Based on USDA projections, inflation-adjusted net farm income this year will be $148 billion, down 1 percent from 2021. The drop in income is led by sharp increases in the prices for fuel and oil, fertilizers, livestock, and animal feed, among other inputs. Production expenses in 2022 are expected to top $400 billion for the first time ever and will reach a record $437 billion in 2022, an increase of 18 percent from last year, and the largest year-over-year increase of all time. Compared to 2020, farmers will spend $21 billion more on fertilizers, an 84 percent increase, $8 billion more on fuel and oil which is 65 percent increase, and in excess of $18 billion more on feed for livestock. Higher interest rates and record-high farm deb...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.