farm economy
Highest farm income in eight years, but one-third comes from government
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.
High prices, strong demand mean back-to-back records for U.S. ag exports
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.
Euphoria fades as farmers fret over inflation, rising costs
Heartland embraces precision agriculture practices
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.
Farmland values soar despite pandemic
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.
ERS: Nearly $58 billion to farmers in pandemic year
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.
Flush times for farmers, buoyed by strong markets and pandemic aid
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. <strong> (No paywall) </strong>
Operating loans drive decline in ag lending
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.
After Covid’s chill, a hot recovery is at hand
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.
Large ag exports to China create risk for U.S., says FCA chief
U.S. agriculture is running the risk of becoming overly reliant on large exports to China just over a year after Washington and Beijing de-escalated their trade war, said the head of the Farm Credit Administration on Wednesday.
Farm income improves significantly, say ag bankers
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.
Strongest farm outlook in years, say ag bankers
Financial breather for 10 percent of USDA borrowers
The Biden administration on Wednesday announced a temporary suspension of past-due debt collections and foreclosures of farmers who borrowed money from the USDA and are in financial distress.
Farm sector rebounding but may need more aid, says Duvall
The farm economy, battered since 2018 by a trade war and a pandemic, is rallying, though it is too early to declare a return to prosperity, said the president of the largest U.S. farm organization on Thursday, reserving judgment on whether more stopgap federal aid will be needed.
Fruit and vegetable growers face coronavirus squeeze
With Americans spending more of their food dollars at the supermarket, the specialty crop sector will continue to adapt to the pandemic and the loss of food-service sales in the new year, said agricultural lender CoBank. "Steep financial losses from the loss of food service contracts will ultimately result in the rationalization of some processing assets and production acreage."
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.
Federal payments offset declines in farm revenue
Government payments have improved the outlook for farm finances, but like the general economy, that outlook remains highly uncertain amid the pandemic, said a Federal Reserve report on Thursday.
Financial stress rising in farm sector
The margin for error is shrinking in the farm sector as financial stress, measured by rising debt loads and the erosion of working capital, is rising, said Todd Van Hoose, chief executive of the Farm Credit Council on Wednesday.
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.