We stand at a point of extreme price and policy uncertainty. In the Midwest, corn planting is historically late and many acres are or soon will be eligible for prevented planting payments on corn crop insurance policies. On many farms, corn prices have not increased enough to cause net returns from planting corn to exceed net […]
While not the most encompassing measure of crop productivity, yield, or production divided by land, is easy to compute. Research confirms its value as farms with consistently higher yields are found to be more profitable over time (Nivens, Kastens, and Dhuyvetter, 2002; and Sonka, Hornbaker, and Hudson, 1989). In addition, since land is a foundation […]
USDA’s release of the Crop Progress report on May 20 showed corn planting at 49 percent nationally. The planting progress in numerous major corn producing states lags behind historical averages significantly. The implications for corn acreage and yield are potentially large in 2019. The purpose of this article is to explore the implications of late planting on […]
Examining the competitiveness of soybean production in different regions of the world is often difficult due to lack of comparable data and agreement regarding what needs to be measured. To be useful, international data needs to be expressed in common production units and converted to a common currency. Also, production and cost measures need to […]
This article documents the very late planting that is occurring in 2019, leading to the prospects of lower yields and higher than normal prevented planting from crop insurance. As a result, one suspects that corn prices will increase. For many farms, price increases are needed to cause planting corn to be an economical alternative to […]
Recent news articles and government reports show that African Swine Fever (ASF) continues to have a disrupting impact on soybean and pork markets. Today’s update highlights key points from several of these sources. African Swine Fever: Background and Scope Laura Reiley reported earlier this month in The Washington Post that, “African swine fever is decimating the […]
The U.S., China trade dispute escalated this week, weighing on some agricultural markets. Meanwhile, news reports indicate that the executive branch is working on additional trade aid for farmers negatively impacted by the ongoing dispute. Today’s update highlights these issues in more detail. Background- Trade Tensions Escalate Ana Swanson and Keith Bradsher reported on the […]
Last week, the Federal Reserve Banks of Chicago, St. Louis and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2019. And earlier this year, the Federal Reserve Bank of Dallas released its Agricultural Survey for the first quarter of 2019. Today’s update highlights core findings from the Fed reports. Federal Reserve […]
The Ag Economy Barometer plummeted in April, declining to a reading of 115, an 18-point decline compared to March when the sentiment index stood at 133. The 18-point decline in the index was the fourth largest one-month fall in the barometer since data collection began in October 2015. The barometer’s decline was driven by worsening perceptions of […]
An update last month from the Federal Reserve Bank of Kansas City (“Ag Banks Make Adjustments as Lending Remains Elevated,” by Cortney Cowley and Ty Kreitman) stated that, “According to the National Survey of Terms of Lending to Farmers, non-real estate lending continued to increase at a moderate pace in the first quarter. The volume of non-real estate loans increased […]