On Tuesday, the House Appropriations Subcommittee on Agriculture held a hearing regarding the Administration’s FY 2020 Agriculture Department Budget Request, and heard testimony from Secretary of Agriculture Sonny Perdue. During the discussion part of the meeting, significant attention was focused on recent flooding in the Midwest, and disaster aid legislation. Today’s update highlights that discussion, as well as other developments associated with disaster aid legislation.
Farm Policy News
FAPRI Baseline: Pressure on Farm Finances Likely to Continue
A news release yesterday from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri indicated that, “Pressure on farm finances appears likely to continue according to the latest analysis of national and global agricultural trends from the University of Missouri. While the analysis shows a projected net farm income increase in 2019, farm income remains below the average of 2014-17. Longer-term projections suggest little change in real net farm income over the next decade, resulting in continued increases in the farm sector’s debt-to-asset ratio.”
U.S.-China Trade Talks: “Great Progress,” Yet “Some Way to Go.”
Late last week, Los Angeles Times writer Don Lee reported that, “Despite hopes that a U.S.-China trade deal is at hand, President Trump said Thursday that some key issues have yet to be resolved and that they are not close enough for him to announce a summit with Chinese President Xi Jinping.”
House Appropriations Subcommittee on Agriculture Hearing on the Rural Economy
On Tuesday, the House Appropriations Subcommittee on Agriculture held a hearing titled, “The Rural Economy.” Today’s updates provides a brief recap of some of the issues that were discussed at the Subcommittee meeting.
U.S. Soybean Exports to China Increased in February; Trade Negotiations Return to Washington, D.C.
A recent news article reported that Chinese imports of U.S. soybeans increased in February, contributing to a narrowing of the trade deficit between the two countries. Nonetheless, the imports were significantly lower than last February. Meanwhile, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin continued trade negotiations with China in Beijing last week. Chinese Vice Premier Liu He travels to Washington, D.C. this week, as the talks continue.
Diminished Optimism in the Corn Belt
Flooding and gloomy price prospects for corn and soybeans are diminishing optimism in the Corn Belt as spring planting nears. Recent news articles continue to discuss the ongoing negative impacts of Midwestern floods on an already battered farm economy. Meanwhile, corn and soybean prices fell on Friday after the U.S. Department of Agriculture released data relating to prospective planting intentions and grain stocks.
Flooding Brings Additional Concerns for Struggling Ag Economy
A Reuters news article this week stated that, “Frustration is building across farm country at what feels like a never-ending season of bad news.” And an update from the Federal Reserve Bank of Minneapolis recently noted that, “Farmers are dealing with a host of compounding problems.” As spring planting in the Corn Belt approaches, today’s update looks at recent news items that shed light on the condition of the agricultural economy.
Farmland Values and Debt: Illinois, Iowa and Nebraska
Today’s update looks briefly at how relatively steady farmland values are impacting farm financial variables, and then discusses recent developments relating to farmland values in Illinois, Iowa and Nebraska.
U.S., China Trade Talks Persist, While Flooding Compounds Stress on the Ag Economy
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to travel to China next week to start a new round of face-to-face trade talks. As the negotiations continue, many Corn Belt producers face substantial financial losses due to flooding in the Midwest. The ongoing trade uncertainty and flooding come at time when the agricultural economy is struggling to rebound from its peak in 2013.
USDA Agricultural Projections to 2028- Focus on Corn, Soybeans
On Wednesday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector. The report noted that, “Over the next several years, the agricultural sector will continue to adjust to the ongoing China-U.S. trade dispute (which is assumed to last the duration of the projection period). This results in an expected shift away from soybean production in the U.S. due to lower prices and towards corn and wheat which are expected to generate relatively higher returns.” Today’s update highlights aspects of the report that focused on corn and soybeans.
U.S., China Trade Deal Cannot Be Taken for Granted
In testimony last week before the Senate Finance Committee, U.S. Trade Representative Robert Lighthizer displayed a more cautious tone in describing U.S., China trade negotiations. Meanwhile, recent news items provided perspective on variables impacting the trade flows of soybeans and pork to China.
Trump Budget Seeks Subsidy Cuts to Farmers
The executive branch released its Federal budget proposal this week. Like previous Trump administration budget outlines in 2017, and last year, Monday’s framework sought cuts to U.S. Department of Agriculture programs. Today’s update highlights recent news reports that discuss some of the specific items contained in the President’s Fiscal Year 2020 budget request.
Federal Reserve: Observations on the Ag Economy- February 2019
On Wednesday, the Federal Reserve Board released its February 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.
China Purchases U.S. Soybeans and Sorghum, As Trade Talks Face Hurdles
Last week, China purchased U.S. soybean and sorghum exports. Nonetheless, farmers remained concerned about a trade resolution between the U.S. and China as more melancholy reports emerge about progress in the on-going negotations.
2019 Farm Sector Income Forecast, March
The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net farm income, a broad measure of profits, is forecast to increase $6.3 billion (10.0 percent) from 2018 to $69.4 billion in 2019, after decreasing $12.0 billion (16.0 percent) in 2018. Net cash farm income is forecast to increase $4.3 billion (4.7 percent) to $95.7 billion.”
U.S., China Trade: Progress Reported as Secretary Pompeo Visits Iowa
News articles this week reported that a trade deal between the U.S. and China could be close. Meanwhile, Secretary of State Mike Pompeo provided additional trade perspective while visiting Iowa on Monday. Today’s update looks at these developments in more detail.
President Trump Asks China to Lift Agricultural Tariffs
On Friday, Bloomberg writers Joshua Gallu and Millie Munshi reported that, “President Donald Trump said he has asked China to immediately remove all tariffs on U.S. agriculture, including beef and pork, citing progress in trade talks between the two nations.”
Senate Ag Committee Hearing with Secretary Perdue
Following Wednesday’s appearance before the House Agriculture Committee, Secretary of Agriculture Sonny Perdue testified on Thursday before the Senate Agriculture Committee at a hearing titled, “Implementing the Agriculture Improvement Act of 2018.” A variety of topics were discussed at the meeting, today’s update highlights some of these issues including: Trade, and Farm Bill payment limits.
At House Ag Committee, Secretary Perdue Addresses the State of the Rural Economy
Secretary of Agriculture Sonny Perdue testified on Wednesday before the House Agriculture Committee at a hearing titled, “The State of the Rural Economy.” Lawmakers explored a variety of issues in their discussion with Secretary Perdue, including the condition of the agricultural economy, trade, and African swine fever. Today’s update provides some highlights from the Ag Committee meeting with Secretary Perdue.
China Commits to Buy Additional U.S. Soybeans, March 1st Tariff Increases Delayed
U.S., China trade talks resumed last week in Washington, D.C., and extended into the weekend. As the negotiations unfolded, Secretary of Agriculture Sonny Perdue indicated that China committed to buy an additional 10 million metric tons of U.S. soybeans. And citing progress made in the talks, President Trump tweeted Sunday that, “I will be delaying the U.S. increase in tariffs now scheduled for March 1.” News items tracking these developments are highlighted in today’s update.