On Thursday, USDA’s National Agricultural Statistics Service (NASS) released three updates that provide current insight into the state of the U.S. agricultural economy. The releases focused on land values, cash rents, and production expenditures.
Agricultural Economy
Secretary Perdue Discusses Trade Aid, while Trade Talks with China Show Little Progress
Reuters writer Hugh Bronstein reported on Saturday that, “U.S. farmers could receive cash payments from a planned $12 billion aid package as soon as late September, U.S. Agriculture Secretary Sonny Perdue told Reuters on Saturday, warning that the program will not make tariff-hit farmers whole.”
Kansas City Fed Examines Second Quarter Farm Lending
An update on Friday from the Federal Reserve Bank of Kansas City (“Large Loans for Livestock Drive Uptick in Farm Lending,” by Cortney Cowley and Ty Kreitman) stated that, “Farm lending activity increased slightly in the second quarter, according to the National Survey of Terms of Lending to Farmers. The total volume of non-real estate farm loans was about 2 percent higher than the same period last year.”
Federal Reserve: Observations on the Ag Economy- July 2018
On Wednesday, the Federal Reserve Board released its July 2018 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.
Summary of ERS Report on International Food Security
Late last month, the U.S. Department of Agriculture’s Economic Research Service (ERS) released its latest report (“International Food Security Assessment, 2018-2028) in a continuous series of updates begun in the 1970s that explore issues associated with food security indicators. June’s update includes assessments for the current year and 10 years into the future. Today’s post includes highlights from the ERS report.
Producers Express Concern in the Midst of Price Turmoil, While ERS Looks at Farm Sector Financial Health
Financial Times writer Gregory Meyer reported on Monday that, “US soyabean futures have tumbled to the lowest price in nine years as the market succumbs to healthy growing conditions and fears over imminent tariffs from China.” Amid this climate, Secretary of Agriculture Sonny Perdue visited with producers in the northwest earlier this week and heard first hand concerns about trade and the current financial environment. With this background in mind, the USDA’s Economic Research Service (ERS) released a timely update on Monday that painted an interesting “snapshot” of the U.S. ag economy titled, “Current Indicators of Farm Sector Financial Health.”
Ag Economy: Land Values and Farm Income Considerations
Today’s update looks briefly at recent reports from the Federal Reserve Bank of Dallas and the University of Nebraska at Lincoln that shed light on trends in farmland values. Also, a recent survey from Iowa State University that provides statistical insights into farmland owners, is examined. Lastly, news articles that continue to look at the deteriorating prices of some agricultural commodities, and their resulting potential negative impacts on farm financial well-being, are also discussed.
Corn Belt Farmers Uneasy Over Potential Policy Impacts
Donnelle Eller reported on the front page of Tuesday’s Des Moines Register that, “Iowa farmers, battling too much rain, cold — and even snow — this planting season, have a new crop of concerns that could devastate commodity prices: An escalating U.S.-China trade war that’s sparked tariffs on pork and, potentially, soybeans; trade negotiations with Canada and Mexico that exploded last week following U.S. tariffs on steel imports; EPA ethanol waivers for oil refiners that undermine demand for ethanol and corn; and, divisions over a new farm bill intended to provide protection to farmers.”
Federal Reserve: Observations on the Ag Economy- May ’18
On Wednesday, the Federal Reserve Board released its May 2018 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.
As House Considers Farm Bill, Lower Farm Income Persists, While Drought Impacts Southern Plains
As the House of Representatives works on passing its version of the Farm Bill this week, a report yesterday from the Kansas City Fed noted that, “bankers in the Tenth Federal Reserve District reported lower farm income and credit conditions for the fifth straight year.” Meanwhile, a recent Wall Street Journal article pointed out that ongoing drought conditions in the southern Great Plains “could punish the agricultural sector, affecting everything from cotton to cattle to farming-equipment sales.” Today’s update looks briefly at these reports regarding the agricultural economy as well as recent articles highlighting House Farm Bill developments.
Federal Reserve Ag Credit Surveys- 2018 First Quarter Farm Economy Conditions in the Midwest
On Thursday, the Federal Reserve Banks of Chicago and St. Louis released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2018. Recall that the Federal Reserve Bank of Dallas issued a similar update last month. Today’s update highlights core findings from Thursday’s reports.
Interest Rates on Farm Loans Increase, Pressure on Some Farm Operators Could Follow
Late last month, Bloomberg writer Alan Bjerga reported that, “American farmers have managed to stay afloat despite years of shrinking crop values, the lowest incomes since the recession and a budding trade war with China. Now, they’re feeling a new squeeze — borrowing money is getting more expensive as interest rates rise. For some, it may be fatal.”
Federal Reserve: Observations on the Ag Economy- April ’18
On Wednesday, the Federal Reserve Board released its April 2018 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.
Farm Economy: Land Values, Ag Credit, Lending, and Income
On Monday, the Federal Reserve Bank of Dallas released its quarterly Agricultural Credit Survey. Also on Monday, the American Bankers Association highlighted several 2017 farm lending variables in its annual Farm Bank Performance Report. Meanwhile, a recent news article from Minnesota documented that farm incomes in the state remained stagnant last year. Today’s update highlights key points from these information sources.
Ag Economy: Farmland Values; and Off-Farm Income
Today’s update looks briefly at recent news items that highlight current information on farmland values. In addition, key parts of a recent Wall Street Journal article that focused on the importance of off-farm income to U.S. farm households are also included.
FAPRI Baseline: Farmers Still Caught in Economic Squeeze
A news release last week from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri indicated that, “The latest analysis of national and global agricultural trends from the University of Missouri indicates little change in net farm income this year and a slight increase in 2019. However, even with modest projected increases in commodity prices in 2019, net farm income is expected to remain far below the record level set in 2013. Good news in the report includes strong demand for meat, which offset downward pressure on prices from increased production last year.”
Federal Reserve: Observations on the Ag Economy- February ’18
On Wednesday, the Federal Reserve Board released its February 2018 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.
Agricultural Economy: Land Values, Value of Production, and Number of Farms
Today’s update looks briefly at recent publications from the Federal Reserve Bank of Minneapolis, and the USDA’s National Agricultural Statistics Service. These reports give additional insight into the state of the U.S. agricultural economy by providing information on agricultural credit conditions and land values, the value of agricultural production, and the number of farms in the U.S.
USDA-ERS Report: Farmland Values, 2000-2016
Today’s update looks briefly at farmland values in the United States, with a specific focus on a recent report from USDA’s Economic Research Service (ERS) that examined farmland values from 2000 to 2016. The ERS report noted that, “The value of farm real estate accounts for over 80 percent of the value of farm-sector assets and is an important indicator of the sector.”
The 2018 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.