farm economy
Small ag banks mitigate the risk of rising demand for farm loans
In an indirect sign of stress in the farm sector, small agricultural banks are making adjustments, such as syndicating loans and charging higher interest rates, to offset risk in the face of high demand for farm loans, said the Federal Reserve in its quarterly Ag Finance Databook. The Fed's Beige Book, meanwhile, said spring floods in the northern Plains and western Corn Belt could put an additional burden on a farm sector coping with low commodity prices.
In new ag platform, Warren pledges to take on Big Ag
Sen. Elizabeth Warren announced her agriculture policy platform Wednesday, three days before she is set to participate in a Democratic presidential candidates’ forum in rural Iowa. The platform calls for curtailing consolidation in agriculture by breaking up big agribusiness companies, reversing agriculture mega-mergers, and more. <strong>(No paywall)</strong>
Rural groups seek larger program to mitigate stress in farm country
Congress put $2 million into a pilot program to address farmer stress and suicide this year, and a coalition of 43 rural and farm groups called today for full funding of the Farmers and Ranchers Stress Assistance Network (FRSAN). In a letter to senators and representatives overseeing the USDA budget, the groups proposed $10 million for fiscal 2020, which opens Oct. 1.
In a generation, mega-farms will dominate ‘production’ ag, analyst predicts
Twenty years from now, vastly fewer but much larger farms will generate the lion's share of agriculture output, said chief executive Brett Sciotto of Aimpoint Research. Speaking at a farm conference on Monday, Sciotto said current trends in agriculture point to 100,000 "production" farmers in the country, one-quarter or one-fifth of the current crop of mid- and large-size farms that dominate the sector.
China will buy 8 percent of U.S. soybean crop, says Trump administration
President Trump put his weight behind an announcement that China, amid negotiations to end the trade war, committed to buy 10 million tonnes of U.S. soybeans. The decision, announced on social media by Agriculture Secretary Sonny Perdue on Friday, would more than double Chinese purchases this marketing year but still
Farmer confidence surges, is highest since trade war began
With Trump tariff payments boosting Corn Belt farm revenue, farmer confidence shot to its highest level since last June, just before the trade war began against China, said the monthly Ag Economy Barometer published by Purdue University. Producers polled by Purdue said they expect ag exports to increase in the years ahead, an indirect sign they expect a beneficial resolution with China.
Trump trade war: ‘We’re going to hang with him,’ says Farm Bureau chief
The Sino-U.S. trade war, which as stymied U.S. farm exports, "is going to be a long one, and we keep delivering the message, 'We're with you, Mr. President,'" said the leader of the largest U.S. farm group on Sunday, adding a caveat. "The runaway of our patience is going to be determined by the financial situation of our farms. We went into the battle very weak." <strong>(No paywall)</strong>
A ‘growing economic storm in farm country,’ says new House Ag leader
There are many challenges facing rural America, said the new House Agriculture chairman, Collin Peterson. "There is a new farm bill to implement, a growing economic storm in farm country to address, and the ongoing harm of a trade war to alleviate, not to mention the range of unforeseen issues that will test the mettle of the people we’re here to serve," said Peterson in a statement over the weekend.
Trump’s tariff bailouts would probably be delayed by USDA shutdown
Federal meat inspectors would report to work as usual and the SNAP and WIC programs would stay in operation if there is a partial government shutdown at the end of this week, according to a USDA plan developed for the brief shutdown early this year. Offices running the farm program would be closed, which probably would mean that Trump tariff payments would be delayed until the government opened again.
Undercurrent of concern among producers about farm economy
Few farmers—only 13 percent—surveyed for the Ag Economy Barometer said they expect farm profitability to improve in the year ahead. "There remains an undercurrent of concern about the farm economy among producers," said the Purdue economists who oversee the monthly gauge of farmer confidence on Tuesday.
The farm-income bump is the bailout by Trump
U.S. farm income will be slightly higher than expected this year due chiefly to $4.7 billion in Trump tariff payments that will buffer the impact of trade war on commodity prices, says the USDA. With the bailout, farmers are forecast to collect $13.6 billion in direct farm payments, the largest amount in 12 years.
Trade war battering farm income
Across the Farm Belt, ag bankers forecast a continued decline in farm income as winter arrives, reported four regional Federal Reserve banks on Thursday. Low commodity prices worry farm lenders, and a Minnesota banker said that the “trade war needs to be resolved to provide stability for customers.”
Most farmers say trade war will reduce their income
These are grim times in farm country, according to a Purdue University poll: One-half of farmers say their farm's financial condition is worse than a year ago and, for the third month, more than 70 percent said the trade war will reduce their net income this year. An equally large share of farmers expect hard times for the ag economy in the year ahead, according to the Ag Economy Barometer released on Tuesday.
Corn and soybean farmers will struggle for profit in 2019
Corn may be more profitable than soybeans in 2019, but that isn’t saying much about the outlook for midwestern farmers, say a pair of agricultural economists from the University of Illinois.
Trump’s farmer bailout: half now, the rest later … maybe
President Trump's promise to protect U.S. agriculture from retaliatory tariffs by China and other countries will be paid on the installment plan — half this fall and the rest in December, or early 2018 if assistance is still needed, said Agriculture Secretary Sonny Perdue on Monday. The USDA announced $6.2 billion in outlays that will begin in September, with soybean growers in line for $3.6 billion of it.
Anxiety mounts in farm country as details lag on Trump’s tariff-driven bailout
With commodity prices dropping and farm income projected to plummet, America’s farmers are growing increasingly anxious over the lack of specifics about how much money they’re going to get, and when they’re going to get it, from President Trump’s $12-billion bailout, reports The Wall Street Journal.
Farm economy weakens in Plains and Midwest, fall outlook grim
The slump in commodity prices that has accompanied the ongoing tit-for-tat trade war has sapped the farm economy this summer and poses financial risks going into the fall, said Federal Reserve banks in Chicago and Kansas City on Thursday.
Produce safety rule will weigh heaviest on small growers
The smallest fruit and vegetable growers will pay comparatively more than big operators to comply with the so-called Produce Rule from the FDA — as much as 6.8 percent of their sales compared with less than 1 percent for big farmers, said three USDA economists 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.