Food Security is National Security Act Introduced in Senate

Senate lawmakers Thursday announced the bipartisan Food Security is National Security Act. The legislation would give top U.S. agriculture and food officials permanent representation on the Committee on Foreign Investment in the United States. Lawmakers say the legislation includes new agriculture and food-related criteria for the committee to consider when reviewing transactions that could result in control of a U.S. business by a foreign company. Senate Republicans Chuck Grassley and Joni Ernst of Iowa joined Democrats Debbie Stabenow of Michigan and Jon Tester of Montana to introduce the legislation. Stabenow says, “As foreign entities continue their acquisitions of U.S. food and agriculture companies, American farmers and families deserve to know these transactions receive proper scrutiny.” To protect U.S. food security, the legislation grants permanent representation on Committee on Foreign Investment to both the Secretary of Agriculture and the Secretary of HHS, which oversees the Food and Drug Administration.

U.S.-Mexico Ag Officials Establish Working Group

U.S. and Mexican agriculture delegates met this week during the 30th annual meeting of the Tri-National Agricultural Accord. The officials discussed concerns regarding recent decisions by Mexico’s federal government to impose arbitrary prohibitions on agricultural biotechnology and certain pesticides. Delegates reaffirmed their commitment that the regulation, import and use of these critical tools be based on science and established a working group to promote the goal, according to the U.S.-based National Association of State Departments of Agriculture. NASDA President Richard Ball of New York says, “We must work hand-in-hand to encourage the free flow of food across our borders and the continued development of technology that supports global climate resiliency.” The Tri-National Agricultural Accord is the primary opportunity for senior state and provincial agricultural officials of Canada, the U.S. and Mexico to work together on agricultural trade and development issues, a long-standing commitment to trade by the three countries.

USDA Announces Grants to Strengthen Specialty Crop Industry

The Department of Agriculture Thursday announced more than $243 million in grants to support specialty crops. The funding is available through two USDA programs, the Specialty Crop Block Grant Program and the Specialty Crop Research Initiative grants program. USDA is investing $169.9 million through the Specialty Crop Block Grant Program to support farmers growing specialty crops, including fruits, vegetables, tree nuts and nursery crops. Since 2006, USDA has invested more than $880 million through the program. USDA also announced an investment of nearly $74 million to 21 award recipients through its Specialty Crop Research Initiative grants program. The program investments address critical challenges facing conventional and organic food and agricultural production systems across the specialty crop industry. The program's priority areas include improving crop characteristics, managing threats from pests and diseases, improving production efficiency, profitability, technological innovation, and mitigating food safety hazards.

NIFA Invests $50M for Beginning Farmer and Rancher Development

USDA’s this week announced an investment of more than $50 million to 140 organizations and institutions that teach and train beginning farmers and ranchers. The funds will support curriculum creation, informational materials, and professional development for new farmers and ranchers through the National Institute of Food and Agriculture. NIFA Director Dr. Carrie Castille states, "We recognize that beginning farmers and ranchers have unique needs for education, training, and technical assistance." Their success, especially in the first ten years, often hinges on access to reliable, science-based information and the latest educational resources, according to USDA. In fiscal year 2020, NIFA awarded $16 million in Beginning Farmer and Rancher Development Program grants. In fiscal year 2021, thanks to enhanced funding from the Coronavirus Response and Relief Supplemental Appropriations Act, the total award investment for this program was just over $50 million, which included 85 newly funded grants and 55 continuation projects.

New Guide Outlines Crop Insurance Options for Small Grains

As farmers start to think about next year's crop, the Center for Rural Affairs has released a new resource guide to inform producers who grow small grains about crop insurance options. Many farmers are familiar with their options for corn and soybeans, but fewer are familiar with their options for crops such as wheat, oats, barley, and rye. The reasons some Midwest and Great Plains farmers opt to grow small grains range from conservation benefits to the requirements of organic certification to local markets. However, while small grains do have benefits on the landscape, they come with associated risks. The guide covers the availability of established Multi-Peril policies for small grains, what to do if there is no available policy in your county, and other topics. Information included will be helpful for both organic and conventional producers. To view “From Seed to Secured: Crop Insurance for Small Grains,” visit cfra.org.

Free Regenerative Ag Webinar to Kick off Sustainable Ag Summit Week

A free webinar hosted by Corteva Agriscience will unpack and explore the potential of regenerative farming to strengthen agriculture’s relationship with consumers. The event is set for 10 to 11 a.m. CST on Wednesday, November 17. The webinar includes an interactive panel featuring producers and executives across the agri-food value chain. The discussion will set the stage for industry professionals attending the 2021 Sustainable Ag Summit, which kicks off that afternoon and continues the following day. The dialogue also will tackle topics such as scaling regenerative data and innovation and helping farmers and ranchers access the resources they need to make the transition. Farm Journal Trust In Food executive vice president, Amy Cole, is one of the featured speakers. Cole says, “This webinar will begin to explore the path to achieving ambitious goals, centered on the needs and experiences of farmers and ranchers who steward soil, water and habitat.” Learn more and register online.

Friday Watch List

Markets

Friday's reports start with U.S. personal incomes for September and the Labor Department's employment cost index for the third quarter, both due out at 7:30 a.m. CDT. The University of Michigan's index of consumer sentiment for October is set for 9 a.m. CDT. Traders will check the latest weather forecasts and keep an eye out for any export sales.

Weather

Scattered showers will continue across the eastern half of the country on Friday as a large, mature system spins across the eastern Midwest. Showers will be light to moderate but could last all day in some areas, leading to further or extensions of delays for the remaining corn and soybean harvest, as well as winter wheat planting. A frontal boundary will set up across the Canadian Prairies throughout the day and will bring cold temperatures to the U.S. over the weekend and into next week.

Crops Sector Received 65% of PPP Loans for Agriculture in 2020

Information updated by USDA’s Economic Research Service Wednesday shows 65 percent of Paycheck Protection Program 2020 agriculture funds went crop farms, with the latter for livestock. Last year, farmers and ranchers could use forgivable loans from the program to help keep employees on payroll and offset some of their operating costs. The maximum PPP loan amount was 2.5 times the monthly average profit plus payroll and eligible overhead expenses, such as the employer’s share of insurance payments and unemployment taxes. If used on eligible expenses within the first 24 weeks of payment, PPP loans were fully forgiven. Individual Small Business Administration loan data indicated that almost 121,000 farm operations applied for a total of $6.0 billion in PPP loans in 2020. That accounted for 17 percent of presumed-eligible farm operations. Out of the total PPP loans paid to farm operations in 2020, $3.9 billion went to crop operations, and the remaining $2.1 billion went to livestock operations.

Fish and Wildlife Service Seeks to Reverse Trump Era Rules

The U.S. Fish and Wildlife Service and National Marine Fisheries Service seek to rescind two critical habitat regulations finalized in the last days of the Trump administration. In December 2020, FWS issued a final rule that revised the process for considering critical habitat exclusions under the Endangered Species Act. FWS re-evaluated the rule and concluded the conservation purposes of the ESA are better met by resuming its previous approach. The proposal follows an executive order which directed all federal agencies to review and address agency actions to ensure consistency with Biden administration objectives. The American Farm Bureau Federation calls the effort a disappointment. Farm Bureau President Zippy Duvall says, “The Biden administration has proposed three different changes to these regulations, signaling a return to complicated and burdensome rules that do little to advance conservation goals.” Duvall adds AFBF will remain engaged on ESA issues, and encouraged farmers and ranchers to share their stories during the proposed rule change comment period.

USB: Future of Farming Demands High-Speed Internet Solutions

A new report reveals that providing U.S. farmers and ranchers access to fast, affordable and reliable broadband will increase sustainability. Funded by the United Soybean Board, the report says improved broadband will also allow more reliable and efficient food production for a growing population and strengthen America’s rural communities. Meagan Kaiser, USB treasurer, says, “Without a reliable connection to the internet, data collection and its subsequent use is severely limited,” noting data as the most valuable tool for farmers. The report lays out 15 recommendations for delivering the high-speed internet that farmers and rural communities need. The recommendations focus on performance standards, fiber internet access, and addressing gaps in broadband coverage. The recommendations are a direct response to the problems revealed in a 2019 rural broadband study from USB. The initial study showed 60 percent of U.S. farmers and ranchers do not believe they have adequate internet connectivity to run their businesses.

NIFA Invests $25M in Farm and Ranch Stress Assistance Network

USDA’s National Institute of Food and Agriculture Wednesday announced $25 million for 50 grants supporting Farm and Ranch Stress Assistance Network State Department of Agriculture projects. Long before the pandemic caused an increase in stress around the world, stress-related mental health was already a rising concern across farm communities coast to coast. USDA-NIFA introduced a competitive grants program, the Farm and Ranch Stress Assistance Network, reauthorized by the 2018 Farm Bill, which supports projects that provide stress assistance for people in agriculture. Funded projects must initiate, expand, or sustain programs that provide professional agricultural behavioral health counseling and referral for other forms of assistance as necessary. As part of the grants, the Colorado Farmer and Rancher Mental Health Support Program will expand to assist agricultural workers, farmers, and ranchers in managing stress. And the Georgia Farmer Healthy Mindset program will take a multifaceted approach to address stress and mental health outreach and awareness.

USDA Invests $21 Million in Effort to Help Producers Build Drought Resilience

The Department of Agriculture is investing $21 million as part of the Natural Resources Conservation Service’s collaboration with the Department of Interior’s WaterSMART Initiative. The effort helps farmers and ranchers conserve water and build drought resilience in their communities. The investments complement projects by irrigation districts, water suppliers and other organizations receiving WaterSMART Program funds from the Department of Interior’s Bureau of Reclamation. NRCS works with Reclamation to coordinate investments in the same community for accelerating water conservation and drought resilience and making a bigger impact where it is most needed. NRCS Chief Terry Cosby says, “Drought is a complex challenge, and our collaboration on WaterSMART is part of our strategic approach to help producers.” In fiscal year 2022, NRCS will invest in 15 new priority areas and 25 existing priority areas with continued need, assisting producers and communities in 13 states across the West. NRCS is providing the funding through Environmental Quality Incentives Program.

USDA Opens Registration for the 2022 Agricultural Outlook Forum

Registration is open for the 98th annual Agricultural Outlook Forum, the largest annual meeting of the U.S. Department of Agriculture. The two-day event will be held virtually on February 24-25, 2022. The 2022 Forum will feature a keynote address by Agriculture Secretary Tom Vilsack, a presentation on the 2022 agricultural economy by USDA's Chief Economist Seth Meyer, a panel of guest speakers, and 30 breakout sessions. The sessions, organized by agencies across USDA, cover a range of timely issues impacting the sector. More than one hundred government, industry, and academic leaders will share their perspectives and insights on a wide array of topics, including commodity and food price outlooks, trade developments, climate change, and innovations in agriculture. The 2022 Forum theme and full program will be announced soon. Registration for the virtual USDA Agricultural Outlook Forum is free but required to attend. Register online and learn more about this year’s program at the USDA Agricultural Outlook Forum website.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, an estimate of third quarter U.S. GDP and an update of the U.S. Drought Monitor. The Department of Energy reports on natural gas storage at 9:30 a.m., a concern for this year's fertilizer prices. Traders will continue to check the latest weather forecasts and watch for any news of an export sale.

Weather

A system is strengthening across the Mid-Mississippi Valley Thursday. This will bring scattered showers to the much of the Corn Belt down through the Southeast and strong winds on the backside of the system from the Southern Plains into the Southeast. Showers will continue to delay the remaining corn and soybean harvest, while winds will act to dry out winter wheat in the Plains and may damage cotton in the Southeast.

Senators Want Meeting with Biden to Talk Biofuels

Republican Senators Chuck Grassley of Iowa and John Thune of South Dakota joined several colleagues in requesting a meeting with President Biden to discuss biofuels and the Renewable Fuel Standard. They want to promote biofuels as a key solution for America’s energy and climate agenda. In July, Thune and Grassley tried to meet with the president to talk biofuels with the administration, but they said Biden ignored the request. “Mr. President, biofuels are a readily available energy solution that deserves full consideration, not only for helping to stem the recent increase in fuel prices - which has subsequently accelerated inflation - but to serve as a foundational source of transportation emission reductions as a part of your energy and environmental agenda,” the senators say in a letter to the White House. “We call on your administration to utilize the full capacity of American agriculture to deliver on both fronts, and we reiterate our request to discuss these matters with you in greater detail.” Earlier this year, Grassley reintroduced bipartisan legislation to expand markets for year-round biofuel consumption while also calling out the administration on the delay in assisting the biofuel industry negatively impacted by COVID-19.

Higher Food Prices Should Ease a Bit in 2022

Food prices are continuing to rise, and consumers across the country are adjusting their shopping habits. A Successful Farming article says food aid agencies are also ramping up their support efforts. Overall, food prices were 4.6 percent higher in September than last year. Beef prices were up 17 percent, and pork was almost 13 percent higher than 2020, and eggs were up by 12 percent. The USDA’s Food Price Outlook released this week is still projecting that higher food prices will ease a bit in 2022, with any future increases more in line with historical averages. However, with so many factors causing the rising prices, experts disagree on how soon those prices for food, as well as for gasoline and other products, will begin to settle down. In response to the rising costs, the Social Security Administration announced its biggest cost-of-living increase in ten years at 5.9 percent, but there’s concern that it won’t be high enough to offset the increasing cost of food. The Biden Administration also boosted SNAP benefits by more than 25 percent. Experts say the inflation spike appears on track to persist deep into 2022 as clogged supply chains, labor shortages, and continuing consumer demand pushes costs higher.

2021 Thanksgiving Dinner Will Cost More

While last year’s cost of a Thanksgiving Day dinner was the lowest it had been since 2010, this year could be quite a bit different.  A New York Times report says it could be the most expensive dinner on record in the holiday’s history. Nearly every part of the traditional American Thanksgiving dinner will cost more, ranging from the turkey roasting pan to the coffee and pie. Executives from major food companies like Nestle have already said consumers need to be ready for even more price increases. During 2020, COVID-19 kept people from buying for big gatherings, and turkey prices were held down to entice shoppers. This year, turkey prices may see record highs, while the cost of many other foods has also jumped much higher. Industry experts tell the New York Times that there isn’t just one culprit causing the spike. The U.S. food supply has been hit by knots in the supply chain, the higher cost of transportation, a shortage of labor, trade policies, and bad weather. Inflation is also a problem. In September, the Consumer Price Index for food was 4.6 percent higher than 2020. Prices for meat, poultry, eggs, and fish were soaring 10.5 percent higher than last year.

ADM, Bunge Report Solid Earnings Despite Hurricane Ida

Global agribusiness companies Archer-Daniels-Midland and Bunge likely turned in solid earnings in the third quarter despite weeks of suspended shipping caused by Hurricane Ida. Industry analysts expect good earnings numbers when the companies release their respective reports this week. Both companies benefitted from good margins in corn and oilseed processing and readily available grain supplies to trade, process, and ship overseas as higher prices compelled farmers to sell more of their crops. Long-term prospects for both companies got a boost from surging demand for vegetable oil for use in manufacturing renewable fuels. One analyst told Reuters that the current environment has higher prices that aren’t elevated enough to destroy demand. As people turn their attention to 2022, export demand is still high for U.S. grains. Export shipments from the Louisiana Gulf Coast, the biggest grain hub in the U.S., were halted for weeks after Hurricane Ida slammed into the area on August 29. The storm knocked out power to ADM and Bunge terminals and caused minor damage. The outage was almost a month long at the start of the U.S. corn and soy harvest and peak export season. Analysts say it probably hit ADM a little harder due to its larger U.S. footprint.

Thieves are Coming After Precision Ag Equipment

A Farm Progress report shows that farmers need to keep an eye on their precision ag equipment, such as auto-guidance monitors and antennas. An ag store in central Illinois was set to send some equipment for field demonstrations at the 2021 Farm Progress show when a representative showed up to take the tractor there and couldn’t find the auto guidance monitor and antenna. Staff had calibrated the tractor the day before and left the equipment in the tractor. What they found in the tractor were cut wires and no auto-guidance parts. Across the entire lot, eight pieces of machinery had stolen antennas and monitors. Further south in Atlanta, four tractors and five combines had their monitors and antennas stolen. While no one is 100 percent sure, the Farm Progress report says it’s either a quick way to make some money, or the computer chip shortage may be another reason behind the thefts. While the chips can’t be tracked, the stolen monitors and antennas can be disabled to stop anyone from using them with systems such as AFS Connect from Case IH. The best prevention is locking up everything at night. Some farmers unplug their precision equipment at night, store it in a safe place and bring it back to plug in the next day to prevent theft.

Support Grows for Sustainable Productivity Growth Coalition

Ag Secretary Tom Vilsack says more than 50 organizations and countries have declared support for the Coalition on Sustainable Productivity Growth for Food Security and Resource Conservation. The U.S. launched the coalition at the United Nations Food Systems Summit in September. The goal of the coalition is to recognize the importance of sustainable productivity growth for meeting the food security and nutrition needs of current and future populations while, at the same time, conserving resources and combatting climate change. The coalition will accelerate the transition to more sustainable food systems through productivity growth that optimizes agricultural sustainability across social, economic, and environmental dimensions. “We initiated this because it’s clear that increasing agricultural productivity is essential to meet the needs of a growing global population and ensure that food is affordable to hundreds of millions of people around the world,” Vilsack says. “If we’re going to end hunger, we must commit to developing and deploying new ways of doing things in agriculture.”

Wednesday Watch List

Markets

Wednesday's reports start with September durable goods orders and factory orders at 7:30 a.m. CDT. With rumors swirling, traders continue to watch for a possible export sale announcement at 8:00 a.m. The U.S. Energy Department's weekly report of energy inventories, including ethanol production, is due out at 9:30 a.m. CDT.

Weather

A system moved out into the Plains on Tuesday and will slowly pivot across the middle of the country on Wednesday. This will produce a band of scattered moderate to heavy showers across the Western Corn Belt down to the Gulf Coast. Delays to harvest are expected. The rains skipped over the southwestern Plains and breezy winds there today will dry out the topsoil further, especially in west Texas, potentially damaging young wheat plants.

Growth Energy Comments on Legislation to Repeal RFS

Amid a global energy crisis and rising fuel prices at pumps across the country, members of the U.S. House of Representatives introduced legislation to repeal the Renewable Fuel Standard. Growth Energy CEO Emily Skor slammed the legislation Monday for trying to reduce Americans' access to homegrown, low carbon biofuels. Skor says, "Now, more than ever, we need to be incorporating more homegrown, low-cost, and low-carbon biofuels into our fuel supply." The RFS was signed into law over a decade ago to reduce reliance on foreign oil and increase the blending of low-carbon biofuels, saving consumers up to $0.10 per gallon at the pump. Additionally, a recent study conducted by ABF Economics shows that moving to nationwide adoption of E15, a fifteen percent ethanol blend, would save consumers $12.2 billion in annual fuel costs. Lawmakers who introduced the Corn Ethanol Mandate Elimination Act in July stated, “The federal corn ethanol mandate no longer makes sense when better, lower-carbon alternatives exist.”

Students Leaders Prepare for the 94th National FFA Convention & Expo

FFA members and supporters from across the country will celebrate agriculture and agricultural education this week during the 94th National FFA Convention & Expo in Indianapolis. Held virtually last year, the event will once again be held in-person and hosted by the city of Indianapolis, starting Wednesday, with some virtual components. FFA members from across the country are expected to participate in the event. Those who will not participate in person will have an option to participate in online components – ranging from the virtual FFA Blue Room to student and teacher workshops to general sessions. Those attending in person will be able to participate in general convention sessions hosted at Lucas Oil Stadium and the expo, located in the Indiana Convention Center, and explore various career paths open to them. General convention sessions will be aired live on RFD-TV and The Cowboy Channel, and streamed on FFA.org. To learn more, visit convention.FFA.org.

AFT Selects Land Transfer Experts to Help New Farmer Generation

American Farmland Trust announced its selection of a new national cohort of 48 leading experts in land transfer as partners in creating Transitioning Land to a New Generation. The project will build an adaptable, skills-based curriculum to help a new generation of farmers and ranchers navigate the legal, financial and interpersonal issues in accessing and transferring land. More than 40 percent of American farmland is owned by seniors aged 65 and older who are likely to retire in the next decade or so. Given the demographics, AFT estimates, 371 million acres or one-third of U.S. farmland will likely transition to new ownership in the next 15 years. Transitioning is funded by a Beginning Farmer and Rancher Development Program grant from USDA’s National Institute of Food and Agriculture. The three-year project builds on AFT’s previous grant project, Farmland for the Next Generation. Both projects are part of AFT’s ongoing, multi-faceted partnerships with organizations committed to helping beginning producers succeed.

Texas Carves New Position Leading the U.S. in Pumpkin Revenues

Pumpkins are a staple of fall traditions for many Americans who pick them, carve them into jack-o’-lanterns, or bake pumpkin desserts. Although pumpkins are grown in many states, most of the production comes from ten states. By acreage and by weight, Illinois is consistently the nation’s largest pumpkin producer. However, unlike other states, most of Illinois’ pumpkins are used for pie filling and other processed foods, which receive a lower price. Production value of pumpkins in Illinois was ranked third in 2020 at $21.3 million, according to data released by USDA’s Economic Research Service Monday. In 2020, Texas led the nation in the value of pumpkins produced at $25.9 million, followed by Pennsylvania at $22.5 million, Illinois, and California at $20.7 million. Retail prices for pumpkins typically fluctuate week to week leading up to Halloween. In the second week of October 2021, the average retail price for jack-o’-lantern-style pumpkins was $4.09 per pumpkin, up 12 percent compared with the same week in 2020.

Sharing the Story of Agriculture with Food and Farm Facts

Fascinating facts about food in America – how and where it is grown and who produces it – are at your fingertips in a new resource produced by the American Farm Bureau Foundation for Agriculture. Food and Farm Facts helps answer questions that learners of all ages may have, including "Where does our food come from and who grows it?" The 32-page, full-color book features updated facts and easy-to-read infographics about U.S. agriculture that can be used in various ways to help increase agricultural literacy. The book would be a valuable resource in the classroom, at fairs and events, for student leadership organizations and when creating social media posts. Copies of Food and Farm Facts may be purchased for $4.25 each. You can order the new Food and Farm Facts book, map, pocket guide and related products in the series at Fb.org/store. Additional Food and Farm Facts products created by the Foundation will be available later this fall.

Fuel Price Increases Should Slow Soon

The nation’s average gas price increased 3.8 cents from a week ago to $3.36 per gallon, according to GasBuddy. The national average is up 17.1 cents from a month ago and $1.21 per gallon higher than a year ago. The national average price of diesel increased 5.9 cents in the last week and stands at $3.58 per gallon. However, “there may be some light at the end of the tunnel,” according to GasBuddy’s Patrick De Haan, who says, “The sharp rise we’ve seen over the last three weeks should begin slowing down soon, barring another jump in the price of oil.” The price of crude oil remained under pressure as global fundamentals continue to point out falling oil inventories and not enough supply amidst an energy crunch overseas. OPEC waived off any increases during their October meeting, but will meet again on November 4 and could revisit the decision to hold back production.

Tuesday Watch List

Markets

Early Tuesday, traders will be watching to see if recent rumors of soybean sales show up in an announcement from USDA at 8 a.m. CDT. The market will also pay attention to reports on September new home sales and consumer confidence in October, both due out at 9 a.m. CDT. The latest weather forecasts will also be considered.

Weather

A system moving through the Rockies will increase winds across the Plains Tuesday, followed by increasing showers Tuesday night. Showers are likely to miss winter wheat areas in the southwestern Plains, but could cause some severe weather from Kansas south to Texas Tuesday evening.

NCGA Joins Groups Commenting on Supply Chain Issues

The National Corn Growers Association joined 51 other groups in sending comments to the U.S. Department of Transportation on the many issues currently disrupting the U.S. supply chain. The comments offered recommendations on how to alleviate these challenges through legislative and regulatory actions. “To be successful, farmers must have a reliable and fully-functioning national transportation system that allows us to get fall fertilizer shipments and deliver our products to consumers in a timely manner,” says NCGA President Chris Edgington. Their recommendations on inland waterways include prioritizing legislative and regulatory actions that promote the rehabilitation of aging waterway infrastructure on the Upper Mississippi and Illinois Rivers. The groups also encourage the Surface Transportation Board to allow “reciprocal” or “competitive switching,” which would allow shippers and receivers geographically beholden to one rail carrier to gain access to a second rail carrier through a short distance switch. Another transportation recommendation was that USDA and the Transportation Department continue working together to ensure agricultural haulers and the rest of the trucking industry have the flexibilities they need to provide timely delivery of essential products. The recommendations come soon after President Biden’s announcement that the Port of Los Angeles would begin to operate 24/7 to help mitigate the bottleneck on the West Coast.

Ethanol Output Back to Pre-COVID Levels

Bloomberg says U.S. ethanol production reached its highest level since COVID-19 lockdowns brought the industry to a basic standstill. The ethanol industry reached production it hadn’t seen since June 2019. 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 readily available at a relatively cheap price, setting the stage for better profit margins and a potential boost in overseas demand for U.S. supplies. The fuel industry is waiting for overdue Biden administration proposals on mandates requiring refiners to blend fixed amounts of the biofuel into the nation’s fuel supply. “Weak blending proposals from the Environmental Protection Agency would pull the rug out from underneath the industry just as it is finally recovering to pre-COVID levels of production,” Renewable Fuels Association President Geoff Cooper says in an email to Bloomberg. The cost of complying with the blending requirement in the Renewable Fuel Standard has been a longtime conflict between biofuel makers and fossil-fuel refiners, who says the cost of compliance credits puts fuel supplies and refining jobs at risk.

U.S. Winter Weather Outlook

As La Niña climate conditions are back for a second-straight winter, above-average temperatures will show up in the South and most of the eastern U.S. That’s from the National Oceanic and Atmospheric Administration’s Climate Prediction Center, which issued the 2021 Winter Weather Outlook that extends from December 2021 through February 2022. NOAA says that’s consistent with typical La Niña conditions during the winter. They anticipate below-normal temperatures along portions of the northern tier of the U.S., while much of the South will experience above-normal temps. The Southwest U.S. will be the biggest concern as below-normal precipitation won’t improve the drought conditions in that region. Below-normal temps are likely in southern Alaska and the Pacific Northwest eastward through the Northern Plains. The Upper Mississippi River Valley and small parts of the Great Lakes have equal chances for above, near, or below-normal temps. The highest chances of wetter-than-average conditions are in the Pacific Northwest, northern Rockies, Great Lakes, and parts of the Ohio Valley. Drier than normal areas will include southern California and the Southeast U.S. The remainder of the U.S. has equal chances of above, normal, or below-normal temperatures. Widespread severe to exceptional drought continues to dominate the western half of the continental U.S., Northern Plains, and the Missouri River Basin.

IRS Anti-Surveillance Bill Introduced in Senate

Iowa Senator Chuck Grassley joined several colleagues in introducing the “Prohibiting IRS Financial Surveillance Act” in the Senate. The legislation will prevent the Internal Revenue Service from implementing Democrats’ plan to give the agency access to the transaction information of virtually every American. Grassley says the information that the Democrats are seeking is a complete invasion of privacy. “The average American shouldn’t have to explain every financial transaction to the federal government,” Grassley says. “On top of that, this proposal would severely strain our local banks and credit unions with significant implementation and administrative costs.” He also says the IRS hasn’t demonstrated the ability to maintain the confidentiality of the information it already collects. The Missouri Chamber of Commerce is one group supportive of the legislation. “This is an unprecedented attempt to spy on millions of American’s financial transactions and would place onerous new burdens on our private banking institutions,” says Daniel Mehan, President and CEO of the Missouri Chamber. “The proposal would also increase costs for everyone at a time when we’re trying to rebuild our economy. We must put a stop to this reckless and intrusive federal policy.”

USDA Makes $1.15 Billion Available to Access High-Speed Internet

Ag Secretary Tom Vilsack says his agency is making funding available to bring a significant expansion of access to high-speed internet, health care, and educational services for millions of Americans. USDA has $1.15 billion available to help people in rural communities across the country get access to high-speed internet. “For too long, the digital divide has left too many people living in rural communities behind, unable to compete in the global economy and without access to the services and resources that all Americans need,” he says. “These actions will go a long way toward ensuring that people who live or work in rural areas can tap into the benefits of broadband.” He adds that those benefits are numerous, including access to specialized health care, educational opportunities, and the global marketplace. “Rural people, businesses, and communities must have affordable, reliable, high-speed internet so they can fully participate in modern society and the modern economy,” Vilsack adds. USDA will begin accepting applications for loans and grants on November 24. USDA is making the funding available through its ReConnect Program.

Corn and Soybean Sales Surge

The USDA says export sales of corn and soybeans jumped week-to-week while wheat sales dropped during the week ending on October 14. Corn sales were reported at 1.27 million metric tons, a 22 percent jump from the previous week and 67 percent higher than the prior four-week average. Unknown countries bought more than 456,000 metric tons, while Mexico bought just over 377,000 tons. Weekly exports came in at 1.04 million metric tons, a 14 percent increase from the previous week. Soybean sales totaled 2.88 million metric tons, up from 1.15 million a week earlier and noticeably higher than the prior four-week average. China was back in the buying game, purchasing 1.88 million metric tons, followed by unnamed buyers who bought almost 569,000 metric tons. Exports last week came in at 2.21 million metric tons, a 29 percent increase over the prior week. Wheat sales dropped 36 percent week-to-week to 362,400 metric tons. That’s a six percent drop from the prior four-week average. Nigeria was the top buyer at 98,000 metric tons, followed by Japan at 92,100 tons. Exports of U.S. wheat were 160,200 metric tons, a 65 percent drop from the previous week.

Monday Watch List

Markets

The final full week of October begins with traders keeping up with the latest weather forecasts and pausing at 8 a.m. CDT for a possible export sale announcement. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m.

Weather

Moderate to heavy rain fell across good portions of the Corn Belt over the weekend and continues over eastern areas on Monday. A system in the West which has been producing flooding over drought areas will continue to slide through western states as well, before emerging into the Plains on Tuesday.

Thursday a Busy Day for House Ag Committee

The House Agriculture Committee Thursday moved several bills through the committee, including the Cattle Contract Library Act. The legislation, announced earlier this week, saw wide support from the agriculture industry. Representative Cindy Axne, an Iowa Democrat on the House Ag Committee, says, “The bill we’ve passed today is just one piece of what is needed,” adding, “There’s more that we must do to support transparency and increase competition in our cattle markets.” The committee also passed a bill that would provide $100 million in additional funds and make permanent the student scholarship program for students at the nineteen 1890 Colleges and Universities. Other bills passed through the committee include the Chronic Wasting Disease Research and Management Act, the, National Forest Restoration and Remediation Act, and the Pyrolysis (pie-rol-is-sis) Innovation Grants Act. Speaking of the scholarships bill, Chairman David Scott says, “I deeply and sincerely appreciate both my Democratic and Republican Members of Congress for their strong bipartisan support.” 

Ranch Group Withholds Endorsement of Contract Library Bill

The Cattle Contract Library Act of 2021 introduced this week received support from farm and livestock groups. However, there is one holdout, being R-CALF. The contract library bill requires beef packers to provide details of the types of forward contracts they use for purchasing fed cattle that are not purchased in the negotiated cash market, which is the price discovery market for the cattle industry.  The bill also requires the Department of Agriculture to publicly report the total number of cattle that beef packers have committed to them six months and 12 months into the future. R-CALF USA’s board of directors reviewed the bill and determined it does not address the competition-disrupting leverage the highly concentrated beef packers now hold over the cattle market and that new methods of cattle procurement in use today by the largest beef packers may fall outside the scope of the bill. The House Agriculture Committee favorably reported the bill to the full chamber Thursday.

Vilsack Offers Support to Striking Deere Workers

While traveling in Iowa this week, Agriculture Secretary Tom Vilsack offered his support to striking John Deere workers. Visiting union members outside a Deere and Company plant in Iowa, the Secretary told picketers, "You work hard, and you deserve a fair price and a fair deal," according to Reuters. The Deere employees, represented by the United Auto Workers, are joining thousands of others who have gone on strike in recent months. The workers are demanding higher pay and better working conditions. Vilsack told the workers he would be happy to tell Deere Chief Executive Officer John May how important it is to resolve the dispute quickly and fairly. Officials with Deere have repeatedly insisted they want to resolve the strike and maintain their workers status as the best paid in the industry. The strike began earlier this month after 90 percent of hourly workers rejected the company’s contract offer. Roughly 10,000 employees are on strike at 14 Deere locations in the United States.

FCC Announces Broadband Funding Through Rural Digital Opportunity Fund

The FCC this week announced that it is ready to authorize nearly $550 million in its third round of funding for new broadband deployments through the Rural Digital Opportunity Fund.  Together with two prior funding wave announcements, the FCC has now announced over $1 billion in funding to winning bidders for new deployments. In this funding wave, 11 broadband providers will bring fiber-to-the-home gigabit broadband service to over 180,000 locations in 19 states. Acting Chairwoman Jessica Rosenworcel (rosen-wor-sal) says, “Broadband is an essential service and during the pandemic we’ve seen just how critical it is for families, schools, hospitals, and businesses to have affordable internet access.” The FCC also denied several waiver petitions by companies that did not diligently pursue their applications. The 19 states slated for funding are Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, New Mexico, Ohio, South Carolina, Texas, and Wisconsin. 

Potential 2022 Supply Chain Issues for Herbicides

Supply chain disruptions and material shortages are fueling speculation about a herbicide shortage for the 2022 agriculture growing season. Allan Gray, executive director of the Purdue University Center for Food and Agricultural Business, suggests, "Flooding, COVID-19 outbreaks and congested ports disrupted production and exports in China for months, resulting in chemical manufactures rationing supply." Bill Johnson, Purdue professor of weed science and Purdue Extension weed specialist, encourages producers to plan to minimize the impact on corn and soybean production in the Midwest. Glyphosate and glufosinate are the two main active ingredients that potentially may be in short supply for the next growing season. Johnson warns, "Plan your upcoming weed control strategies to accommodate for limited availability because of supply or price of these two active ingredients.” Even if there isn't a widespread shortage, farmers will likely encounter higher chemical prices resulting in major challenges for corn and soybean production.

NIFA Invests $2M for Aquaculture Research

USDA’s National Institute for Food and Agriculture recently invested $2 million for seven awards for the Special Research Grants Program for Aquaculture. The grants support the development of new science-based information and technology for environmentally and economically sustainable aquaculture industry in the United States. The program seeks practical solutions that will facilitate growth of the U.S. aquaculture industry, reduce the U.S. trade deficit in seafood products, and enhance the capacity of the U.S. aquaculture industry to contribute to food security and economic growth. NIFA awarded grants to the University of Arkansas-Pine Bluff, University of California-Davis, AI Control Technologies Inc, Mississippi State University, Ohio State University-Wooster, Texas A&M University-Chorus Christi, and Texas State University-San Marcos. Global demand for seafood is projected to increase by 70 percent in the next 30 years, and harvests from capture fisheries are stable or declining. A consensus is growing that a dramatic increase in aquaculture is needed to supply future aquatic food needs.

Friday Watch List

Markets

Early on Friday, the early report of note is the Manufacturing PMI. We will again be watching for any changes in harvesting weather, and any announcements of new export sales. Friday after the close, we will have the CFTC Commitment of Traders report.

Weather

Some isolated showers will be possible across the Corn Belt Friday, but most areas east of the Rockies will be drier with quieter weather conditions that should favor harvest. Cooler weather is settling into northern areas as well. Scattered showers will move into the Pacific Northwest, however, which would favor winter wheat establishment.

Vilsack, Villalobos meeting Focused on Trade, ASF and Climate Change

The Department of Agriculture Wednesday released a joint statement following bilateral meetings between Agriculture Secretary Vilsack and Mexico’s Agriculture Secretary. Vilsack and Victor Villalobos (Villa-bus) met in Ames, Iowa, Wednesday, with meetings focused on agriculture trade between the two countries. In the statement, the leaders say, “We reaffirm the importance of our two nations’ exceptional agricultural trading relationship.” The discussions highlighted the importance of continuing to work together to advance rural prosperity and to fulfill a shared responsibility to protect agricultural systems and producers, according to USDA. That includes collaborative efforts to prevent the spread of African swine fever and other animal and plant diseases and pests. The two also addressed climate change, saying, “our farmers, ranchers and producers are on the front lines dealing with the increasingly urgent challenges of climate change.” The pair expressed confidence that the U.S. and Mexico agriculture sectors will be a key part of the solution.

Global Ag Productivity Growth Off Target for 2050 Demand

An annual report from Virginia Tech University shows agriculture is behind the pace of meeting the productivity needs of 2050. The 2021 Global Agricultural Productivity Report urges the acceleration of productivity growth at all production scales to meet consumers' needs and address human and environmental well-being threats. Productivity growth remains the primary source of agricultural output growth globally. Still, the USDA Economic Research Service's new methodology for calculating total factor productivity reveals it is not growing as fast as previously thought. Globally, total factor productivity grew by an average of 1.36 percent annually from 2010 to 2019, well below the Global Agricultural Productivity Index target of 1.73 percent. The report says human-caused climate change has slowed global agricultural productivity growth by 21 percent since 1961. Researchers say maximizing agriculture’s climate change mitigation potential is essential for sustainability, yet for most of the world’s producers, adapting to climate change and protecting their livelihoods is the most immediate challenge.

Larger Livestock Loans Boost Farm Lending

Demand for livestock loans grew in the third quarter, boosting agricultural lending activity. However, demand for operating loans was more subdued, and total non-real estate lending remained near its average of the past decade. The Kansas City Federal Reserve Bank Wednesday said the average size of loans for some livestock categories reached an all-time high and contributed to the increased lending. 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. Prices of most major crops were at multi-year highs moving into fall harvest and supported farm revenue prospects. However, weakness in the cattle industry persists as low cattle prices continued to limit profit margins for producers. In addition, concerns about drought and higher input costs continued to intensify and likely contributed to an increase in financing needs in the livestock sector.

House Lawmakers Introduce Cattle Library Contracts Bill

House lawmakers Wednesday announced a bill to create a library for cattle contracts within the U.S. Department of Agriculture's Agriculture Marketing Service Department. Cattlemen are currently unaware of contract terms offered by packers, leading to a decline in leverage for smaller producers during price negotiations. South Dakota Republican Dusty Johnson and Texas Democrat Henry Cueller introduced the bipartisan Cattle Contract Library Act of 2021. USDA maintains a pork contract library, and following significant volatility in the cattle market and the release of the July 2020 Boxed Beef & Fed Cattle Price Spread Investigation Report, the creation of a library was recommended by experts and stakeholders. Representative Johnson states, “Data drives marketing decisions and a contract library will provide much-needed leverage for independent producers.” The legislation received broad support from the American Farm Bureau Federation, National, Cattlemen’s Beef Association, U.S. Cattlemen’s Association, National Farmers Union, and the Livestock Marketing Association.

Brazil Partially Halting Beef Production over China Export Ban

Brazil is partially halting beef production intended for China while waiting on China to lift an export ban. Brazil’s Agriculture Ministry made the announcement while claiming China is taking too long to lift the ban. The suspension started on September 4 when Brazil confirmed two atypical cases of mad cow disease, and followed existing trade protocols between Brazil and China. The ministry has also temporarily allowed beef processors to store for up to 60 days meat produced before China's suspension took place, according to Reuters. Brazil's Agriculture Ministry announced this week its Agriculture Minister is willing to travel to China to discuss with Chinese counterparts a potential end to the ban. The World Organization for Animal Health last month said it won’t make any change to Brazil’s status as a “negligible risk” country for Bovine Spongiform Encephalopathy (in-sef-o-lop-athy), the scientific term for mad cow disease. Brazilian beef accounts for 40 percent of China’s imports.

Value of Corn in Pet Food

A recent study found that corn and corn gluten meal are the top two most used plant-based ingredients in pet food products. Corn is the dominant plant-based carbohydrate at 1.2 million tons, and corn gluten meal is the dominant plant-based protein ingredient at 476,000 tons used annually. Thanks to pet food, the corn industry moved 1.9 million tons of product, valued at a total of $438 million. Farmers and farm-product processors sell $6.9 billion worth of products to pet food manufacturers every year that are used as ingredients. The Institute for Feed Education and Research, the Pet Food Institute, and the North American Renderers Association compiled the data. Sales made by farmers and processors of farm products to pet food manufacturers stimulates further upstream economic activity, leading to the purchase of $5.3 billion of materials and services from farm suppliers, to produce products that are used as pet food ingredients, according to the report.

Thursday Watch List

Markets

Early on Thursday we'll see the release of leading economic indicators, jobless claims and existing home sales. We will also be watching for weekly export sales, out at 7:30 Central time. We will watch for any new flash sales announced at 8 a.m., by the USDA, with an emphasis on China, and we'll look for any significant weather changes.

Weather

A compact system will continue to bring scattered showers to the eastern Midwest on Thursday while some additional showers form across the Southeast. Some minor impacts are expected from these showers but most areas will continue to have favorable conditions. Lower temperatures have filtered in behind the system across the Plains and western Midwest and some first frosts will be recorded over the next couple of days, which is either on time or late for this time of year.

Ag Groups Formally Object to EPA Chlorpyrifos Rule

This week, more than 80 agricultural groups filed formal objections to the Environmental Protection Agency’s August 30 rule to revoke all tolerances of chlorpyrifos (clo-PEER-uh-foss). Stakeholders can object to pesticide tolerance changes or cancellations, and the EPA Administrator must then respond. In the coalition letter, the agriculture sector cited numerous concerns with EPA's revocation decision, including the processes EPA used and lack of scientific basis. EPA's scientific record on chlorpyrifos shows many safe uses of the chemistry do not pose a dietary or environmental risk. Regardless, the coalition charges, the agency is opting to revoke tolerances for these safe, low-risk uses.  American Farm Bureau President Zippy Duvall called the EPA action shortsighted, saying, “Taking care of the land and our natural resources is a top priority for farmers, and this revocation rule actually makes it harder for us to do that.” Additionally, EPA’s rule revokes tolerances on crop uses where many growers have few or no alternatives.

Ad Council, Others, Reaching Rural Residents on COVID-19 Vaccines

The Ad Council and groups representing Rural America are helping rural residents learn more about the COVID-19 vaccine. The Ad Council and the COVID Collaborative have partnered with the American Farm Bureau Federation, the Cooperative Extension System and the National Association of Farm Broadcasting, among others, for the campaign. The campaign includes public service announcements featuring rural residents and farmers providing their perspectives on the COVID-19 vaccine. In September 2021, incidence rates of COVID-19 in rural America were roughly 54 percent higher than elsewhere in the country, according to the Rural Policy Research Institute. However, large groups among the rural population who remain undecided about vaccination continue to have concerns about long-term side effects of the vaccines and doubts about the efficacy of vaccination due to new breakthrough cases. Recent CDC data reveals that 35 percent of rural Americans are unvaccinated, a vaccination rate ten percent lower than their urban and suburban counterparts.  

Farmland Sales Expected to Be Especially Brisk

The amount of farmland being sold increased since the first of the year and charged ahead during the pre-harvest time frame recently. The increased selling will continue through the fall land sales season and most likely into early winter, according to Farmers National Company. The boost in selling interest by landowners has been largely driven by strong land prices in the past twelve months. A normal amount of land is sold into the open market each year by estates and recent inheritors who decide to sell the newly owned asset instead of keeping it. This often happens with larger family groups who conclude that it is easier to settle the estate with cash instead of land. However, several other reasons are bringing more landowners to conclude that now is the time to sell. Landowners cite high land prices, succession planning, and trading into better quality land. Others cite the uncertainty in tax policy being discussed in Washington.

USDA Appoints New Members to Food Safety Advisory Committee

The Department of Agriculture appointed 13 new members and 17 returning members to the National Advisory Committee on Microbiological Criteria for Foods Tuesday. Committee members are chosen based on their expertise in microbiology, risk assessment, epidemiology, public health, food science, and other disciplines. One individual affiliated with a consumer group is included in the membership of the committee. The activities of committees are carried out, in part, by subcommittees that are focused on specific topics being considered by the full committee. The committee has contributed to a broad range of food safety issues, and committee reports provide information and scientific advice to federal food safety agencies. The committee also provides a foundation for regulations and programs to reduce foodborne disease and enhance public health. Agriculture Secretary Tom Vilsack adds, "These individuals will play a significant role in helping to ensure the safety of our nation's food supply." The list of members is available on the USDA FSIS website.

USDA Launches New Effort to Reduce Salmonella Illnesses Linked to Poultry

The Department of Agriculture's Food Safety and Inspection Service Tuesday announced a stronger and more comprehensive effort to reduce Salmonella illnesses associated with poultry products. The agency is initiating several activities to gather data and information necessary to support future action and move closer to the national target of a 25 percent reduction in Salmonella illnesses. Despite consistent reductions in the occurrence of Salmonella in poultry products, more than one million consumer illnesses due to Salmonella occur annually, and 23 percent of those illnesses are due to consumption of chicken and turkey. USDA intends to seek stakeholder feedback on specific Salmonella control and measurement strategies, including pilot projects, in poultry slaughter and processing establishments. A key component of the approach is encouraging preharvest controls to reduce Salmonella contamination coming into the slaughterhouse. The data generated from pilots will be used to determine if a different approach could reduce Salmonella illness in consumers.

USDA Now Accepting Grant Applications for Wood Products, Energy

Deputy Agriculture Secretary Dr. Jewel Bronaugh (Bruh-NAW) announced Tuesday approximately $13 million in new funding opportunities to support innovation in wood products and wood energy. The announcement came during a “Leaders for the Built Environment” virtual event and kicks off National Forest Products Week as proclaimed by President Biden. Organized by the Forest Service, Dovetail Partners, WoodWorks and the Softwood Lumber Board, the event aimed to challenge senior leaders from companies in attendance, like Walmart and Microsoft, to explore how mass timber construction can support their climate and sustainability goals. The USDA Forest Service is now accepting applications for these funds through the 2022 Wood Innovations Grant Program and the 2022 Community Wood Grant Program. The grants are designed to develop and expand the use of wood products and strengthen emerging wood energy markets that support sustainable forest management – particularly in areas of high wildfire risk. The application period for both grant programs closes on Wednesday, January 19, 2022.

Wednesday Watch List

Markets

Early on Wednesday, there are few reports except for the Beige Book, the Fed's report on economic conditions. We will also be watching for any new export sales at 8 a.m., especially to China, and any changes in the weather outlook. At 9:30 a.m. CDT the Energy Information Administration's weekly petroleum report will be released with a focus on ethanol production.

Weather

A compact little system moving through the Corn Belt will bring some moderate showers from South Dakota to Minnesota on Wednesday, with more isolated showers elsewhere. With harvest progress so far along in both states, impacts to harvest overall will be small. Other areas with only isolated showers should still find mostly favorable conditions for harvest. Lower temperatures are filtering in behind the system across the Northern Plains already.

Vilsack to Host Mexico’s Agriculture Secretary in Iowa

Agriculture Secretary Tom Vilsack will host bilateral meetings with Mexico’s Secretary of Agriculture and Rural Development Víctor Manuel Villalobos Arámbula (Villa-bus Arm-bew-lah) in Iowa this week. Vilsack will also participate in the World Food Prize Laureate Award ceremony in the Des Moines area. On Wednesday, Secretary Vilsack and Villalobos will travel to Ames, Iowa, for a tour of Iowa State University's Seed Science Center and Plant Sciences Institute. Secretary Vilsack and Secretary Villalobos will also engage in bilateral discussions while at the university. That afternoon, the Secretaries will travel to Ankeny, Iowa, where they will tour a local farm and participate in a conversation about the challenges farmers have faced during the past year and how farmers can be better supported. On Thursday, the leaders will participate in World Food Prize events, in Des Moines, Iowa. That evening, the Secretaries will attend the Laureate Award Ceremony at the Iowa State Capitol in Des Moines. 

EPA Announces Strategy to Confront PFAS Pollution

Environmental Protection Agency Administrator Michael Regan Monday announced the agency’s comprehensive Strategic Roadmap to confront PFAS contamination nationwide. The roadmap results from a thorough analysis conducted by the EPA Council on PFAS that Administrator Regan established in April 2021. EPA's Roadmap is centered on three guiding strategies, including increasing investments in research, leveraging authorities to take action now to restrict PFAS chemicals from being released into the environment, and accelerate the cleanup of PFAS contamination. Administrator Regan says, “For far too long, families across America – especially those in underserved communities – have suffered from PFAS in their water, their air, or in the land their children play on.” The roadmap lays out an aggressive timeline to set enforceable drinking water limits under the Safe Drinking Water Act to ensure water is safe to drink. In April 2021, Administrator Regan established the EPA Council on PFAS to address the impacts of PFAS contamination.

Organic Trade Association Seeking New CEO

The Organic Trade Association Monday announced the launch of a nationwide search for a new CEO and Executive Director. After more than a decade of service to OTA and the organic community, current CEO Laura Batcha plans to step down in spring 2022. OTA’s search committee is composed of members of the association’s Board of Directors and led by Board Member Paul Schiefer, who says, “OTA is steering the organic sector into the future; our next CEO will have the unique honor of guiding that journey.” Batcha has worked coast to coast on organic farms, started her own organic botanicals business, worked for several years at a multinational organization, and for the last thirteen years has led the Organic Trade Association. Batcha first joined OTA in 2008 as Director of Marketing and Public Relations, and was named CEO and Executive Director in January of 2014. The Organic Trade Association is the membership-based business association for organic agriculture and products in North America.

2022 World Ag Expo Chairman Announced

World Ag Expo recently announced Steve Wilbur as chairman of the 2022 event. A local cotton farmer, Wilbur also runs a dairy with his family, grows feed and multiple row crops. He has previously served as the International Agri-Center Board Chair, as well as being the 2014 Chairman of the California Cotton Growers Association and serving on the board of Cotton Inc. The 2022 show proclaims World Ag Expo is "Back in Agtion," a play on words with a few meanings. While COVID-19 sidelined the live show in 2021, farmers and ag professionals never stopped working during the pandemic. Volunteers and staff are ready to bring back the live show and provide a place for everyone in ag to meet, shop, and learn something new. Tickets are on sale online, and attendees can plan their visit at www.worldagexpo.org. The 55th edition will run Tuesday, February 8 through Thursday, February 10, 2022, at the International Agri-Center in Tulare, California.

Fuel Prices Continue Increase

The nation's average gas price increased 2.9 cents from a week ago and stands at $3.30 per gallon, according to GasBuddy. The national average is up 7.5 cents from a month ago and $1.08 per gallon higher than a year ago. The national average price of diesel increased 7.8 cents in the last week and stands at $3.53 per gallon. The start of the new week brought oil to yet another fresh seven-year high. GasBuddy's Patrick De Haan says, “With OPEC holding back oil production and strong global oil demand, the situation will no doubt pave the road with even higher gas prices in the weeks ahead.” Until several bottlenecks ease, including supply chains and low global inventories of oil, natural gas and coal, the U.S. will be stuck feeling the pinch of rising oil and gasoline prices. According to the Energy Information Administration, crude oil inventories saw a surprising jump, thanks largely to refinery utilization, or inputs, dropping a significant amount.

Ocean Mist Farms Announces New CEO

Ocean Mist Farms, the leading grower and marketer of fresh artichokes in the U.S. and premium supplier of fresh vegetables for nearly 100 years, announced the promotion of Christopher Drew to President and Chief Executive Officer. Drew will be responsible for leading all commercial, operational, financial, and administrative aspects of Ocean Mist Farms in his new role. The Board of Directors unanimously selected Drew from among many distinguished Produce and Consumer Packaged Goods executives sourced through a national search. In his previous role as COO, Drew collaborated with teams across the organization to streamline strategies and processes and oversee the operational departments and facilities across the organization: cooling, shipping, production, harvesting, food safety, quality assurance, and value-added operations. Before joining Ocean Mist Farms, Drew earned his Bachelor of Science in Crop Science from California Polytechnic University, followed by his Master's degree in Business Administration from the University of Phoenix - San Jose.

Tuesday Watch List

Markets

Early Tuesday we will have housing starts and building permits released. Crop progress results from Monday afternoon will be important. We will also be watching closely for any new export sales announcements to China, and changes in the upcoming harvest weather.

Weather

A small and compact system will bring scattered showers from Nebraska and South Dakota westward into the Rockies on Tuesday. Some pockets of moderate precipitation will be possible, along with snow in western areas. Other areas will enjoy dry and mild conditions, benefiting harvest.

Ag Groups Want More Action on New Trade Opportunities

Agriculture groups recently came together during a Farmers for Free Trade roundtable to talk about trade. They all expressed frustration that the Biden administration hasn’t initiated any new trade talks. The groups are especially interested in more Southeast Asian opportunities as more and more countries show interest in the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership, formerly known as TPP. A DTN report says that while ag exports have hit record levels, they want the administration to look into getting back into the 11-country trade deal. U.S. agriculture closed out the fiscal year 2021 with a USDA projection of $175.3 billion in final sales, almost $34 billion higher than the previous fiscal year. Joe Glauber (GLAW-ber), a one-time chief economist for the USDA and former ag trade negotiator, says while the U.S. was involved in trade wars during recent years or renegotiating old agreements, America’s competitors weren’t sitting by and watching. “Unfortunately, we decided to leave TPP, but the rest of those countries got an agreement,” Glauber says. “We found ourselves trying to figure out what to do with markets like Japan, which we need, and our competitors now have better access to than we do.”

NASS Collecting Additional Information on Local Food Practices

The USDA’s National Agricultural Statistics Service will be collecting additional information on agricultural products marketed as local foods during 2020. Earlier this year, NASS collected detailed data on 2020 local food marketing practices. This information came from farmers and ranchers who had previously reported local food marketing activity on prior surveys and a census. In light of the extreme dynamics brought on by COVID-19 and reliance on previous indicators of local food marketing based on the 2017 Census of Agriculture, contacting additional producers to get the complete picture of local food marketing practices is now a necessary step. As a result of the current conditions, NASS will collect information from producers who have not indicated prior local food marketing. The data release, originally scheduled for November 18, will now be delayed until the new information and the data collected earlier this year are combined. The 2020 Local Food Marketing Practices Survey report likely won’t get released until early 2022.

USDA Working to Strengthen School Meals

USDA Secretary Tom Vilsack, Undersecretary for Food, Nutrition, and Consumer Services, Stacy Dean, and USDA Food and Nutrition Service Administrator Cindy Long hosted a listening session on school meals. The session took place with 19 school food industry executives to discuss their critical role in strengthening access to nutritious foods for school meals programs, both now and into the future. “USDA’s school meal programs have a wide-reaching impact on the health and well-being of our nation’s children,” Vilsack says. “Now, more than ever, America’s children need access to healthy and nutritious foods, and our industry partners play a huge role in making that happen.” The meeting took place as the department, schools, and other partners across the country celebrated National School Lunch Week from October 11-15. The week is set aside as an opportunity to celebrate the high-quality, delicious, and nutritious lunches children get at their schools. COVID-19 and the resulting economic challenges have highlighted the essential role that school meals play in addressing childhood hunger, as well as the tireless dedication and creativity of school food professionals in making sure that children are well-fed, no matter the situation.

U.S. Fertilizer Industry Commits 70-million Acres to Nutrient Stewardship

The Fertilizer Institute looked to the future in announcing an industry-wide commitment to commit 70 million acres under 4R Nutrient Stewardship management by 2030. Acres managed under the 4R concept incorporate practices that use the right fertilizer source at the right rate, at the right time, and in the right place. When the 4Rs are put into practice, growers can achieve higher yields, lower input costs, and fewer nutrient losses to the environment. “The sustainable use of fertilizer is not only a priority for the fertilizer industry but millions of farmers across the nation,” says Corey Rosenbush, TFI president and CEO. “A key goal for the industry is a commitment to a healthy environment and setting this goal to improve nutrient stewardship is an important step in meeting that goal.” A 4R acre is defined as an acre of U.S. cropland under management using 4R practices, such as organic sources and removal rates, variable technology, split applications, the use of cover crops, accounting for the weather during the application, and several others. Fertilizer is a key component of sustainable crop production systems, and the fertilizer industry recognizes the need to use these nutrients efficiently. Practices based on the right source, rate, time, and placement of fertilizer application can lead to improved on-farm profitability, improved water quality, and reduced loss of greenhouse gas.

McDonald’s Testing a Plant-Based Burger in November

McDonald’s says it will test the “McPlant” burger in restaurants next month. The chain developed the burger in partnership with Beyond Meats. CNBC says it’s the latest step in McDonald’s cautious approach to adding plant-based meat to its menu. The company took its time learning about meat substitutes and consumer demand, even as other fast-food chains raced to add fake meat items to their respective menus. Rival Burger King added the Impossible Whopper to its menu two years ago. Starting November 3, McDonald’s will offer the fake-meat burger at restaurants in select cities in Texas, Iowa, Louisiana, and California. The meatless burger ingredients include peas, rice, and potatoes, and the McPlant burger will be cooked on the same grills as its legitimate beef patties. The company says the limited test is supposed to help the chain understand the impact of introducing a plant-based burger in its operations. McDonald’s already sells the “McPlant” in international markets like Sweden, Denmark, and several others.

Ethanol Production Levels Hit Highest Point Since July

The U.S. Energy Information Administration says ethanol output topped the million-barrel a day mark for the first time in two months during the week ending on October 8. At the same time, inventories also began to decline. Biofuel production jumped to an average of 1.032 million barrels a day during the week. That’s up from 978,000 barrels a day, on average, the previous week, and government data says that’s the highest level since July 9. It’s also the first time production averaged more than one million barrels a day since July 30. The nation’s largest producing region is in the Midwest, which averaged 977,000 barrels a day in output during the week, up from 937,000 barrels the previous week and was the highest level since the week ending on July 16. East Coast production doubled to an average of 12,000 barrels a day, while Gulf Coast output surged to 25,000 barrels a day, up from 16,000 the prior week. Rocky Mountain production was steady at 11,000 barrels a day. The only region that saw lower production was the West Coast, which fell to an average of 8,000 barrels a day from 9,000 during the previous week.

Monday Watch List

Markets

Early on Monday both U.S. industrial production and manufacturing production reports will be out. DTN will also be watching for any new announcements of export sales, especially to China and/or unknown destinations, along with export inspections and crop progress on Monday afternoon.

Weather

A system is moving into the western U.S., but most of the country will be dry as temperatures rise across the Corn Belt on Monday. Conditions will help those that have gotten soggy last week to continue to dry out, but there are showers coming from that western system this week.

John Deere Workers Go on Strike

Deere & Co. couldn’t reach an agreement with workers on a six-year labor contract, prompting thousands of employees to begin a strike on Thursday. Members of the United Auto Workers overwhelmingly rejected a contract that was previously agreed on by the union’s leadership and the tractor maker. After weeks of negotiations, UAW leadership and the world’s biggest farm equipment maker reached agreements on wages and other benefits. However, Reuters says 90 percent of the union’s workers voted against the deal. The tentative deal had covered roughly 10,000 production and maintenance employees in 14 facilities scattered around the U.S. “Pickets have been set up, and our members are organized and ready to hold out and fight for a contract they believe meets their needs,” says Ron McInroy, UAW Region 4 Director. The company says it remains committed to reaching a new agreement, adding that it hasn’t figured out a timeline for finishing the negotiations. The rejected contract proposal would have given five percent wage hikes for some workers and a six percent boost to others. A source familiar with the negotiations says the workers understand they had to make concessions in the past and now want some of those back when Deere is doing financially well. The strike is taking place in the middle of harvest, making it difficult for farmers to find parts for tractors and combines.

White House Takes Steps to Address Supply Chain Issues

The Biden Administration announced a series of steps in the private and public sectors to help address the continuing supply chain crisis in the U.S. Forbes says the White House actions are intended to help goods move faster and strengthen the resiliency of American supply chains. Operations at the Ports of Long Beach and Los Angeles are moving to 24/7 operations. Those two spots take in about 40 percent of all the containers coming into the U.S. and are on track to reach record import numbers in 2021. Biden says this is an across-the-board commitment to going to 24/7. “It’s a first big step in speeding up the movement of materials and goods through our supply chain,” the president says. “But now we need the rest of the private sector chain to step up well.” Biden also says strengthening our supply chains will continue to be his team’s focus, and if federal support is necessary, he’ll direct them to take all appropriate actions. In addition to the expanded hours, the International Longshore and Warehouse Union workers are willing to work extra shifts to help. Large companies like Walmart, UPS, FedEx, Home Depot, and Target have committed more hours to moving cargo off the docks faster so ships can come ashore.

Online Tool Offers Drought-Stricken Ranchers Compensation Estimate for Transportation Costs

An online tool is now available to help ranchers document and estimate payments to help cover the costs of feed transportation caused by drought. Those costs are now covered by the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program, or ELAP. The USDA updated the program this year to include feed transportation costs and lowered the threshold for when assistance for water hauling expenses is available. USDA will begin taking applications this fall. “Drought has had a tremendous impact on producers, and we’re thinking outside the box to help producers mitigate the effects of drought, which is a necessary first step to realizing the Secretary’s vision of ensuring agricultural producers get a fair share of the food dollar,” says FSA Administrator Zach Ducheneaux. “We’re continually working to make our programs as flexible as possible, so they effectively help producers face today’s challenges.” The new ELAP Feed Transportation Producer Tool is a Microsoft Excel workbook that enables ranchers to input information specific to their operation to determine an estimated payment. Final payments may vary depending on eligibility. More information is available at www.fsa.usa.gov/elap.

EPA, Army Announce Regional Roundtables on WOTUS

The Environmental Protection Agency and the Department of the Army are calling on communities to propose roundtables to provide input on the implications of the new “WOTUS” rule. The regional roundtables will engage stakeholders representing many perspectives in important conversations designed to help the agency work to develop an enduring definition of the “Waters of the U.S. Rule” that supports public health, protects the environment, agricultural activity, and economic growth. “Crafting a lasting definition of WOTUS means that we must bolster our understanding of how different regions experience and protect our nation’s vital waters,” the EPA says in a news release. “These roundtables will provide a great opportunity to deepen our shared knowledge. They also represent an opportunity among a suite of strategic tools that the agencies can utilize to obtain input on this important topic.” The EPA and Army are announcing a process for stakeholders to submit nomination letters with a slate of participants to potentially be selected as one of ten geographically focused roundtables. The agencies are inviting stakeholders to organize a targeted set of interested parties and regional representatives to participate in these discrete roundtables. For more information on the guidelines, go to www.epa.gov/wotus.

Food Price Index Continues to Climb

Food prices in the nation’s grocery stores continued to climb in September, helping to push the overall Consumer Price Index higher. The food index increased .9 percent in September, following a smaller .4 percent increase in August. The food at home index increased 1.2 percent through the month as all six major grocery store food group indexes rose higher. The index for meat, poultry, fish, and eggs rose 2.2 percent during the month as the index for beef rose 4.8 percent. The index for other food at home rose by 1.1 percent. The cost of fruits and vegetables also went up, as that index was .6 percent higher in September, a larger increase than the rise in August. The cereals and bakery products index jumped 1.1 percent during the month, while the index for dairy and related products rose by .7 percent. It even cost people more to eat out during September as the food away from home index rose .5 percent. An increase in limited and full-service meals was offset by the index for food at employee sites and schools, which continued to fall, dropping 6.4 percent in September.

“Fields of Corn” Photo Deadline Approaching

Time is running out to get photos submitted for the “Fields of Corn” Photo Contest. It’s the eighth year of the annual photo contest that’s put on by the National Corn Growers Association. The deadline to submit photos is November 30. “We have had some great photos already submitted this year, and harvest is a great opportunity to snap a few more pictures while farmers are in the field and submit to the contest,” says NCGA Graphic Communications Manager Beth Musgrove. “The entries we get throughout the year tell the story of agriculture and rural America and show how the crop progresses during the season.” New categories to the contest this year include “equipment” and “bird’s eye view.” A total of 26 cash prizes will get awarded during the contest. Fields of Corn was launched in 2014 to help tell the story of farming field corn in America. Since the contest began, NCGA has collected more than 2,000 photos across ten categories and awarded more than one hundred cash prizes. For more information on the contest and how to submit photos, go to www.fields-of-corn.com.

Friday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT, along with a report on U.S. retail sales in September. Traders will pause at 8 a.m. to see if USDA has any more export sale announcements. The University of Michigan's early consumer sentiment index for October follows at 9 a.m.

Weather

A system will move along a front draped across the Midwest on Friday into early Saturday with scattered moderate showers. Recent rainfall across a good portion of the country this week has caused some delays for harvest. Cooler conditions have led to some of the first frosts from Nebraska northward as well. With cooler temperatures behind the front, it may take several days for fields to drain and harvest to start back up again for some areas.

Checkoff Unveils Undeniably Dairy Campaign Evolution to Reach Gen Z

The dairy checkoff is launching a new wave of the Undeniably Dairy campaign to create deeper connections between Gen Z and dairy. "Reset Yourself with Dairy" is a youth-centric evolution of the checkoff's consumer campaign and will use various marketing strategies, including gaming, social media influencers and digital content, to engage with Gen Z to grow sales and trust of dairy. Launched Wednesday, the campaign centers on four aspects of dairy's wellness benefits that checkoff-led consumer research found resonates and drives purchase decisions with Gen Z. Those aspects are immunity, calm, energy and digestive health. Dairy’s role in offering wellness benefits will be featured on a variety of media channels. Anne Warden of Dairy Management Inc. says, “To compete in today’s environment, we will create big, disruptive moments that reassert dairy’s place in young people’s lives in a way that is in the social media and entertainment spaces they love and speaks their language.”

Pelosi Warns of Cuts to Build Back Better Act

House Speaker Nancy Pelosi this week warned her party about the need to trim back the $3.5 trillion Build Back Better Act, the budget reconciliation bill. Pelosi told reporters, “I’m very disappointed we’re not going with the original $3.5 trillion,” adding, "But whatever we do we will make decisions that will continue to be transformative." The bill's price tag and policy scope are likely to be scaled back dramatically, according to the Washington Post. The proposal aims to expand Medicare, combat climate change, improve education, and offer new benefits to help families and children. Much of the spending is financed through new tax increases on corporations and the wealthy. For agriculture, the plan includes $66 billion in funding for research, biofuels and forestry management programs. The proposal also includes $28 billion for conservation and a $35 billion increase in child nutrition programs. Pelosi did not discuss details of the likely cuts to the bill.

Lawmakers Alert USTR of Chinese Influence in Latin America

A group of 12 lawmakers recently penned a letter to the U.S. Trade Representative about the growing influence of the Chinese Communist Party in Latin America and Caribbean trade and economic development. Arkansas Republican Representative Rick Crawford announced the effort Wednesday. In a letter to Trade Representative Katherine Tai, the lawmakers asked for immediate attention to the issue. Crawford says China has now surpassed the United States and is the largest non-continental trading partner for 54 percent of South America. The lawmakers say the recent increase of engagement in the Western Hemisphere is a great cause for concern, given China's publicized strategy of becoming a world superpower and dominating the economic stage. The lawmakers jointly write, "Before long, China will be significantly positioned to completely dominate Western Hemisphere economics," adding, "We believe that it is of the highest priority for the U.S. to keep its relationships strong with our neighbors in the Western Hemisphere.” 

Growth in Tractor, Combine Sales Continues to Outpace 2020

Overall sales of tractors and combines continue their growth above an already-hot pace set in 2020, according to the Association of Equipment Manufacturers. U.S. total farm tractor sales climbed 2.5 percent in September compared to 2020, while U.S. combine sales jumped 34.6 percent, the third month in a row of growth near or above 20 percent for harvesters. The sub-40 horsepower category stayed moderately positive, growing 0.4 percent, while the mid-size 41-100 horsepower segment was up 2.4 percent. Heavy-duty units saw another big month, with 100-plus horsepower units up 23 percent. However, the articulated 4WD segment slowed just 1.3 percent. Year-to-date farm tractor sales remain up 12.2 percent, and combines growth moved up to 17.3 percent. For Canada, September monthly tractor and combine sales were mostly positive as well, with both tractors and combines finishing the month in the black. AEM’s Curt Blades adds, “Year-to-date, every segment is up double-digits over last year.”

Project Focuses on Diversifying Midwest Farms

Two Iowa State University researchers will join a five-year project that seeks to make Midwestern agriculture more resilient by moving away from the dominant corn-soybean rotation. The $10 million project is funded by the USDA National Institute of Food and Agriculture. Iowa State joins Purdue University researchers, who say, "Growing only a rotation of corn and soybeans is not necessarily sustainable economically, environmentally or socially." The project will work with farmers in Indiana, Illinois and Iowa to evaluate alternative cropping systems that can be used in the Midwest. Researchers will evaluate small grains and forage crops in rotations, perennial forage or bioenergy crops, agroforestry, horticultural food crops and grazed livestock. The research proposal received letters of support from farmers, industry organizations, academic institutions, food companies and environmental organizations. Iowa State's J. Arbuckle says, "The project will focus on facilitating diversification that leads to greater economic stability for farmers and agroecological system resilience."

Dry Conditions Persist in Upper Missouri River Basin

September precipitation was once again below average in the Missouri River Basin as drought plagues much of the western half of the nation. September runoff in the Missouri River Basin above Sioux City, Iowa, was 0.8 million acre-feet, 67 percent of the long-term average. Soil conditions in the upper Basin continue to be very dry. Approximately 88 percent of the Missouri River basin is currently experiencing some form of drought, which is a six percent increase from August. The Army Corps of Engineers expects runoff to remain low through the remainder of the year. The 2021 calendar year runoff forecast for the upper Basin, updated on October 1, is 14.8 million acre-feet, 57 percent of average. Average annual runoff for the upper Basin is 25.8 million acre-feet. If realized, the runoff amount would be the tenth-lowest runoff in 123 years of record-keeping. The Corps of Engineers maintains that navigation flows will be supported through December 1.

Thursday Watch List

Markets

If you're looking for USDA's weekly export sales report Thursday morning, you'll have to wait one more day as Columbus Day resulted in schedule changes this week. U.S. weekly jobless claims will be out at 7:30 a.m. CDT, along with a report on U.S. producer prices and an update of the U.S. Drought Monitor. The U.S. Energy Department will have its report of natural gas storage at 9:30 a.m. CDT, followed by weekly energy inventories at 10 a.m. Traders remain interested in weather forecasts and any news of an export sale.

Weather

The front to this week's system is stalling from the eastern Midwest back through Texas. This front remains active on Thursday with scattered showers and thunderstorms that could become severe and cause additional moderate to locally heavy rainfall. Other areas to the west of this front are trying to recover from the large storm system that moved through and is now in central Canada.

U.S. Corn and Soybean Production up From September

Corn and soybean production is up from September 2021, according to the Crop Production report issued Tuesday by USDA's National Agricultural Statistics Service. Corn production is up three percent from last year, forecast at 15.0 billion bushels, and soybean growers are expected to increase their production five percent from 2020, forecast at 4.45 billion bushels. Meanwhile, USDA's monthly World Agriculture Supply and Demand report calls for slightly increased corn exports, lower feed and residual use, and larger ending stocks. The season-average corn price received by producers is unchanged at $5.45 per bushel. Meanwhile, soybean yield is projected at 51.5 bushels per acre, up 0.9 bushels from the September forecast. The U.S. season-average soybean price for 2021/22 is forecast at $12.35 per bushel, down 55 cents reflecting larger supplies. Finally, the outlook for wheat this month is for reduced supplies, lower domestic use, unchanged exports, and decreased ending stocks. The season-average price increased ten cents per bushel to $6.70.

USDA Launches First Phase of Soil Carbon Monitoring Efforts through CRP

The U.S. Department of Agriculture is investing $10 million in a new initiative to sample, measure, and monitor soil carbon on Conservation Reserve Program acres. The investment seeks to better quantify the climate outcomes of the program. USDA says CRP is an important tool in the Nation’s fight to reduce the worst impacts of climate change facing our farmers, ranchers, and foresters. This initiative will begin implementation in fall 2021 with three partners. The announcement is part of a broader, long-term soil carbon monitoring effort that supports USDA’s commitment to deliver climate solutions to agricultural producers and rural America through voluntary, incentive-based solutions. USDA partners will conduct soil carbon sampling on three categories of CRP practice types: perennial grass, trees, and wetlands.  The three Climate Change Mitigation Assessment Initiative projects are funded through FSA’s program to work with partners to identify Monitoring, Assessment and Evaluation projects to quantify CRP environmental benefits to water quality and quantity, wildlife, and rural economies. 

USTR Tai Meets with Chinese Counterpart

U.S. Trade Representative Katherine Tai met with a Chinese counterpart last week before meetings this week with Italy and a European Commission official. Tai held a virtual meeting with China's Vice Premier Friday, to discuss the U.S.-China trade relationship. During their exchange, the duo recognized the importance of the bilateral trade relationship and its impact not only on the United States and China but also the global economy, according to a USTR statement. Additionally, Ambassador Tai emphasized U.S. concerns relating to China’s state-led, non-market policies and practices that harm American workers, farmers and businesses. Left off the table was discussion around a Phase Two agreement with China. Meanwhile, Tai participated in the G20 Trade and Investment Ministerial in Italy Tuesday and is also conducting meetings with World Trade Organization members this week. Tai will also appear in Switzerland this week to give a speech at an event hosted by the Graduate Institute's Geneva Trade Platform.

Shipping Container Rates Easing

Container shipping rates are showing signs of easing, at least temporarily. On the Shanghai-to-Los Angeles trade route, the rate for a 40-foot container fell nearly $1,000 last week to $11,173, an 8.2 percent drop from the prior week, according to Bloomberg. Ocean freight, however, remains more expensive than it was pre-pandemic, and air cargo rates remain elevated. And, as Bloomberg put it, it’s anyone’s guess if these latest declines in global shipping costs mark the beginning of a plateau, a seasonal turn lower or the start of a steeper correction. Judah Levine, of Hong Kong-based Freightos says that, among other signals, “the price drop also shows that the peak of peak season is behind us.” Regardless, shippers and ports remain in a logjam on the U.S. West coast, with 60 vessels waiting to offload over the weekend. The average wait time is 11 days or longer, compared to an eight-day wait back in April.

NOAA Awards More Than $171 Million for Climate Science

The National Oceanic and Atmospheric Administration announced Tuesday $171 million to support 72 projects to improve resilience in the fight against the climate crisis. NOAA's Climate Program Office announced the funding, the highest five-year investment in the program's history. This year’s funding is supporting a broad spectrum of research areas that include advancing environmental justice, improvements in climate models and advances in the understanding of ocean observations. Additionally, the projects focus on understanding how the COVID-19 pandemic affected local and regional air quality, advances in resilience planning for future flooding impacts, and studying how emissions and chemical reactions impact air quality and climate. Over the next one to five years, researchers will work on the newly-funded projects in close partnership with NOAA laboratories and research centers. NOAA administrator Rick Spinrad comments, “These new NOAA investments are essential to improve understanding of how to mitigate these impacts and bolster community resilience to climate change.”

Nutrient Management Strategies to Headline Virtual Farmer Meeting

Farmers and landowners are encouraged to join their peers from Maryland's Catoctin Creek Watershed on October 22 for a free virtual event. The event focuses on incorporating conservation agriculture and soil health practices to create stronger farm businesses and includes a virtual dairy farm tour. Mike McMahon will host the webinar, a winner of the Innovation Center for U.S. Dairy's 2018 U.S. Dairy Sustainability Award. Additional hosts include USDA's Natural Resources Conservation Service in Maryland, Farm Journal Foundation, and Farm Journal's Trust In Food initiative. Using a combination of video and live streaming, McMahon will illustrate his operation’s conservation ag investments and share insights about how other farmers can increase their operations' sustainability and profitability. The event includes updates on soil health and manure management innovation in the ag equipment market from a panel of directors and executives from the Association of Equipment Manufacturers. Farmers can register at farmjournal.com

Wednesday Watch List

Markets

Wednesday morning will find traders still considering USDA's latest round of estimates, checking the weather forecasts and watching for any news of an export sale. The U.S. Labor Department's report on September consumer prices is set for 7:30 a.m. CDT and is likely to show an increase in energy prices. The U.S. Energy Department's weekly report of energy inventories is pushed to Thursday as a part of this week's federal holiday schedule. The Federal Reserve will release minutes from its latest FOMC meeting at 2 p.m. CDT.

Weather

A strong storm system is moving through the Northern Plains with a shield of moderate to heavy rain and snow and a cold front that continues scattered showers across the Central and Southern Plains and into the western Midwest. This system is not only making an impact with precipitation, but strong winds are also noted for a good portion of the Northern Plains and Upper Midwest as well Wednesday, along with a couple of bouts of severe weather along the cold front. Widespread freezes have settled in across the West and will leak into the Plains as well.

Supply Chain Issues to Persists into 2022

A quarterly report from CoBank suggests that while the U.S. economy is still very much in the grips of the pandemic. Supply chains are arguably in the most dire condition since the start of the pandemic, as lead times for manufacturing inputs recently reached record highs. Persistent supply chain disruptions and labor shortages are adding significant costs to businesses and consumers. A CoBank researcher suggests, “Supply chain snarls are likely to persist well into 2022, and so will elevated inflation.” Rapidly rising input costs and product shortages are hitting agriculture, as commodity prices have flattened, and inflation compresses margins. However, robust exports have kept much of agriculture in the black. CoBank says corn, soybean and wheat prices declined from their third-quarter highs, but will likely rebound due to tight supplies and improving demand. Returning demand from foodservice led to strength to U.S. meat and poultry. However, inflation is expected to test consumers' appetite for meat during the fourth quarter.

AFBF Forms Partnership with MANRRS

The American Farm Bureau Federation and the National Society for Minorities in Agriculture, Natural Resources, and Related Sciences announced an agreement to increase minority involvement in agriculture. The groups signed a memorandum of understanding for collaboration on projects. The projects include written content for each organization's publications, providing leadership training and expertise, and cross-promoting programs and events. AFBF President Zippy Duvall says, "We believe the partnership we're forming today will benefit both of our organizations and all of agriculture." Dr. Olga Bolden-Tiller, President of the National Society of MANRRS, adds the partnership will ensure "all of the voices of the agricultural community are heard as we work together to develop a well-trained workforce." The partnership is a continuation of AFBF's goal to expand coalitions and alliances to increase the effectiveness of its grassroots organization. Other partnerships include FFA and 4-H, which foster the growth of young people interested in pursuing careers in agriculture.

USDA Commits $25 Million for Programs reaching Underserved Communities

The Department of Agriculture last week announced a trio of awards totaling nearly $25 million in grants and cooperative agreements. The funding seeks to ensure broader access and participation in USDA programs and services for historically underserved farmers and ranchers. The effort is the latest in a series of announcements around USDA's commitment to root out generations of systemic racism, center equity in decision-making and policymaking, lower barriers to access and ensure USDA programming is inclusive of all employees and all customers. One set of awards announced Friday includes $18.6 million in grants to provide training, outreach, and technical assistance to historically underserved and veteran farmers and ranchers in 21 states through USDA's 2501 Program. Additionally, USDA's Farm Service Agency is awarding $4.7 million to organizations for projects that will provide historically underserved producers with improved access and technical assistance as they apply for and FSA programs and services.