2020 Agricultural Policy and Outlook Conference Day 1
Sponsored and Hosted by The Department of Agricultural, Environmental and Development Economics Session Descriptions
Monday, November 9, 2020: Agricultural Finance Conditions and Outlook 12:00- 2:00 P.M. EST
Day one of the 2020 Agricultural Policy and Outlook Conference covers the cumulative result of all other session topics: impacts of trade, policy, and markets on farm financial health. The financial health and outlook of farm businesses manifeststo agribusinesses through sales as well as the financial strength of the farmland markets and the agricultural lending sector. After reaching a peak in 2012 of $153 billion, adjusted for 2020 dollars, U.S. net cash farm income fell to $102 billion in 2016. Forecasted to be nearly $115 billion in 2020, net cash farm income is expected to improve for the fourth consecutive year amidst relatively stable crop and animal cash receipts and increasing debt to asset and debt to equity ratios. At the backdrop, nearly $40 billion in direct government assistance are forecasted for 2020.
Ani Katchova, Associate Professor and Farm Income Enhancement Chair in the Department of Agricultural, Environmental, and Development Economics (AEDE) will kick off the 2020 conference with an outlook on farm income as the calendar turns to 2021. Joining her is Todd Kuethe, Associate Professor and Schrader Endowed Chair in Farmland Economics at Purdue University and Cortney Cowley, Economist at the Federal Reserve Bank of Kansas City.
Agricultural land represents roughly 83% of farm sector assets and is a critical component of a producer’s net worth and ability to secure loans. Supply and demand of land, cash receipts, and interest rates are a few of the items influencing land values that will be covered through session presentations.
The short presentations will be followed by a panel discussion moderated by OSU Associate Professor of Extension Bruce Clevenger entitled “Today’s Agricultural Finance as an Economic Driver”. Panelists include Aza Bittinger, Ohio Community Bankers Association, Greg Lyons, Farmer Mac, and Gary Matteson, Farm Credit Council. The panel will cover how banks fit into their communities, the regulatory environment, programs offered to improve the financial health of their agricultural clientele, and other banking related topics.
The 2020 Agricultural Policy and Outlook Conference will be offered virtually, free of charge. Information about all sessions and registration can be found at: go.osu.edu/aedeoutlook