The “normal” normal: Supply and demand drivers over the next 10 years

From 2010 to 2015, farmers saw the longest period of sustained above-average farm income since World War II and its immediate aftermath (Chart 1). In the United States, real net cash and net farm income were above their 1960–2017 average for six consecutive years. By contrast, real net cash and net...

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Autores principales: Meyer, Seth, Glauber, Joseph W.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Federal Reserve Bank of Kansas City 2019
Materias:
Acceso en línea:https://hdl.handle.net/10568/145860
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author Meyer, Seth
Glauber, Joseph W.
author_browse Glauber, Joseph W.
Meyer, Seth
author_facet Meyer, Seth
Glauber, Joseph W.
author_sort Meyer, Seth
collection Repository of Agricultural Research Outputs (CGSpace)
description From 2010 to 2015, farmers saw the longest period of sustained above-average farm income since World War II and its immediate aftermath (Chart 1). In the United States, real net cash and net farm income were above their 1960–2017 average for six consecutive years. By contrast, real net cash and net farm income were only above the 1960–2017 average for four consecutive years in the 1970s (from 1972 to 1975). The run-up in prices in the early 1970s—and the associated brief jump in farm income—originated in oil price shocks and inflationary pressure that set the stage for economic turmoil in the agricultural sector in the first half of the 1980s. The recent period of strong farm income was similarly driven by a surge in producers’ crop and livestock prices. As food prices began to rise in 2007 and 2008 and peaked in 2011, U.S. corn, soybean, and wheat prices all hit record nominal prices for the 2012–13 crop year.
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publisherStr Federal Reserve Bank of Kansas City
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spelling CGSpace1458602024-10-25T07:59:38Z The “normal” normal: Supply and demand drivers over the next 10 years Meyer, Seth Glauber, Joseph W. supply balance commodities farm income trade commodity markets prices From 2010 to 2015, farmers saw the longest period of sustained above-average farm income since World War II and its immediate aftermath (Chart 1). In the United States, real net cash and net farm income were above their 1960–2017 average for six consecutive years. By contrast, real net cash and net farm income were only above the 1960–2017 average for four consecutive years in the 1970s (from 1972 to 1975). The run-up in prices in the early 1970s—and the associated brief jump in farm income—originated in oil price shocks and inflationary pressure that set the stage for economic turmoil in the agricultural sector in the first half of the 1980s. The recent period of strong farm income was similarly driven by a surge in producers’ crop and livestock prices. As food prices began to rise in 2007 and 2008 and peaked in 2011, U.S. corn, soybean, and wheat prices all hit record nominal prices for the 2012–13 crop year. 2019-10-11 2024-06-21T09:05:12Z 2024-06-21T09:05:12Z Journal Article https://hdl.handle.net/10568/145860 en Open Access Federal Reserve Bank of Kansas City Meyer, Seth; and Glauber, Joseph W. 2019. The “normal” normal: Supply and demand drivers over the next 10 years. Economic Review Special Issue 2019: 27-49. https://www.kansascityfed.org/documents/752/2019-The%20%E2%80%9CNormal%E2%80%9D%20Normal:%20Supply%20and%20Demand%20Drivers%20over%20the%20Next%2010%20Years.pdf
spellingShingle supply balance
commodities
farm income
trade
commodity markets
prices
Meyer, Seth
Glauber, Joseph W.
The “normal” normal: Supply and demand drivers over the next 10 years
title The “normal” normal: Supply and demand drivers over the next 10 years
title_full The “normal” normal: Supply and demand drivers over the next 10 years
title_fullStr The “normal” normal: Supply and demand drivers over the next 10 years
title_full_unstemmed The “normal” normal: Supply and demand drivers over the next 10 years
title_short The “normal” normal: Supply and demand drivers over the next 10 years
title_sort normal normal supply and demand drivers over the next 10 years
topic supply balance
commodities
farm income
trade
commodity markets
prices
url https://hdl.handle.net/10568/145860
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