Have you read the latest insights from the Ag Economists' Monthly Monitor survey series? Economists from across the nation with expertise in crops, livestock and ag policy share their sentiments on the agricultural economy as well as timely topics. Click the link below to learn more!
Will We See a Hard Fall or Soft Landing? It's the Million Dollar Question for the Farm Economy This Year: The latest from Ag Economists' Monthly Monitor https://lnkd.in/geRH4bwM
Federal Reserve Beige Book Summary on the Agricultural Sector https://lnkd.in/gXu9dKN9 #RightRisk #RiskInAg #AgRiskMgt (https://lnkd.in/gjxK_Hn3) Get an update on the agricultural sector by the Federal Reserve in the RightRisk Newsrelease at: RightRisk.org/news (https://lnkd.in/gHzan6Ye). NATIONAL ECONOMIC ACTIVITY continued to expand from early April to mid-May; however, conditions varied across industries and Districts. Retail spending was flat to up slightly, reflecting lower discretionary spending and heightened price sensitivity among consumers . . . Tight credit standards and high interest rates continued to constrain lending growth. Housing demand rose modestly. Conditions in the commercial real estate sector softened amid supply concerns, tight credit conditions, and elevated borrowing costs. Energy activity was largely stable, whereas AGRICULTURAL REPORTS WERE MIXED, AS DROUGHT CONDITIONS EASED IN SOME DISTRICTS, BUT FARM FINANCES/INCOMES REMAINED A CONCERN. Overall outlooks grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks . . .
Virginia was down 61% from '22-'23, costs had risen 19% and gross cash receipts were down 9%. The mid-Atlantic and North East regions carry the worst figures in all 3 cases for the whole country.
U.S. net cash farm income has experienced the steepest two-year decline in history. Our analysts at Terrain look at recent farm sector income projections by the USDA’s Economic Research Service that show how dramatic that loss in profitability has been and where rural economies have experienced the deepest cuts. https://lnkd.in/eSdX9WxK
Great insights from @FarmCredit on the challenges facing agriculture! While the nationwide trend shows a decline in net farm income, it’s encouraging to see states like Nebraska, where cattle and calf operations continue to provide stability. As the nation’s leader of red meat production, Nebraska's cattle industry plays a critical role in keeping rural economies strong. Strong markets for beef, robust export demand, and efficient feedlot operations allow Nebraska producers to maintain cash flow, even when crop revenues face headwinds. It's a testament to the resilience of cattle country – proving again that diversified operations, especially in beef production, remain vital for sustaining agricultural income across the Heartland. #CattleCountry #NebraskaAgriculture #BeefProduction
U.S. net cash farm income has experienced the steepest two-year decline in history. Our analysts at Terrain look at recent farm sector income projections by the USDA’s Economic Research Service that show how dramatic that loss in profitability has been and where rural economies have experienced the deepest cuts. https://lnkd.in/eSdX9WxK
There's no doubt there are growing struggles within the ag economy, but there are also some bright spots! In the June Ag Economists' Monthly Monitor, a survey of nearly 70 ag economists from across the country, we asked economists to weigh in on the most positive and negative aspects of the ag economy in the months ahead. When asked what they view as the most negative aspect of the outlook for the ag economy, the economists said: -Crop prices retreating more rapidly than input costs -Commodity prices below economic break-even production costs -Export outlook for the U.S., specifically the lack of Chinese demand -U.S. trade policy, regardless of party affiliation, with more international trade competition -Constant demand and policy challenges, which adds barriers to existing and new streams of demand “Some farmers made production and investment decisions assuming that wider margins would persist,” notes one economist. While the negatives seem to outweigh the positives right now, the June Ag Economists’ Monthly Monitor also asked economist to weigh in on the most positive aspect regarding the outlook for U.S. agriculture: - Cow-calf operators should have good profitability, especially in areas of the country with good forage conditions -Adverse world weather should boost U.S. exports -The possibility of good yields will help farmers hit their financial goals -Discipline by producers to keep acreage expansion in check and U.S. prices being more competitive in the global market. -Farmers eager to make adaptations necessary to stay in business “There are some really bright producers who are positioned for quick growth in the next 5 to 10 years,” says one economist in the anonymous survey. “They will be positioned to buy farmland as older producers transition.” You can read more about the latest survey here: https://lnkd.in/g5yRUrHd
The USDA Economic Research Service released a report entitled “The Farm Sector Income & Finances: Highlights from the Farm Income Forecast.” Net farm income is forecast at $140.7 billion in 2024, a decrease of $9.5 billion (6.3 percent) relative to 2023 after adjusting for inflation. https://ow.ly/lMYo50UxnkL
With inflation a key issue in today's economy, more investors are turning to farmland as a stable, long-term hedge. 💰🌾 Unlike other investments that fluctuate with market volatility, farmland consistently appreciates in value, produces steady income, and is backed by a growing demand for food. When stocks and bonds are unstable, farmland holds strong. #FarmlandInvestment #InflationHedge #RealAssets #WealthProtection
Want to know more about current and expected market conditions affecting agricultural co-ops? In this 60-minute zoom, Tanner Ehmke, Lead Economist with CoBank, will discuss the issues impacting the macroeconomy, agricultural commodity markets, and the agricultural economy with particular focus on inflation. https://buff.ly/4eqyepq
