Terry Feldheim of the Farm Credit Service of America highlights the support underpinning land prices at these levels.
What is sustainable ag lending? That really comes down to a concept what is sustainable at given prices. We look at farmers and ranchers, asking if they can cash flow $4.50 corn? If he can cash flow that, he has a much higher probably of sustaining the volatility that comes at us.
The operations that will get loans must have strong working capital positions and actions in play to reduce any debts as quickly as possible.
Bob Young, American Farm Bureau's chief economist, is seeing food costs going up through their consumer surveys.
Our surveys' would suggest those food prices are up, and up significantly.
However, there are enough of uncertainties in the market places that suggest that food prices will only be a factor but not the driver.
Other activity in agriculture suggests that the sector as a whole is doing well. There still are issues with corn and bean prices remaining high, with impacts to cattle prices. But over all 2012 looks pretty good.
What does the future of America hold? Some good perspective from a recent video series at the Wall Street Journal titled "America: A Portfolio of Ideas" featured several different perspectives and is highly recommended. To give you a feel for what it holds we share this brief audio featuring John Naisbitt (Megatrends) and Gloria Naisbitt on the influence of culture on our trading relationship with China.
Dr. Brian Briggeman, Kansas State University, shares his view of the swine industry and its relationship with the global economy. From the 2011 Allen D. Leman Swine Conference, September 17-20, 2011, St Paul, MN USA.
A British Free Range Egg Producers Association (BFREPA) survey indicates that nearly 12% of the the UK's commercial free range flock could disappear if producers continue to lose money. Many operations are experiences increasing costs and reduced revenues.
Some producers say they have no option but to carry on in the hope the market improves because they are trapped by bank loans. "I invested in a new efficient multi-tier system just before the market crash. There is no choice but to continue at a loss as the bank are demanding repayments on the investment loan and we have to go down fighting if need be," said a producer.
Many BFREPA members say they will reduce numbers or end production completely unless the market conditions improve.
US and Chinese trade agreements and their implementation are going to the World Trade Organization because the US believes China is unfairly using tactics to keep US poultry out of China.
“Let me be clear: the US does not arbitrarily seek disagreements with China,” said Ron Kirk, US trade representative, as he unveiled the grounds for the US action. “But we won’t negotiate indefinitely, because US farmers, ranchers, small business owners and workers can’t afford to wait when their exports are being blocked and American jobs are at stake.”
Phosphorus is a critical component to life and essential for agriculture. Without phosphorus nothing can grow. And approximately 85 percent of the global phosphate reserves are located in Morocco. With its large reserves, Morocco can direct the price of phosphorus, thus effecting agriculture input costs.
The Australian government recently approved new laws to startup the Carbon Farming Initiative that will put in place access to international carbon markets for farmers, forest growers, and landholders. It also puts in place a method utilize money collected from the carbon markets to assist households, businesses, and industry adjust to the impacts of the markets.
A family earning an income of around $100,000 [AUD] who has two teenagers is expected to face an average cost of living impact of $653 [AUD] per year. This family will receive assistance of about $679 per year made up of approximately $73 [AUD] extra in payments and $606 [AUD] in tax cuts, which means they are $26 [AUD] better off.
Agricultural economics plays a major role in shaping the world. Farmers, producers, and managers all want to know what to plant, when to buy, when to sell, and why. People in ag econ help do the research and discover the key inflection points to help those in production make decisions.