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.”
Farm Policy News
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.
Stable Agricultural Land Values Settle Farm Balance Sheets, For Now
Financial Times writers Gregory Meyer and Robert Armstrong reported earlier this month that, “Despite a half-decade of falling grain prices, Midwestern farmland has held much of its value, and has become the foundation for a borrowing boom. Farm debt across the US has risen to $427bn, close to amounts that preceded the 1980s agricultural crash, when adjusted for inflation.”
Federal Reserve: Observations on the Ag Economy- May 2019
Earlier this month, the Federal Reserve Board released its May 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.
Senate Agriculture Committee Trade Hearing- USMCA, China, and MFP Payments
On Thursday, the Senate Agriculture Committee held a hearing titled, “Certainty in Global Markets for the U.S. Agriculture Sector.” Lawmakers discussed the USMCA, the ongoing trade negotiations with China, and sought additional details on the Administration’s second round of trade mitigation payments for farmers, which was announced last month. Recall that a House Agriculture Subcommittee held a trade related hearing on Tuesday.
House Ag Subcommittee Agricultural Trade Hearing- USMCA Approval “Vital”
On Tuesday, the House Agriculture Livestock and Foreign Agriculture Subcommittee held a hearing highlighting agricultural trade issues. Lawmakers discussed the USMCA, the ongoing trade negotiations with China, and the impact that trade conflicts are having on U.S. farmers. Meanwhile, recent news articles have discussed the potential progress of trade related legislation.
Additional Information on Disaster and Trade-Related Assistance from USDA
A news release from the U.S. Department of Agriculture on Monday provided additional details regarding disaster aid and trade-related assistance for farmers this year.
Positive Trade News with Mexico in the Midst of an Awful Spring for Planting
As a dreadful spring for planting limps into the second week of June, producers continue to assess the impacts of record Midwestern precipitation on corn and soybeans. Meanwhile, a welcome ray of good news appeared on Friday as President Trump announced that the U.S. would not be implementing tariffs on imported Mexican goods.
After an Unprecedented Spring, Planting Decisions Unfold for Corn Belt Farmers
Washington Post writers Andrew Van Dam, Laris Karklis and Tim Meko reported on Tuesday that, “Corn Belt farmers are used to being at the mercy of the weather. But they are not used to the weather being quite this merciless.”