*This article was originally posted here The U.S. and China remain deadlocked in a major trade dispute. While many sectors have been impacted, the U.S. agricultural sector has paid a heavy price in the dispute. The first major impact on U.S. agriculture came in July 2018 when China imposed a 25% retaliatory tariff on many […]
The Ag Economy Barometer rose in November for the second month in a row, climbing to 153, 17 points higher than in October when the index stood at 136. This month’s rise in the ag economy sentiment index left the barometer tied with July for the highest barometer reading of 2019. Once again, the rise in the […]
Landowners will have a one-time yield updating decision under the 2018 Farm Bill: 1) keep the current Price Loss Coverage (PLC) yield that is assigned to a crop on a Farm Service Agency (FSA) farm or 2) update based on farm yields from 2013 to 2017. This decision can be made for each program crop […]
The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net farm income, a broad measure of profits, is forecast to increase $8.5 billion (10.2 percent) from 2018 to $92.5 billion in 2019. Net cash farm income is forecast to increase $15.5 billion (15.0 percent) to $119.0 billion.” “2019 Farm Sector Income Forecast,” November 27, 2019 (USDA-ERS). “In inflation-adjusted 2019 dollars, net […]
After a dismal performance in September and October, corn demand showed signs of life in November. Ethanol production and export sales picked up the pace over the last few weeks. Expanded placements and higher weights in the livestock sector point toward the potential for an uptrend in feed demand. Corn use appears set to maintain […]
Last week, the Federal Reserve Board released its November 2019 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy. Graph of Fed Districts from, “The Beige Book.” * Fifth District- Richmond– “Farmers were reportedly hesitant to invest in land or equipment because […]
Market Facilitation Program (MFP) payments have served as a significant source of revenue on grain farms in 2018 and 2019. Without MFP payments, average farmer returns would be negative in 2019, and far below any level since consistent records began in 2000. Without MFP payments, 2020 returns are projected to be negative. It is unknown […]
On Monday, the USDA released its Outlook for U.S. Agricultural Trade, a quarterly report from the Department’s Foreign Agricultural Service (FAS) and Economic Research Service (ERS). Today’s update includes highlights from the report, which was coordinated by Kamron Daugherty and Hui Jiang. The Outlook stated that, “U.S. agricultural exports in Fiscal Year (FY) 2020 are projected at $139.0 billion, up $2.0 billion from the […]
Earlier this month, in its monthly Livestock, Dairy and Poultry Outlook, USDA’s Economic Research Service (ERS) explained that, “U.S. trade data through September indicate that in the first three quarters of 2019 total exports of red meat and poultry increased 1.1 percent. However, driven by a large increase in expected fourth-quarter shipments, exports for the year are forecast to increase more than […]
Due to lower corn and soybean yields, 2019 net farm incomes on Illinois grain farms are projected to decline more than $80,000 per farm from 2018 levels. The low yields are partially offset by higher corn and soybean prices and higher MFP payments in 2019 as compared to 2018. Incomes in 2020 are projected to […]