Buying Bigger Tractors Is Probably The Last Thing On Farmers' Minds
It's not just citrus farmers in Florida that are having a tough time as of late. According to the Federal Reserve Bank of Kansas City's latest report, conditions in the region point to a struggling agricultural sector.
Farm credit conditions in the Federal Reserve’s Tenth District deteriorated in the third quarter despite an increase in the price of certain commodities and additional aid to farmers. The Tenth District, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico, is the heart of America's agricultural sector. The size of the geographic area served in the district is second only to the Federal Reserve Bank of San Francisco.
Farm income in the region fell in each state within the district from a year ago.The ongoing trade war, volatile crop prices and steep decline in cattle prices due to disruptions at a major beef processing facility weighed on farm income.
The decline in farm income has caused farmers to cut back on capital spending. Farm household spending and capital spending both declined, with bankers in the region saying they expect the trends to continue.
Credit conditions are also deteriorating as the rate of farm loan repayments and borrower liquidity continued to decline. Bankers expect credit conditions to decline, leading to an increase in asset liquidations.
Even outside of the Tenth District, in Iowa, farm finances continue to falter. 85% of Iowa land is used for farmland and it's ranked first in U.S. corn and egg production. One-third of the country's hogs are raised in Iowa.
Iowa farm debt hit the highest level in the nation at $18.9 billion in the second quarter. 44% of farmers in Iowa are struggling to cover costs. "It's very, very concerning," said Alejandro Plastina, the Iowa State agricultural economist who conducted the study. "It’s getting harder and harder for farm operations to cash-flow their business."
U.S. farm debt is projected to reach a record high of $416 billion, according to the U.S. Department of Agriculture. Adjusted for inflation, the current farm debt is just below the 1980 record at $431.6 billion. That was just before the 1980s farm crisis struck. Farm bankruptcies across the U.S. rose 24% from a year ago to 580 filings in September, according to the American Farm Bureau Federation. That marks the highest monthly total since 676 filings in 2011.
With the administration focusing on the stock market, saying the economy is booming and repeatedly touting a trade deal as being close, farmers throughout the country are not experiencing the same level of success. We can only imagine the reaction of farmers when they were told to think about buying bigger tractors.
Could banning Juul get people hooked again? According to the U.S. Centers for Disease Control and Prevention, cigarette smoking among adults fell to 13.7% last year, its lowest recorded level. The report estimated 49.1 million U.S. adults, or nearly 1 in 5, used a tobacco product in 2018. E-cigarettes were used by 3.2% of adults, up from 2.8% in 2017. Despite cigarette smoking causing more than 480,000 deaths per year versus 42 confirmed deaths from vaping, the government is hell-bent on banning e-cigarettes to protect their precious tax revenues.
iLabRat. Unlike Google, which is collecting health data without people's knowledge, Apple wants people to voluntarily provide it to them. Apple has launched an app that will allow iPhone and Apple Watch users to sign up for health studies and share their data for medical research. The studies currently being conducted are Apple Women’s Health Study, Apple Heart and Movement Study and Apple Hearing Study. The studies will be conducted through partnerships with the Harvard T.H. Chan School of Public Health and the NIH’s National Institute of Environmental Health Sciences.
They really want that contract. Amazon, which lost out to Microsoft for the Pentagon's $10 billion Joint Enterprise Defense Infrastructure (JEDI) contract, will fight the decision. Amazon filed a notice in the U.S. Court of Federal Claims indicating it will protest the Pentagon's decision. "Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors, and unmistakable bias — and it’s important that these matters be examined and rectified," Amazon said in a statement. The Pentagon declined to comment on potential litigation while Microsoft declined to comment.
It's a sign of where the automobile industry is headed. Ford will use the Mustang name on a new electric sport utility vehicle that is set to make its world debut Sunday. Die-hard Mustang fans may not be too thrilled to see the iconic muscle car's name, which was first introduced in 1964, used on an all-electric vehicle. The Mustang Mach-E will be one of more than a dozen electric vehicles Ford plans to launch by 2022.
They're not going to sit back and watch. Target is upping its fight for retail dominance with Amazon and Walmart by making it even easier to buy items and have them delivered the same day. The company announced it is integrating its same-day shopping service Shipt into the Target app. With the option of paying a flat delivery fee, as opposed to paying for a membership, Target customers will be able to shop for more than 65,000 eligible items. Target's same-day delivery service is now available in nearly 250 markets across 48 states.