farm economy
Democrats in Congress propose $10 billion in economic aid to farmers
With Congress due to adjourn in 10 days, Democrats proposed $10 billion in economic assistance to farmers nationwide to buffer the impact of lower commodity prices. Senior farm-state Republicans have said substantial aid is needed — $15 billion was mentioned on Wednesday — but House GOP leaders reportedly objected to the offset Democrats would use to pay for the aid.
Equipment sales falter as farm income slows, tariffs a concern, say regional Feds
Farm equipment sales are slowing alongside the downturn in farm income, creating a headwind to overall U.S. investment activity, said the Beige Book, a summary of economic conditions in Federal Reserve Bank districts. In discussing agriculture, the St. Louis Fed said some businesses were building inventory in anticipation of potential tariffs on imported goods.
Boozman calls for ‘significant’ farm aid this year
Congress should authorize "significant economic assistance" to farmers before the end of this year to offset lower commodity prices and high production costs, said the senior Republican on the Senate Agriculture Committee on Monday. "Federal assistance must support agricultural producers facing market losses and it needs to happen quickly," said Arkansas Sen. John Boozman with Congress scheduled to adjourn in three weeks.
Farmers need ‘significant’ federal help to survive drop in income, say senators
“One in five farmers could be pushed out of business by the sharp drop in farm income this year,” said Mississippi Sen. Cindy Hyde-Smith at a Senate hearing on disaster aid, and Arkansas Sen. John Boozman asked how rural America could survive the combination of high production costs and lower commodity prices without “significant help” from the government.
Agricultural activity ‘flat to down modestly’ this fall, says Beige Book
The farm economy stabilized in the Midwest and northern Plains but weakened in much of the country this fall as producers nationwide confronted high costs and lower commodity prices, said the Federal Reserve’s Beige Book on Wednesday. “Agricultural activity was flat to down modestly, with some crop prices remaining unprofitably low,” said the national economic summary.
Land values rise while farm income shrinks in northern Plains
Continuing a four-year trend, land values rose during the growing season in the northern Plains, despite financial tightening in the farm sector, said ag bankers in a quarterly survey by the Minneapolis Federal Reserve Bank.
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.
Farm sector is in a downturn, say economists
After seeing record profitability in 2022, the U.S. farm sector is in a downturn for an indefinite period, said a band of agricultural economists on Monday. Congress could feel pressure to provide a bailout to buffer the decline in income, at the same time that producers try to pare their costs, they said at a conference sponsored by the Agricultural Business Council of Kansas City.
Third year of farm income decline is on the horizon
Lower market prices for many crops and for poultry will pull down farmer income in 2025, bringing the third year in a row of declining net farm income, said the Food and Agricultural Policy Research Institute (FAPRI) on Monday. Net farm income, a gauge of profitability, would fall by 6 percent in 2025 and rebound modestly in 2026, said the University of Missouri think tank.
For rural America, election is ‘certainty vs. chaos’ or Trump as defender, say advocates
Vice President Kamala Harris bears the blame for high prices and declining farm income, said Indiana farmer Kip Tom on Monday, pushing for the reelection of Donald Trump as president. On the contrary, said Harris advocate Rod Snyder, calling the Nov. 5 election "a choice between certainty and chaos," like the Sino-U.S. trade war that cost farmers billions of dollars in lost export sales.
Farm income is down in Plains, say ag bankers
More than six of every 10 ag bankers in a Kansas City Federal Reserve Bank survey said that farm income was lower than a year ago and demand for loans was up. “Strong cattle prices have supported profit margins in the cattle sector, but prices for crops have declined faster than production expenses,” said the regional Fed on Tuesday.
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.”
Farmers’ tax liability to rise as tax breaks expire in 2025
Farmers would face an increased federal tax liability of billions of dollars following the expiration of Trump-era tax breaks in 2025, said USDA economists. The biggest impact, estimated at a combined $4.5 billion, would come from reduced income tax rates on individuals, an increased standard deduction, a cap on the deduction for state and local taxes, and the elimination of the personal exemption.
USDA report looks at ways to grow biomass market
Expanding the market for biomass-based products, which include furniture, bioplastics, and biofuels, would create new sources of revenue for the agricultural sector, said a USDA report released on Thursday. It recommends a broad-ranging effort by the government to encourage greater production.
Vilsack and lawmakers spar over farm economy
During a sometimes prickly House hearing on Wednesday, Agriculture Secretary Tom Vilsack urged lawmakers to buckle down and write a farm bill that does not cut SNAP or climate funds. Republicans on the House Agriculture Committee said the Biden administration has overlooked the needs of the large-scale farmers who produce the bulk of U.S. crops and livestock.
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.
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.