Agricultural Economy

Donnelle Eller reported on the front page of Friday’s Des Moines Register that, “Last week, Mark Mueller watched from the porch of his northeast Iowa farm as lightning flashed and a storm dropped badly needed rain a few miles away.”

Bloomberg writers Andy Hoffman and Vanessa Dezem reported this week that, “Two of the world’s top agricultural traders said crop markets are in a ‘mini-supercycle’ that could last half a decade, driven by increased demand for biofuels and continued grains buying from China.”

Wall Street Journal writers Tom Fairless, Alistair MacDonald and Jesse Newman reported on the front page of Tuesday’s paper that, “The run-up in commodity prices is casting a cloud over the global economic recovery, slamming vulnerable businesses and households and adding to fears that inflation could become more persistent.”

Financial Times writer Aime Williams reported on Monday that, “Donald Trump’s trade war with China left American farmers dependent on government handouts to survive. But China is now at the heart of a reversal in farmers’ fortunes, as booming exports and soaring food prices fuel a recovery in the US agricultural economy.”

Late last week, Reuters writer Dominique Patton reported that, “China has come to crave milk. Demand that had been steadily growing has spiked further after doctors touted its health benefits amid the coronavirus pandemic and dairy firms across the country have embarked on a farm-building frenzy.”

Financial Times writer Emiko Terazono reported this week that, “Global food prices surged by the biggest margin in a decade in May as one closely watched index jumped 40 per cent, raising fears of further food inflation later in the year.”

On Wednesday, the Federal Reserve Board released its May 2021 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.

Jacob Bunge reported on the front page of Wednesday’s Wall Street Journal that, “Meatpacker JBS SA was hit by a ransomware attack that took a big chunk of U.S. beef-and-pork processing offline, sending buyers scrambling for alternatives and raising pressure on meat supplies.”

Financial Times writers Chelsea Bruce-Lockhart and Emiko Terazono reported this week that, “The cost of raw materials that go into making breakfast staples have roared higher since the pandemic began — raising fears that a broad commodity boom could push up global food prices for consumers.” 

Bloomberg writer Michael Hirtzer reported on Friday that, “America’s insatiable appetite for ribs and hot dogs pushed hog prices to the highest in nearly seven years as the summer grilling season kicks off.”

Wall Street Journal writers Jennifer Smith and Paul Page reported on Friday that, “Americans are returning to restaurants, bars and other dining places as Covid-19 restrictions come down, adding new strains in food supply chains.”

Bloomberg writers Brendan Murray, Enda Curran, and Kim Chipman reported this week that, “A year ago, as the pandemic ravaged country after country and economies shuddered, consumers were the ones panic-buying. Today, on the rebound, it’s companies furiously trying to stock up.”

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 2021.

Earlier this week, Bloomberg writers Kim Chipman and Isis Almeida reported that, “A drought in Brazil is changing up trade flows, and sending China on a U.S. grain-buying binge that’s causing global prices to surge.”

Bloomberg writer Breanna T Bradham reported this week that, “Soybean futures touched $16 on Tuesday for the first time since 2012 as concerns mount over a supply crunch.”

Wall Street Journal writers Ryan Dezember and Kirk Maltais reported on Monday that, “America’s biggest cash crop has rarely been more expensive. Corn prices have risen roughly 50% in 2021 and a bushel costs more than twice what it did a year ago.”

Bloomberg writers Agnieszka de Sousa and Megan Durisin reported on Thursday that, “Consumers are seeing little letup in surging food prices, as rallies in everything from grains to sugar keep pushing global costs higher.”

Bloomberg writers Breanna T Bradham, Kim Chipman, and Fabiana Batista reported on Tuesday that, “Corn futures surged above $7 a bushel for the first time in more than eight years as lack of rainfall in Brazil added to supply concerns.”

Bloomberg writers Kim Chipman and Dominic Carey reported on Monday that, “U.S. corn farmers are planting at the fastest pace since 2015, a move that could finally bring some relief to a market that’s battling tight supplies.”

Reuters writer Tom Polansek reported last week that, “A surge to eight-year highs in U.S. corn and soybean prices is boosting farmers’ incomes and their demand for land, tractors and tools.”