World economics will continue to challenge U.S. agriculture, according to the latest Farm Credit Administration’s quarterly report on economic conditions. The challenges, according to the report released Thursday, include weak global growth, divergent monetary policies, a slowing Chinese economy, and a strong dollar. Receipts from crops and animal products are forecast to be down this year, in part because of continued weakness in export demand. Cash grain prices remain low thanks to an abundance of global supplies. The Administration’s report also provides a recap of the 2015 credit system. The system reported favorable earnings and higher capital levels last year. Loan portfolio credit quality remains good, although credit stress is intensifying, especially for corn and soybean producers. Overall, the credit system continues to be financially safe and sound and is well-positioned for the current risk environment, according to the report.
Source: NAFB News Service