The U.S. Department of Agriculture’s Economic Research Service (ERS) recently released its annual brochure exploring characteristics of America’s farms. Today’s update highlights a few of the key findings from the ERS brochure.
Farm Policy News
2019 Agricultural Outlook- CoBank Report; and Farm Economy News
CoBank recently released a report that explored a variety of issues that will impact the U.S. agricultural economy in 2019. Meanwhile, recent news items have discussed issues associated with farm lending and farm income. Today’s update briefly highlights core points from the CoBank report, and also looks at the recent news items discussing important elements of the agricultural economy.
2019 Agricultural Outlook- Extension Updates
Recent updates from Purdue University, the University of Illinois, and Iowa State University provide a snapshot of variables impacting the U.S. agricultural economy in 2019. Today’s update looks briefly at key points from each of these three land grant university reports.
Kansas City Fed Update: Ag Lending Variables and Farmland Values
Nathan Kauffman and Ty Kreitman indicated in a recent update from the Federal Reserve Bank of Kansas City (“As Rates Tick Up, Growth in Operating Loans Boosts Farm Lending”) that, “Rounding out a year characterized by lower farm incomes, uncertainties about agricultural trade and the growth of lending volumes, interest rates on agricultural loans trended higher. The mounting combination of higher leverage and rising rates could put additional pressure on some farm operations.” Today’s update looks at the Kansas City Fed update in more detail with a particular focus on agricultural lending variables and farmland values.
Ag Trade Issues: EU and China
As the U.S. and European Union trade negotiations unfold, the two sides have competing perspectives over what will be discussed: The U.S. has included agriculture in its Summary of Specific Negotiating Objectives, while the EU has not. Despite the discord, recent trade data indicates that the EU has purchased an increasing amount of U.S. soybeans. Meanwhile, Bloomberg News reported Friday that Chinese negotiators made a “buying spree offer” during the U.S.-China trade discussions earlier this month in Beijing.
Federal Reserve: Observations on the Ag Economy- January 2019
On Wednesday, the Federal Reserve Board released its January 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.
As China Trade Conflict Persists, President Trump Addresses Farm Bureau Members
As he did last January in Nashville, President Donald Trump addressed the American Farm Bureau Federation’s Annual Convention in New Orleans on Monday. Today’s update highlights news reports surrounding the President’s appearance at the convention.
Shutdown Impacting USDA Data and Programs- Market Signals Missing
The partial Federal government shutdown continues. Today’s update points to news items that catalogue some of the impacts of the ongoing budget impasse on USDA data and agricultural markets, as well as disruptions in other USDA administered programs.
China Purchases U.S. Soybeans, and U.S.-China Trade Talks Conclude
As trade talks between the U.S. and China kicked off this week in Beijing, news reports pointed out that China “made their third large U.S. soybean purchase in the past month on Monday.” The trade talks went a day longer than scheduled, and concluded with a statement that noted: “The talks also focused on China’s pledge to purchase a substantial amount of agricultural, energy, manufactured goods, and other products and services from the United States.” Meanwhile, a Financial Times article explored how the ongoing U.S.-China trade row is negatively impacting the U.S. farm sector.
USDA Report- Agricultural Conservation on Working Lands: Trends From 2004 to Present
The USDA’s Office of the Chief Economist (OCE) recently released a report title, “Agricultural Conservation on Working Lands: Trends From 2004 to Present.” A fact sheet that accompanied the report explained that, “The first step toward increasing adoption of conservation practices is to establish a baseline of current adoption rates;” and added that the report, “uses survey data to track U.S. adoption of selected agricultural conservation practices that both reduce GHG [green house gas] emissions and provide additional environmental benefits.” Today’s update includes brief excerpts and highlights from both the report and fact sheet.
Soybean Prices Climb as U.S.-China Trade Developments Unfold
A U.S. government delegation will travel to Beijing this week to discuss the ongoing trade war between the two countries. A recent news article noted that optimism associated with the talks has been a contributing variable in a climb in the price of soybean futures.
Ag Economy: Recent Updates from the Federal Reserve Banks of Dallas and Minneapolis
An update this week from the Federal Reserve Bank of Dallas, as well as a short paper last month from the Federal Reserve Bank of Minneapolis, provide insight into portions of the U.S. agricultural economy.
New Waters of the U.S. Rule From EPA
Last month, on the same day that the Senate passed the Farm Bill Conference Report, and a day before the House took similar action, the Trump Administration released a new proposed waters of the United States, or WOTUS, rule. Today’s update highlights news items that focused on the new proposal.
Government Shutdown: Impact on Soybean Exports and Trade Mitigation Payments
On the night of Friday, December 21st, the U.S. government began a partial government shutdown. Today’s update points to recent news items that highlight how the shutdown may impact information related to U.S. soybean exports, as well as USDA trade mitigation program payments.
Farm Bill Signed, SNAP Proposal Released, and Trade Aid Payments Approved
President Trump signed the Farm Bill into law on Thursday, the same day the executive branch proposed a rule that could impact participation in the SNAP (food stamp) program. And earlier this week, USDA announced that a second installment of payments would be made to some producers negatively impacted by ongoing trade disputes.
Iowa Farmland Values Decrease Slightly Since 2017
A news release Wednesday from the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach indicated that, “After a reprieve in 2017, commodity prices, interest rates, and trade disruptions drove Iowa farmland values down for the fourth time in five years. The average statewide value of an acre of farmland is now estimated to be $7,264. This represents a decrease of 0.8 percent, or $62 per acre, from the 2017 estimate.”
Overview: China Purchases U.S. Soybeans
Reuters writer Karl Plume reported last week that, “China on Wednesday made its first major purchases of U.S. soybeans since President Donald Trump and his Chinese counterpart Xi Jinping struck a trade war truce earlier this month, providing some relief to U.S. farmers who have struggled to find buyers for their record-large harvest.”
House Passes Farm Bill, 369-47
Following quick Senate action on Tuesday, and after surviving a close procedural vote on the Rules for debate, the House of Representatives passed the Farm Bill conference report on Wednesday by a vote of 369 to 47. The measure now heads to President Trump for his signature.
Senate Passes Farm Bill Conference Report, 87-13
A news release on Monday from the House Agriculture Committee stated that, “House and Senate Agriculture Committee Chairmen Mike Conaway (R-Texas) and Pat Roberts (R-Kan.) and Ranking Members Collin Peterson (D-Minn.) and Debbie Stabenow (D-Mich.) today released the text of the bipartisan, bicameral 2018 Farm Bill conference report.” On Tuesday evening, the Senate passed the measure by a vote of 87-13.
U.S. Agricultural Export Data for the First Ten Months of 2018
Last week, USDA released U.S. agricultural export data that spanned the first ten months of 2018. Although the overall value of exports was higher for this time period compared to 2017, there were reductions in both the value and volume of soybean exports, particularly to China. Business news articles also point to continued adjustments in global commodity markets due to the ongoing U.S., China trade war. Meanwhile, recent news items continue to provide more clarity to U.S., China trade activity stemming from last week’s meeting in Buenos Aires.