January 25, 2020

Ag Economy; Trade; Policy; Biotech; and, Regulations

Agricultural Economy

Reuters writer Christine Stebbins reported yesterday that, “U.S. grain farmers are boosting demand for loans from farm banks as five-year lows in crop prices squeeze operating budgets ahead of spring planting, according to a national survey of farm bankers issued by the Federal Reserve Bank of Kansas City on Wednesday.

“‘Reduced profits in the crop sector persisted in the fourth quarter of 2014, leading to a sharp rise in farm-sector borrowing and a slight decline in cropland values,’ the bank said. ‘Should low crop prices [related graph] and high input costs [related graph] persist, crop sector profit margins may weaken further and strain loan repayment capacity in the coming year.’”