Donnelle Eller reported on the front page of Tuesday’s Des Moines Register that, “Iowa farmers, battling too much rain, cold — and even snow — this planting season, have a new crop of concerns that could devastate commodity prices: An escalating U.S.-China trade war that’s sparked tariffs on pork and, potentially, soybeans; trade negotiations with Canada and Mexico that exploded last week following U.S. tariffs on steel imports; EPA ethanol waivers for oil refiners that undermine demand for ethanol and corn; and, divisions over a new farm bill intended to provide protection to farmers.”
Farm Policy News
Following Some Positive Trade News, Renewed Trade Concerns Arise for U.S. Farmers
Towards the end of May, positive news regarding U.S. trade policy began to emerge for U.S. farmers: China canceled its anti-dumping measure on U.S. sorghum imports; the U.S. issued a joint statement indicating that China would purchase more U.S. exports, including “meaningful increases” in agricultural products; and, the U.S. suspended its threat to impose tariffs on $150 billion in Chinese imports while negotiations with China continued. However, more recent trade developments appear to be less sanguine for U.S. farmers and ranchers, which is the subject of today’s update.
Federal Reserve: Observations on the Ag Economy- May ’18
On Wednesday, the Federal Reserve Board released its May 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.
An Overview of Crop Insurance: Recent Congressional Research Service Report
Earlier this month, the Congressional Research Service (CRS) released a report titled, “Federal Crop Insurance: Program Overview for the 115th Congress.” Today’s update focuses on key highlights from the CRS report.
Farm Bill Update from Chairman Conaway
House Agriculture Committee Chairman Mike Conaway (R., Tex.) was a guest on Wednesday’s “Adams on Agriculture” radio program with Mike Adams. After failing to pass on the House floor Friday due to a tussle over immigration, Chairman Conaway discussed Farm Bill issues going forward in anticipation of the House voting again on the measure.
China Lifts Sorghum Tariffs, Agrees to Purchase More U.S. Goods; U.S. Suspends Tariff Implementation
Late last week China canceled its anti-dumping measure on U.S. sorghum imports. Meanwhile, after two days of trade talks in Washington, D.C., China and the U.S. issued a vague joint statement indicating that China would purchase more U.S. exports, including additional agricultural and energy products. And on Sunday, Members of the President’s Cabinet provided conflicting perspectives on whether the U.S. would move forward on implementing tariffs on Chinese imports. However, news reports Monday indicated that the tariffs had been “suspended.”
Farm Bill Defeated on House Floor- Recap
Siobhan Hughes and Jesse Newman reported on the front page of Saturday’s Wall Street Journal that, “The House defeated a Republican-written farm bill on Friday after GOP leaders couldn’t win over a bloc of their party’s most conservative lawmakers, who were demanding a separate vote soon on a measure to toughen immigration enforcement.”
As House Considers Farm Bill, Lower Farm Income Persists, While Drought Impacts Southern Plains
As the House of Representatives works on passing its version of the Farm Bill this week, a report yesterday from the Kansas City Fed noted that, “bankers in the Tenth Federal Reserve District reported lower farm income and credit conditions for the fifth straight year.” Meanwhile, a recent Wall Street Journal article pointed out that ongoing drought conditions in the southern Great Plains “could punish the agricultural sector, affecting everything from cotton to cattle to farming-equipment sales.” Today’s update looks briefly at these reports regarding the agricultural economy as well as recent articles highlighting House Farm Bill developments.
Trade Update: NAFTA, China
Anthony Harrup, Robbie Whelan and Paul Vieira reported on the front page of today’s Wall Street Journal that, “President Donald Trump’s plans to rewrite the North American Free Trade Agreement this year looked unattainable Tuesday after negotiators appeared too far apart to strike a deal before a deadline this week.”
U.S. China Trade Talks Set to Continue as Trade Row Persists
The United States and China are set to continue discussions this week over their ongoing trade disputes. Meanwhile, China has increased inspections of U.S. pork imports while Chinese buyers continue to cancel U.S. soybean purchases. Also last week, the World Agricultural Outlook Board updated its forecasts for global soybean production and trade.
Federal Reserve Ag Credit Surveys- 2018 First Quarter Farm Economy Conditions in the Midwest
On Thursday, the Federal Reserve Banks of Chicago and St. Louis released updates regarding farm income, farmland values and agricultural credit conditions from the first 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.
Interest Rates on Farm Loans Increase, Pressure on Some Farm Operators Could Follow
Late last month, Bloomberg writer Alan Bjerga reported that, “American farmers have managed to stay afloat despite years of shrinking crop values, the lowest incomes since the recession and a budding trade war with China. Now, they’re feeling a new squeeze — borrowing money is getting more expensive as interest rates rise. For some, it may be fatal.”
USDA Trade Data Update, and China Trade Dispute Weighs on Exports
Late last week, the U.S. Department of Agriculture released updated agricultural trade data for the first half of this fiscal year (October – March). Meanwhile, President Trump sent members of his senior economic team to China for trade negotiations, but those talks ended Friday, “with no deal and no date set for further talks.” Since April, China has canceled and curtailed purchases of key Corn Belt commodities. Today’s update highlights recent news items that explore these developments in greater detail.
Farm Bill Outlook- Perspective From Ranking Member Peterson
House Ag Committee Ranking Member Collin Peterson (D., Minn.) was a guest on Wednesday’s “Adams on Agriculture” radio show with Mike Adams. Rep. Peterson provided his perspective on the status of Farm Bill legislation that was approved by the Committee last month.
U.S.T.R. Hoping for NAFTA Renegotiation This Month
On Tuesday, Wall Street Journal writer William Mauldin reported that, “President Donald Trump’s top trade official wants to finish a renegotiation of the North American Free Trade Agreement by the middle of the month to get a revised pact to a vote in Congress by the end of this year.”
U.S., China Trade Issues: Sorghum, Soybeans
In addition to the concern expressed last week by Senate Agriculture Committee members to Agriculture Secretary Sonny Perdue regarding executive branch trade actions, recent news items continue to highlight the implications of ongoing trade disputes between the U.S. and China, particularly as it relates to sorghum and soybeans.
Farm Bill Outlook- Perspective From Chairman Conaway
House Ag Committee Chairman Mike Conaway was a guest on Thursday’s “Adams on Agriculture” radio show with Mike Adams. The Texas Republican provided his perspective on the status of Farm Bill legislation that was approved by the Committee earlier this month.
Secretary Perdue Discusses the State of Rural America at Senate Ag Committee Hearing- Focus on Trade, RFS
On the one-year anniversary of being confirmed by the Senate as the 31st U.S. Secretary of Agriculture, former Georgia Governor Sonny Perdue delivered testimony on Tuesday to the Senate Agriculture Committee at a hearing titled, “The State of Rural America.” Sec. Perdue was quizzed by Senators about a variety of issues, including trade and the Renewable Fuel Standard (RFS).
China Ag Trade Issues Continue to Percolate- Closer Look at Sorghum, Soybeans
China recently announced anti-dumping measures on U.S. sorghum. Meanwhile, potential action by China on U.S. soybeans continues to concern farm state lawmakers and agricultural producers alike. Today’s update looks at recent news articles that explore these issues, and their potential implications, in greater detail.
Federal Reserve: Observations on the Ag Economy- April ’18
On Wednesday, the Federal Reserve Board released its April 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.