The USDA’s Economic Research Service (ERS) indicated on Friday that, “Net farm income, a broad measure of profits, is forecast to decrease by $5.4 billion (4.5 percent) from 2021 to $113.7 billion in 2022.”
Farm Policy News
Fertilizer Price Index Jumps Most Since September
Bloomberg writer Elizabeth Elkin reported on Friday that, “North American fertilizer prices rose the most in almost five months this week as a global competition for supplies means farmers could still have a ways to go before seeing relief from high nutrient costs.”
Conservation Title Kicks Off 2023 Farm Bill Debate in House Ag Subcommittee Hearing
Late last month, the Congressional Research Service (CRS) released an update titled, “Farm Bill Primer: Conservation Title.”
Global Food Prices Climb Towards Record
Bloomberg writer Megan Durisin reported on Thursday that, “Global food prices jumped toward a record last month, further adding to the surging cost of living for consumers.”
Anhydrous Reaches an All-Time High, While Belarus Potash Restrictions “May Play Into Russia’s Hands”
DTN writer Todd Neeley reported on Tuesday that, “Most retail fertilizer prices tracked by DTN continued to rise during the fourth week of January, while several of them continued to hit all-time highs.”
Russia-Ukraine Tensions Unnerving Grain Markets- Could “Spark Unrest Far From the Front Lines”
Wall Street Journal writer William Mauldin reported on the front page of Tuesday’s paper that, “A senior U.S. diplomat accused Russia of trying to destabilize Ukraine, and a Kremlin representative in turn criticized Washington for stoking fears and tensions as the two sides squared off in a fractious debate in the United Nations Security Council.”
Illinois Crop Production Costs Could Hit Record Levels This Spring- Fertilizer Prices a Driver
DTN writer Russ Quinn reported last week that, “Most retail fertilizer prices were slightly higher the third week of January 2022. But as was the case last week, one fertilizer was lower in price looking back a month.”
China Keeps Eye on Domestic Food Security
Earlier this week, Reuters writers David Stanway and Muyu Xu reported that, “China’s ambitious low-carbon goals should not come at the expense of energy and food security or the ‘normal life’ of ordinary people, President Xi Jinping said, signalling a more cautious approach to climate change as the economy slows.”
Court Delays California Pork Rule Enforcement
Earlier this week, Reuters writer Tom Polansek reported that, “A California court said it will delay enforcement of part of a law aimed at ensuring more humane treatment of farm animals, which opponents warned could lead to pork shortages and higher food prices in the most populous U.S. state.”
Ukraine, Russia Tensions- A Growing Focus of Ag Markets
Robyn Dixon, David L. Stern, Isabelle Khurshudyan, John Hudson and Rachel Pannett reported on the front page of Wednesday’s Washington Post that, “President Biden and Russian President Vladimir Putin traded provocations Tuesday, with the Kremlin broadcasting a new round of military exercises within striking distance of Ukraine and Washington rushing a fresh shipment of weapons to Kyiv while suggesting thousands of U.S. troops could be deployed soon to shore up allies’ defenses in Eastern Europe.”
WSJ: Omicron Brings Renewed Strain to U.S. Food System
Jesse Newman and Jaewon Kang reported on the front page of Monday’s Wall Street Journal that, “The U.S. food system is under renewed strain as Covid-19’s Omicron variant stretches workforces from processing plants to grocery stores, leaving gaps on supermarket shelves.”
China’s Imports of U.S. Soy Rose in 2021, as Administration Walks “Fine Line” on Phase One Trade Deal, Negotiations Continue
Reuters writers Hallie Gu and Dominique Patton reported last week that, “China’s soybean imports from the United States in 2021 rose from the previous year as it stepped up agricultural purchases under a trade deal agreed with Washington, while annual Brazilian shipments fell, customs data showed on Thursday.”
High Fertilizer Prices Impacting Developing Countries and Europe- Food Price Repercussions a Concern
Wall Street Journal writer Jon Emont reported last week that, “From South America’s avocado, corn and coffee farms to Southeast Asia’s plantations of coconuts and oil palms, high fertilizer prices are weighing on farmers across the developing world, making it much costlier to cultivate and forcing many to cut back on production.”
Fertilizer Price Update, and Iowa Crop Production Cost Estimates for 2022
DTN writer Russ Quinn reported this week that, “Retail fertilizer prices continue to be mostly higher the second week of January 2022, according to retailers surveyed by DTN.”
Kansas City Fed: Smaller Loans Limit Ag Lending, as Ag Economy Remained Strong in 2021
In an update last week from the Federal Reserve Bank of Kansas City, “Smaller Loans Limit Agricultural Lending,” Nathan Kauffman and Ty Kreitman stated that, “Smaller sized loans limited agricultural lending activity at the end of 2021.”
China: Focus on Domestic Production, as Soy, Pork Imports Fell in 2021; Corn Imports Hit Record- Meat Production Surges
Wall Street Journal writer Lingling Wei reported last week that, “Beijing is trying to fortify the Chinese economy against a prolonged period of tension with the U.S. and other countries, stockpiling some essentials and planning on more domestic production as it accelerates efforts to make China less dependent on the world.”
Fertilizer Prices Fall, Diesel Prices Climb
Late last week, Bloomberg writers Elizabeth Elkin and Allison Smith reported that, “North American farmers could be looking at less expensive crop nutrients this year, potentially easing the pressure on food costs that have pushed up consumer prices.”
Federal Reserve: Observations on the Ag Economy- January 2022
On Wednesday, the Federal Reserve Board released its January 2022 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.”
Food Prices Up 6.3 Percent Since Last Year
Wall Street Journal writer Gwynn Guilford reported in today’s paper that, “U.S. inflation hit its fastest pace in nearly four decades last year as pandemic-related supply and demand imbalances, along with stimulus intended to shore up the economy, pushed prices up at a 7% annual rate.”
Fertilizer Prices Move Higher, as Brisk Rate of Increases Slows- Pending Tariffs Raising Concerns
DTN writer Russ Quinn reported on Wednesday that, “It’s a new year, but the same story of fertilizer prices moving higher.”