Today’s update looks at a variety of information sources that highlight recent developments relating to farmland values, with particular focus on Illinois, Iowa and the States in the Minneapolis Federal Reserve District.
Agricultural Economy
Federal Reserve: Observations on the Ag Economy- August 2018
On Wednesday, the Federal Reserve Board released its August 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.
FAPRI 2018 August Baseline Update for U.S. Agricultural Markets
The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri recently released its latest baseline update for U.S. agricultural markets. Today’s post summarizes highlights from the August FAPRI baseline report.
FSA Administrator Highlights Market Facilitation Program; Chinese Ag Imports Projected to Decrease
The Administrator of USDA’s Farm Service Agency (FSA), Richard Fordyce, was a guest on Friday’s “Adams on Agriculture” radio program with Mike Adams, where he discussed details of the new Market Facilitation Program. Meanwhile, USDA released its quarterly Outlook for U.S. Agricultural Trade last week, which noted that agricultural exports to China are projected to decrease.
Farm Income: USDA Forecast for 2018 and First Estimates for 2017
The U.S. Department of Agriculture’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (13.0 percent) from 2017 to $65.7 billion in 2018, after increasing $13.9 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $12.4 billion (12.0 percent) to $91.5 billion.”
European Drought Impacting Production, Potential Opportunities for U.S. Farmers
Reuters writer Gus Trompiz reported on Wednesday that, “European farmers are counting the cost of a summer heatwave that has shrunk cereal harvests and shriveled pastures, leaving some farms struggling to survive and shutting the EU out of lucrative export markets.”
Drought Takes Toll on EU and Australian Wheat Production
In its August Grain: World Markets and Trade report on Friday, USDA’s Foreign Agricultural Service (FAS) stated that, “Combined wheat production in the European Union, Russia, and Ukraine is forecast down 12 percent from last year to the lowest level in 5 years. The EU wheat crop is down 9 percent from last year on hot, dry weather in the northern Member States, while production in Russia and Ukraine is down from recent bumper crops on a return to normal yields.”
Abundant Supply, Lower Prices and Trade Issues- Focus on Soybeans
The U.S. Department of Agriculture painted a clearer picture of soybean and corn production prospects for this year’s harvest on Friday. In addition, recent USDA trade data, along with business news articles, have provided further perspective on U.S. soybean exports, particularly as it relates to China. Today’s update explores a few of these issues in more detail.
Federal Reserve Ag Credit Surveys- 2018 Second Quarter Farm Economy Conditions in the Midwest
On Thursday, the Federal Reserve Banks of Chicago, St. Louis and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the second 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.
Wheat: Heat Wave Impacting Outlook, Prices
Last week, Financial Times writer Emiko Terazono reported that, “The wheat market is feeling the heat, with key global producers sweating over a drought that has curbed output. After several years of bumper harvests, the wheat market is poised to tighten sharply as Russia, Australia and EU countries contend with scorching temperatures.”
USDA-NASS Updates Provide Snapshot of Farm Economy Variables
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.
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.