Inflation
Farm Credit Services of America and Frontier Farm Credit released their benchmark farmland values report showing a 2.4 percent decline in cropland values.
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.
Federal Reserve Chair Jerome Powell’s testimony before the Senate Banking Committee provided several key insights into the current economic landscape and potential future monetary policy actions.
Headwinds in interest rates, inflation and commodity prices seem to have little impact on land values, though single-digit decreases in Indiana, Kentucky, Michigan and Ohio have been reported.
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%.
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 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 latest Ag Economists’ Monthly Monitor projects a major drop in net farm income this year. Economists are also growing more pessimistic about the potential for interest rate cuts in 2024.
Despite the markets pricing in lower interest rates, Arlan Suderman expects inflation to rear its ugly head sometime in 2024.
To wrap up 2023 I thought I’d show my list of good news that few believe: the good news with declining crime rates, wage growth and cooling inflation.