Ag Lending Steady and Ethanol Production Hits COVID-era Highs

Ag Lending Steady and Ethanol Production Hits COVID-era Highs

Bob Larson
Bob Larson
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.

**University of California, Merced researchers are working to generate detailed climate information to help farmers and water agencies make water-management decisions in the face of longer and more severe droughts.

UC Merced received a $10 million research grant from the USDA for a four-year effort to enhance data-driven practices to protect groundwater supplies and make agriculture and ecosystems more water resilient.

**Demand for livestock loans grew in the third quarter, boosting agricultural lending activity, but demand for operating loans was more subdued, and total non-real estate lending remained near its past decade average.

The Kansas City Federal Reserve Bank says while the average size of operating loans also remained elevated, a smaller number of loans limited the overall financing of operating expenses.

The agricultural economy generally remained strong as elevated commodity prices continued to support farm incomes.

**Bloomberg says U.S. ethanol production reached its highest level since COVID-19 lockdowns brought the industry to a basic standstill.

Gasoline demand on a four-week rolling average hit the highest point since 2007 for this time of year.

The revival comes as corn is available at a relatively cheap price, setting the stage for better profit margins and a potential boost in overseas demand.

The fuel industry is waiting for overdue Biden administration proposals on mandates requiring refiners to blend fixed amounts of the biofuel.

Previous ReportDeSantis Urges Funds for Manatees and Ethanol Production Hits COVID High
Next ReportLaNina for Drought Conditions and Corn & Soy Exports Jump