commodity prices
Looking beneath the surface, USDA paper gauges pandemic’s impact
Global trade in food and agricultural products grew by 3.5 percent last year, according to the WTO, leading to descriptions that the sector was robust and resilient in the face of the worst pandemic in a century. However, a USDA working paper says the impact of the coronavirus was obscured by such factors as the de-escalation of the Sino-U.S. trade war.
Vilsack on ag trade with China: ‘They need us’
Although China has yet to fulfill its "phase one" promises of mammoth purchases of U.S. farm exports, "the fact is, they need us," said Agriculture Secretary Tom Vilscak during a digital news conference. He added that, with China back in the U.S. market, commodity prices are high enough that, "I'm not sure there's necessarily a need for any trade-related assistance [to farmers] at this point."
Higher blends and exports to carry ethanol out of pandemic
U.S. ethanol production plunged 13 percent last year due to the pandemic, costing the industry around $4 billion in sales. But it may recover fully by 2023, on the strength of larger exports and rising domestic use of higher blends of ethanol into gasoline, said the Food and Agricultural Policy Research Institute.
USDA projects record-setting corn and soybean crops
U.S. farmers will respond to high commodity prices by harvesting their largest soybean crop ever and a corn crop that could tie the record set in 2016, projected USDA on Friday. Delivered to a hungry world recovering from the pandemic, the 2021 corn and soybean crops would fetch some of the highest farm-gate prices in years.
USDA predicts robust farm income in 2021, aided by market rally
U.S. farm income will be a strong $111.4 billion this year, 20 percent above the 10-year average, thanks to a recovery in crop and livestock revenue and larger than usual federal payments, said the USDA. Higher market prices, particularly for corn, soybeans, cattle and hogs, and larger production were forecast to boost farm receipts by $20.4 billion from 2020's level.
White House reviewing ‘phase one’ agreement with China
China bought a mammoth 5.85 tonnes of American-grown corn last week, including 2.108 million tonnes on the same day that the White House said the "phase one agreement" that de-escalated the trade war was under review. "The national security team, the newly confirmed secretary of state, President Biden are all reviewing all aspects of our national security approach, including certainly our relationship with China," said press secretary Jen Psaki.
Good year for grain-farm income despite pandemic
The typical Midwestern grain farm could generate more than twice as much income this year as in 2019, thanks to higher market prices and large federal payments, said two University of Illinois analysts. The outlook for the new year is much more dour, especially without new stopgap payments.
U.S. and global ag trade resilient in face of pandemic
Partly because food is indispensable, agricultural trade has been remarkably robust despite the disruptions of the pandemic, said Ohio State professor Ian Sheldon during the university's annual agricultural outlook conference. Inventories of key staples are at high levels worldwide so "there's no reason why a health crisis turns into a global food crisis," he said.
Robust U.S. economy, higher commodity prices in 2021, says USDA
A resurgent U.S. economy will grow at its fastest pace in two decades after this year's coronavirus slowdown, helping to boost commodity prices almost across the board, said the USDA in its first projections for 2021. Growers will harvest a record-large crop of soybeans and the crop will sell for an average $10 a bushel for the first time in seven years, thanks to strong demand.
Trump’s trade and coronavirus aid to agriculture could hit $50 billion
With its new offer of $14 billion in coronavirus relief, the Trump administration could spend $50 billion — quadruple the cost of the auto industry bailout — in less than three years to buffer the impact of trade war and pandemic on agriculture. Farm groups welcomed the second round of coronavirus assistance while critics said it was "old-fashioned vote-buying" ahead of the Nov. 3 presidential election.
China buys corn and soybeans ‘to keep me happy,’ says Trump
The expected six-month review of the Sino-U.S. trade agreement failed to materialize on Saturday but President Trump expressed satisfaction with the increasing pace of farm export sales to China. During a news conference, Trump said, "China has been buying a lot of — a lot of things, and they're doing it to keep me happy but they're dreaming about Joe Biden."
High yields, low prices may plant the seed of a larger Conservation Reserve
The 2018 farm law allows an additional 3 million acres into the land-idling Conservation Reserve, partly to offset the low market prices that followed the collapse of the commodity boom earlier this decade. Lawmakers may opt for another expansion of the reserve if farmers face mountains of surplus grain and continued low prices, said two University of Illinois economists.
As coronavirus weakens ag sector, federal payments may be key
If 2019 was stressful for farmers and ranchers, with low commodity prices and bad weather for crops, the coronavirus crisis is compounding the economic challenges this year, said three Federal Reserve banks in recently released quarterly reports. <strong>(No paywall)</strong>
Coronavirus aid limits will be higher than initially proposed
Farmers and ranchers will need assistance from the federal government beyond the $16 billion in cash payments that were promised a month ago, said Agriculture Secretary Sonny Perdue. During a broadcast interview, Perdue said producers will be eligible for more than the $125,000 per commodity that was proposed by the USDA.<strong>(No paywall)</strong>
Farmers to get up to $250,000 each in coronavirus cash, with more possible
Farmers will get cash payments of up to $250,000 apiece — possibly more, depending on the rules — to survive an estimated 20-percent drop in farm income this year due to the coronavirus pandemic. President Trump announced $16 billion in direct agricultural aid and said additional money might be be spent this summer to bolster the sector.<strong>(No paywall)</strong>
One year of coronavirus relief could match two years of trade war aid
The government could spend $25 billion, or more, to help the farm sector survive the coronavirus pandemic and the accompanying economic slowdown, said Agriculture Secretary Sonny Perdue on Thursday. If that happens, the administration will have spent more than $50 billion in three years to mitigate the impact of catastrophic disease and trade war on U.S. agriculture. <strong>(No paywall)</strong>
Coronavirus lands haymaker on U.S. farm sector
In its first assessment since the coronavirus was declared a pandemic, the government forecast lower prices for U.S. crops and livestock as a worldwide economic slowdown, the result of aggressive efforts to squash the virus, weakens the global appetite for food. The notable exceptions are wheat and rice, where panic buying has driven up prices for the food grains, said the USDA on Thursday. <strong>(No paywall)</strong>
Economic impact of coronavirus outweighs federal help, says U.S. farm group
Congress allotted $23.5 billion for agriculture in the coronavirus relief package, but "that amount of money will not sustain" the farm sector, said the president of the largest U.S. farm group. The sector will need "a whole lot more [money] than was in the CARES Act," said Zippy Duvall of the American Farm Bureau Federation.<strong>(No paywall)</strong>
Farmers to get $10 billion in economic assistance
President Biden signed a stop-gap government funding bill over the weekend that calls for speedy payment of $10 billion to farmers to buffer lower commodity prices and high production costs. Congress voted to fund the government through March 14 after a fight that showed the limits of President-elect Trump's control over Republican lawmakers.