Reductions in the sales value of unpriced grain likely will be the first place where grain farms feel the impacts of COVID-19 control measures. Overall, old-crop sales likely will be reduced from expectations prior to COVID-19 concerns. Some farms will be more impacted by these concerns than other farms. Before discussing old-crop cash flows, a […]
The USDA’s March Hogs and Pigs report pegs the March 1 inventory of all hogs and pigs at 77.6 million head, a record for this quarter and up 4% from a year ago compared to pre-report expectations of 3.5% higher. Although the number is down 1% from last December, it is in general a continuation of the […]
Wall Street Journal writers Siobhan Hughes and Natalie Andrews reported on Friday that, “President Trump signed a roughly $2 trillion stimulus package into law, hours after House lawmakers hustled back to the Capitol to pass the aggressive response to the coronavirus pandemic that has staggered the U.S. economy. “The bill is the largest relief package in U.S. history and extends aid to […]
COVID-19 has reduced grain farm income outlook for 2020. Expected revenue from remaining old crop sales and projected revenue for 2020 are reduced. Somewhat mitigating these reductions are potentially higher payments from commodity title programs. There also is a chance that some input prices will fall, particularly fuel and nitrogen fertilizer prices. Still, income outlook […]
Wall Street Journal writers Jacob Bunge, Kirk Maltais, and Jesse Newman reported on Saturday that, “The new coronavirus is dealing another blow to the struggling U.S. agricultural sector, driving down crop and livestock prices and threatening labor shortages for farms. “Even as consumers clear food staples from supermarket shelves, Midwestern farmers’ prospects have dimmed. Agricultural futures on the Chicago […]
The Creighton University Rural Mainstreet Index (RMI) plummeted in March to its lowest level since October 2016. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, this is the first reading below growth neutral after six straight months above the 50.0 threshold. Overall: The overall […]
Trade conflicts, prevented and late planting, and policy innovations have presented a difficult decision-making environment to farmers over the past several years. The decisions for this spring are now drastically complicated given the rapidly changing situation with the spread of COVID-19 and its attendant health threats and control measures. Currently, a paramount concern is continuing […]
The sharp price drops across equity and commodity markets over recent trading sessions indicate investors foresee a drop off in economic activity over the near term. Only the duration and severity of the economic contraction remain uncertain. A severe contraction extending into the summer does not bode well for agricultural commodity prices. Corn demand will […]
As attention shifts to the 2020 planting season, questions about U.S. acreage – and the potential for the more than 95 million acres of corn- will come into focus. On the one hand, 95 million would be a substantial increase over the 90 million acres planted in recent years. On the other hand, 95 million […]
Bloomberg writers Lydia Mulvany and Michael Hirtzer reported last week that, “In times of economic woe, one of the first luxuries to go is beef. That old adage is so far proving to be true as the global coronavirus outbreak dents demand. “A key U.S. government report Tuesday lowered forecasts for American exports of the meat amid weaker demand, […]