High commodity prices, due in part to warfare in Ukraine, will propel U.S. net farm income to a record $160.5 billion this year, despite a steep climb in expenses, said the Agriculture Department on Thursday. Farm income, a gauge of profitability, would be 14 percent higher than last year.
Market prices for U.S. corn, soy, wheat and cotton will retreat sharply in the 2023-24 marketing year with normal weather and yields around the world, FAPRI said in an update to its agricultural baseline. However, it expects record wheat and cotton prices in 2022-23.
Farmers might still harvest the largest U.S. soybean crop ever, even if a rainy spring kept them from planting as much of the oilseed as they had intended. Meanwhile, growers planted slightly more corn than expected, despite high prices and tight supplies for fertilizer and pesticides, reported the Agriculture Department on Thursday.
Landowners told the USDA they will take 1.7 million acres out of the long-term Conservation Reserve and put it back into crop production, betting on profits from sky-high commodity prices. This year’s “general signup” for the reserve would also bring the smallest amount of land into the reserve …
The largest U.S. farmers and ranchers say the Russian invasion of Ukraine, with its disruption of grain, oil and fertilizer shipping, will drive up their costs of production, according to a Purdue University poll released on Tuesday. The Ag Economy Barometer also showed big operators are tempering somewhat their expectations of soaring input prices.
The Russian invasion of Ukraine will strain world grain supplies for months to come, driving up prices and inflation rates, said a panel of economists on Tuesday. "God forbid we have a weather problem this year," said Dan Basse, head of AgResource Co., who described war in the Black Sea region as the greatest supply shock since World War I.
The red-hot U.S. recovery from the pandemic, with the fastest economic growth rate since 1984, will moderate to a still-strong 3.5 percent in 2022, said the USDA in its first look at the agricultural economy in the new year. Farm-gate prices for corn, soybeans, wheat and cotton, the four most widely planted crops, were projected to decline as production, suppressed by the pandemic, catches up with demand.
After reaching its highest level since 2013, U.S. net farm income would tumble by one-fifth next year, despite continued high crop and livestock revenue, said the Food and Agricultural Policy Research Institute on Tuesday. "Under current policies, farm income could drop again in 2022, as government payments decline and production expenses continue to rise," the think tank said.
With exports in doubt because of hurricane damage to grain elevators near New Orleans, prices for corn, soybeans and wheat, the most widely planted U.S. crops, fell to their lowest levels in several weeks in futures trading on Tuesday. The fall harvest will begin soon and could glut the U.S. market if foreign sales are disrupted.
U.S. farmers will reap two of their largest-ever corn and soybean crops, the first step to assuring an abundant food supply, the government said on Thursday, despite drought damage in the northern Plains and upper Midwest. The wheat crop, meanwhile, will be the smallest in 19 years.
Farmers in the Midwest and Plains are reaping a cash bonanza that has dramatically improved their finances a year after the pandemic pummeled commodity markets and prompted a record $46 billion in federal payments to agriculture, said three regional Federal Reserve banks on Thursday. (No paywall)
U.S. farmers will reap two of their largest corn and soybean crops ever and sell them for the highest average prices since the commodity boom ended several years ago, said the government Wednesday in its first projections of the fall harvest. The USDA also said that global soybean king Brazil would increase its share of the world market at the expense of U.S. exports.
The U.S. economy could grow at its fastest rate — 7 percent — in nearly four decades, with the farm sector sharing in the energetic recovery from the pandemic, said CoBank on Thursday. "Many in the agricultural industry are experiencing the best market conditions since 2013," said the lender in a quarterly assessment of the sector.
U.S. farmers will plant less corn and soybean land than expected this year, despite a surge in commodity prices, suggesting that tighter grain supplies will persist into 2022, said the USDA on Wednesday. Although with normal weather and yields, the corn and soybean harvests could be the second largest ever, they will not be quite as large as projected by traders and the government.
Heartened by sharp increases in commodity prices, farmers and ranchers across the Midwest and Plains are paying off bank loans and opening their wallets for big-ticket purchases, said a report from the Federal Reserve on Wednesday.
U.S. farmers are looking at their largest corn crop ever and a near-record soybean harvest, with huge stockpiles of both crops persisting into fall 2021, said the USDA on Wednesday. Some 2.8 billion bushels of corn would remain in the bin when next year's crop is mature, the largest carry-over since the Reagan era.
Crop and livestock prices could tumble by as much as 12 percent this year due to the coronavirus pandemic, pulling farm income down by $20 billion dollars, said the FAPRI think tank at the University of Missouri on Monday. "A lot of producers already are already in trouble. This is going to make it more severe," said FAPRI director Pat Westhoff. (No paywall)
Some 40 percent of the U.S. corn crop is refined into ethanol, but over the last two weeks, Covid-19 has joined a host of other disrupting factors to create what Geoff Cooper, president of the Renewable Fuels Association, calls “not just a perfect storm for ethanol, but a perfect tsunami.” Since the outbreak, ethanol prices have plunged to an all-time low of 88 cents a gallon and manufacturers are warning of more plant closures and reduced run rates.(No paywall)