Taxes and Finance
The contract between the International Longshoremen’s Association and the United States Maritime Alliance is set to expire on Sept. 30. Negotiations between the two parties have stalled, raising concerns about a possible strike starting Oct. 1.
The effects are already visible, with declining French barley exports to China and the U.S. struggling to sell corn for the new season.
China’s soybean imports reached a record high in August 2024, reflecting significant growth in the country’s demand for the oilseed, but meat imports declined.
The new numbers show that net farm income will fall $6.5 billion or 4.4%. This is compared to projections released in February suggesting it would fall 26%.
Agriculture can sometimes act as a buffer during broader economic recessions, as demand for essential food items tends to remain relatively stable. However, when multiple indicators align in the industry, it can signal a recession.
USDA’s Economic Research Service (ERS) will provide an updated 2024 net farm income forecast on Thursday. Economists say the net farm income picture would look even worse it weren’t for improved livestock prices.
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Canada Industrial Relations Board orders rail workers back amid major labor dispute, union plans appeal
The report from the Labor Department on Wednesday added to a mild increase in producer prices in July in suggesting that inflation was firmly back on a downward trend. That should allow the U.S. central bank to focus more on the labor market amid growing concerns of a sharp slowdown.
A new Kansas City Fed report shows farm incomes continued to weaken, particularly in crop-heavy states like Kansas, Missouri, and Nebraska, while cattle prices provided some support.
Recessions often lead to decreased demand for certain agricultural products, particularly those considered discretionary, such as cotton, dairy, specialty meat products and vegetables. This can result in lower prices for these commodities, affecting farmers’ revenues.
FSA says these changes will increase opportunities for farmers and ranchers to be financially viable.
USDA’s current net farm income forecasts show a $90-billion plus drop over the two-year period, making it the largest dollar value loss, adjusted for inflation, that agriculture has ever seen.
Property insurance costs for farmers and ranchers have been increasing, driven by several factors, including climate change, market conditions, and rising production expenses.
Top Federal Reserve officials said on Wednesday the U.S. central bank is “closer” to cutting interest rates given inflation’s improved trajectory and a labor market in better balance, remarks that set the stage for a first reduction in borrowing costs in September.
People can make better decisions for their farm and find firmer financial footing for their operation when they are able to see the potential ramifications of their decisions, says one industry leader.
From a pragmatic approach to purchasing new technology to making more of the buying decisions on the farm, there are some interesting trends transpiring as more Next Gen farmers identify as an owner/operator on their farm.
The Federal Reserve has four more chances this calendar year to cut interest rates. Since July 2023, the system has kept its benchmark interest rate steady at a 23-year high of 5.25% to 5.5%.
Company leaders share this decision is mutually beneficial and came as a result of Silveus’ continued growth as well as Risk Strategies’ interest in expanding into agriculture.
The Federal Reserve voted to keep the benchmark interest rate steady despite a sticky inflation proving to be a challenge. Where could interest rates go? A conversation with Austan Goolsbee, president of the Chicago Fed.
The latest Federal Reserve board meeting left interest rates unchanged, but there’s a subtle shift in its monetary policy Vince Malanga, president of LaSalle Economics, says should be noted.
John Maman of Nutrien Financial encourages farmers to revisit their financial plan now that the crop is in the ground and agronomic conditions can be assessed.
The May Ag Economists’ Monthly Monitor found even with improved commodity prices over the past month, ag economists’ views on the net farm income picture slightly eroded, falling to $110.4 billion in May.
“The current lifetime estate and gift tax exemption is $13.61 million and will be cut in half beginning in 2026.”
After two years of consulting with farms ranging in size from 200 acres to more than 10,000 acres, Jeff Kazin and Mike Rohlfsen say they very rarely encounter a farmer with a precise answer.
The math and mental gymnastics to truly understand how much risk your farm can handle can be exhausting, but it can be calculated with enough what-if scenarios.
The Ag Economy Barometer found the majority of farmers are being offered more than $1,000 per acre by companies for solar leasing, and economists say that could also drive up the price of cash rental rates.
The spread between your break-even with the cost of production model versus the cost of doing business model has never been as far as it is now. Be sure to know your true costs.
There’s an immense amount of pressure riding on this year’s crop production picture, and with a margin squeeze setting in across farms, economists think it could accelerate consolidation in the row-crop industry.
Dr. Vince Malanga shares insights on the U.S. economic outlook, and what areas demand the most attention.