FarmPolicy

March 23, 2017

2013 Corn Acres (Prevent Plant & Replant) & Soybeans

From University of Illinois Extension, June 5, 2013 – University of Illinois Ag Economist Darrel Good discusses the corn and soybean markets with Todd Gleason.

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Federal Reserve Beige Book: Observations on the Ag Economy- June 2013

Today the Federal Reserve Board released its Summary of Commentary on Current Economic Conditions. Commonly referred to as the “Beige Book,” the report included the following observations with respect to the U.S. agricultural economy:

* Fifth District- Richmond– “Fluctuating temperatures coupled with heavy rainfall tempered plant growth and delayed spring plantings throughout the District. Despite wet conditions, forage crops were having a great spring, and pastures and hayfields were in good condition.”

* Sixth District- Atlanta– “Additional rains continued to improve drought conditions in Georgia and Florida. However, prolonged rainy periods and cool temperatures delayed planting of some crops. Since our last report, monthly prices paid to farmers for beef, broilers, corn for grain, and soybeans decreased while cotton prices increased slightly. Contacts continued to voice concern about citrus greening and its effect on Florida citrus crops while cotton producers reported China’s large cotton stocks were becoming a growing risk factor for domestic cotton production. Agricultural producers also reported that they are turning more and more to technology and other capital investments to improve production and reduce the need for labor.”

* Seventh District- Chicago– “Heavy precipitation in the District aided the recovery from last year’s drought by replenishing subsoil moisture. The rain also dramatically slowed planting of corn; farmers almost caught up, often by working around the clock once fields had dried sufficiently. However, the emergence of corn plants significantly lagged that of a typical year. Soybean planting progressed at about its normal pace once the corn crop was in the ground. Flooding from the heavy rains also resulted in river closures, delaying deliveries of agricultural products and farm inputs, particularly fertilizer. Current corn and soybean prices rose, as stocks remained low. Late planting pushed back the availability of new supplies into September. However, price declines were anticipated for the new crop in the fall, as concerns over major yield losses abated. Milk and hog prices moved higher; cattle prices were flat.”

* Eighth District- St. Louis– “Because of persistent rains, District farmers are behind their average planting schedules. Planting progress for cotton, rice, and soybeans in Mississippi was approximately half the 5-year average. Across all other District states, soybean planting progress was approximately 15 percent slower than its 5-year average. As of mid-May, well over 90 percent of the District’s winter wheat crop was rated in fair or better condition and close to 70 percent was rated as good or excellent.”

* Ninth District- Minneapolis– “While a late spring delayed planting, recent rains brought drought relief for District agricultural producers. According to the Minneapolis Fed’s first-quarter (April) survey of agricultural credit conditions, nearly 90 percent of respondents said farm incomes increased or held steady over the previous three months, with similar results for farm household and farm capital spending. Expectations for the second quarter were more moderate. District corn, soybean and spring wheat planting progress was behind average for late May, but producers were catching up quickly after a delayed spring. Prices increased from a year earlier for corn, wheat, soybeans, hay, eggs, chicken and dairy products; prices fell for hogs, turkey and dry beans, while cattle prices were flat. USDA forecasts call for substantially lower prices for corn and soybeans for the coming year, with slight reductions in wheat prices.”

* Tenth District- Kansas City– “Farm income growth softened since the last survey period, and farmland value gains moderated slightly. Farm income growth was limited by falling crop and livestock prices and by high production costs, particularly for fertilizer, seed and livestock feed and forage. Crop prices fell in early April with an announcement that grain supplies were higher than earlier estimates, although some District contacts expressed concerns about crop progress. Winter wheat crop conditions deteriorated further with much of the crop in relatively poor condition. The corn and soybean crops were behind schedule as unseasonably cold weather and late snows delayed spring planting in many areas. Demand for new farm loans remained weak, and contacts reported fewer requests for farm loan renewals and extensions. Farmland values continued to rise, but at a slightly slower pace than last year.”

* Eleventh District- Dallas– “Drought conditions continued to worsen slightly across most of the District over the reporting period, despite scattered rainfall. The Texas wheat crop suffered from dry weather and late freezes and production is expected to be significantly below average. Conditions for other crops are generally worse than at this same time last year but not quite as bad as in 2011.”

* Twelfth District- San Francisco– “Agricultural sales and production increased modestly. Demand for most crop and livestock products grew further. Grain production was robust, but contacts reported some variability in vegetable production. Some contacts remained concerned that limited water availability in parts of the District could pass through to lower seasonal hiring and reduced agricultural output in coming months.”

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Farm Bill; Appropriations; Wheat; and, the Ag Economy

Farm Bill- Senate Focus

Yesterday evening, Senate Majority Leader Harry Reid (D., Nev.) filed cloture on the Farm Bill (S.954).  A cloture vote has been set for 10 a.m. on Thursday, June 6.

The Senate will not be in session on Wednesday as memorial observances for the Honorable Frank R. Lautenberg, the late Senator from the State of New Jersey take place.

Erik Wasson reported yesterday at The Hill’s On the Money blog that, “[The cloture motion (60-vote threshold)] would create a Monday final vote on the farm bill…”

And David Rogers pointed out yesterday at Politico that, “Cloture is always a challenge, but having been through a lengthy amendment process in the last Congress, Stabenow has tried to save time — and win support — by including virtually all the major substantive provisions adopted by the Senate in floor debate a year ago.”

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