Agricultural Economy

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.

The USDA’s Economic Research Service (ERS) indicated on Friday that, “Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (8.1 percent) from 2020 to $111.4 billion in 2021.”

On Tuesday, the Senate Agriculture Committee held a confirmation hearing for Secretary of Agriculture nominee Tom Vilsack.

A recent report from the Federal Reserve Bank of Kansas City (“Ag Lending Update: Fewer New Loans to Farmers,” by Ty Kreitman and Cortney Cowley) stated that, “Lending activity at commercial banks continued to slow in the fourth quarter, according to the National Survey of Terms of Lending to Farmers. The volume of total non-real estate farm loans declined by about 1% from a year ago, but remained slightly above the 10-year average in the fourth quarter.” 

Jesse Newman reported on the front page of Saturday’s Wall Street Journal that, “A crop glut that battered American farmers is subsiding, fueling an unexpected recovery in the U.S. Farm Belt following a yearslong agricultural recession.”

On Wednesday, the Federal Reserve Board released its January 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.

Reuters News reported last week that, “World food prices rose for a seventh consecutive month in December, with all the major categories, barring sugar, posting gains last month, the United Nations food agency said on Thursday.”

Bloomberg writers Kim Chipman and Megan Durisin reported on Wednesday that, “Soybean futures in Chicago extended their winning streak for a sixth day and corn exceeded $5 a bushel on expectations that the U.S. will cut domestic supply forecasts for the crops.”

Last month, the Congressional Research Service (CRS) released a report titled, “USDA’s Coronavirus Food Assistance Program: Round Two (CFAP-2).”  Today’s update includes highlights from the report, which was authored by Randy Schnepf.

A news release last month from the USDA’s Agricultural Marketing Service (AMS) announced the release of a report, prepared in close partnership with the Department of Transportation,” titled: “The Importance of Highways to U.S. Agriculture.”

A news release Tuesday from the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach indicated that, “Favorable interest rates, a strong demand for land, and substantial government payments helped stabilize Iowa’s farmland market in a year in which Iowa’s farmers faced the destructive onslaught of a derecho, significant uncertainties in US agricultural trade, and a pandemic that significantly altered market demand.”