DTN Ag Policy Editor Chris Clayton reported this week that, “As meatpacking plants and other food processors reduce capacity or temporarily close because of coronavirus cases, Vice President Mike Pence pointed to the vital nature of the food industry and told those workers ‘to show up and do your job’ to keep grocery shelves stocked.”
Agricultural Economy
Prices for Some Food Staples Increase, as COVID-19 Impacts on Labor Remain a Concern
Bloomberg writers Agnieszka de Sousa, Ruth Olurounbi, and Jen Skerritt reported on Monday that, “As the coronavirus pandemic penetrates more deeply into global supply chains, prices for key staples are starting to soar in some parts of the world.”
COVID-19 Impacting Food Purchasing Dynamics, as Ag Labor Concerns Persist
Wall Street Journal writer Kirk Maltais reported this week that, “Consumers’ rush to buy groceries is fueling a rally in orange-juice prices, making the usually sedate asset the best-performing commodity in the first quarter of 2020.”
Federal Stimulus Includes Money for Agriculture, as Farm Suppliers Accelerate Planting Input Deliveries
Wall Street Journal writers Siobhan Hughes and Natalie Andrews reported on Friday that, “President Trump signed a roughly $2 trillion stimulus package into law, hours after House lawmakers hustled back to the Capitol to pass the aggressive response to the coronavirus pandemic that has staggered the U.S. economy.”
Farmers Could Encounter Planting Delays in 2020, But Less Severe Conditions Than Last Year Expected
Last week, New York Times writer John Schwartz reported that, “Brace for another flooded spring — but not one as bad as last year, forecasters from the National Oceanic and Atmospheric Administration warned on Thursday.”
COVID-19 Has “Dimmed” Economic Prospects for Corn Belt Farmers
Wall Street Journal writers Jacob Bunge, Kirk Maltais, and Jesse Newman reported on Saturday that, “The new coronavirus is dealing another blow to the struggling U.S. agricultural sector, driving down crop and livestock prices and threatening labor shortages for farms.”
COVID-19 Impacts: Plenty of Food “In the System,” But Guest Worker Concerns Persist
Ryan McCrimmon and Catherine Boudreau reported on Wednesday at Politico that, “Don’t be fooled by the barren grocery store shelves: There’s plenty more food on the way.”
Seasonal Labor, Transportation, Financing, and Food Inflation (China) Among Outbreak Issues in U.S. and Abroad
Reuters writer Chris Walljasper reported on Tuesday that, “U.S. fruit and vegetable producers are bracing for dramatic disruptions to their labor force after the U.S. government said it was suspending visa interviews in Mexico to reduce the spread of the coronavirus.”
During Outbreak, USDA Ensures Food Safety While Protecting Health of Inspectors
Reuters writer Tom Polansek reported this week that, “The U.S. Department of Agriculture is seeking to reassure meat producers it will keep slaughterhouses staffed with federal inspectors as fears about potential shutdowns due to the new coronavirus hammer livestock prices and fuel concerns about food supplies, meat industry groups said on Monday.”
Federal Reserve: Observations on the Ag Economy- February 2020
Last week, the Federal Reserve Board released its February 2020 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.
A Brief Look at Spring Flooding Variables
Bloomberg writer Brian K Sullivan reported on Friday that, “For the second year in a row, much of the U.S. is primed to suffer multi-billion dollar flood losses, with farmers already steeling themselves for planting delays.”
The 2020 Outlook for U.S. Agriculture From USDA’s Chief Economist
Speaking on Thursday at USDA’s Agricultural Outlook Forum in Arlington, Virginia, USDA Chief Economist Robert C. Johansson provided a broad outlook for U.S. agriculture. Today’s update provides an overview of key aspects of Dr. Johansson’s presentation.
Federal Reserve Ag Credit Surveys- 2019 Fourth Quarter Farm Economy Conditions
Last week, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the fourth quarter of 2019. And earlier this year, the Federal Reserve Bank of Dallas released its Agricultural Survey for the fourth quarter of 2019. Meanwhile, a recent update posted at the Federal Reserve Bank of St. Louis, which has also historically released quarterly farm credit conditions, stated that, “The St. Louis Fed’s Agricultural Finance Monitor has been discontinued.” Today’s update highlights core findings from the Fed reports.
USDA Agricultural Projections to 2029- Focus on Corn, Soybeans
On Friday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector. Today’s update highlights aspects of the report that focused on corn and soybeans.
2020 Farm Sector Income Forecast, February
The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net cash farm income is forecast to decrease $10.9 billion (9.0 percent) to $109.6 billion in 2020, relative to the 2019 forecast. Net farm income, a broader measure of profits, is forecast to increase $3.1 billion (3.3 percent) from 2019 to $96.7 billion in 2020.”
Costs of Corn and Soybean Production in 2020, ISU Report
In a recent update from Iowa State University Extension (“Estimating costs of crop production vital for 2020
farm businesses”), Alejandro Plastina explained that, “Thin profit margins in corn and soybean production have become the norm over the past five years, increasing the need for proper budgeting and marketing strategies among crop producers.”
Kansas City Fed: Farm Lending Declines For a Second Consecutive Quarter
In an update last week from the Federal Reserve Bank of Kansas City (“Farm Lending Declines at End of 2019”), Nathan Kauffman stated that, “The volume of agricultural lending at commercial banks remained elevated, but declined for a second consecutive quarter. Total non-real estate farm loans decreased about 12 percent in the fourth quarter and declined over consecutive quarters for the first time since early 2017.”
Federal Reserve: Observations on the Ag Economy- January 2020
Last week, the Federal Reserve Board released its January 2020 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.
African Swine Fever Continues to Propel “Profound” Market Changes
Last week, Financial Times writers Emiko Terazono, Andres Schipani and Jamie Smyth reported that, “China’s African swine fever epidemic has dramatically reshaped the global meat market and its trade patterns in the 18 months since the outbreak was first officially acknowledged.”
Federal Reserve Bank of Dallas Ag Credit Survey- Fourth Quarter 2019, MFP Payments Noted
Last week, the Federal Reserve Bank of Dallas released its Agricultural Survey for the Fourth Quarter of 2019.