Source: Chris Zoller, Extension Educator, ANR, Tuscarawas County
Click here for PDF version–easier to view Figures
The United States Department of Agriculture (USDA) recently released the interagency report: USDA Agricultural Projections to 2030. These long-term projections include several assumptions related to the Farm Bill, macroeconomic conditions, farm policy, and trade agreements. While long-term projections are based on assumptions and many unknowns, they do provide a glimpse of how U.S. farm commodity prices may perform over the next several years. Anyone interested in reading specific details is encouraged to see the report available here: https://www.ers.usda.gov/webdocs/outlooks/100526/oce-2021-1.pdf?v=3513.2.
This article briefly summarizes selected selections of the 102-page report, including U.S. crop prices, milk production, U.S. farm income, and government payments. Figures from the report are included to accompany the text.
U.S. Crop Prices
Rising global demand for diversified diets and protein will continue to stimulate import demand for grains. Increased demand for these crops is accompanied by rising competition for market share from countries such as Brazil, Argentina, the EU, and the Black Sea region. The United States also faces challenges related to ongoing tensions with trade partners and a relatively strong U.S. dollar. Although strong trade competition continues, U.S. commodities remain generally competitive in global agricultural markets, with U.S. corn and soybean exports projected at record highs by 2030/31. Nominal prices for wheat, cotton, and rice are expected to rise modestly between 2021/22 and 2030/31.
OSU Extension is pleased to be offering the third session of “Farm Office Live” session on Monday evening, April 27, 2020 from 8:00 to 9:30 p.m. Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues impact our farm economy.
The session will begin with the Farm Office Team answering questions asked over the past week. Topics to be highlighted include:
- Update on the CARES Paycheck Protection Program
- Economic Injury Disaster Loan (EIDL)
- Coronavirus Food Assistance Program (CFAP) Update
- Ethanol and biofuel update
- ARC and PLC Forecasts
- Other legal and economic issues
Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day. Participants can pre-register or join in on Monday evening at https://go.osu.edu/farmofficelive
Source: farmdoc daily(9):151, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 15, 2019.
The Farm Service Agency (FSA) of the U.S. Department of Agriculture released county acreages for crops and prevent plantings based on acreage reports filed by farmers. Even though prevent plant totaled 19 million acres in the United States, planted corn acres in 2019 are only slightly lower than 2018 values. With notable exceptions, corn acres decreased in counties that had large areas of prevent planting and increased in acres with little prevent planting. Soybean acres fell over the vast majority of counties in the United States.
FSA Acreage Data
FSA released their first set of 2019 county-level acreage data on August 1 (see Crop Acreage Data of FSA). This data indicated that there were 85.9 million acres of corn planted in the United States, down by 1% from the 2018 plantings of 86.4 million acres (see Table 1)
The 2019 planting number (85.9 million acres) is expected to increase as FSA continues to update values monthly until January 2020. From 2011 to 2018, corn acreage in the final January report averaged 1.8% higher than the initial August report. However, in recent years, the increase has been much lower. From 2016 to 2018, the January value was .7% higher than the initial August value. A 1.3% increase – the average from 2011 to 2018 – would increase 2019 planted corn acres to 87.4 million acres. A .7% increase – the average from 2016 to 2018 – would increase planted acres to 86.4 million acres, roughly the same as the planted acreage for 2018. Continue reading
Source: USDA ERS
Net farm income, a broad measure of profits, is forecast to decrease $9.1 billion (12.1 percent) from 2017 to $66.3 billion in 2018, after increasing $13.8 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $8.5 billion (8.4 percent) to $93.4 billion. In inflation-adjusted 2018 dollars, net farm income is forecast to decline $10.8 billion (14.1 percent) from 2017 after increasing $13.0 billion (20.2 percent) in 2017. If realized, inflation-adjusted net farm income would be 3.3 percent above its level in 2016, which was its lowest level since 2002.
See a summary of the forecasts in the table U.S. farm sector financial indicators, 2011-2018F, or see all data tables on farm income and wealth statistics.
[In the text below, year-to-year changes in the major aggregate components of farm income are discussed only in nominaldollars unless the direction of the change is reversed when looking at the component in inflation-adjusted dollars.]
OK, While many of us feel that this picture represents how harvest has gone so far, we are not really that far behind. The most recent Ohio Crop Weather report issued on October 9 shows corn harvest at 21%. At this time last year we had harvested 12% of our corn while the most recent 5-year average is 17%.
Soybeans are lagging behind just a bit. This report shows Ohio bean harvest at 30%. This compares to 42% last year and a 5-year average of 36%.
So why do we feel we are so far behind? Probably because we started sooner this year and have received just enough rain to prevent us from running beans many days this year. Early reports that I am hearing have soybean yields much better than last year and good corn yields as well.
See the full report below.