Farm Policy News

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.”

Bloomberg writer Elizabeth Elkin reported on Friday that, “World fertilizer prices continue to soar as tightening supplies send costs up for farmers and consumers across the globe.”

In an article last week from the Federal Reserve Bank of Minneapolis, “Even with severe drought and supply chain woes, farms remain in good financial shape,” Joe Mahon pointed out that, “A year into a tenuous recovery in agriculture driven as much by government support as by market conditions, widespread and severe drought could be expected to be a major setback.”