Trends in Corn Consumption

by Brent Gloy

Increases in agricultural productivity and aggressive expansion of cropland acres have made increased demand growth critical to improving the economic situation in agriculture.  With that in mind we thought it would be interesting to look at some of the trends in global corn consumption. Continue reading

Crop Budgets in Eastern Corn Belt Favor Soybeans

2017. corn vs soybeans. crop budgets. Agricultural Economic Insights. Ag Trends

by Brent Gloy and David Widmar

Now that the holidays are behind us, it is time to really start getting serious about 2017 planting decisions.  There are a variety of factors that go into how farmers decide what crops to plant, but crop budgets certainly play a key role.  The analysis of this year’s crop budgets favor soybeans in many areas of the country.  This appears to be particularly true in the Eastern Corn Belt. Continue reading

Ahead of the Fed — Farm Level Interest Rates

By Brent Gloy

At the end of 2015 many expected that the Federal Reserve might raise interest rates several times in 2016.  This was not an unreasonable guess as the December 2015 economic projections of the members of the FOMC suggested that most thought increases in the targeted Federal Funds were likely.

As it turned out, there were no additional increases in the target through November, setting up the December meeting as the last likely opportunity for a 2016 increase.  While we discussed the potential for farm level impacts of an increase back in 2015, we thought now would be a good time to take another look at farm level interest rates and begin to think through some of the implications of a potential interest rate increase. Continue reading