On Tuesday, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its Baseline Update for U.S. Farm Income and the Farm Balance Sheet. Today’s update includes brief highlights from the baseline update.
Farm Policy News
U.S., China Trade Dispute Ratchets Higher; USDA Releases September Soybean Estimates
President Trump indicated this week that the U.S. is planning to increase tariffs on Chinese imports, while China responded with proposed tariffs of its own on more U.S. exports. As trade tensions between the two countries increase, the U.S. Department of Agriculture released its latest soybean estimates earlier this month, which provided additional insight into the ongoing agricultural impacts of the trade war.
Quick Take: Farmland Values
Today’s update looks at a variety of information sources that highlight recent developments relating to farmland values, with particular focus on Illinois, Iowa and the States in the Minneapolis Federal Reserve District.
Senate Ag Committee Holds Hearing on U.S. Agricultural Trade
On Thursday, the Senate Ag Committee held a hearing titled, “Perspectives on U.S. Agricultural Trade,” where lawmakers engaged in a discussion with Gregg Doud, the Chief Agricultural Negotiator with the Office of the United States Trade Representative, and Ted McKinney, USDA’s Under Secretary For Trade And Foreign Agricultural Affairs. USDA Chief Economist Dr. Robert Johansson also provided technical background at the hearing.
Federal Reserve: Observations on the Ag Economy- August 2018
On Wednesday, the Federal Reserve Board released its August 2018 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.
U.S. Agricultural Exports Set July Record as China Trade Row Persists
A radio update from USDA on Thursday indicated that U.S. agriculture exports set a record in July. “It’s the best July that the U.S. has seen as far as agricultural exports go, the value total,” said Bryce Cooke, an economist with USDA’s Economic Research Service. The total value of U.S. agricultural exports in July totaled just over $11 billion.
Farm Bill Conference Committee Convenes
DTN Ag Policy Editor Chris Clayton reported Wednesday that, “Conferees on the farm bill understand the economic challenges facing farmers and want to get a farm bill done to provide certainty — a popular word among them — to farmers and rural America. Leading lawmakers on the House and Senate Agriculture Committees met in the U.S. Senate on Wednesday, committing to get a farm bill done by Sept. 30; however, many of the conferees had significant reservations about specific provisions or differences between the House and Senate bills.”
FAPRI 2018 August Baseline Update for U.S. Agricultural Markets
The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri recently released its latest baseline update for U.S. agricultural markets. Today’s post summarizes highlights from the August FAPRI baseline report.
FSA Administrator Highlights Market Facilitation Program; Chinese Ag Imports Projected to Decrease
The Administrator of USDA’s Farm Service Agency (FSA), Richard Fordyce, was a guest on Friday’s “Adams on Agriculture” radio program with Mike Adams, where he discussed details of the new Market Facilitation Program. Meanwhile, USDA released its quarterly Outlook for U.S. Agricultural Trade last week, which noted that agricultural exports to China are projected to decrease.
Farm Income: USDA Forecast for 2018 and First Estimates for 2017
The U.S. Department of Agriculture’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (13.0 percent) from 2017 to $65.7 billion in 2018, after increasing $13.9 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $12.4 billion (12.0 percent) to $91.5 billion.”
USDA Outlines Trade Assistance; While President Trump Touts U.S., Mexico Trade Agreement
On Monday, the U.S. Department of Agriculture provided additional details on its trade assistance package for farmers. Meanwhile, President Trump indicated that the U.S. and Mexico had reached an agreement on trade, which he described as a replacement of NAFTA, in what some observers saw as an effort to pressure Canada in ongoing trade negotiations.
U.S., China Trade Conflict Could Escalate as Talks Floundered; While USDA Sets to Release Trade Aid Details
Recent news reports suggest that trade talks between the U.S. and China last week yielded little progress towards resolution. Some experts indicated that the ongoing trade conflict between the two countries could worsen. Meanwhile, the U.S. Department of Agriculture could release details on its trade aid package as early as Monday.
European Drought Impacting Production, Potential Opportunities for U.S. Farmers
Reuters writer Gus Trompiz reported on Wednesday that, “European farmers are counting the cost of a summer heatwave that has shrunk cereal harvests and shriveled pastures, leaving some farms struggling to survive and shutting the EU out of lucrative export markets.”
Farmers Tested by Tariffs as the U.S. and China Prepare For Trade Talks
Today’s update explores recent news articles that discuss the impacts of the U.S., China trade dispute, with a focus on how farmers are reacting to ongoing tariffs. In addition, midlevel talks between the U.S. and China have been scheduled as the two countries began to prepare for their first major negotiation in more than two months.
Farm Bill Perspective: SNAP and Conservation
As the work of the Farm Bill conference committee progresses, two issues, SNAP and conservation, have been singled out as key to the committee’s success. Today’s update looks briefly at recent news items that contain lawmaker perspective on these two issues.
Farmers Await Details on USDA Trade Assistance
U.S. farmers are anxious for details on the trade assistance package the administration announced in July. Press reports indicate that program guidelines could be issued by August 24th. Meanwhile, business news articles and USDA data continue to shed light on agricultural export variables as the ongoing trade dispute with China continues.
Drought Takes Toll on EU and Australian Wheat Production
In its August Grain: World Markets and Trade report on Friday, USDA’s Foreign Agricultural Service (FAS) stated that, “Combined wheat production in the European Union, Russia, and Ukraine is forecast down 12 percent from last year to the lowest level in 5 years. The EU wheat crop is down 9 percent from last year on hot, dry weather in the northern Member States, while production in Russia and Ukraine is down from recent bumper crops on a return to normal yields.”
Abundant Supply, Lower Prices and Trade Issues- Focus on Soybeans
The U.S. Department of Agriculture painted a clearer picture of soybean and corn production prospects for this year’s harvest on Friday. In addition, recent USDA trade data, along with business news articles, have provided further perspective on U.S. soybean exports, particularly as it relates to China. Today’s update explores a few of these issues in more detail.
Federal Reserve Ag Credit Surveys- 2018 Second Quarter Farm Economy Conditions in the Midwest
On Thursday, the Federal Reserve Banks of Chicago, St. Louis and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2018. Recall that the Federal Reserve Bank of Dallas issued a similar update last month. Today’s update highlights core findings from Thursday’s reports.
Wheat: Heat Wave Impacting Outlook, Prices
Last week, Financial Times writer Emiko Terazono reported that, “The wheat market is feeling the heat, with key global producers sweating over a drought that has curbed output. After several years of bumper harvests, the wheat market is poised to tighten sharply as Russia, Australia and EU countries contend with scorching temperatures.”