In an update last week from the Federal Reserve Bank of Kansas City, “Growth in Farmland Values Slows Amid Higher Interest Rates,” Cortney Cowley and Ty Kreitman indicated that, “Farm real estate values increased considerably in 2022 but showed signs of softening during the final months of 2022 as interest rates rose sharply.”
Farm Policy News
Federal Reserve: Observations on the Ag Economy- February 2023
On Wednesday, the Federal Reserve Board released its February 2023 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.”
Argentina Soybean, Corn Production Estimates Lowered, as “Country’s Key Agricultural Region Battles Ongoing Drought”
In its monthly Oilseeds: World Markets and Trade report yesterday, the USDA’s Foreign Agricultural Service (FAS) indicated that, “For the third straight month, 2022/23 Argentina soybean production is lowered as hot and dry weather continues to strain the crop in key growing regions.”
UN Secretary-General, in Kyiv, Highlights Black Sea Grain Deal Rollover, Expires on March 18
Bloomberg writers Olesia Safronova and Megan Durisin reported yesterday that, “United Nations Secretary-General Antonio Guterres stressed the importance of renewing the key Black Sea grain deal during a visit to Kyiv, with the current accord soon set to expire.”
Wheat Export and Production Issues in Focus, as Black Sea Grain Deal Discussions Continue
Late last week, Bloomberg writers Aine Quinn and Megan Durisin reported that, “After a slow start to the season, Russia’s grain exports are booming as buyers load up on its attractive bumper supplies.”
China Imports Record Volume of Soybeans in Jan.-Feb., While Warning U.S. on Policy Strategy
Earlier this week, Reuters writer Dominique Patton reported that, “China, the world’s top oilseed buyer, imported a record volume of soybeans for the first two months of the year, as buyers stocked up in anticipation of healthy demand and over worries of a delayed harvest in Brazil.”
Biden Administration Requesting Talks With Mexico on GMO Corn Import Restrictions
Ana Swanson and Linda Qiu reported on the front page of the Business section in today’s New York Times that, “The Biden administration said on Monday that it would take initial steps toward challenging a ban that Mexico has placed on shipments of genetically modified corn from the United States, restrictions that have rankled farmers and threatened a profitable export.”
Additional Brazilian Firms Cleared to Export Corn to China- Background and Issues
Reuters writer Roberto Samora reported late last week that, “Brazil’s agriculture ministry said on Friday that 90 local firms have been cleared to export corn to China in the first two months of the year, taking the total to 446.”
Fertilizer Prices Continue to Fall
DTN writer Russ Quinn reported last week that, “Retail fertilizer prices continue their march lower, according to prices tracked by DTN for the third full week of February 2023.”
The FAO Food Price Index Drops in February, For the Eleventh Consecutive Month
Bloomberg writer Agnieszka de Sousa reported today that, “Global food costs edged down again, extending their retreat to the lowest in 17 months, although consumers continue to feel the pinch at grocery stores.”
Reuters: “Ukraine Doesn’t Plan to curb 2023/24 Wheat Exports”
Reuters writers Rod Nickel and Pavel Polityuk reported yesterday that, “Ukraine sees no need to limit wheat exports for the upcoming 2023/24 July-June season, as the winter harvest looks to be larger than expected, albeit smaller than in peacetime, a top agriculture ministry official said on Thursday.”
“All Options” Considered by U.S. Over Mexico’s Corn Import Restrictions
Reuters writer Andrea Shalal reported yesterday that, “The United States will consider ‘all options,’ including a formal trade dispute panel, unless Mexico addresses Washington’s concerns over Mexico’s plan to limit imports of genetically modified corn, a senior U.S. trade official said on Wednesday.”
AMIS: War in Ukraine, Black Sea Grain Deal- “Uncertainty Continues to Hang Over Agricultural Markets”
In its March Market Monitor report, the Agricultural Market Information System (AMIS) indicated that, “With no end in sight to the war in Ukraine and threats of further escalation, uncertainty continues to hang over agricultural markets.”
Crop Insurance Guarantee: $5.91 for Corn and $13.76 for Soybeans
Reuters writer Julie Ingwersen reported yesterday that, “Crop insurance policies that guarantee prices for the 2023 growing season are the highest since 2011 for corn and the second-highest on record for soybeans after last year’s peak, reflecting tight global grain supplies, analysts said.”
Biden Administration Preparing Policy Shift on Rule to Boost Ethanol
Reuters writers Jarrett Renshaw and Stephanie Kelly reported yesterday that, “The Biden administration is expected on Wednesday to recommend for approval a rule that would allow expanded sales of gasoline with a higher ethanol blend in certain U.S. Midwest states, based on a request from governors in those states, four sources familiar with the matter said on Tuesday.”
Wheat Futures Lowest Since September 2021, “Optimism” on Renewal of Black Sea Grain Deal
Bloomberg writer Tatiana Freitas reported yesterday that, “Wheat futures declined to the lowest in 17 months amid ample near-term supplies.”
Wholesale Fertilizer Prices “Tumble,” Bloomberg
Bloomberg writers Kim Chipman and Elizabeth Elkin reported on Friday that, “Corn farmers stung by soaring fertilizer costs in the aftermath of Ukraine’s invasion are poised for further relief as wholesale prices tumble to the lowest in almost two years.”
The 2023 Outlook for U.S. Agriculture From USDA’s Chief Economist
Speaking on Thursday at USDA’s 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.
Black Sea Grain Initiative Up for Renewal in March, Negotiations Expected This Week
Reuters writer Pavel Polityuk reported late last week that, “Negotiations will start in a week on extending a U.N.-backed initiative that has enabled Ukraine to export grain from ports blockaded by Russia after its invasion, a senior Ukrainian official said on Friday.”
Kansas City Fed- Nonirrigated Farmland Values Up About 9%; Minneapolis Fed- Nonirrigated Cropland 18% Higher
Last week, the Federal Reserve Banks of Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions. Today’s update contains highlights from the Fed reports.