Inflation
With most input prices still record or near-record high, farmers in parts of the country have seen eroding balance sheets for four straight years. Now the concern is more farmers will be forced out of farming this year, unless they see some type of market or government intervention.
On the surface, strong livestock prices and government payments are painting a rosy picture for the farm sector. A closer look at input costs, commodity prices and interest rates says otherwise.
The March Ag Economists’ Monthly Monitor found 62% of ag economists think the row crop side of agriculture is currently in a recession, and 85% think the situation will accelerate consolidation on farms and among agribusinesses.
Trump recently signed three executive orders imposing tariffs on Canada, Mexico and China. This marks the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977.
According to the January 2025 Food Price Outlook, egg prices saw the biggest spike, up 37% year-over-year. When you look ahead, USDA expects outbreaks of highly pathogenic avian influenza (HPAI) to continue to cause egg prices to climb.
Former Top Producer award winners reveal their management goals for the year ahead.
Yes, the Fed is cutting interest rates but the agency can only influence mid- and long-term rates. Concerns about inflation are pushing those rates back up again.
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.
Democratic National Convention begins Monday in Chicago. The cost of Vice President Harris’ new proposals is uncertain, but the Committee for a Responsible Federal Budget (CRFB) estimates the plan would increase deficits by $1.7 trillion over the next decade.
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.