Michael Swanson, Ph.D., Wells Fargo Chief Agricultural Economist

Given the “Sturm und Drang” of ethanol pro and con lobbying, the industry waited with baited breath for the Environmental Protection Agency’s (EPA’s) release of the 2016 Renewable Fuel Standards. Now that the standards are released, the key question is whether the EPA’s targets for blending requirements will afford higher profitability for the industry. (more…)

Michael Swanson, Ph.D., Wells Fargo Chief Agricultural Economist

Financial pain and suffering has hit hard throughout the majority of the row crop and forage economy. Producers can see $4/bushel corn on the Chicago Mercantile Exchange (CME) for 2016, 2017, and 2018, and they know that their cost structures won’t yield profits, and in many cases, will mean more losses. (more…)

Michael Swanson, Ph.D., Wells Fargo Chief Agricultural Economist

Even with the recent rally in corn prices, grain and oilseed producers still face break-even or losses in most circumstances. This prompts the questions of how long will it be before the sector enters a financial stress mode, and how severe will the stress be at the bottom of the cycle. (more…)

Michael Swanson, Ph.D., Wells Fargo Chief Agricultural Economist

The single most important asset in agriculture is land, and the single most vexing question in agriculture is what land is worth. For agricultural producers, land values incorporate many things that fall outside the cold-hearted economist’s model. (more…)

Michael Swanson, Ph.D., Wells Fargo Chief Agricultural Economist

The question for the crop sector is how bad can it get before it gets better? 2014 results show a stunning spread between losses for Minnesota row crop operators. (more…)

Michael Swanson, Wells Fargo Chief Agricultural Economist

With crude oil stuck at $50.00 or less per barrel, grain producers and purchasers should understand how much this limits the upside opportunity for corn. (more…)

Michael Swanson, Wells Fargo Chief Agricultural Economist

Just as the interest rate markets try to anticipate the future, so do the exchange rates. These two markets, while not about agriculture, have a huge impact on the U.S. agricultural markets. (more…)