Farm financial aid draws increased interest in lame-duck session
With little sign of a breakthrough on the farm bill in Congress, farm groups are shifting their attention to a proposed $21 billion bailout bill. Help is needed because high costs and lower commodity prices are sharply eroding farm income, they say.
Stable near-term corn, soy, and wheat prices at U.S. farm gate, USDA says
For the next few years, season-average prices for U.S. corn, soybeans, and wheat, the three most widely grown crops in the country, will largely mirror the market prices for this year’s crops, projected the Agriculture Department on Thursday. The steep declines in farm-gate prices since 2022 would be replaced by a period of relative stability, according to the USDA’s long-term baseline.
Fears of falling income drive farmer confidence to lowest level in eight years
Farmer confidence tumbled by 21 percent in the past two months to its lowest level since 2016, with three of every four farmers saying they expect bad times for the agricultural economy in the year ahead, said Purdue University on Tuesday. Producers taking part in the Ag Economy Barometer survey said they were worried about declining income because of low commodity prices and high production costs.
Farmers need emergency assistance to offset lower income, says Boozman
The government should provide emergency aid to farmers to help them weather sharply lower commodity prices, said Arkansas Sen. John Boozman, the senior Republican on the Senate Agriculture Committee, on Tuesday. Prompt action on emergency aid should be coupled with enactment of a new farm bill yet this year, he said.
Exports boom as bumper corn crop pulls down farm-gate prices
U.S. corn exports are climbing for the third year in a row and will be the fourth largest on record this trade year, thanks to the mammoth crop now being harvested and falling market prices, said the Agriculture Department on Thursday. The 15.2 billion-bushel crop would be just a hair smaller than the record set last year.
Corn, soy, wheat prices to run at pre-pandemic levels in years ahead
After soaring at the start of this decade, season-average prices for the three major U.S. crops will drop to pre-pandemic levels and stay there for the near term, said a University of Missouri think tank on Thursday. Cattle would be the most notable exception to an overall decline in crop and livestock values.
A long wait for farm subsidies to arrive
The ongoing decline in commodity prices is expected to pinch farmer revenue, but a commonly proposed solution — higher crop support rates — would provide little immediate relief, said farm policy expert Jonathan Coppess on Thursday.
Multiyear run of low corn and soybean prices looms
Corn and soybean farmers should plan for much lower market prices for their crops in the near term, given trends in the futures markets, said six analysts writing at the farmdoc daily blog. “We may be again entering a period of lower prices, like that from 2014 through 2019,” they said.
Lower commodity prices darken farm income outlook, says Federal Reserve
Farmers are on track to harvest some of their largest corn and soybean crops ever, but the ongoing decline in commodity prices is putting farm income in question, said the Beige Book issued by the Federal Reserve Board on Wednesday. Regional Fed banks in Chicago and Minneapolis said the farm income outlook had weakened in recent weeks, while the Kansas City Fed said agricultural conditions in its district “faced headwinds from weak crop prices.”
Value of U.S. corn, soy, and wheat crops slips
The farm-gate value of this year's U.S. corn, soybean, and wheat crops would be nearly 8 percent lower than the 2023 crops due to the continuing decline in commodity prices, according to USDA estimates of season-average prices.
Lower crop returns will pressure farmland market, say analysts
The boom in corn and soybean prices since 2020 is fading away, with lower farm income likely in the near term, wrote three agricultural economists in the farmdoc daily blog. “Returns to farming have declined, suggesting that cash rents should decline as well. How quickly or how much cash rents decline will depend on how far commodity prices fall as well as potential policy responses to those declines,” they said.
U.S. farmers head for back-to-back 15 billion-bushel corn crops
Growers are planting more corn than expected this year and the result could be the second harvest in a row to exceed 15 billion bushels, according to a USDA survey of growers and projected yields per acre. The mammoth crop, only slightly smaller than the record set last year, could drive down farmgate prices for corn.
Second year of lower returns on corn and soybeans
The continued decline in season-average corn and soybean prices since the peaks of 2022 will pinch farmer returns from the crops for the second year in a row, said three analysts writing at the farmdoc daily blog. They estimated that operator and land returns would fall below $300 an acre, levels last seen from 2014 to 2019.
Higher commodity prices soften farm income decline, say banks
Springtime increases in corn, soybean, and wheat prices brightened the outlook for the agricultural sector amid expectations of lower farm income this year than in 2023, said Federal Reserve regional banks in the Beige Book report on Wednesday. The Chicago and Dallas banks said the discovery of bird flu in dairy cattle was a cause for concern.
Big crops and lower prices for U.S. farmers in 2024
American farmers will harvest monster corn and soybean crops this year, including the largest soybean crop ever, at 4.5 billion bushels, and the third corn crop in four years to top 15 billion bushels, projected the Agriculture Department on Thursday. Season-average prices for the crops would fall for the second year in a row from the spike in commodity markets created by Russia’s invasion of Ukraine in 2022.
While still above average, farm income is forecast to fall this year
U.S. farm income will tumble for the second year in a row from the record set in 2022, pulled down by lower commodity prices and rising production costs, forecast the Agriculture Department on Wednesday. Net farm income would fall 25 percent, to $116.1 billion, but still run 15 percent ahead of its 10-year average.
As input prices fall, farmers’ concerns shift to commodity prices
For the past year, the top concern, by far, of U.S. farmers polled by Purdue University has been higher input costs. Now, it's a tie between lower commodity prices and higher input costs at 28 percent each, said the monthly Ag Economy Barometer on Tuesday.
Interest rates rise faster than farmland values, says economist
For the first time since 2001, interest rates are rising faster than farmland values, creating a potential obstacle to land purchasers, said assistant economist Ty Kreitman of the Kansas City Federal Reserve Bank. “With interest costs now above average land value appreciation, farm operating profits will determine the magnitude of returns for financed land,” he said.
Dairy subsidies could cost $19 billion without new farm bill
The cost of price supports for dairy, and for an array of field crops, could skyrocket if Congress allows the 2018 farm law to expire without a replacement, estimated the Congressional Research Service.