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 Policy News
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.
USDA Under Secretary Bill Northey Discusses Prevent Plant Acres and Trade Aid
Bill Northey, the USDA Under Secretary for Farm Production and Conservation, was a guest on Friday’s “Adams on Agriculture” radio show with Mike Adams. Today’s update highlights the parts of Friday’s discussion that focused on prevent plant acres and market facilitation program payments.
Perspectives on Corn Belt Farmland Values
Today’s update highlights recent news items that discuss the value of farmland in Iowa, Nebraska, and more broadly in the Corn Belt.
ERS Report: “Interdependence of China, United States, and Brazil in Soybean Trade”
Late last week, the U.S. Department of Agriculture’s Economic Research Service (ERS) released a report (“Interdependence of China, United States, and Brazil in Soybean Trade,” by Fred Gale, Constanza Valdes, and Mark Ash) that discussed “factors driving China’s imports of soybeans and production in Brazil and the United States, price dynamics, and market adjustments to China’s retaliatory tariff on U.S. soybeans.” Today’s update includes highlights from the ERS report.
Supply Concerns Impacting Corn Prices, as Trade Worries Persist
Recent news items discuss the ongoing impacts of the unprecedented adverse weather that unfolded in the Corn Belt this spring. Corn prices have increased as supply uncertainty persists. Meanwhile, commodity export demand remains a concern as the U.S., China trade spat continues. Today’s update looks at some of these issues in more detail.
Trends in USDA Nutrition Programs, the Largest Farm Bill Expenditures
The U.S. Department of Agriculture’s Economic Research Service (ERS) recently released a report (“The Food Assistance Landscape: FY 2018 Annual Report,” by Victor Oliveira) that examined “trends in U.S. food and nutrition assistance programs through fiscal 2018.” The 15 domestic food and nutrition assistance programs administered by USDA account for over two-thirds of the Department’s annual budget. Today’s update includes highlights from the ERS report.
Persistent Adverse Conditions Disrupt Crop Production Outlook
The most recent crop forecast from the U.S. Department of Agriculture revealed that unprecedented spring weather has already negatively impacted production prospects for corn. Meanwhile, recent news items highlight the ongoing production uncertainty that stems from later than normal planting. The sluggish pace of corn and soybean crop development, along with planted acreage uncertainty, is also clouding the production forecast.