Agricultural Economy

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.”

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”).