U.S. farm debt has been increasing while farm profitability continues to fall. This week we examine how these two trends have impacted various measures of repayment capacity and liquidity.
Debt has always played a key role in capital intensive U.S. agricultural system. At times, such as the farm crisis of the 1980’s, too much debt has been problematic. However, most often it has been a useful tool that has allowed a massive substitution of capital for labor to take place.
There has been a string of media reports noting a drop in U.S. corn exports to Mexico. This post considers recent data to see if the corn-sky is falling.
As 2017 got underway, the question on everyone mind was if U.S. soybean acres would exceed corn acres. While this didn’t happen, the stage was set by more favorable prices and budget returns for soybeans. Given soybeans more favorable position for U.S. producers in recent years, we step back to review the global soybean production trends.
The Federal Reserve has now increased interest rates four times since late 2015. These increases come on the heels of roughly 7- year period of maintaining their targeted rate at historical lows.