Agricultural Economy

Bloomberg writer Kim Chipman reported earlier this week that, “Corn’s stunning price rally is getting an extra boost as more U.S. drivers return to the open road.”

Bloomberg writers Kim Chipman and Megan Durisin reported this week that, “A crop rally in the U.S. is making essential food commodities dramatically more expensive, and the costs could soon spill over onto grocery store shelves.”

In an update earlier this month from the Federal Reserve Bank of Kansas City (“Farm Lending Remains Muted in Early 2021“), Nathan Kauffman and Ty Kreitman stated that, “Farm loan demand remained muted at commercial banks in the first quarter of 2021. A reduction in the volume of operating loans led to an overall decline in total non-real estate lending. Financing activity also declined more notably at banks with relatively large farm loan portfolios, while lending was more stable among small and mid-size lenders.”

Bloomberg writers Megan Durisin and Deirdre Hipwell reported on Friday that, “Corn, wheat, soybeans, vegetable oils: A small handful of commodities form the backbone of much of the world’s diet and they’re dramatically more expensive, flashing alarm signals for global shopping budgets.”

Bloomberg writers Kim Chipman and Breanna T Bradham reported on Thursday that, “Corn extended its ascent to the highest in almost eight years, leading a rally in crop futures on bets that voracious Chinese demand, rebounding economies and adverse weather will leave silos depleted.”

On Wednesday, the Federal Reserve Board released its April 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.

Last week, Politico writers Zack Colman, Liz Crampton and Helena Bottemiller Evich reported that, “The Biden administration’s ambitious plan to create a multibillion-dollar bank to help pay farmers to capture carbon from the atmosphere is running into surprising skepticism, challenging Agriculture Department officials to persuade the industry to get behind the massive climate proposal.”

In an update this week from the Federal Reserve Bank of Kansas City (“Farm Lending Pullback Continues”), Cortney Cowley and Ty Kreitman stated that, “Agricultural debt at commercial banks eased further at the end of 2020, and loan repayment problems moderated slightly.”

A news release on Friday from the University of Missouri indicated that, “Farm income could decline in 2021, in spite of large increases in the value of crop and livestock sales, according to the latest analysis of national and global agricultural trends from the University of Missouri. Lower government payments and higher farm production costs could outweigh the increase in sales.”

On Thursday, the Senate Agriculture Committee held a policy hearing on climate change issues (“Farmers and Foresters: Opportunities to Lead in Tackling Climate Change”).

Late last month, Bloomberg News reported that, “China’s farm ministry is touting a complete recovery in pig numbers from the ravages of African swine fever by the middle of the year. Fresh outbreaks of the virus and other lethal pig diseases could pose risks to that outlook.”

Late last week, Bloomberg writers Megan Durisin and Agnieszka de Sousa reported that, “The surge in food prices that’s eating into consumer budgets and hitting some of the poorest nations shows few signs of abating.”

On Wednesday, the Federal Reserve Board released its February 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.

The USDA’s National Agricultural Statistics Service (NASS) released several reports over the past few weeks that provide helpful insight into segments of the U.S. agricultural economy and farm sector.  Today’s update highlights some of these reports, which include details on U.S. farm characteristics, farms and land in farms, crop values, and agricultural prices.

Writing on the front page of Saturday’s Des Moines Register, Donnelle Eller reported that, “U.S. and Iowa farmers need new sources of income, and the work producers need to do to battle climate change can help provide it, newly sworn-in U.S. Agriculture Secretary Tom Vilsack told the Des Moines Register on Friday.” 

Reuters writer Tom Polansek reported on Tuesday that, “The U.S. Senate on Tuesday confirmed Tom Vilsack to head the Department of Agriculture, returning the former Iowa governor to the job he held under ex-President Barack Obama.”

Speaking on Thursday at USDA’s virtual Agricultural Outlook Forum, USDA Chief Economist Seth Meyer provided a broad outlook for U.S. agriculture.  Today’s update provides an overview of key aspects of Dr. Meyer’s presentation.

Wall Street Journal writer Jacob Bunge reported on Thursday that, “Brutal winter weather continued to batter the U.S. agriculture industry, as companies and farmers contended with snow, ice and cold temperatures that disrupted processing, snarled transport and killed livestock across the Midwest and South.”

On Tuesday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector.

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 fourth quarter of 2020.