Farm Economy
Beijing’s refusal to buy American and its pivot to Brazil could be less about economics and more to do with politics. “It’s a calculated decision about control and national leverage, not about getting the cheapest beans,” says one ag economist.
Farm economists say today’s ag slowdown “isn’t a collapse, but it’s a grind.” From trade woes to rising costs and consolidation, experts warn recovery could take time, even as livestock markets stay strong.
Some row-crop growers are converting acres, banking on long-term opportunities with beef. Others are staying the course with crops but embracing ways to add some dollars to their bottom line in the short-term.
The government shutdown halts USDA marketing loans, cutting off a vital tool for farmers and adding financial strain during harvest season. Experts warn the impact could deepen.
Iowa farmland values remain strong despite lower grain prices and rising financial stress. Tight supply, local farmer demand and low debt keep land prices surprisingly resilient.
Various programs and reports are on hold. Among them are EQIP and SDRP. Also in jeopardy of being delayed or cancelled is the October WASDE, due this Thursday.
Third-generation farmer Amy France and team at NSP are on a mission to improve buyer demand for the crop domestically and abroad.
The Farm Journal September Ag Economists’ Monthly Monitor makes it clear: Working capital is thinning, export markets are shaky and long-term crop margins could get ugly. But for now, one thing is still keeping its strength: Americans’ appetite for beef.
Farm Journal’s September Ag Economists’ Monthly Monitor found nearly half of the ag economists surveyed say the U.S. ag economy is worse off than a month ago and will remain depressed or even worsen over the next 12 months.
Fifty-three percent of agricultural economists surveyed in the July Ag Economists’ Monthly Monitor say the row crops side of agriculture is currently in a recession, which is down from the 72% who responded that way in May.