Jan 2018 economic and policy update (003)[31124]

Page 1

& Policy Update Graphic owner: UKZN SAEES: school website

January 29, 2018 Volume 18, Issue 1 Edited by Will Snell and Phyllis Mattox

FEATURED ARTICLES USDA Confirms Record Supply of Corn & Soybeans for 2017 Marketing Year - Todd Davis Effects of the Tax Cuts and Jobs Act on Farm Businesses - Jerry Pierce The Value of Selling Steer Calves Versus Bull Calves - Kenny Burdine Tobacco Import Trends and Policy - Will Snell Following the Money - Jerry Pierce

BARNETT IS NEW CHAIR OF UK AGRICULTURAL ECONOMICS DEPARTMENT Dr. Barry Barnett has assumed the role of chair of the Department of Agricultural Economics in the University of Kentucky College of Agriculture, Food and Environment. A Woodford County native, he has earned three degrees from UK including his doctorate in agricultural economics. “I look forward to working with the outstanding faculty and staff in the department to educate our students and to develop knowledge-based solutions for the important challenges facing the commonwealth, the nation and the world,” said Barnett. “We are honored that Barnett will be taking the helm of this department,” said Nancy Cox, dean of the College of Agriculture, Food and Environment. “His background and experiences have prepared him for this role in a department that is fundamental to the agricultural economy of Kentucky and beyond.” Barnett, who has more than 21 year of faculty experience, comes from the Department of Agricultural Economics at Mississippi State University where he was a professor. He has recently been a visiting scholar at Humboldt University in Berlin, Germany. His chief research interests are agricultural risk, insurance and public policy. Barnett has also taught at both the undergraduate and graduate levels, receiving teaching awards at both levels. Former Chair, Dr. Leigh Maynard, continues to research and teach in the Department of Agricultural Economics, and is also involved in the University of Kentucky’s “The Food Connection,” which serves farmers, food producers, students, and consumers by developing solutions and creative strategies for a vibrant, healthy, sustainable food economy in Kentucky.

USDA CONFIRMS RECORD SUPPLY OF CORN AND SOYBEANS FOR 2017 MARKETING YEAR

n P a g e 8 o n P a g e 8

C o n t i n u e d o n P a g e 8

1

The January 12th WASDE provided the grain markets USDA’s final projections on the size of the corn and soybean crops. The report lived up to the saying that “big crops get bigger.” The 2017 corn is pegged at 14.6 billion bushels (second largest), and the soybean crop is projected at a record 4.39 billion bushels. Both corn and soybeans have been rebuilding stocks since the 2012 drought, so the combined carry-in and production contributes to a record supply for the corn and soybean markets to chew through for the remainder of the marketing-year (Table 1). The corn and soybean markets benefit from the strong demand that will help keep ending stocks from becoming burdensome like in the 1980s. USDA projects corn ending stocks to increase to 2.48 billion bushels, which would be the most massive quantity since 1987. Consider that 2.48 billion bushels of corn in 1987 would be about a 200-day supply in the bin at the end of the PAGE 2 marketing-year. Current demand for corn makes 2.48 billion bushels a 62-day supply of corn in the bin at the end of the marketing-year. Continued on Page 2

$ 2 0 / a c r e w a s d e d u c t e d f


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
Jan 2018 economic and policy update (003)[31124] by Kentucky Ag Programs - Issuu