal writer Gwynn Guilford reported in today’s paper that, “U.S. inflation hit its fastest pace in nearly four decades last year as pandemic-related supply and demand imbalances, along with stimulus intended to shore up the economy, pushed prices up at a 7% annual rate.”

DTN writer Russ Quinn reported on Wednesday that, “It’s a new year, but the same story of fertilizer prices moving higher.”

Bloomberg News reported on Monday that, “China’s urea plants are getting caught up in Beijing’s drive to ensure blue skies for the Winter Olympics, which includes ordering factory shutdowns to curb air pollution.”

Bloomberg writer Elizabeth Elkin reported on Friday that, “Soaring fertilizer prices that have helped drive up food inflation finally tumbled this week, but the reprieve may be short-lived.”

Bloomberg writers Leslie Patton, Elizabeth Elkin, and Deena Shanker reported last week that, “The highly contagious omicron virus variant is disrupting already stressed food supply chains, sickening so many workers that more shortages at grocery stores are all but certain.”

DTN writer Russ Quinn reported on Wednesday that, “Retail fertilizer prices continue to rise but at smaller percentages, according to prices for the last week of December 2021.”

Bloomberg writer Megan Durisin reported on Thursday that, “Global food prices declined from near a record high at the end of last year, offering some respite to consumers and governments facing a wave of inflationary pressures.”

Earlier this week, the Federal Reserve Bank of Dallas released its Agricultural Survey for the fourth quarter of 2021.

Reuters writer Leah Douglas reported this week that, “The United States will issue new rules and $1 billion in funding this year to support independent meat processors and ranchers as part of a plan to address a lack of ‘meaningful competition’ in the meat sector, President Joe Biden said on Monday.”

Wall Street Journal writer Kirk Maltais reported in today’s paper that, “A banner year for grain prices has U.S. farmers aiming to plant even more corn, wheat and soybeans than they did in a record 2021. But high fertilizer prices, forecasts of more wild weather and the threat that China slows its buying loom over the year ahead.”

Reuters writer Tom Polansek reported last week that, “Seaboard Foods, the nation’s second-biggest pig producer, said on Friday it will limit sales of certain pork products in California due to a measure requiring farmers to provide more space for animals raised for food sold in the state.”

In its Feed Outlook report this month, the USDA’s Economic Research Service (ERS) stated that, “Total corn use for 2021/22 is projected at 14,830 million bushels. This number is slightly larger than the 2020/21 record amount of 14,818 million bushels.”

In its monthly Livestock, Dairy, and Poultry Outlook report last week, the USDA’s Economic Research Service (ERS) stated that, “Lower-than-expected October pork exports—at about 541 million pounds—prompted a reduction of 30 million pounds to the fourth-quarter export forecast.” 

Wall Street Journal writers Patrick Thomas and Kirk Maltais reported in Thursday’s paper that, “Fertilizer prices have more than doubled over the past year, frustrating U.S. farmers, who now are adjusting spring planting plans and warning about the potential for higher food prices.”