Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm Programming Radio Oklahoma Network  |  7401 N. Kelley Ave. Oklahoma City, OK 73111  |  (405) 841-3675  |  Fax: (405) 841-3674

advertisements
   
   
   
   
   
   
   
   

Agricultural News


FED Economist Nathan Kauffman Sees Down Trend in Both Food and Ag Commodities

Wed, 01 Mar 2017 06:29:33 CST

FED Economist Nathan Kauffman Sees Down Trend in Both Food and Ag Commodities As the lead expert in agricultural economics for the Federal Reserve Bank of Kansas City, Assistant Vice President and Omaha Branch Executive Nathan Kauffman, oversees several Bank and Federal Reserve System efforts to track agricultural and rural economies. He shared his perspective on the rural economic situation with attendees of the AgVocacy Forum hosted by Bayer ahead of the 2017 Commodity Classic in San Antonio. Radio Oklahoma Ag Network Associate Farm Director Carson Horn was there covering the event.

According to Bureau of Labor statistics, the price of food, starting in September 2016, has declined year-over-year each month up to now. Kauffman says you would have to go as far back as the start of the recession in 2009, to find food prices at a similar decline, and beyond that you would have to go back to 1959-60.

“There’s obviously a lot of details built into that,” Kauffman said. “I think a lot of what we’re seeing and what we’re talking about today really relates to some of those trends.”

Specifically, Kauffman points out that purchases on food for the home, has declined for 14 months consecutively. Conversely, purchases of food away from the home (i.e. restaurants), has increased. In connecting the dots with points previously made, Kauffman explains that the data he has collected is making strong market signals.

“What we’ve been observing in the US farm economy, and this is not unique to the United States,” he said, “is actually that farm income has been declining for four consecutive years and all market signals right now, including food prices, would suggest that farmers need to cut back on acreage.”

In summation, Kauffman says there are different scenarios unfolding on both the short and long term. On the short term, he says farmers are reacting to tighter profit margins. In the long term though, Kauffman says we can recognize there will always be a demand in the marketplace for both cost-efficient food, but also recognize that there is a growing segment of the market with other preferences.

“This is where I think there are other opportunities,” Kauffman concluded. “We need to be talking to producers about how to be thinking about dealing with short term pressures, but position them for the long term.”

Click on the LISTEN BAR to hear Kaufman's comments from the Ag Advocacy Conference sponsored by Bayer Tuesday in San Antonio.



   
   

Nathan Kaufman speaks at the 2017 Bayer Ag Advocacy Forum in San Antonio
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Friday, December 15, 2017  Fri, 15 Dec 2017 14:52:48 CST
  • Pork Producers Hail Organic Rule Withdrawal, Thank Perdue for Listening to Farmers' Concerns   Fri, 15 Dec 2017 14:25:55 CST
  • Noble's CEO Bill Buckner Says When It Comes to the Next Frontier to Explore - We're Standing On It  Fri, 15 Dec 2017 14:17:44 CST
  • Friday Market Wrap-Up with Justin Lewis  Fri, 15 Dec 2017 14:07:22 CST
  • Friday Afternoon Market Wrap-Up with Carson Horn   Fri, 15 Dec 2017 14:04:02 CST
  • Drought Conditions Creep Higher Across Oklahoma According to Latest Drought Monitor Report  Fri, 15 Dec 2017 14:47:41 CST
  • OSU's FAPC Center Highlights Its $52 Million Economic Impact on Oklahoma's Food Industry in 2017  Fri, 15 Dec 2017 11:44:40 CST
  • CattleFax Analysts Present Cattle Market Expectations for 2018 in Upcoming Webinar - Register Now  Fri, 15 Dec 2017 11:34:08 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2017 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup

    WebReady powered by WireReady® Inc.