Inflation
While inflation remains above the Federal Reserve’s target of 2%, the outgoing president and CEO favors a pause on interest-rate reductions while noting AI’s potential to shift labor needs
A dip in milk and dairy product prices in upcoming months could help prevent a major demand slowdown.
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 asked economists if they think the U.S. general economy will see a recession in 2025. 62% said yes.
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.
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.
Based on a farmer poll and the Ag Economists’ Monthly Monitor, farmers and economists differ on whether Harris or Trump would be better for agriculture, particularly when it comes to trade.
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.
New research finds the surge in grocery prices was driven mainly by substantial increases in commodity prices and supermarket wages, rather than price gouging.
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.
Farmers are opting to tap into their savings from recent prosperous years instead of taking out loans at the highest interest rates since 2007, according to surveys conducted by regional Federal Reserve banks.
For 2024, USDA projects that food price inflation will be lower than that seen in 2023 and significantly lower than the rise seen in 2022.
From record-high gas and diesel prices on the road to a spike in the price Americans are paying for products at the grocery store, the rapid rise in prices is now producing more warning signs of a possible recession.