Ag Quarterly Newsletter
|
|
- Ilene Nicholson
- 6 years ago
- Views:
Transcription
1 Agricultural Finance Ag Quarterly Newsletter Winter 2018 Agricultural Economy The agricultural economy improved modestly in In November, the USDA released its updated estimate for net farm income. If realized, net farm income in 2017 will be $63.2 billion, marking the first year-over-year increase since The upward revision to the USDA s estimate was primarily driven by stronger than expected fundamentals in the livestock sector. However, annual crop farmers continue to struggle with low agricultural commodity prices due to oversupply. We expect 2018 to be similar to 2017 as the U.S. farm sector enters a modest recovery following a four year slump. However, the potential for a U.S. withdrawal from the North American Free Trade Agreement (NAFTA) represents a downside risk to the outlook, as the farm sector relies heavily on trade. Reduced access to key agricultural markets in Canada and Mexico could cause inventories of U.S. farm products to continue rising, further prolonging the downturn.
2 Land values showed signs of stabilization in 2017 despite continued low commodity prices and rising interest rates. USDA data show that, adjusted for inflation, 1 national cropland values in 2017 were below recent peaks, with the largest declines occurring in Kansas, Nebraska, South Dakota, Iowa, and North Dakota, respectively (see Figure 1). We expect farmland values to continue declining into 2018, but as Figures 2-3 indicate, multiple surveys and agricultural land value indices point to a slowdown in the pace of the declines. Changes in the yield curve may provide some insight into the stabilization observed in the farmland market in Although the Federal Reserve raised the federal funds rate two times in 2017, longer-term interest rates did not follow suit. As Figure 4 shows, the rise in short-term interest rates was not accompanied by a rise in longer-term interest rates and as a result, the yield curve flattened. Farmland Indicators Figure 1 Inflation-Adjusted Declines from Recent Peaks in Cropland Values by State Kansas Nebraska South Dakota Iowa North Dakota North Carolina Indiana Illinois West Virginia Wyoming Michigan Minnesota Ohio Virginia Arizona -16% -15% -14% -11% -10% -9% -8% -8% -6% -6% -5% -5% -4% -4% -4% Figure 2 Creighton Farmland Price Index Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: USDA, MIM The Creighton Farmland Price Index tracks farmland value momentum relative to a base value of 50 (growth neutral). Source: Rural Mainstreet Index, MIM Figure 3 Kansas City Federal Reserve Figure 4 Treasury Yield Curve 4-Quarter Rolling Year-Over-Year Change 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% Irrigated Farmland Ranchland 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2012-Average 2017-January 2014-Average 2017-December Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Month 3-Month 6-Month 1-Year 3-Year 5-Year 10-Year 20-Year 30-Year Source: K.C. Federal Reserve AgFinance Databook, MIM Source: Haver Analytics, MIM 2 Ag Quarterly
3 Since yields on government notes and bonds are a proxy for the cost of capital in the economy, the flattening of the yield curve suggests that the cost of increasing the term of an obligation has declined. This has benefitted the farm sector, as the cost (the increase in interest rates associated with a longer loan term) for farmers to extend the maturity of their liabilities to reduce debt payments and, in some cases, supplement working capital, is low from a historical standpoint. For illustration purposes, Table 1 shows a hypothetical purchase of a 160 acre farm in 2012 for $10,000 per acre. Assuming the purchasers used 60% debt financing, a 15 year loan term, and a 4.44% interest rate, 2 the monthly payment would be $7,312. The principal outstanding on this loan in 2017 would be approximately $708,000, representing 49% of the total farmland value if farmland values are 10% below 2012 levels. As the columns shaded in green show, this hypothetical farmer could refinance the loan and increase the principal amount back to 60% of the property value, increasing working capital by over $156,000 and lowering the monthly payment between 10% and 32% depending on the loan maturity selected. While this example is admittedly oversimplified, it highlights how the flattening yield curve has provided farmers with options to offset the negative impact of low commodity prices, and has likely helped keep farmland off the market. Table 1 Original Loan Refinanced Loan Years Remaining Acres Land Value/Acre $10,000 $9,000 $9,000 $9,000 $9,000 Farmland Value $1,600,000 $1,440,000 $1,440,000 $1,440,000 $1,440,000 Loan Amount $960,000 $707,685 $864,000 $864,000 $864,000 LTV 60% 49% 60% 60% 60% Interest Rate 4.44% 4.44% 4.50% 4.60% 4.77% Monthly Payment $7,312 $7,312 $6,610 $5,513 $4,517 Working Capital Supplement Annualized Savings from Reduced Payment $156,315 $156,315 $156,315 $8,434 $21,595 $33,539 3
4 Annual Crops Following four years of rising inventories and declining prices, U.S. annual crops continue to be in a state of oversupply, with a reduction in acreage and/or crop yields remaining elusive. The USDA currently expects the U.S. corn and soybean stocks-to-use ratio, which measures ending inventories as a percentage of expected use, to increase to 17% and 11%,3 respectively, in the 2017/2018 marketing year. Although not unprecedented, stockpiles of these magnitudes dampen hopes for a significant price recovery absent a notable weather event. As is generally the case early in the year, market participants are beginning to shift their focus to U.S. farmer planting intentions for the 2018/19 marketing year. In late November 2017, the USDA released its long-term agricultural baseline projections which offered an early glimpse into expectations for next year. Despite the aforementioned large inventories, the USDA projects greater profitability for corn and soybeans compared to wheat and cotton, resulting in a corresponding shift in acres (see Figure 5). Figure 5 USDA Projected Acreage Shift in 2018 (millions) Sorghum 1.00 Soybeans Corn Barley Rice Oats Interestingly, over the long-term, the USDA projects farmers will Wheat favor soybeans over corn. For the first time since 1983, soybean Upland Cotton 1.20 acres are expected to match corn acres in 2018 and then surpass them thereafter. This projection the dethroning of King Corn Source: USDA Long-term Agricultural Projections reflects a stronger demand outlook for soybeans compared to corn, despite the large current inventories of both. The USDA projects the soybean-to-corn price ratio, which represents a relative measure of profitability between the two crops, will average 2.80 over the next decade. This is well above the five-year average (2.61) and the long-term average (2.48) and reflects the growing global appetite for soybeans.4 In 2017 alone, global consumption of soybeans increased 5%, led by an 8% increase in China.5 Permanent Crops In 2017, new orange varieties and the recent tax bill have provided hopes of some relief to Florida citrus farmers who have been impacted by natural disasters and citrus greening. Meanwhile, tree nuts continued to benefit from strong global demand. Florida orange production declined for the 10th consecutive season in 2017 due to a combination of Hurricane Irma s landfall in September and disease pressure. However, a provision in the recently passed tax bill may provide relief in 2018 and beyond. The Emergency Citrus Disease Response Act of 2017 incentivizes the replacement of damaged or destroyed trees due to casualty by allowing the full expensing of replanting costs for farmers who have an equity interest of no less than 50% in the replanted citrus. Previously, farmers had to bear the full cost of replacement to qualify for the expensing benefit. The Act also gives the purchasers of land with infected trees this same benefit.6 This resolution provides relief to a sector still 4 Ag Quarterly
5 struggling with the effects of Citrus Greening a bacterial disease behind the 81% decline in Florida orange production between 2003 and Recently developed orange varieties that have shown tolerance to Citrus Greening will further incentivize producers to replant orchards. 8 While researchers believe a disease-resistant tree will be developed in the near future, the Emergency Citrus Disease Relief Act will help Florida farmers adopt tolerant varieties. Initial reports show large harvests of most tree nut varieties in 2017, including the projected second largest walnut and pistachio harvests on record at 1,300 and 575 million pounds, respectively. 9 Additionally, 2017 s almond harvest is forecast to hit a record 2.25 billion pounds, an increase of 5% compared to last year s record crop. 10 Despite these large harvests, strong export demand from the Eurozone and Asia has provided support for tree nut prices. Export prices for pistachios, pecans, and walnuts were 8%, 10%, and 27% higher in 2017 than 2016, respectively. 11 Although large inventories will likely limit further tree nut price appreciation in the near-term, we expect a strong global economy to help drive exports and prevent further growth in inventory levels. Livestock Low feed costs and favorable red meat and poultry prices supported profit margins for livestock producers in 2017, and incentivized expansion in the sector. Supplies of red meat and poultry increased 2.5% compared to 2016, with the domestic market and exports absorbing 67% and 28% of the increase, respectively, and the balance of the increase (5%) going to cold storage. 12 Red meat and poultry export volumes increased 5% in 2017, driven mainly by demand from Asia. 13 Compared to 2016, beef exports to China and Japan increased 20% through Q3 2017, 14 aided by a drought that reduced Australia s beef herd to its smallest size in twenty years. 15 Additionally, U.S. pork producers continue to benefit from the Korea-U.S. Free Trade Agreement (KORUS) as pork exports to South Korea grew 27% year-over-year through Q Prices received by farmers for most livestock products have risen in 2017 despite increases in production, suggesting a favorable shift in demand. On a year-over-year basis, the USDA s aggregate Livestock Prices Received by Farmers Index rose 7% in Q (see Figure 6). Indices for the pork and poultry/egg sectors experienced the biggest year-over-year increases at 11% and 16%, respectively. A major tailwind for the livestock sector in 2017 was the low cost of feed, which was driven by the aforementioned large annual crop inventories. In 2018, we expect exports to grow an additional 5% as low feed costs encourage expansion in the livestock sector. 17 However, uncertainty surrounding trade policy represents a downside risk to this outlook as the U.S. is currently renegotiating NAFTA. A proposed complete withdrawal from NAFTA could reduce exports and lead to lower livestock prices, potentially halting the expansion. Figure 6 Prices Received by Farmers (Year-Over-Year Change) 30% 20% 10% 0% -10% -20% -30% -40% -50% Q Q Q Q Q Q Livestock & Products Q Q Q Q Q Feed Grains Q Q Q Q Q Q Q Q Source: USDA and Haver Analytics 5
6 Agribusiness The agribusiness sector, which includes a large and diverse group of businesses focused on the processing and marketing of raw agricultural commodities, has benefitted from a period of low input costs. However, recent increases in farm-level commodity prices could cause profits for the sector to normalize in The Census Bureau s Quarterly Financial Reports provide information on the financial results of U.S. food manufacturers, serving as a proxy for overarching conditions in the agribusiness sector. Food manufacturers have enjoyed above average profit margins 18 since Q High profitability levels over this period have occurred despite declining food prices, as farm-level prices (input costs) have declined at a faster rate than the prices food manufacturers receive for their finished goods. Figure 7, which displays food manufacturer profit margins and the Producer Price Indices for processed foods and farm products, illustrates this relationship. The faster growth in farm prices from Q to Q weighed on profit margins, while the subsequent decline in farm prices in 2015 and 2016 contributed to profit margin growth. This dynamic shifted again in 2017 as farm prices began rising due to higher livestock prices. If the trend of higher farm prices continues, food manufacturer profits could begin to normalize in Figure 7 Food Manufacturer Profits and Food Price Indicies Food Manufacturer Profit Margins (LHS) PPI Processed Foods (RHS) PPI Farm Products (RHS) 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 100= 2010 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: Haver Analytics Timber U.S. timber markets continue to be characterized by regional differences. Tight supplies in the Pacific Northwest (PNW) are driving log prices higher, while large log supplies in the U.S. South are limiting the potential for substantial price increases in the near-term. In Q4 2017, log prices in the PNW increased 20% compared to Q4 2016, 19 while log prices in the U.S. South declined 2.5%. 20 Timber demand drivers remained strong in Q Housing starts reached an annualized level of 1.3 million starts in November, representing a year-over-year increase of 13%, and in line with our long-term forecast published in Softwood log exports by volume were unchanged YTD through November relative to the same period in 2016, but log export prices rose 13% due to strong demand from China and South Korea. 22 In the U.S. South, stable log and lumber demand drivers and historically low log costs are driving significant investment in wood processing capacity. Forest Economic Advisors 6 Ag Quarterly
7 estimates processing capacity in the region will increase by 1.4 billion board feet through 2020, representing an 8% increase from 2016 levels and a 20% increase from Increased processing capacity will lead to increased log consumption in the region, and bring supply and demand conditions into balance. Endnotes Excluding the Northeast, values in constant 2016 dollars. Interest rates are MIM internal estimates derived from Kansas City Federal Reserve Agricultural Finance Databook and anecdotal evidence. 3 USDA World Agricultural Supply and Demand Estimates Reports, January USDA NASS Quick Stats, January 11, USDA Foreign Agricultural Service Global Agricultural Trade System, January 12, Emergency Citrus Disease Response Act of 2016, 26 USC 263A (2017), 7 USDA NASS Quick Stats, January 11, Promising new citrus varieties for greening tolerance, University of Florida, December 18, USDA NASS, September 2017 Forecast. 10 USDA Fruit and Tree Nut Outlook, September FAS Global Agricultural Trade System, January Livestock Marketing Information Center, January USDA Foreign Agricultural Service Global Agricultural Trade System, January 12, USDA Foreign Agricultural Service Global Agricultural Trade System, January 12, Beef Exports, Beef Central, January 3, USDA Foreign Agricultural Service Global Agricultural Trade System, January 12, Livestock Marketing Information Center, January Before-tax operating profits as a percentage of sales. 19 RISI Log Lines, November TimberMart South Quarterly Market Bulletin Q Millennials, Housing, and the Timber Demand Recovery, MetLife, FAS Global Agricultural Trade System, January FEA Quarterly Forecast Service Lumber, November
8 MetLife s Agricultural Finance Group ranks among the most active private agricultural, agribusiness and timberland mortgage lenders in North America, with a total agricultural mortgage portfolio of almost $15 billion.* We specialize in providing intermediate and long-term fixed and adjustable rate mortgage financing. Our regional network keeps us close to our markets and better positioned to serve your long-term mortgage financing needs on a variety of property types, including dry land and irrigated farms, permanent plantings, ranchland, food and agribusinesses, timberland and forest product companies. Fresno, CA Overland Park, KS Memphis, TN, and a consulting office in São Paulo, Brazil. Agricultural Market Research Eric Rama Head of Agricultural Research Blaine Nelson Associate, Agricultural Research All information contained herein has been obtained by MetLife from sources believed by it to be reliable. The analysis, opinions, forecasts and predictions contained herein are believed by MetLife to be as accurate as the data and methodologies will permit. However, MetLife makes no representations or warranties, either expressed or implied, to any persons as to the completeness, accuracy and reliability of such information, forecast and/or predictions and expressly disclaims any liability with respect to any of the foregoing. *Includes MetLife general account assets and assets managed on behalf of external clients as 9/30/17. MetLife Mastin Blvd., Suite 930 Overland Park, KS L [exp1219][All States] 2018 METLIFE, INC.
Jason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch April 25, 2012
Jason Henderson Vice President and Branch Executive April 25, 2012 The views expressed are those of the author and do not necessarily reflect the opinions of the Federal Reserve Bank of Kansas City or
More informationSOYBEANS: LARGE SUPPLIES CONFIRMED, BUT WHAT ABOUT 2005 PRODUCTION?
SOYBEANS: LARGE SUPPLIES CONFIRMED, BUT WHAT ABOUT 2005 PRODUCTION? JANUARY 2005 Darrel Good 2005 NO. 2 Summary USDA s January reports confirmed a record large 2004 U.S. crop, prospects for large year-ending
More informationAgriculture: expansions highlighted developments
Agriculture: expansions highlighted developments A broad-based expansion in livestock production and another bumper grain harvest highlighted agricultural developments in 1976. Meat production rose 9 percent
More informationCold Storage Industry Outlook
Agricultural Finance Cold Storage Industry Outlook Executive Summary Market conditions in the cold storage sector remain healthy in 2017, with strong leasing activity and rising rents. However, the large
More informationCORN: DECLINING WORLD GRAIN STOCKS OFFERS POTENTIAL FOR HIGHER PRICES
CORN: DECLINING WORLD GRAIN STOCKS OFFERS POTENTIAL FOR HIGHER PRICES OCTOBER 2000 Darrel Good Summary The 2000 U.S. corn crop is now estimated at 10.192 billion bushels, 755 million (8 percent) larger
More informationOUTLOOK FOR US AGRICULTURE
Agricultural Outlook Forum 216 OUTLOOK FOR US AGRICULTURE Robert Johansson Chief Economist 25 February 216 Fig 2 Main themes for 216 1. The macroeconomy is weighing on trade, but there are reasons for
More informationSOYBEANS: FOCUS ON SOUTH AMERICAN AND U.S. SUPPLY AND CHINESE DEMAND
SOYBEANS: FOCUS ON SOUTH AMERICAN AND U.S. SUPPLY AND CHINESE DEMAND APRIL 2002 Darrel Good 2002-NO.4 Summary Soybean prices during the first half of the 2001-02 marketing year were well below the prices
More informationHog:Corn Ratio What can we learn from the old school?
October 16, 2006 Ames, Iowa Econ. Info. 1944 Hog:Corn Ratio What can we learn from the old school? Economists have studied the hog to corn ratio for over 100 years. This ratio is simply the live hog price
More informationMinnesota Agricultural Exports
Minnesota Agricultural Exports Minnesota ranked No. 4 in agricultural exports among all states 2018 Update 10 pages Prepared by Su Ye, Chief Economist Minnesota Department of Agriculture, Agricultural
More informationNovember 18, 1996 Ames, Iowa Econ. Info. 1706
November 18, 1996 Ames, Iowa Econ. Info. 1706 LEAN HOG CARCASS BASIS The new Lean Hog futures contract differs from its predecessor in several ways. It is traded on carcass weight and price rather than
More informationAnalysis & Comments. Livestock Marketing Information Center State Extension Services in Cooperation with USDA. National Hay Situation and Outlook
Analysis & Comments Livestock Marketing Information Center State Extension Services in Cooperation with USDA April 2, 2015 Letter #12 www.lmic.info National Hay Situation and Outlook The 2014 calendar
More informationRethinking US Agricultural Policy:
Rethinking US Agricultural Policy: Changing Course to Secure Farmer Livelihoods Worldwide Daryll E. Ray Daniel G. De La Torre Ugarte Kelly J. Tiller Agricultural Policy Analysis Center The University of
More informationBackground on U.S. Agricultural Policy: Food Security Objectives and Trade Implications
Background on U.S. Agricultural Policy: Food Security Objectives and Trade Implications Workshop Post Bali Agricultural and Trade Policy Options: Focus on China 23 October 2014 jason.hafemeister@fas.usda.gov
More informationAgri-Service Industry Report
Agri-Service Industry Report December 2016 Dan Hassler 2017 U.S. Industry Outlook A little better or a little worse is the quickest way to sum up the expectations for the agricultural equipment industry
More informationBeef Outlook Webinar July 27, 2009
2009-10 Beef Outlook Webinar July 27, 2009 David Maloni Principal American Restaurant Association Inc. 888-423-4411 www.americanrestaurantassociation.com David.Maloni@AmericanRestaurantAssociation.com
More informationOctober 20, 1998 Ames, Iowa Econ. Info U.S., WORLD CROP ESTIMATES TIGHTEN SOYBEAN SUPPLY- DEMAND:
October 20, 1998 Ames, Iowa Econ. Info. 1752 U.S., WORLD CROP ESTIMATES TIGHTEN SOYBEAN SUPPLY- DEMAND: USDA's domestic and world crop estimates show a less burdensome world supply-demand balance for soybeans
More informationEnding stocks can adjust due to a variety of factors from changes in production as well as adjustments to beginning stocks and demand.
1 2 3 Wire services such as Reuters and Bloomberg offer a survey of analysts expectations for high-profile USDA reports. These surveys hold interest because they help clarify what constitutes a shock or
More informationHog Producers Near the End of Losses
Hog Producers Near the End of Losses January 2003 Chris Hurt Last year was another tough one for many hog producers unless they had contracts that kept the prices they received much above the average spot
More informationAnalysis of the October 2010 USDA Crop Production & WASDE Reports
Analysis of the October 2010 USDA Crop Production & WASDE Reports Daniel O Brien Extension Agricultural Economist, K State Research and Extension October 11, 2010 Summary of October 8 th 2010 Crop Production
More informationU.S. Farm Income Outlook for 2017
Randy Schnepf Specialist in Agricultural Policy October 4, 2017 Congressional Research Service 7-5700 www.crs.gov R40152 Summary According to USDA s Economic Research Service (ERS), national net farm income
More informationSOUTH AMERICAN SOYBEAN CROP ESTIMATE INCREASED
April 14, 2000 Ames, Iowa Econ. Info. 1787 SOUTH AMERICAN SOYBEAN CROP ESTIMATE INCREASED USDA s World Agricultural Outlook Board raised its estimate of combined Brazilian and Argentine soybean production
More informationU.S. Agriculture: Commodity Situation and Outlook
U.S. Agriculture: Commodity Situation and Outlook H. Scott Stiles Instructor - Economics University of Arkansas Division of Agriculture Farm Policy Education 2013 U.S. Crop Outlook Overview: Preliminary
More informationHOG PRODUCERS SHOW LITTLE SIGN OF RETREAT
HOG PRODUCERS SHOW LITTLE SIGN OF RETREAT APRIL 2007 Chris Hurt 2007 NO. 2 Hog producers reported in the latest USDA update that they increased the size of the breeding herd by 1 percent. This means pork
More informationIowa Farm Outlook. February 2016 Ames, Iowa Econ. Info Cattle Inventory Report Affirms What Happened in 2015 and What May Happen in 2016
Iowa Farm Outlook 0BDepartment of Economics February 2016 Ames, Iowa Econ. Info. 2070 Cattle Inventory Report Affirms What Happened in 2015 and What May Happen in 2016 Curious about how fast the beef cow
More informationGrain Stocks. Corn Stocks Up 32 Percent from September 2016 Soybean Stocks Up 53 Percent All Wheat Stocks Down 11 Percent
Grain Stocks ISSN: 949-095 Released September 9, 07, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United s Department of Agriculture (USDA). Corn Stocks Up 3 Percent
More informationFARMERS PAY THE PRICE: STEEL & ALUMINUM RETALIATION HOW CHINESE RETALIATORY TARIFFS WILL TAX AMERICAN AGRICULTRAL EXPORTS AND THE STATES THAT WILL BE
HOW CHINESE RETALIATORY TARIFFS WILL TAX AMERICAN AGRICULTRAL EXPORTS AND THE STATES THAT WILL BE IMPACTED On April 2 nd, new tariffs of (25% on pork) went into effect on many of the iconic American exports
More informationAgriculture: issues of the past resurface
Agriculture: issues of the past resurface The past year marked a return to conditions in the agricultural sector that closely parallel those prior to 1973. Agricultural production rose to a record high,
More informationSoybean Supply and Demand Forecast
Soybean Supply and Demand Forecast U.S. soybean planted acreage is expected to increase 5.7 million acres over the forecast period. U.S. soybean yields are expected to increase 2.2 bushels per acre or
More informationEmerging Global Trade Patterns: USDA s Long-term Agricultural Projections
Emerging Global Trade Patterns: USDA s Long-term Agricultural Projections Midwest Agriculture s Ties to the Global Economy Federal Reserve Bank of Chicago November 28, 217 Chicago Jim Hansen, Ph.D. USDA,
More informationJohn Deere. Committed to Those Linked to the Land. Market Fundamentals. Deere & Company June/July 2014
John Deere Committed to Those Linked to the Land Market Fundamentals Deere & Company June/July 2014 Safe Harbor Statement & Disclosures This presentation includes forward-looking comments subject to important
More informationTable 1. U.S. Agricultural Exports as a Share of Production, 1992
Export markets are important to U.S. agriculture, absorbing a substantial portion of total production of many important commodities. During the last two decades there have been periods of expansion and
More informationMarket Outlook for Cattle and Beef
Market Outlook for Cattle and Beef John VanSickle, Professor 1 1 Food & Resource Economics Department, University of Florida, Gainesville, FL The cattle and beef markets have had an incredible journey
More informationA brief focus on Georgia s agricultural industry
A brief focus on Georgia s agricultural industry 2010 Total Farm Gate Value $200,000,000 - $475,048,630 $80,000,000 - $200,000,000 $45,000,000 - $80,000,000 $20,000,000 - $45,000,000 $313,000 - $20,000,000
More informationAgri-Service Industry Report
Years Since Presidential Election 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Billions Agri-Service Industry Report November 2016 Dan Hassler Farm Income and Presidential Elections
More informationGlobal Agricultural Supply and Demand: Factors contributing to recent increases in food commodity prices
Global Agricultural Supply and Demand: Factors contributing to recent increases in food commodity prices Ron Trostle Economic Research Service U.S. Department of Agriculture Agricultural Markets and Food
More informationNRCS EQIP and CSP IPM Programs. IPM Implementation Trends, Cost Effectiveness, and Recommendations for Optimizing NRCS Investments in Conservation
NRCS EQIP and CSP IPM Programs IPM Implementation Trends, Cost Effectiveness, and Recommendations for Optimizing NRCS Investments in Conservation Compiled by the NRCS & IPM Working Group July 2014 INTRODUCTION
More informationCrops Marketing and Management Update
Crops Marketing and Management Update Department of Agricultural Economics Princeton REC Dr. Todd D. Davis Assistant Extension Professor -- Crop Economics Marketing & Management Vol. 2016 (4) April 22,
More informationWorld Sorghum Grain Producers
World Sorghum Grain Producers Million Metric Tons 18 16 14 12 12 10 8 6 7 7 6 6 4 4 4 3 2 2 2 2 0 14 MY 2014/15 MY 2015/16 MY 2016/17 Grain Sorghum Exporters Million Metric Tons 10 9 8 7 6 5 4 3 2 1 0
More informationMarket Fundamentals. August October 2017
Market Fundamentals August October 2017 1 Safe Harbor Statement & Disclosures This presentation includes forward-looking comments subject to important risks and uncertainties. It may also contain financial
More informationWeather Effects on Expected Corn and Soybean Yields
United States Department of Agriculture A Report from the Economic Research Service www.ers.usda.gov FDS-13g-01 July 2013 Weather Effects on Expected Corn and Soybean Yields Paul C. Westcott, westcott@ers.usda.gov
More informationApril 9, Dear Subscriber:
April 9, 2014 Dear Subscriber: We will be adding material to this shell letter after the report is released on April 9, 2014 at 11:00 a.m CST. Be sure to click back on the link often for the latest information.
More informationAn Analysis of Historical Trends in the Farmgate Report. Brigid A. Doherty and John C. McKissick (1) Center for Agribusiness and Economic Development
An Analysis of Historical Trends in the Farmgate Report Brigid A. Doherty and John C. McKissick (1) Center for Agribusiness and Economic Development The University of Georgia CR-00-13 August 2000 Each
More informationSoy Canada SOYBEAN PROCESSING WORKSHOP PRESENTATION NOVEMBER 16, 2017 BRANDON, MANITOBA
Soy Canada SOYBEAN PROCESSING WORKSHOP PRESENTATION NOVEMBER 16, 2017 BRANDON, MANITOBA Overview 1) Soy Canada & Mandate 2) Soybean Sector Update & Trends 3) Growth in Western Canada 4) Commodity Soybean
More informationIowa Farm Outlook. December 2015 Ames, Iowa Econ. Info Replacement Quality Heifer Prices Supported by Latest Data
Iowa Farm Outlook 0BDepartment of Economics December 2015 Ames, Iowa Econ. Info. 2068 Replacement Quality Heifer Prices Supported by Latest Data Beef cow herd expansion started briskly in 2014 with a 2.1%
More informationBaseline Update for U.S. Farm Income and Government Outlays
Baseline Update for U.S. Farm Income and Government Outlays October 2016 FAPRI MU Report #06 16 Prepared by the Food and Agricultural Policy Research Institute University of Missouri www.fapri.missouri.edu
More informationIntrepid Potash New Capital Investments Support Future Opportunities
Intrepid Potash New Capital Investments Support Future Opportunities MMSA Colorado Section September 7, 2012 Presentation Overview Company Overview Capital Investment Overview Presentation of Select Capital
More informationHOGS VS. ETHANOL: ETHANOL WINS!
HOGS VS. ETHANOL: ETHANOL WINS! OCTOBER 2006 Chris Hurt 2006 NO. 6 The pork industry s concerns about higher corn prices from the extraordinary growth in corn demand for ethanol appears to be moving from
More informationCattle Market Situation and Outlook
Cattle Market Situation and Outlook Rebuilding the Cow Herd Series March 28, 2007 Falls City, TX Coordinated by: Dennis Hale-Karnes CEA Ag & Charlie Pfluger-Wilson CEA Ag Prepared and presented by: Larry
More informationCrop Production ISSN:
Crop Production ISSN: 1936-3737 Released August 12, 2014, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Corn Production
More informationIowa Farm Outlook. February 2018 Ames, Iowa Econ. Info Betting on the Come in the Fed Cattle Market
Iowa Farm Outlook 0BDepartment of Economics February 2018 Ames, Iowa Econ. Info. 2094 Betting on the Come in the Fed Cattle Market Prices feedlot managers are bidding for feeder cattle suggest that feedlot
More informationJanuary 12, USDA World Supply and Demand Estimates
January 12, 2017 - USDA World Supply and Demand Estimates Corn This month s U.S. corn outlook is for lower production, reduced feed and residual use, increased corn used to produce ethanol, and smaller
More informationIowa Farm Outlook. June 2017 Ames, Iowa Econ. Info Strong Prices with Large Slaughter Suggest Firm Meat Demand
Iowa Farm Outlook 0BDepartment of Economics June 2017 Ames, Iowa Econ. Info. 2086 Strong Prices with Large Slaughter Suggest Firm Meat Demand USDA gathers and reports a plethora of slaughter data that
More information2017 Beef Cattle Market Outlook
2017 Beef Cattle Market Outlook Chris Prevatt Livestock and Forage Economist UF/IFAS Range Cattle Research and Education Center Presented at the 2015 UF Beef Cattle Short Course Presented at the 2015 UF
More information1/te,. I FARM INCOME SITUATION
April 1961 1/te,. I FARM INCOME SITUATION FIS-182 FOR RELEASE APR. 25, P.M. I j h c: I I j i FARM INCOME IN 1961 Farm operators' realized net income in 1961 will be up from 1960, by a billion dollars or
More informationWorld Agricultural Outlook Board Interagency Commodity Estimates Committee Forecasts. Lockup Briefing April 9, 2014
World Agricultural Outlook Board Interagency Commodity Estimates Committee Forecasts Lockup Briefing World Wheat Production Country or Region Million Tons World 656.5 712.5 8.5 United States 61.7 58.0-6.0
More informationFood Price Outlook,
Provided By: Food Price Outlook, 2017-18 This page provides the following information for August 2017: Consumer Price Index (CPI) for Food (not seasonally adjusted) Producer Price Index (PPI) for Food
More informationNorth American Timber Outlook
North American Timber Outlook Conditions Required for a Widespread Revival North American Conference October 2017 Peter Barynin Principal Economist, Timber Copyright 2017 RISI, Inc. Proprietary Information
More informationAgriculture: farm income recovers
Agriculture: farm income recovers Farm earnings rose substantially last year, breaking a four-year slide. The index of prices received by farmers averaged a record 209 (1967=100). That was 14 percent over
More informationIowa Farm Outlook. More Beef Expansion Ahead. March 2018 Ames, Iowa Econ. Info. 2095
Iowa Farm Outlook 0BDepartment of Economics March 2018 Ames, Iowa Econ. Info. 2095 More Beef Expansion Ahead The numbers in USDA s recently released annual Cattle inventory report confirm that beef herd
More informationContract Hog Production: A Case Study of Financial Arrangements
Contract Hog Production: A Case Study of Financial Arrangements By R. Brent Ross and Peter J. Barry Abstract A case study is presented about the financing arrangements, contract terms, and business relationships
More information2017 Tennessee Agricultural Outlook. Aaron Smith Crop Economist University of Tennessee Extension
2017 Tennessee Agricultural Outlook Aaron Smith Crop Economist University of Tennessee Extension Overview Review of the Tennessee Agricultural Economy Crops Livestock 2017 Estimated Net Returns Principle
More informationGlobalization: Implications for U.S. and Oklahoma Agriculture. Stillwater, Oklahoma November 9, 2012
Globalization: Implications for U.S. and Oklahoma Agriculture Stillwater, Oklahoma November 9, 2012 1 We Are Just One World Now Steve Jobs 2 From Today Forward will Be a profitable growth industry Be an
More informationIowa Farm Outlook. May 2015 Ames, Iowa Econ. Info Several Factors Supporting, Pressuring Fed Cattle Prices
Iowa Farm Outlook 0BDepartment of Economics May 2015 Ames, Iowa Econ. Info. 2061 Several Factors Supporting, Pressuring Fed Cattle Prices All market classes of beef cattle are at record high levels for
More informationAugust 4, The Honorable Donald J. Trump President 1600 Pennsylvania Avenue, NW Washington, DC Dear Mr. President:
August 4, 2017 The Honorable Donald J. Trump President 1600 Pennsylvania Avenue, NW Washington, DC 20500 Dear Mr. President: On behalf of the more than 200 organizations representing rural communities,
More information2017 Crop Outlook. Chris Hurt, Professor, Department of Agricultural Economics. Michael Langemeier, Assoc. Director, Center for Commercial Agriculture
2017 Crop Outlook Chris Hurt, Professor, Department of Agricultural Economics Michael Langemeier, Assoc. Director, Center for Commercial Agriculture James Mintert, Director, Center for Commercial Agriculture
More informationIowa Farm Outlook. February 2015 Ames, Iowa Econ. Info Takeaways from the January Cattle Inventory Report
Iowa Farm Outlook 0BDepartment of Economics February 2015 Ames, Iowa Econ. Info. 2058 Takeaways from the January Cattle Inventory Report USDA has released the much anticipated inventory of the U.S. cattle
More informationWorld Agricultural Supply And Demand Estimates
United States Department of Agriculture Office of the Chief Economist World Agricultural Supply And Demand Estimates Agricultural Marketing Service Economic Research Service Farm Service Agency Foreign
More informationGlobal Trends and Swing Factors And their impact on the agricultural complex
Click here to add image Global Trends and Swing Factors And their impact on the agricultural complex Introduction I'm speaking today and tomorrow in Iowa for the IA Farm Bureau and I followed Sterling
More informationKey Issues for 2018 and beyond
Cattle Outlook and Strategies February 2018 Brenda L. Boetel UW-River Falls Extension Commodity Marketing Specialist 1 Key Issues for 2018 and beyond Supply Expansion continued but has moderated Continued
More informationWheat Pricing Guide. David Kenyon and Katie Lucas
Wheat Pricing Guide David Kenyon and Katie Lucas 5.00 4.50 Dollars per bushel 4.00 3.50 3.00 2.50 2.00 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 Year David Kenyon is Professor and Katie Lucas
More informationIrish Agricultural Land Market Review
Irish Agricultural Land Market Review Q2 2015 Irish Agricultural Land Market Review 1 2 Irish Agricultural Land Market Review Irish Agricultural Land Market Review All Farmland Prices in the Irish agricultural
More informationFuture U.S. Agricultural Production at Stake: The Challenge of Agricultural Producer Transition
Future U.S. Agricultural Production at Stake: The Challenge of Agricultural Producer Transition Derrell S. Peel, Breedlove Professor of Agribusiness and Extension Livestock Marketing Specialist, Oklahoma
More informationALFALFA IN THE CONTEXT OF GLOBAL CROP PRICE PROSPECTS. Daniel A Sumner and John Thomas Rosen-Molina 1 ABSTRACT
ALFALFA IN THE CONTEXT OF GLOBAL CROP PRICE PROSPECTS Daniel A Sumner and John Thomas Rosen-Molina 1 ABSTRACT World and U.S. markets for grains, alfalfa and dairy products are linked on both the supply
More informationRailroads and Grain. Association of American Railroads June Summary
s and Grain Association of American s June 2017 Summary s are critical to grain transportation. In 2016, U.S. Class I railroads originated 1.54 million carloads of grain (5.6 percent of total carloads)
More informationFocus. Panhandle Model Farms - Case Studies of Texas High Plain Agriculture. Diana Jones Dustin Gaskins Jay Yates
Focus Panhandle Model Farms - Case Studies of Texas High Plain Agriculture Diana Jones Dustin Gaskins Jay Yates Farm Focus 2005-3 August 2005 Department of Agricultural Economics, Texas Cooperative Extension
More informationGrain Market Outlook for
Grain Market Outlook for 2017-2018 KSU Ag Econ 520 Fall 2017 Manhattan, Kansas DANIEL O BRIEN EXTENSION AGRICULTURAL ECONOMIST Topics to be discussed.. 1) Grain Market Analysis & Outlook Corn & Grain Sorghum
More informationICF Propane Inventory Update and Winter 2014/15 Supply Assessment
ICF Propane Inventory Update and Winter 2014/15 Supply Assessment October 30, 2014 Michael Sloan Principal ICF International 703-218-2753 Michael.Sloan@icfi.com Andrew Duval Research Assistant ICF International
More informationU.S. Soy: Sustainability & Trade Brent Babb, U.S. Soybean Export Council
U.S. Soy: Sustainability & Trade Brent Babb, U.S. Soybean Export Council Regional Director, Europe and Middle East/North Africa U.S. Soybean Export Council Funded by the soybean farmers checkoff and U.S.
More informationRailroads and Grain. Association of American Railroads May Summary
s and Grain Association of American s May 2018 Summary s are critical to grain transportation. In 2017, U.S. Class I railroads originated 1.46 million carloads of grain (5.1 percent of total carloads)
More information2011 Southern Peanut Farmers Conference. Marshall Lamb USDA/ARS National Peanut Research Laboratory Dawson, GA
2011 Southern Peanut Farmers Conference Farm Planning and Financing Marshall Lamb USDA/ARS National Peanut Research Laboratory Dawson, GA The vast majority of men die poor, not because their intentions
More informationThe survey was initiated in 1941 and
File C2-70 December 2017 www.extension.iastate.edu/agdm 2017 Farmland Value Survey The survey was initiated in 1941 and is sponsored annually by Iowa State University. Only the state average and the district
More informationIFA Medium-Term Fertilizer Outlook
IFA Medium-Term Fertilizer Outlook 2015 2019 Olivier Rousseau IFA Secretariat Afcome 2015 Reims, France October 21 st - 23 rd 2015 Outlook for World Agriculture and Fertilizer Demand Economic and policy
More informationAbout Almonds and Water
About Almonds and Water Who We Are Multigenerational, family farmers are at the heart of California s Almond community. About California Almond Farms More than 90% family farms 6,800 almond growers 105
More information2017 Crop Market Outlook
2017 Crop Market Outlook Presented at the Row Crop Short Course Jackson County Agriculture Conference Center March 2, 2017 Adam N. Rabinowitz, PhD Assistant Professor and Extension Specialist Agricultural
More informationSmall Grains 2017 Summary
United s Department of Agriculture National Agricultural Statistics Service Small Grains 7 Summary September 7 ISSN: 9962X All wheat production totaled.7 billion bushels in 7, down percent from the revised
More informationOverview of the NASS Nuts and Pecan Estimating Program. USDA National Agricultural Statistics Service New Orleans, LA February 18, 2011
NASS NUTS and PECAN ESTIMATES Overview of the NASS Nuts and Pecan Estimating Program USDA National Agricultural Statistics Service New Orleans, LA February 18, 2011 NASS National Agricultural Statistics
More informationMarket Overview. Southwestern Fertilizer Conference. July 2017
Market Overview Southwestern Fertilizer Conference July 2017 Forward Looking Statements This presentation contains forward-looking statements" (within the meaning of the US Private Securities Litigation
More informationSituation and Outlook of the Canadian Livestock Industry
Situation and Outlook of the Canadian Livestock Industry 2011 USDA Agricultural Outlook Forum Tyler Fulton February 25, 2011 tyler@hamsmarketing.ca Lost in Translation Canadian Livestock Industry - Outline
More informationAgriculture in China - Successes, Challenges, and Prospects. Prof. Zhihao Zheng College of Economics & Management China Agricultural University
Agriculture in China - Successes, Challenges, and Prospects Prof. Zhihao Zheng College of Economics & Management China Agricultural University I. Success 1. For the past three decades (1978-2010), China
More informationIowa Farm Outlook. March 2014 Ames, Iowa Econ. Info Long-Term Projections for Beef Production and Trade
Iowa Farm Outlook 0BDepartment of Economics March 2014 Ames, Iowa Econ. Info. 2047 Long-Term Projections for Beef Production and Trade We often spend a lot of time focusing on the short-term market situation
More informationKnowledge Exchange Report. Economic Impact of Mandatory Overtime on New York State Agriculture
Farm Credit East Knowledge Exchange Report September, 2014 Economic Impact of Mandatory Overtime on New York State Agriculture The New York State Legislature and Governor Andrew Cuomo are considering legislation
More informationWorld Agricultural Outlook Board Interagency Commodity Estimates Committee Forecasts. Lockup Briefing June 11, 2014
World Agricultural Outlook Board Interagency Commodity Estimates Committee Forecasts Lockup Briefing World Wheat Production Country or Region 2014/15 Million Tons World 714.0 701.6 0.7-1.7 United States
More informationAMBER WAVES VOLUME 6 ISSUE 1
VOLUME 6 ISSUE 1 10 Jupiterimages Corporation (gas pump and corn field); PhotoDisc (grocery bags) ECONOMIC RESEARCH SERVICE/USDA Corn Prices Near Record High, But What About Food Costs? FEBRUARY 2008 Ephraim
More informationUSDA s Perspective on Agricultural Transportation Priorities
Bruce Blanton Director, Transportation Services Division USDA s Perspective on Agricultural Transportation Priorities Ag Transportation Summit August 4, 2015 Rosemont, IL Why Are We At This Summit? Transportation
More informationTHE DRIVERS OF HAY AND FORAGE CROP EXPORTS FOR THE WESTERN UNITED STATES. William A. Matthews and Daniel A. Sumner 1 ABSTRACT
THE DRIVERS OF HAY AND FORAGE CROP EXPORTS FOR THE WESTERN UNITED STATES William A. Matthews and Daniel A. Sumner 1 ABSTRACT Exports have provided an economic boost to the Western U.S. forage crop industry
More informationRice Outlook and Baseline Projections. University of Arkansas Webinar Series February 13, 2015 Nathan Childs, Economic Research Service, USDA
Rice Outlook and Baseline Projections University of Arkansas Webinar Series February 13, 2015 Nathan Childs, Economic Research Service, USDA THE GLOBAL RICE MARKET PART 1 The 2014/15 Global Rice Market:
More informationCommodity Market Monthly
Commodity Market Monthly Research Department, Commodities Unit May 12, 216 www.imf.org/commodities commodities@imf.org Commodity prices surged 4.7 percent in April, with gains in all main indices, and
More informationTrends in U.S. Tobacco Farming
United States Department of Agriculture TBS-257-02 November 2004 Electronic Outlook Report from the Economic Research Service Trends in U.S. Tobacco Farming www.ers.usda.gov Tom Capehart Abstract Tobacco
More informationChicago Mercantile Exchange information sources.
Chicago Mercantile Exchange information sources http://www.cmegroup.com/toolsinformation/index.html Key Areas in Grain Marketing Global Market Developments Seasonality of prices & basis Basis signals &
More informationImpact of the 2012 Drought on Field Crops and Cattle Production in Arkansas Preliminary Report
Impact of the 2012 Drought on Field Crops and Cattle Production in Arkansas Preliminary Report Contributors: Nathan Kemper, Dr. Archie Flanders, Dr. Brad Watkins, and Dr. Michael Popp 1. Introduction This
More information