Farmers feel less need to borrow money from the bank – January 14, 2022

Farmers feel less need to borrow money from the bank

The strong agricultural economy, fueled by high commodity prices, has reduced farmers’ reliance on farm lenders, despite concerns about rising input costs, according to a Federal Reserve survey of ag bankers. “Higher costs are likely to put upward pressure on demand for credit, but strong farm income and working capital could also supplement financing for some borrowers,” said the Kansas City Fed on Thursday.

Trade war price tag: $27 billion in lost ag export sales

China accounted for 95 percent of the $27 billion in U.S. farm export sales that were lost in 2018 and 2019 as a result of the trade war begun by President Trump, said a USDA report. Sales to China rebounded after the “phase one” trade agreement, but U.S. market share has remained lower than before the tit-for-tat tariffs.

Today’s Quick Hits

Criticism of Scott: In not-so-private comments, some Capitol Hill Democrats say Rep. David Scott, the first Black chairman of the House Agriculture Committee, should be replaced — an extraordinary step — before the committee begins work on the 2023 farm bill. (Politico)

Meat conference shelved: Sponsors canceled the 2022 Annual Meat Conference, scheduled for Feb. 7-9, “out of respect for the health of our communities” amid the surge in Covid-19 cases caused by the omicron variant. (FMI)

Committee advances Califf: By a 13-8 margin, the Senate Health Committee advanced the nomination of Dr. Robert Califf for FDA commissioner to a full Senate vote. He led the agency during the final year of the Obama administration. (New York Times)

Food inflation factors: Inflationary pressures on food prices are unlikely to dissipate until labor market disruptions subside, supply chains adjust to coronavirus gyrations, and federal spending is reined in, said economist Jayson Lusk. (Purdue Agricultural Economics)

McCarthy draws lines: If he becomes speaker in 2023, House Republican Leader Kevin McCarthy would not consider legislation to provide legal status to undocumented immigrants — a group that includes thousands of farmworkers — and would inject tough-on-China initiatives into the work of as many House committees as possible. (Axios)

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