The Purdue/CME Group Ag Economy Barometer dropped 7 points in November, signaling a slump in U.S. agricultural producers’ confidence compared to a month earlier. At a reading of 128, the measure of producer optimism in November was the second weakest observed during 2017 and stood just 4 points above the 2017 low of 124, set in March (Figure 1). Based …
U.S. Cropland Value Holds Steady
The USDA’s 2017 Land Values Summary shows that the average acre of American cropland is worth $4,090. That’s unchanged from last year and the third-highest in history. Pastureland values increased by $20 from last year to a national average of $1,350. That’s the highest value for pastureland USDA has ever recorded. The Southern Plains states of Texas and Oklahoma saw …
Farm Income Projected to Increase Slightly
The recent projections of farm income released by USDA’s Economic Research Service in their 2017 Farm Sector Income Forecast suggest that while farm income may have hit rock bottom in 2016, there will be an uptick in both net farm and net cash income in 2017 American Farm Bureau. Federation Chief Economist Dr. Bob Young says livestock sales are driving …
Farm Debt Likely to Reach All-Time High in 2017
Low commodity prices have made things tough by bringing down land values, tightening balance sheets, and increasing the stress level of America’s producers. Unfortunately, that means farmers are continuing to take on more debt. The amount of outstanding farm debt is likely to reach an all-time high this year. Brent Gloy of Agricultural Economic Insights says if the debt level …
Farm Economy May Be Starting to Stabilize
The prolonged downturn in the farm economy continued in the second quarter of 2017. However, data from the Kansas City Fed’s Survey on Agricultural Credit Conditions shows the farm economy may finally be starting to stabilize. While economic conditions did continue to weaken in the second quarter, the pace of that deterioration has slowed. While the farm loan repayment rate …
USDA NASS: Cropland Values Stable
An annual report by the Department of Agriculture shows cropland values have remained stable this year. The USDA National Agricultural Statistics Service’s Land Values 2017 Summary shows a slight increase in average farmland value, but cropland value remained unchanged from the previous year. The United States farm real estate value, a measurement of the value of all land and buildings …
Efforts to Assist Georgia Cotton Producers Continue
Representatives from the Georgia cotton industry were in Washington, D.C. recently to join others from across the belt to talk with lawmakers about ways to help U.S. cotton producers deal with the ongoing financial stress. Georgia Cotton Commission Executive Director Richey Seaton says they discussed a couple of initiatives. Sponsored ContentNuseed Carinata Covers New GroundJuly 15, 2024CIR Agriculture Harvester ProductsJuly …
Farmers Indicate Higher Outlook on Farm Economy
Farmers surveyed as part of the Purdue/CME Group Ag Economy Barometer indicated more optimism in July because of better commodity prices expectations this fall. The monthly survey for July reached 139, its highest level since January 2017, and its second-highest level since data collection began in October 2015. The increase continues a trend seen over the summer of more optimism …
New Survey of Farm Lenders
A new survey of farm lenders gives us a look at how they view the financial situations of their farmer borrowers. Gary Crawford has the details. Sponsored ContentNuseed Carinata Covers New GroundJuly 15, 2024CIR Agriculture Harvester ProductsJuly 1, 2024TriEst Ag Group: Partners in ProfitabilityApril 1, 2024
Ag Lenders Pessimistic About Farm Profits
Farmers are still feeling the pressure of a lagging farm economy. A joint survey from the American Bankers Association and the Federal Ag Mortgage Corporation confirms the pressure. Nearly 90 percent of ag lenders report an overall decline in farm profitability over the last year. 84 percent indicate there are higher levels of operating leverage as a result. The survey …