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.
Higher prices for corn, soybeans, hogs, cattle, and broiler chickens — top U.S. ag products — will boost net farm income to $113 billion this year, the highest since 2013, estimated the Agriculture Department on Thursday. Income would be 26 percent higher than the 10-year average, reflecting the economy-wide recovery from the pandemic.
Propelled by the global economic recovery from the pandemic, U.S. farm exports will set back-to-back sales records this fiscal year and in the new year beginning on Oct. 1, the government forecast on Thursday. China would account for $1 of every $5 in exports during the two-year span, with annual purchases running more than $10 billion above its previous record, set in 2014.
Half of the farmers in the biggest corn, soybean, and wheat states employ precision agriculture in their operations — from GPS guidance of tractors and combines to deploying drones to scout fields or monitor livestock — twice the national average, said a USDA report on computer usage on Wednesday. Far more farms have a cellular internet connection than broadband; 18 percent have no internet access at all.
Fueled by strong commodity prices and continued pandemic assistance, farmland values are skyrocketing, up by 14 percent in the central Midwest and by 10 percent in the central Plains, said the Federal Reserve banks in Chicago and Kansas City on Thursday.
America’s large-scale farmers and ranchers expect rampant inflation and sharply higher costs in the year ahead, said a Purdue University poll on Tuesday. The monthly Ag Economy Barometer said farmer confidence was at its lowest level in a year despite high commodity prices and large federal …
When crop insurance indemnities and unemployment benefits are counted, the government sent $57.7 billion to farm operations and farm households in 2020, while the pandemic sent the U.S. economy into recession, said a working paper by USDA economists. It was the highest estimate yet of federal assistance to farmers last year and the most inclusive.
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)
With federal pandemic aid in their hands, farmers and ranchers borrowed far less money than usual from ag bankers during the opening months of this year for equipment, livestock, and operating expenses, according to a Federal Reserve survey of commercial lenders.