Reuters writers Jarrett Renshaw and Humeyra Pamuk reported this week that, “President Donald Trump’s administration has been scrambling to stem the tide of rising anger in Farm Belt states after its decision this month to allow numerous oil refiners to mix less ethanol into their gasoline, sources told Reuters on Tuesday.”
Farm Policy News
Trump Administration Grants Small Refinery Biofuel Waivers, Stirring Ire from Sen. Grassley and Farm State Lawmakers
Earlier this month, the Environmental Protection Agency (EPA) granted 31 small refinery biofuel waivers for 2018, an action relating to the Renewable Fuel Standard (RFS) that has caused concern among farmers and some Midwestern lawmakers that demand for ethanol and other biofuels could be curtailed. The RFS has been a source of conflict between the executive branch and legislative branch, and news that President Trump intervened in this month’s waiver decision has all but assured that clashes will continue.
Recent Perspectives on U.S. Farmland Values
On Thursday, the Federal Reserve Bank of Chicago released a report providing an outlook on farmland values and agricultural credit conditions for the second quarter of 2019. Recall that other Federal Reserve Districts released similar reports last week. A summary of Federal Reserve District agricultural land value and credit reports from the first quarter of 2019 can be found here. Meanwhile, recent updates from USDA’s National Agricultural Statistics Service and Purdue University have also provided additional perspective on farmland values.
U.S. Backtracks on Some Chinese Tariffs Until December
On Tuesday, the Trump administration announced that some recently announced tariffs on Chinese imports would be postponed until December. And a report this week indicated that the ongoing trade war continues to be a factor impacting the soybean market.
U.S., China Trade War Persists as Markets Adjust and Farmers’ Concerns Grow
Today’s update features recent news items that provide background information into the long running U.S., China trade war. Articles highlighting the trade conflict’s impact on agriculture, including ramifications on markets and farm income, are also included.
Federal Reserve Ag Credit Surveys- 2019 Second Quarter Farm Economy Conditions
This week, the Federal Reserve Banks of St. Louis, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2019. And earlier this year, the Federal Reserve Bank of Dallas released its Agricultural Survey for the second quarter of 2019. Today’s update highlights core findings from the Fed reports.
Trade War Escalates: China Halts Purchases of U.S. Farm Products
The U.S., China trade war escalated this week as news articles reported that China has halted its purchases of U.S. agricultural products.
Farm Economy: Loan Repayment Rates, Debt, Bankruptcy, and Production Expenses
Recent news items have highlighted variables associated with the agricultural economy, including: loan repayment rates, debt levels, bankruptcy filings and agricultural production expenses. Today’s update includes a brief recap of some of these articles and reports.
President Trump Announces Additional Tariffs on China; Beijing Pledged to Respond
U.S. and Chinese officials held trade talks on Wednesday in China. News reports noted that increased purchases of U.S. agricultural products were discussed, although no significant breakthroughs were announced at the conclusion of the meeting. Additional talks are scheduled to take place in September. Meanwhile, recent trade data shows that big agricultural purchases by China remain elusive; and on Thursday, President Trump announced additional tariffs on Chinese imports.
USDA Under Secretary Bill Northey Discusses Trade Aid Package
Bill Northey, the USDA Under Secretary for Farm Production and Conservation, was a guest on Monday’s “Adams on Agriculture” radio show with Mike Adams, where the conversation focused on the latest round of Market Facilitation Program (MFP2) payments to farmers.
Sluggish Soybean Sales to China in First Half of 2019, as Trade Talks Continue This Week
As U.S., China trade negotiations continue this week in China, recent news articles have discussed Chinese imports of U.S. soybeans, as well as the prospect of additional Chinese purchases of U.S. farm goods. Today’s update highlights some key points from a few of these business news articles.
USDA Releases Further Details of Trade Aid for Farmers
Recall that back in May, the Trump administration announced a new $16 billion trade aid package for U.S. farmers harmed by the ongoing trade conflict with China. In early June, the U.S. Department of Agriculture released additional details associated with the program. On Thursday, many final points of the program were made available. Today’s update highlights some of these additional program details.
African Swine Fever Impacting Chinese Protein Markets and U.S. Pork Exports
Despite Chinese tariffs on U.S. pork, dynamics associated with the African Swine Fever (ASF) outbreak have created market opportunities for pork exports to China. In addition, Chinese beef imports surged in June, also due to changing protein demand spurred by the impacts of ASF. Separately, news this week documented that U.S. cotton exports to China have fallen, along with domestic prices, while stocks climb. And news on Tuesday indicated that senior U.S. officials are planning to travel to China next week to continue trade negotiations in person.
Kansas City Fed Update: Ag Lending Variables; Farmland Values Relatively Steady
Nathan Kauffman and Ty Kreitman indicated in a recent update from the Federal Reserve Bank of Kansas City (“Large Loans Drive Further Increases in Farm Lending”) that, “Growth in the average size of farm operating loans boosted agricultural lending in the second quarter of 2019.”
China Plans Purchase of U.S. Farm Products, According to Reports
Since U.S., China trade negotiations resumed late last month, conflicting perspectives have emerged with respect to China’s promise to purchase large amounts of U.S. farm products. Today’s update highlights recent news reports that discuss developments in U.S., China trade talks, as well as the issue of Chinese agricultural purchases.
Federal Reserve: Observations on the Ag Economy- July 2019
On Wednesday, the Federal Reserve Board released its July 2019 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.
FAO Report on World Hunger: More Than 820 Million People Are Hungry
Earlier this week, the Food and Agriculture Organization of the United Nations (FAO) released a report titled, “The State of Food Security and Nutrition in the World 2019.” Today’s update includes highlights from the FAO report.
Conflicting Perspectives on China’s Promise to Purchase More U.S. Farm Goods
Recent news reports have noted that U.S., China trade negotiations have been revived, but that China has yet to move forward with large U.S. agricultural purchases, as promised by President Trump. Separately, news items last week also discussed recent U.S. agricultural export data.
OECD‐FAO Agricultural Outlook 2019‐2028: Focus on Corn and Soybeans
A news release on Monday from the Food and Agriculture Organization of the United Nations stated that, “Global demand for agricultural products is projected to grow by 15 percent over the coming decade, while agricultural productivity growth is expected to increase slightly faster, causing inflation-adjusted prices of the major agricultural commodities to remain at or below their current levels, according to an annual report by the Organisation for Economic Co-operation and Development and the UN’s Food and Agriculture Organization.”
Corn, Soybean Production Concerns; While Chinese Tariffs Continue for Second Year
The challenges presented by the extraordinarily bad weather this spring, which have already clouded the production outlook for 2019, continue to plague many farmers as the summer growing season unfolds across the Corn Belt. Meanwhile, Saturday marked the one year anniversary of China’s imposition of tariffs on U.S. agricultural products. Aid from the federal government has helped dull the tariff’s sting, but trade issues continue to linger for producers, with many concerned about the long-term impacts of the ongoing trade war. Today’s update looks at recent news items that highlight these issues in more detail.