Farm Economy
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USMEF and Soy Transportation Coalition leaders were among those weighing in on the decision, which could have cost U.S. farmers and ranchers an estimated $1.4 billion a week.
Speaker Mike Johnson (R-La.), commits to fast-tracking Trump’s legislative agenda by May, which is perhaps the biggest bill in American history. There will be unprecedented spending cuts to help pay for it all, along with newly proposed tariffs on imported goods.
A new report from Farmers National Company shows what trends are shaping land values as well as what to expect regionally.
From trade and deregulation to alternative land uses and cash rent prices, ag economists have no shortage of issues on their radar for 2025.
The House of Representatives released its Continuing Resolution text, which includes a one-year extension of the 2018 farm bill, $10 billion in farmer economic aid, $21 billion in ag disaster funding for 2023 and 2024 and year-round E15 sales.
A one-year extension of the 2018 farm bill, tied to the continuing resolution, has sparked intense negotiations over economic assistance to farmers.
Agricultural groups said over the weekend they do not support year-end spending package sans economic aid for ag producers.
As federal policy decisions tend to heavily impact rural industries, the outcome of the 2024 election promises to significantly shape the rural economy in the year ahead. CoBank’s annual report outlines what to expect.
In the third quarter, farm income and loan repayment rates weakened.
“The agricultural economy is inherently cyclical, and ag lenders are navigating the changing conditions across the sectors they serve,” said Jackson Takach, chief economist of Farmer Mac.
Sen. John Thune (R-S.D.) wins Majority Leader race. Sen. Rick Scott (R-Fla.) was eliminated on the first ballot. And Thune beat Sen. John Cornyn (R-Tex.) 29-24 on the second ballot.
Trump garnered even stronger support in rural America versus his still robust rural vote in this first administration. That is likely a backlash against the ag policy moves of the Biden/Harris administration that focused on underserved and minority rural citizens.
Which Presidential Candidate Is More Likely to Tame Inflation or Support Farm Policies and Biofuels?
Ahead of the election, the October Ag Economists’ Monthly Monitor asked economists which presidential candidate will be better for agriculture on taming inflation, providing more certainty on farm policy, as well as more likely to support biofuels policies.
The October Monthly Monitor reflects cautious optimism in certain areas of agriculture, marked by export strengths and potential price recoveries, but shadowed by long-term rebuilding challenges, weather dependencies and the impact of the upcoming election.
As agriculture faces multiple challenges, USDA’s latest net farm income forecast is masking the reality for farmers. While livestock margins have improved for 2024, high input costs and below breakeven prices for row crops means margins could be the worst in nearly 20 years.
Based on a farmer poll and the Ag Economists’ Monthly Monitor, farmers and economists differ on whether Harris or Trump would be better for agriculture, particularly when it comes to trade.
The effects are already visible, with declining French barley exports to China and the U.S. struggling to sell corn for the new season.
USDA’s current net farm income forecasts show a $90-billion plus drop over the two-year period, making it the largest dollar value loss, adjusted for inflation, that agriculture has ever seen.
Agriculture can sometimes act as a buffer during broader economic recessions, as demand for essential food items tends to remain relatively stable. However, when multiple indicators align in the industry, it can signal a recession.
USDA’s Economic Research Service (ERS) will provide an updated 2024 net farm income forecast on Thursday. Economists say the net farm income picture would look even worse it weren’t for improved livestock prices.
U.S. corn prices hit a four-year low as the prospect for record corn and soybean crops takes shape in the field. The eroding outlook also appeared in the August Ag Economists’ Monthly Monitor.
While I do not need the government to tell me how the cost of living has increased, the most recent data for July is now available. To be honest, I question whether the officially reported inflation figures align with what we are experiencing.
A new Kansas City Fed report shows farm incomes continued to weaken, particularly in crop-heavy states like Kansas, Missouri, and Nebraska, while cattle prices provided some support.
Recessions often lead to decreased demand for certain agricultural products, particularly those considered discretionary, such as cotton, dairy, specialty meat products and vegetables. This can result in lower prices for these commodities, affecting farmers’ revenues.
Beginning Sept. 1, Cargill will transform from five enterprises into three: Food, Ag & Trading and a Specialized Portfolio, the memo said.
Testimony at House Ag hearing Tuesday captured the downturn and anxiety in the ag sector.
Federal Reserve Chair Jerome Powell’s testimony before the Senate Banking Committee provided several key insights into the current economic landscape and potential future monetary policy actions.
Headwinds in interest rates, inflation and commodity prices seem to have little impact on land values, though single-digit decreases in Indiana, Kentucky, Michigan and Ohio have been reported.
The Federal Reserve has four more chances this calendar year to cut interest rates. Since July 2023, the system has kept its benchmark interest rate steady at a 23-year high of 5.25% to 5.5%.