Farm Policy News

In its Feed Outlook report this month, the USDA’s Economic Research Service (ERS) stated that, “Total corn use for 2021/22 is projected at 14,830 million bushels. This number is slightly larger than the 2020/21 record amount of 14,818 million bushels.”

In its monthly Livestock, Dairy, and Poultry Outlook report last week, the USDA’s Economic Research Service (ERS) stated that, “Lower-than-expected October pork exports—at about 541 million pounds—prompted a reduction of 30 million pounds to the fourth-quarter export forecast.” 

Wall Street Journal writers Patrick Thomas and Kirk Maltais reported in Thursday’s paper that, “Fertilizer prices have more than doubled over the past year, frustrating U.S. farmers, who now are adjusting spring planting plans and warning about the potential for higher food prices.”

A news release Tuesday from the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach indicated that, “After several years of modest gains and losses, the average value of an acre of Iowa farmland skyrocketed 29% in 2021.”

In its monthly Oil Crops Outlook report this week, the USDA’s Economic Research Service (ERS) indicated that, “U.S. processors crushed a record 197 million bushels of soybeans in October, nearly 0.5 million bushels higher than the record established in October 2020.”

Last week, the USDA’s Economic Research Service (ERS) released its annual report exploring characteristics of U.S. farms: “America’s Diverse Family Farms: 2021 Edition.”

DTN writer Russ Quinn reported last week that, “Average retail prices for most fertilizers continued to rise at a good clip the first partial week of December 2021, according to sellers surveyed by DTN. Once again, the nitrogen fertilizers maintained their spot as the clear leaders.”

Washington Post writer Rachel Siegel reported last week that, “Prices rose at the fastest pace in nearly 40 years last month, increasing 6.8 percent over the same period a year ago, as inflation continues to squeeze households and businesses nationwide and complicates the political environment for Congress and the White House.”

In an update earlier this month from the Federal Reserve Bank of Kansas City, “Limited Demand for Farm Loans, But Strong Profits for Ag Banks,” Nathan Kauffman and Ty Kreitman stated that, “Agricultural lending at commercial banks continued to decline but showed some signs of stabilizing in the third quarter.”

New York Times writer Raymond Zhong penned an article this week discussing market factors associated with urea, and pointed out that, “[Prices] are soaring to levels not seen in over a decade.”

DTN writer Russ Quinn reported last week that, “Nitrogen fertilizers maintained their spot as the clear leaders as average retail fertilizer prices continued to climb higher the fourth week of November 2021, according to sellers surveyed by DTN.”

Bloomberg writer Grace Gitau reported last week that, “Food prices climbed closer to a record high, giving consumers and governments around the world an even bigger inflation headache.”

On Wednesday, the Federal Reserve Board released its November 2021 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.

The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net farm income, a broad measure of profits, is forecast to increase by $22.0 billion (23.2 percent) from 2020 to $116.8 billion in 2021. This expected increase follows a forecast increase of $15.7 billion (19.9 percent) in 2020.”

Last week, Reuters writer Rod Nickel reported that, “A global shortage of nitrogen fertilizer is driving prices to record levels, prompting North America’s farmers to delay purchases and raising the risk of a spring scramble to apply the crop nutrient before planting season.”

In an update last week from the Federal Reserve Bank of Kansas City, “Farm Real Estate Values Rise Sharply,” Nathan Kauffman and Ty Kreitman stated that, “Farmland values surged in the third quarter according to Federal Reserve Surveys of Agricultural Credit Conditions.”