Agricultural Economy

In an update from the Federal Reserve Bank of Kansas City earlier this month (“Financing of Ag Production Loans Eases Further”), Nathan Kauffman and Ty Kreitman stated that, “Farm debt at commercial banks continued to ease in the second quarter.”

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

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

On Wednesday, the Federal Reserve Board released its August 2021 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District.

The USDA’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to increase by $18.5 billion (19.5 percent) from 2020 to $113.0 billion in 2021.”

DTN Meteorologist John Baranick reported earlier this week that, “Hurricane Ida made landfall near Port Fourchon, Louisiana at 11:55 a.m. on Aug. 29, 2021 as a strong Category 4 hurricane with maximum sustained wind speeds at landfall of 150 mph.”

Bloomberg writer Marcy Nicholson reported this week that, “Canada, the world’s biggest canola grower and a major wheat producer, forecasts a 26% drop in supplies of its main crops as drought ravages output and inventories shrink.”

Earlier this week, Bloomberg writers Kim Chipman and Michael Hirtzer reported that, “Minnesota farmer Jason Knopik didn’t sell corn earlier this year as prices soared, missing out on one of the biggest rallies in a generation. Now he’s grappling with inflation.”

Wall Street Journal writer Kirk Maltais reported on Tuesday that, “Drought is blistering key U.S. cash crops, further elevating prices for staples including corn and wheat.”

Financial Times writers Emiko Terazono and Michael Pooler reported this week that, “After enduring the worst drought in nearly a century followed by a bout of cold temperatures, areas within Brazil’s farming belt are braced for further adversity as the La Niña weather phenomenon threatens to bring more dry conditions later this year.”

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 second quarter of 2021.

Financial Times writer Colby Smith reported on Wednesday that, “The rapid pace of US consumer price increases steadied at a 13-year high in July while month-on-month gains moderated slightly, as inflationary pressures persisted because of supply-chain constraints and soaring demand.”

Wall Street Journal writer Jacob Bunge reported on Monday that, “Tyson Foods Inc. projected higher meat costs ahead, as the meat company seeks to pass along elevated prices for animal feed, increased wages and ongoing pandemic expenses to restaurants and supermarkets.”

Late last week, Bloomberg News reported that, “China will initiate a warning guidance system for hog breeders that will encourage them to make changes to their population of sows in an attempt to maintain sustainable output of the meat.”

Recent reports from the USDA’s National Agricultural Statistics Service (NASS) regarding farmland values, cash rental rates, production expenses, and farm prices provide perspective on the current state of the U.S. farm economy.

An update yesterday from the Federal Reserve Bank of Kansas City (“kcFED Ag Bulletin”) stated that, “Agricultural commodity prices surged in the second quarter amid further increases in economic activity and robust global demand.”

Reuters News reported today that, “World food prices eased for a second month in a row in July, reflecting declines for cereals, vegetable oils and dairy products, but remained up nearly a third over the past year, the United Nations food agency said on Thursday.”

Late last week, Associated Press writer Scott McFetridge reported that, “Thanks to a reworked menu and long hours, Jeannie Kim managed to keep her San Francisco restaurant alive during the coronavirus pandemic.”

Bloomberg News reported this week that, “China is taking hog biosecurity to new levels — 13 stories in fact.”

Reuters writers Julie Ingwersen and Tom Polansek reported last week that, “The U.S. Department of Agriculture confirmed the deadly hog virus African swine fever in samples from pigs in the Dominican Republic, the agency said on Wednesday, fueling concerns about the disease creeping closer to the United States.”