Lock and Dam Renovation Funding Key to Global Competitiveness of U.S. Soy

The soybean checkoff plans to fund pre-engineering and design work to enhance and maintain Lock and Dam #25 on the Upper Mississippi River. The United Soybean Board calls the facility a U.S. infrastructure asset critical for efficient barge traffic. The move is an effort to ensure continued and reliable delivery of U.S. soybean exports to customers around the world. USB farmer-leader Meagan Kaiser of Missouri says, “It's vital that our supply chain remain strong and reliable so we can continue to market our products.” If approved for federal funding, the project would be the first under the Navigation and Ecosystem Sustainability Program, a long-term program authorized by Congress to improve and restore the Upper Mississippi River System. Primary opportunities of improvement include reducing commercial traffic delays while restoring, protecting and enhancing the environment. Lock and Dam #25 is one of seven existing locks specified by the Navigation and Ecosystem Sustainability Program for improvements.

APHIS Proposes Amendments to Import Regulations for Horses

The Department of Agriculture's Animal and Plant Health Inspection Service seeks public comments on proposed amendments to its import regulations for horses. The proposed amendments would better align regulations with international standards, according to USDA. The proposal also allows both APHIS and the equine industry more flexibility for permitted imports, while continuing to mitigate the risk of bringing contagious equine metritis, or CEM, into the United States. CEM is a venereal disease that only affects horses, and can have a significant impact on reproduction. The United States is considered CEM free, and therefore horses imported into the United States must meet certain import criteria or undergo CEM quarantine procedures at an approved facility to demonstrate that CEM is not present. The proposed regulations also provide APHIS with more regulatory authority to enforce standards for transporting horses. The proposal was posted in the Federal Register Friday, with the comment period opening Monday.

Farm Bureau Announces 2022 Convention Keynote Speakers

The American Farm Bureau Federation Monday announces keynote speakers for its upcoming annual convention. Inspirational speaker Jim “Murph” Murphy, founder and chairman of Afterburner, will speak during the afternoon general session at the convention on Sunday, January 9, in Atlanta, Georgia. Comedian Jeff Allen will perform Monday during the convention’s closing general session. Murphy has a unique and powerful mix of leadership skills in both the military and business worlds. Allen is in his fifth decade as a working comedian. Farm Bureau President Zippy Duvall says, “We are excited to celebrate, mark our achievements and hear from leaders who have helped strengthen agriculture at the 2022 American Farm Bureau Convention.” Duvall will give his annual address during the opening general session of the convention on Sunday. The convention will be held in person January 7-12, 2022, in Atlanta, Georgia, with a virtual option for portions of the event available to those not attending in person.

Dicamba Resistant Waterhemp Found in Illinois

University of Illinois weed scientists have confirmed resistance to the herbicide dicamba in a Champaign County waterhemp population. In the study, dicamba controlled 65 percent of the waterhemp in the field when applied at the labeled rate. And in the greenhouse, plants showed a 5-to-10-fold reduction in dicamba efficacy compared with sensitive plants. It's not a huge level of resistance, but the population had never been sprayed with dicamba or its relative 2,4-D, to which it is also resistant. The team tested dicamba resistance in the same field back in 2014 and 2015, showing 80 percent efficacy.  Dicamba resistance was recently documented in a Tennessee waterhemp population, and in a Tennessee population of Palmer amaranth. Dicamba has been used in Illinois for at least 50 years. But with more acreage being planted in dicamba tolerant soybeans, use of the chemical is on the rise. And with increasing selective pressure, dicamba resistance could spread quickly.

Natural Products May improve Honeybee Health

USDA Agricultural Research Service researchers from the Bee Research Laboratory found some natural products' medicinal properties reduced virus levels and improved gut health in honeybees. Among the study's results, researchers found a significant reduction in virus levels in bees fed raw cacao (cah-cow) and hesperidin (his-pair-in), a plant chemical commonly found in citrus fruits and other fruits and vegetables. The results also showed that some natural products positively impacted bees' gut health and immune response. For example, bees fed Vitamin E had significantly decreased levels of a gut bacterium. A gut bacterial imbalance could be bad for bees. If bee diets or treatments help maintain a good mix of 'good' bacteria in bees' guts, it seems to help strengthen their immune responses, according to the study's results. The 20 natural products used in the study included native extracts and individual compounds. Scientists researched the natural products as possible safer, cost-effective alternatives to antibiotics and synthetic chemicals.

New Board Members Announced for National FFA Foundation Sponsors’ Board

The National FFA Foundation announced its new chair for the Sponsors’ Board during the 94th National FFA Convention & Expo this fall. Paul Rea, senior vice president, BASF agricultural solutions North America, was named the chair for the upcoming year. Rea, born and raised on a farm in New Zealand, holds a master’s degree from the University of Sydney, graduate school of management, and lives in Raleigh, North Carolina. The National FFA Sponsors’ Board is made up of individual volunteers who are leaders from business and industry. During their service, sponsors’ board members are integral in helping the National FFA Foundation strengthen and develop corporate partnerships. In addition to Rea being named the board chair, five other new board members were announced. They include representatives from the Context Network of California, Darling Ingredients, Merck Animal Health, Archer Daniels Midland and Kerry Taste and Nutrition. The members will serve on the board for three years.

Tuesday Watch List

Markets

We will be watching early reports from the government on the Home Index, Chicago Purchasing Manager's Index (PMI), and Consumer Confidence. We will also be watching for new information about the newly detected Covid variant, and any new sales of soybeans and corn.

Weather

A band of snow has exited the Midwest and another system is building in the Pacific Northwest, but most areas are going to be dry on Tuesday. Warm temperatures will be in place for much of the country as well, with some well above normal temperatures across the Plains and western Midwest. The combination is unfavorable for winter wheat in the Southern Plains, which continues to find increasing drought conditions.

Monday Watch List

Markets

On the final Monday of November, traders will pause at 8 a.m. CST to see if USDA has an export sale to report and will then notice a report of U.S. pending home sales in October at 9 a.m. USDA's weekly grain export inspections is due out at 10 a.m. CST, followed by the final Crop Progress report of 2021 at 3 p.m. CST.

Weather

Scattered showers will develop across the northern tier of the country on Monday as a system moves through the Midwest and another goes through the Pacific Northwest. Showers will be mostly light while the south stays dry, unfavorable for winter wheat in the Southern Plains.

USDA Cuts Ag Export Forecast for 2022

The USDA cut its farm exports forecast in 2022, blaming weaker soybean demand from China and lower soybean prices. The Economic Research Service says it now expects American ag exports to hit $175.5 billion in the fiscal year 2022, down from the August forecast of $2 billion. The agency says soybean exports will be down $3.9 billion next year for a total of $28.4 billion. Soybean meal exports were forecast to slump by $800 million to $4.9 billion due to lower prices. Looking ahead, China is expected to remain as the largest U.S. agricultural market, with exports forecast now at $36 billion, a $3 billion drop from USDA’s August prediction. The drop in soybean exports should be at least partly offset by increasing livestock, poultry, dairy, cotton, and ethanol exports. USDA predicts corn, sorghum, and rice exports will drop by $100 million each. Wheat exports are unchanged from August at $7.1 billion.

NCGA: Court Will Review Fertilizer Brief

The U.S. Court of International Trade says it will review an amicus brief submitted by the National Corn Growers Association and other ag groups. The brief involves a case the court is considering regarding tariffs on phosphorous fertilizers imported from outside the country. In the brief, the NCGA says, “Farmers, faced with severe shortages and high fertilizer costs, are calling on a major American fertilizer company to withdraw the petition that led to the tariffs.” The Commerce Department recommended in February that the International Trade Commission implement tariffs over 19 percent on imported fertilizers from Morocco after the Mosaic Company, which manufactures fertilizers used in the U.S. and around the world, filed a petition with the department seeking the levies. “Executives at Mosaic can eliminate this financial burden on farmers just by getting rid of the petition,” says NCGA President Chris Edgington. “We invite them to do just that.” The ITC approved the tariffs back in March.

Farm Real Estate Values Jump Sharply Higher

The Federal Reserve Survey of Agricultural Credit Conditions shows that farmland values rose in the third quarter of this year. The value of non-irrigated cropland rose by at least 12 percent in all of the participating Districts in the survey. The rapid increase was consistent in most states, with annual increases of more than 20 percent in some areas. Supporting farm real estate markets, interest rates on farm loans remained at historic lows, and strong farm finances also led to further improvement in agricultural credit conditions. Despite consistent concerns about the increasing cost of inputs, agricultural lenders expect farm income and credit conditions to remain strong through the end of the year alongside higher commodity prices. At the same time, the rising value in farmland has bolstered farm balance sheets and provided additional support to the ag sector. The outlook for farm finances and agricultural land values remains strong through the end of 2021.

Defend the Blend Act Introduced in the House

Growth Energy CEO Emily Skor (score) issued a thank you to lawmakers for introducing the Defend the Blend Act into the House of Representatives. The bill’s main sponsors include Republicans Ashley Hinson of Iowa and Rodney Davis of Illinois, and Democrats Angie Craig of Minnesota and Ron Kind of Wisconsin. “We thank these lawmakers for introducing the Defend the Blend Act, legislation that would offer more certainty in the marketplace, especially as we await the 2021 and 2022 RVOs from the Environmental Protection Agency,” Skor says. “The Renewable Fuel Standard was put in place to blend more low-carbon biofuels into our nation’s transportation fuel supply and includes a built-in mechanism that adjusts for any changes in fuel demand.” She also says retroactively changing RVO levels is completely unnecessary, adds uncertainty to the marketplace, and far exceeds the EPA’s legal authority. Earlier this fall, rumors said that EPA was considering retroactively reducing the 2020 RVO.

European Union Approves Large Farm Subsidies Deal

The European Parliament approved the biggest reform to their farm subsidies in decades. Reuters says the vote switches much of the cash subsidies to smaller farms and rewards producers who use more sustainable farming methods. The Common Agricultural Policy has been criticized for years over the way the bulk of EU ag subsidies went to large landowners and industrial ag firms. Backers of the deal say the reform will change that. However, environmentalists say the deal doesn’t go far enough in taking care of the environment and fighting climate change. The Chair of the European Parliament’s Ag Committee called it the biggest reform since 1992. The Common Ag Policy will spend 387 billion euros, or $436 billion, on payments for farmers and support for rural development. The new rules which start in 2023 shift funds away from intensive farming to more protection of nature and cut EU greenhouse gases by 10 percent.

USDA Accepting Applications for Rural Broadband Assistance

The USDA says it’s begun accepting applications for up to $1.15 billion in loans and grants to help rural residents get access to high-speed internet. The announcement comes shortly after the recently approved Bipartisan Infrastructure Law earmarked another $2 billion in additional funding for the ReConnect Program. “High-speed internet is the new electricity,” says Ag Secretary Tom Vilsack. “It must be reliable, affordable, and available to everyone.” He also says the funding that USDA is making available should go a long way toward making rural broadband much more accessible. “Expanding broadband availability in rural areas will help to create jobs, help farmers use precision ag technologies, expand access to education and healthcare in rural communities, and create economic opportunity for millions of rural residents,” Vilsack adds. USDA says it will issue a new Notice of Funding Opportunity to make the additional funds in the Bipartisan Infrastructure Law available in 2022. The $1.15 billion in ReConnect funding is available immediately.

Friday Watch List

Markets

USDA's weekly export sales report is due out Friday at 7:30 a.m. CST and is the only official report of the day. Traders will check to see if USDA has an export sale announcement at 8 a.m. U.S. grain and livestock futures markets open at 8:30 a.m. and close early, at 12:05 p.m. Desperate for extra attention, Minneapolis wheat will close 10 minutes later.

Weather

A cold front that brought some scattered showers over Thanksgiving to the middle of the country is pushing off to the east on Friday. Some lake-effect snows will continue around the Great Lakes behind the system but most areas will see quieter and dry conditions.

Farm and Biofuel Groups React to BBB Act Provisions

Several agricultural groups reacted to key provisions found in the Build Back Better Act. Growth Energy, the National Corn Growers Association, the National Farmers Union, and the Renewable Fuels Association are grateful for the Congressional efforts to build new markets for farmers and biofuel producers. In a letter to the chairs of the House and Senate Ag Committees, the groups also say they appreciate the efforts to help lower the carbon intensity of agriculture. “One of the most pressing challenges facing biofuel producers is ensuring that consumers have consistent access to higher-level ethanol and biodiesel blends, which are lower carbon and lower cost than petroleum fuels,” they say in the letter. “The Biofuel Infrastructure and Agriculture Product Market Expansion provision in the BBB Act helps address this issue and contains much-needed funding to ensure consumers have access to these fuels.” That refers to the $1 billion allocated to upgrade refueling and distribution infrastructure meant for higher ethanol blends.

Trouble Ahead for the Next Farm Bill

A Successful Farming article says there may be trouble ahead for the upcoming Farm Bill in Washington, D.C. A former USDA official says the 2023 legislation could be in trouble if the political turbulence surrounding the last two farm bills keeps going into next year. “The deep polarization heightens the uncertainty of how this farm bill will unfold in Congress,” says Jonathan Coppess of the University of Illinois. The House defeated the normally-bipartisan bill in 2013 and 2018 because of a partisan battle over reduced SNAP spending. The 2013 vote was the first time the farm bill had ever gotten defeated on the House floor. More potential backlash over the farm bill could include the $53 billion worth of trade war and coronavirus relief payments given to farmers since 2018, as well as the disparity in support between cotton and rice compared to corn, beans, and wheat. “It’s a foggy path between here and 2023,” Coppess says.

Farm Groups Ask Administration to be Firm on WTO Issues

A coalition of farm groups wrote to U.S. Trade Representative Katherine Tai and Ag Secretary Vilsack on challenges surrounding the World Trade Organization. The Hagstrom Report says those groups are pleased that Ambassador Tai gave strong statements on engaging boldly with the WTO. They want the Biden administration to try and get the public stockholding and the special safeguard mechanism proposals at the WTO eliminated in connection with the upcoming 12th Ministerial Conference. In a letter to officials, the groups say that the proposals related to public stockholding and the special safeguard mechanism are remnants of a negotiation that’s decades old. The PSH proposal would significantly weaken the discipline process on domestic subsidies, while the SSM proposal will seriously limit U.S. export access to developing countries. “Adopting these proposals will point the reform process in the wrong direction and doom future negotiations to failure,” the letter says. The coalition includes the American Farm Bureau, along with crop, meat, and export groups.

USDA Invests $32 Million to Strengthen Supply Chain

USDA Secretary Tom Vilsack says his agency will invest $32 million in grants awarded to 167 meat and poultry slaughter and processing facilities to expand capacity and efficiency in the food supply chain. The funds went to smaller meat and poultry slaughtering and processor facilities and come through the Meat and Poultry Inspection Readiness Grant Program. “Today’s investments support local and regional meat and poultry processors as they recover from COVID-19 and also work to expand their capacity,” Vilsack says. “Getting a Federal Grant of Inspection or operating under a Cooperative Interstate Shipment program allows meat and poultry processors to ship across state lines, pursue new market opportunities, and better meet demand across the supply chain.” With these grants, meat and poultry processors can cover the costs for improvements like expanding existing facilities and modernizing their processing equipment. These opportunities will allow facilities to serve more customers in more markets. For more information, go to www.usda.gov.

U.S., India Reach Agreement on Ag Trade

India and the United States agreed to expand trade between the nations on some agricultural products. Those include U.S. cherries, alfalfa, and distiller’s dried grains, as well as Indian mangoes, grapes, shrimp, and water buffalo. The two sides came together in the first U.S.-India Trade Policy Forum meeting in four years. The trade ministers also talked about the possibility of restoring India’s trade benefits under the U.S. Generalized System of Preferences. The two countries have disputed over a range of issues recently, including tariffs that dampened the prospects of reaching a bilateral trade deal. Yahoo Dot Com says they talked about American interest in supplying India with ethanol, as well as speeding up phytosanitary work to allow more agricultural imports between the two nations. Tai recently concluded a visit to India to try and rebuild trade ties between the world’s richest and largest democracies. The Ministers of both countries committed to continue working on trade issues in the future.

Thanksgiving Apple Pie Will Cost a Little More This Year

As American consumers finalized their Thanksgiving menus, they likely found out that their apple pie deserts will cost a little more this year. The USDA says shoppers will pay about $7.32 for the ingredients, more than half of which is the cost for apples, which is $4.22. The same pie ingredients cost approximately $6.75 last year, which means the total cost this year is 8.4 percent higher than 2020. USDA says the cost increase is driven by the price of Granny Smith apples, which increased to $1.41 per pound this year compared to an average of $1.26 last year. Sugar, eggs, butter, and lemons also increased in price since 2020, while flour prices dropped over the same period. If the apple pie is served a la mode, add in an additional 31 cents per scoop, the same price as last Thanksgiving. While USDA used price points from October, the actual cost may decrease if retailers offer holiday discounts.

Wednesday Watch List

Markets

On Wednesday before Thanksgiving, weekly U.S. jobless claims, durable goods orders for October and another estimate of third quarter U.S. GDP are all due out at 7:30 a.m. CST. At 9 a.m., there are reports of October new home sales, U.S. personal income and the University of Michigan's consumer sentiment index. The Energy Department's weekly inventory report is due out at 9:30 a.m., followed by the natural gas storage report at 11 a.m. Minutes from the most recent FOMC meeting are set for 1 p.m. CST. U.S. grain and livestock futures have normal closes Wednesday and do not trade again until Friday morning at 8:30 a.m. CST.

Weather

A strong front is pushing across the Plains and Midwest on Wednesday. Showers are limited Wednesday morning but should develop across the far southeastern Plains and southwestern Midwest by tonight. Some breezy winds will occur both ahead and behind the front across the Plains and Midwest as well. Cold weather continues to push through the Southeast with the first frosts and freezes of the season all the way south to the Florida Panhandle.

Tuesday Watch List

Markets

There are no major reports on Tuesday's docket, but traders will keep their eyes on the latest weather forecasts and any export sales news that develops. Be careful as quiet, pre-holiday markets can be vulnerable to trading mischief.

Weather

A frontal boundary is moving through the Canadian Prairies and will move into the Northern Plains on Tuesday. Scattered showers over the Pacific Northwest will dry out as they work into the Plains behind the front Tuesday night. Most other places will be dry, favoring the last bits of harvest and fieldwork. Rain is still desperately needed for winter wheat in the southwestern Plains, where drought continues to build.

House Passes Build Back Better Act

Senate Ag Committee Chair Debbie Stabenow applauded the House of Representatives for passing President Biden’s Build Back Better Act. “It’s all about lowering costs for American families and making critical investments to help us combat climate change,” Stabenow says, “especially in partnership with our farmers, ranchers, foresters, and rural communities. I’m fully committed to passing the Build Back Better Act in the Senate.” Ag Secretary Tom Vilsack says Americans need this important legislation to build up the middle-class and American competitiveness. “That will ensure that people in rural communities have a fair shot at opportunities and will secure our children’s future,” Vilsack says. “This is our nation’s largest effort to combat climate change and includes a focus on climate-smart agriculture.” House Ag Committee Chair David Scott says the act includes a lot of his committee’s agricultural priorities. “The investments are critical to helping American agriculture address and deal with the impact of climate change,” Scott says.  

Proposed Water Rule a Return to “Overreach”

Ag groups are reacting to the Environmental Protection Agency’s proposed rule to replace the Navigable Waters Protection Rule, and they’re not happy with the idea. The proposed rule would re-establish the pre-2015 definition of “Waters of the U.S.” American Farm Bureau President Zippy Duvall says his group is disappointed that the agency is returning to an “overly complicated” interim water rule. “Overreaching regulations create major permit backlogs for the federal government and result in long delays for farmers and ranchers working hard to keep America fed,” Duvall says. “They’re putting this in place before completing the promised stakeholder engagement.” National Corn Growers Association President Chris Edgington says the administration is taking farmers backward by removing a rule that’s provided “certainty” for farmers who feed and power America. “NCGA will continue to work with agencies and advocate for a WOTUS definition that provides farmers with clarity about obligations under the Clean Water Act,” Edgington says.

Possible Tax Credit Ahead for Soy Oil-Based Aviation Fuel

Lawmakers are considering a bill that would allow soybean oil-based jet fuel to qualify for an unprecedented tax credit. A Reuters article says that would be a win for biofuel producers and a blow to environmental groups that say crop-based fuels undermine the benefits of producing greener fuels. The announcement comes as the Biden administration set the lofty target of lowering aviation emissions by 20 percent by 2030. The White House is pushing for more sustainable aviation fuel, which is currently made in small quantities of substances like used cooking oil and animal fat, as a way to reach their goal. U.S. biofuel groups say it will be impossible to meet such targets without using ethanol and soybean oil and want the current model for determining eligibility for the tax credit to get changed. The Build Back Better Act passed by the House puts the tax credit between $1.25 to $1.75 a gallon.

Clinton: White House Likely to Remove Some Tariffs on China

Former Secretary of State Hillary Clinton told Bloomberg that the Biden Administration would likely remove some punitive tariffs on Chinese imports. She says there is an ongoing process to try to figure out what America’s best approach to China will be going forward. “I predict there will be some changes,” she says. “However, they won’t all disappear, and some may continue in the new reality we’re living in.” Last month, U.S. Trade Rep Katherine Tai said the administration will directly engage with China to enforce commitments the Asian nation made in a trade deal with former President Trump. After more than two years since the duties took effect, the U.S. and China are shipping goods to each other at a pace that seems to suggest the drawn-out trade war never happened. Tai recently announced that the USTR will reinstate tariff exclusions for some imports from China after previous exemptions expired, and her office is currently taking exclusion requests.

Bill Would Suspend Brazilian Beef Imports to the U.S.

U.S. Senator Jon Tester of Montana introduced legislation to suspend Brazilian beef imports to the United States. The move comes after repeated issues with delayed reporting of BSE, or mad cow outbreaks in Brazilian beef. Suspending the imports will give experts a chance to conduct a thorough review of the meat’s safety. “Americans deserve the highest level of safety and certainty in their beef, and Brazilian imports don’t make the cut,” Tester says. “Concerns about Brazil’s imports not only jeopardize consumers’ trust but present a serious risk to our country’s producers.” It took until September before Brazil announced two cases of atypical BSE were detected in June. Most countries report outbreaks to the World Organization of Animal Health within days. The bill would ensure Brazil’s beef is safe to eat before it’s brought back into the U.S. market. America’s prominent beef cattle groups came out in support of Tester’s bill.

USDA Issuing $270 Million in Pandemic Assistance to Producers

The USDA has begun issuing roughly $270 million in pandemic assistance payments to eligible contract producers of livestock and poultry who applied for help. Earlier this year, the Farm Service Agency identified gaps in assistance. USDA then released an improved program for contract producers to help fill those gaps. “We listened to feedback from producers and stakeholders about impacts across livestock and poultry operations and made updates to be more equitable in the assistance we’ve delivered,” says FSA Administrator Zach Ducheneaux (DOO-shah-no). “Filling these gaps and not letting underserved producers slip through the cracks is a common theme throughout our approach under our Pandemic Assistance for Producers Initiative.” The Consolidated Appropriations Act of 2021 provided funding for payments to contract producers of eligible livestock and poultry for revenue losses from January 1, 2020, through December 27 of this year. Contract producers of broilers, pullets, chicken eggs, turkeys, and many other types of livestock and poultry were eligible.

Monday Watch List

Markets

U.S. futures markets are keeping normal trading hours the first three days this week, but volume is apt to be lower than usual with Thanksgiving Thursday and a shorter trading session on Friday. Traders will continue to check the latest weather forecasts and pause at 8 a.m. CST in case USDA announces an export sale. A report of October U.S. existing home sales is due out at 9 a.m. CST, followed by weekly grain inspections at 10 a.m. USDA's Crop Progress report will conclude Monday's reports at 3 p.m.

Weather

A cold front will move through the Eastern U.S. Monday and showers will dry up as it does so. Other than some lake-effect snow showers around the Great Lakes and some isolated showers in the Southeast, drier conditions are expected for the day across the primary growing areas. Areas of the southwestern Plains continue to be in dire need for moisture for winter wheat establishment.

Biofuel Groups Frustrated by Further RFS Delays

The Environmental Protection Agency announced a proposal extending the Renewable Volume Obligation compliance deadlines for 2019 and 2020, as well as the RVO for 2021. The agency intends to establish general timeframes for the extended compliance deadlines without setting specific dates. The agency also hasn’t issued decisions on the pending small refinery exemptions. Kurt Kovarik, National Biodiesel Board Vice President of Federal Affairs, calls it a “gift” to refiners. “The Biden Administration and the EPA are sending the wrong signals on fuel availability and gas prices,” Kovarik says. Growth Energy CEO Emily Skor says EPA needs to release the 2021 and 2022 RVOs immediately. “Further delaying compliance deadlines for previous RVO years does nothing but contribute to ongoing uncertainty in the marketplace,” she says. “Sadly, even as our country faces rising gas prices, the EPA and the administration are giving in to the loud voices of the oil industry. It’s past time for the EPA to act.”

EPA and Army to Provide Certainty on WOTUS Definition

The Environmental Protection Agency and the U.S. Army announced a proposed rule to re-establish the pre-2015 definition of the “Waters of the United States.” The agencies plan to update the rule that’s been in place for decades to reflect consideration of Supreme Court decisions. The action will advance the agencies’ goal of establishing a WOTUS definition that protects public health, the environment, and downstream communities. At the same time, the new rule would support economic opportunity, agriculture, and other industries that depend on clean water. EPA Administrator Michael Regan says the only constant with WOTUS in recent years has been change. “That’s created a whiplash in how to best protect our waters in communities across America,” Regan says. Jaime Pinkham, Acting Assistant Secretary of the Army for Civil Works, says the new rule will be “mindful of implementation practices and will get shaped by the lived experience of local communities and stakeholders.”

Deere Employees Approve Contract, End Strike

Deere and Company employees brought their five-week-old strike to an end by approving a new six-year contract with the company. United Auto Workers members were immediately prepared to return to their shifts with the agricultural and construction equipment manufacturer. The Des Moines Register says 61 percent of the workers approved the agreement, which raises hourly wages by 10 percent and increases worker retirement benefits. The company also agreed to maintain its health insurance program that employees don’t have to pay premiums for. Just over 10,000 in number, the workers in Iowa, Kansas, and Illinois had rejected two prior contract proposals, setting off the first strike at Deere since 1986. UAW President Ray Curry says, “UAW John Deere members did themselves proud. They seemed to unite the nation struggling for workplace fairness.” In his own statement, Deere CEO John May says, “I’m pleased our highly-skilled employees are back to work building and supporting our industry-leading products.”

Thousands of Livestock Dead in Canada Flood

The Canadian Broadcasting Corporation says thousands of animals are dying because of severe flooding that devastated farmlands across British Columbia in Canada. Lana Popham is Canada’s Agriculture Minister. She says the government is rushing to get veterinarians to many more animals trapped and facing death. Nearly in tears during a recent press conference, the minister says she’s had heartbreaking FaceTime conversations with farmers in their barns while dead livestock lay in the background. Calling it a complete agricultural disaster, she says desperate farmers tried to move livestock by boat to higher ground, but some had to be abandoned as floodwater rushed into southern B.C. “I can tell you that many farmers attempted to move their animals and had to walk away because the roads were disappearing beneath them,” Popham says. “Even the animals that made it to a safe spot are in rough shape when they finally get to dry ground.”

Farm Bureau Says 2021 Thanksgiving Dinner Costs More

Thanksgiving 2021 is a chance for family and friends to get together for a meal. However, paying attention to how that feast affects the bottom line is also important. The Farm Bureau’s 36th annual survey shows that the average cost of this year’s classic Thanksgiving feast for 10 is $53.31. It still breaks down to less than $6 per person. It’s a $6.41 increase or a 14 percent increase from last year’s average of $46.90. The centerpiece of most Thanksgiving tables is the turkey, which costs more than last year at $23.99 for a 16-pound bird. While that’s up 24 percent from last year, the Farm Bureau survey took place before many grocery stores had begun to feature their whole turkeys at lower prices in time for the holiday. AFBF Senior Economist Veronica Nigh (NYE) says factors that caused the price increases include inflation pressure and interruptions to the U.S. supply chains. More consumers cooking at home also upped retail prices.

2020-2021 Marketing Year Ranks as Best Export Year Ever

U.S. exports of grains in all forms reached an all-time high in the 2020-2021 marketing year. USDA Data analyzed by the U.S. Grains Council showed exports made a nice recovery after two years of decline. Exports in the marketing year rose just over 28 percent to a total of 129.5 million metric tons or 5.2 billion bushels. “Reaching an all-time high record for exports of grains in all forms while we continue to deal with COVID-19 shows the commitment of USGC members to expand grain exports,” says Cary Sifferath (SIF-uh-rath), senior director of global programs. U.S. corn exports rose by 55 percent in 2020-2021 from the prior marketing year to 69.8 million metric tons or 2.7 billion bushels. Corn exports to China hit a record at more than 21.4 million metric tons. U.S. sorghum exports rose 40 percent year-over-year to 7.1 million metric tons, or 283 million bushels. China was the top sorghum market with 6.78 million metric tons of imports.

Friday Watch List

Markets

USDA's monthly cattle on-feed report is the only report on Friday's docket, due out at 2 p.m. CST. Traders will keep their attention on the latest weather forecasts and watch for any new export sales. Next week's trading hours will be shortened by Thanksgiving on Thursday and a shortened trading session on Friday.

Weather

High pressure settling in behind a cold front that moved through this week will keep the weather relatively quiet on Friday. Some breezy conditions are expected on the backside of the high in the Plains and Upper Midwest, though. Meanwhile showers are moving through the Pacific Northwest with the next system. Most of the showers are occurring in the mountains, however.

Bonnie Confirmed as USDA Undersecretary

Senate Ag Committee Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) announced that the Senate confirmed Robert Bonnie to a USDA Undersecretary position. The 76-19 vote in favor of the nominee means that Bonnie is the new Undersecretary for Farm Production and Conservation. “Democrats and Republicans praise Mr. Bonnie’s extensive credentials and commitments to tackling the climate crisis and boosting farm income at the same time,” Stabenow says. Commodity groups like the National Corn Growers Association say Mr. Bonnie has an important role with the USDA. “As production agriculture faces multiple challenges, Mr. Bonnie will play an important role in responding to farmer needs,” says NCGA president Chris Edgington. “His previous experience as a USDA Undersecretary is important when it comes to working with a variety of stakeholders and overseeing important USDA agencies. “ Bonnie’s experience, bipartisanship commitment, and ongoing work with farmers, ranchers, and conservationists are reasons the NCGA says it’s looking forward to working with Bonnie.

Farm Bureau Says, “Build Back Better” Act Will Hurt Rural America

The American Farm Bureau Federation sent a letter to the U.S. House of Representatives stating its opposition to the Build Back Better Act. AFBF President Zippy Duvall says the Act, also known as the reconciliation package, contains some elements that would benefit agriculture. “However, the massive amount of spending and tax increases required to pay for the plan outweigh the gains we would see in rural America,” Duvall says in the letter. “We appreciate efforts in the House to protect farmers and ranchers by leaving key tax provisions untouched. Thousands of small businesses would still be affected by tax increases, forcing them to pass increased costs to families across the nation.” He also says the economy is still recovering from COVID-19, supply chains are stressed, and inflation is putting pressure on American pocketbooks. “Now is not the time to put more burdens on American families struggling to make ends meet,” he says.

Ag Lenders Expect Borrowers to be Profitable This Year

The American Bankers Association and the Federal Agricultural Mortgage Corporation released their most recent survey of agricultural lenders. The good news is that the lenders expect 80 percent of their borrowers to show a profit in 2021. Looking ahead to next year, the lenders expect that 70 percent of their borrowers will remain profitable through 2022. The report says the agricultural economy was “shaken” by the events of 2020. For the first time in the history of the survey that began in 2016, most of the ag lenders expect that overall farm profitability increased in the prior year. Almost 70 percent of the lenders say the profitability largely stemmed from government support, which lenders say made up 38 percent of borrowers’ net income. Lenders expect some deterioration in conditions next year, with almost 30 percent expecting a decline in farm profitability during 2022. Lenders cited inflationary pressure as the number one concern for producers.

Ethanol Industry Says Biofuel Rollback Won’t Lower Gas Prices

The ethanol industry is warning the Biden administration that pulling back the nation’s biofuel-blending rules to lower gasoline prices would be a big mistake. “We were shocked to learn that one of the potential actions reportedly being discussed at the White House is relaxing mandates to mix gasoline with biofuels,” says Renewable Fuels Association CEO Geoff Cooper. The RFA sent a letter to Brian Deese, director of the White House National Economic Council, pointing out that lowering blending requirements would lead to higher, not lower, gas prices. It would also boost tailpipe pollution tied to climate change and risk public health. Instead, the group wants the administration to focus on proposing overdue biofuel blending rules and expanding higher ethanol blends around the nation. The RFA letter says ethanol is extending the U.S. gasoline supply by nearly 1.1 million barrels per day, equivalent to the combined crude oil production of Alaska, California, Utah, and Wyoming.

USCA Joins Call for Halting Beef Imports from Brazil

The United States Cattlemen’s Association joined the National Cattlemen’s Beef Association and R-CALF USA in calling for a halt to beef imports from Brazil. A USCA letter to Ag Secretary Tom Vilsack says recent reports of human remains containing BSE, or Mad Cow Disease, follow closely on the heels of an atypical case of BSE found in an older cow in Brazil. “This is especially troubling given Brazil’s history of corruption and dishonest trading practices in the global marketplace,” the letter says. “USCA is concerned more cases are waiting to get discovered.” USCA Trade Committee Chair Larry Kendig says the same concerns which prompted his group to call for a halt to Brazilian beef imports in 2017 remain today. “Put simply, Brazil is a bad actor in the global marketplace,” Kendig says. “We are gambling with the health of the domestic herd every time we accept a shipment of beef from Brazil.”

Keep Thanksgiving Free from Foodborne Illness

As Thanksgiving rapidly approaches and Americans sit down for a meal, the USDA says it’s important to take steps to keep family and friends safe from foodborne illness during the holiday. “Thanksgiving is one of my favorite times to remind people about food safety,” says Ag Secretary Tom Vilsack. “I personally know how much effort it takes to prepare a full Thanksgiving meal. It’s important to follow safe practices like handwashing, using a food thermometer, and avoiding cross-contamination.” One of the best tips for food safety is making sure to wash your hands before preparing and handling food to help prevent the spread of germs. When thawing a turkey, don’t do it on a counter or in hot water; instead, do it in a refrigerator. Use a food thermometer to make sure the turkey gets to an internal temperature of 165 degrees Fahrenheit. All perishable foods should be refrigerated within two hours of being cooked.

Thursday Watch List

Markets

USDA's weekly report of export sales is due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. index of leading indicators for October will be out at 9 a.m. CST, followed by the Energy Department's natural gas storage report at 9:30 a.m. CST. Traders will be watching for any new export sales announcements and will monitor the latest weather forecasts.

Weather

A mature system in Ontario continues to push a cold front southeast through the eastern portions of the country on Thursday. Scattered showers are found along the front from the Delta into the eastern Midwest and these showers will continue behind the front today. Some snow showers will continue across the northern Midwest as well. Areas in the Plains remain dry, which has been hurting winter wheat establishment, especially as temperatures fall below normal at times, causing freezes.

Vietnam Revises Tariff Rates on Corn, Wheat, Frozen Pork

The Vietnam government announced that it’s revising its Most Favored Nation Tariff Rates. As of December 30, the import tax on corn from all origins drops from five percent to two percent, and the tax on all wheat gets zeroed out. The import tax on frozen pork will drop from 15 to 10 percent on July 1, 2022. “This is great news for U.S. products as it levels the playing field with our competitors from the Black Sea and Southeast Asia,” says U.S. Grains Council President and CEO Ryan LeGrand. “Together with the USDA’s Foreign Ag Service, the Council’s work in Vietnam helped make this happen.” The USDA says American exports of corn, wheat, and pork to Vietnam were valued at $228 million in 2020. Vietnamese purchases of DDGS increased in 2020-2021 to 1.7 million metric tons, making Vietnam the second-largest market for American DDGs. “We look forward to building on our strengthened relationship with Vietnam as we find new homes for U.S. corn and related products for our members here at home,” LeGrand says.

NCGA: EPA Did Not Use the “Best Science”

The National Corn Growers Association says the Environmental Protection Agency didn’t use the best science in assessing glyphosate, atrazine, and simazine (SY-mah-zeen). The agency recently released endangered species biological evaluations for the chemistries, and NCGA says those final assessments vastly inflate the number of species and habitats likely to be adversely affected. “The assumptions EPA made in drafting this biological evaluation are not based on real-world use of these products,” says Iowa farmer and NCGA president Chris Edgington. “It vastly overestimated the volume farmers use and, instead, relied on inflated levels that resulted in this evaluation.” Last week’s evaluation looked at the effects of the three chemistries when used at the highest legal limits rather than at levels typically used by farmers. The EPA determination also is based on the assumption that the chemistries get used more frequently than estimates suggest. The EPA assessment will now get used by the Fish and Wildlife Service to determine if the products harm endangered species, which could result in restrictions.

NBB Testifies on Biofuels and the Rural Economy

National Biodiesel Board CEO Donnell Rehagen (REE-hay-gen) submitted testimony to a House Ag Subcommittee hearing on the Renewable Economy in Rural America. His testimony outlines the contribution of the clean fuels industry in terms of jobs and value-added markets for agricultural goods and environmental health benefits. He says the industry’s clean fuels are made from an increasingly diverse mix of resources, so they “add value to fats, oils, and greases that might otherwise lead to costs for other sectors of the bioeconomy.” Rehagen also says clean fuel contributes to the bioeconomy by reducing the impacts and costs of carbon and particulate emissions. Biodiesel and renewable diesel immediately and substantially reduce greenhouse gas emissions in difficult-to-decarbonize transportation sectors. The U.S. biodiesel and renewable diesel industry support 65,000 jobs and more than $17 billion in economic activity every year. The NBB says its members appreciate the elected officials\ working in Congress to enact a long-term extension of the biodiesel tax incentive.

More Reaction to Signed Infrastructure Bill

Groups continue to react to President Biden’s signing of the recently passed Infrastructure Bill. Brian Kuehl (KEEL), Executive Director of Farmers for Free Trade, says it’s a historic investment in America’s agricultural infrastructure. “For too long, we have seen our competitive advantage in infrastructure slip,” Kuehl says. “Monday’s signing marks a turning point.” National Farmers Union President Rob Larew says the signing marked a great day for agriculture. “The Infrastructure Investment and Jobs Act will provide a much-needed boost to our rural economy and will help keep family farmers, ranchers, and our communities linked and connected with the rest of the country.” California Democrat Jim Costa, a member of the House Ag Committee, says these critical investments will improve our quality of life and safeguard the economy. “We no longer have to live off the investments of our grandparents,” Costa tells the Hagstrom Report. United Fresh Association President Tom Stenzel says this bill will improve the fresh produce supply chain.

Almost Half of U.S. States Lost Rural Population in 2001-2020

From 2010-2020, the USDA’s Economic Research Service says 24 states lost population in nonmetropolitan or rural areas. Sixteen of those states lost population overall or showed slow population growth of less than five percent. Data from the 2020 U.S. Census shows the U.S. population grew by 7.4 percent from 2010-2020, slower than the 9.7 percent growth from the previous decade. The biggest population decline took place in West Virginia at 3.2 percent. West Virginia was also the only state to lose population in metropolitan areas and rural areas. The highest-population growth during the decade was in Utah, whose population grew over 18 percent. Other states growing by 15 percent or more included Idaho, Texas, North Dakota, and Nevada. South Dakota and Nebraska each lost between five and ten percent of their population from 2010-2020, as did Oklahoma and Minnesota. Michigan, Indiana, and Ohio each lost as much as five percent of their population.   

Soaring Meat Prices Boost Tyson Profits

Rising meat prices helped Tyson Foods overcome COVID-related labor shortages at its plants. The top U.S. meatpacker reported a stronger-than-expected quarterly profit this week and forecast improving revenue for the year ahead. The Arkansas-based company reported a double-digit jump in sales and earnings in the fourth quarter of its fiscal year that ended on October 2. That includes a record quarter in its beef operation despite cattle prices surging 20 percent higher. While COVID-19 kept many diners at home in 2020, rising meat prices and improving demand from restaurants have boosted the bottom line for meat companies like Tyson. Meatpackers are also seeing record demand for American beef from China, due in part to tensions between Beijing and regular supplier Australia. Top aides to President Biden have blamed Tyson and other large meatpackers that control much of the meat processing sector for rising food prices. “Inflation is impacting our business,” says Tyson CEO Donnie King.

Wednesday Watch List

Markets

A report on October U.S. housing starts is set for 7:30 a.m. CST Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m., which includes ethanol and crude oil production. As usual, traders will keep their eyes on the latest weather forecasts and watch for any news of an export sale.

Weather

A cold front sweeping across the country is going to develop showers along it across the eastern Midwest that will move into the Delta tonight. Showers are expected to be light but could have an impact on fieldwork. Winds behind the system remain strong in the Northern Plains and extend into the Upper Midwest and Central Plains as well. While the front is moving through the Southern Plains, very little or no precipitation is expected, furthering the dryness for winter wheat.

President Biden Signs Infrastructure Bill

President Joe Biden Monday signed the bipartisan infrastructure legislation. The more than $1 trillion plan includes $550 billion in new funding for transportation, broadband and utilities. The White House calls the legislation “a once-in-a-generation investment in our Nation’s infrastructure and competitiveness.” The legislation focuses on the needs of rural America through broadband, ports and waterways, as well as roads and bridge projects. American Farm Bureau Federation President Zippy Duvall says the investments “will ensure we continue to safely and efficiently transport the agricultural and food products that our nation and the world rely on.” The bill includes important provisions from the previously proposed Haulers of Agriculture and Livestock Safety Act. That legislation allows livestock haulers an exemption to normal trucking hours-of-service limitations if the vehicle is within 150 miles of its destination. Ahead of the signing, President Biden named Mitch Landrieu as senior advisor responsible for coordinating implementation of the legislation.

Farmland Values Surge Alongside Strength in Agriculture

Agricultural credit conditions in the Federal Reserve Bank Tenth District remained strong in the third quarter, and farm real estate values increased sharply. The Kansas City Federal Reserve Bank reports farm income and loan repayment rates continued to increase at a steady pace and contributed to multi-year lows in problem loans and asset liquidation. While conditions have improved substantially from recent years throughout the region, the pace of increase in farm income and loan repayment rates was slower in areas most significantly impacted by drought. Alongside a strong agricultural economy and historically low interest rates, the value of all types of farmland was about 15 percent higher than a year ago. Most lenders have remained optimistic about the outlook for agriculture but have expressed concerns about rising input costs. The Tenth Federal Reserve District covers the states of Colorado, Kansas, Nebraska, Oklahoma, and Wyoming, 43 counties in western Missouri, and 14 counties in northern New Mexico.

Deere Workers Voting on Third Offer

Union workers employed by Deere and Company vote this week on a third and final offer from Deere. The tentative agreement, announced Friday, includes modest modifications to the previous tentative agreement presented for ratification on November 2, according to United Auto Workers. UAW is presenting the ratified agreement to members for a vote and will continue the strike until an agreement is approved. Meanwhile, a recent poll by the Des Moines Register found 58 percent of Iowa adults say they mostly side with Deere workers, 16 percent of respondents say they mostly side with the employers, while 19 percent are unsure and seven percent support neither group. Union members have rejected two tentative agreements from Deere and will vote Wednesday on the latest offer. More than 10,000 workers remain on strike in Iowa, Illinois and Kansas. UAW says the offer is the “best and final” offer to the UAW negotiating team.

USDA, Interior Department Create Tribal Homelands Initiative

President Joe Biden announced the Tribal Homelands Initiative during the White House Tribal Nations Summit Monday. The initiative is a partnership between the Interior Department and the Department of Agriculture. USDA says the effort will improve federal stewardship of public lands, waters, and wildlife by strengthening the role of tribal communities in federal land management. Through a joint Secretarial Order, the two departments codified a policy to facilitate agreements with tribes to collaborate in the co-stewardship of federal lands. Agriculture Secretary Tom Vilsack says, “Shared stewardship of land management is a priority for USDA, and an important part of our responsibility to tribal nations.” The Departments also committed to ensuring that all decisions relating to federal stewardship of lands, waters, and wildlife include consideration of how to safeguard the treaty, spiritual, subsistence, and cultural interests of any Indian Tribes. The order additionally directs the departments to ensure that tribal governments play an integral role in decision-making related to federal lands.

NPPC Applauds USDA Decision to Allow Faster Line Speeds

The National Pork Producers Council commended the Department of Agriculture for allowing some pork packing plants to run faster line speeds. NPPC says the move could increase packing capacity and alleviate supply issues in the face of strong demand. NPPC President Jen Sorenson says, “This is particularly important now given the strong demand for pork, supply chain problems and our industry’s packing capacity constraints.” The announcement last week allows Nine plants that adopted the agency’s 2019 New Swine Inspection System to apply for a one-year trial program to use faster line speeds. The plants will collect data on the effects of line speeds on workers and share it with U.S. Occupational Safety and Health Administration. The line speed provision of the 2019 NSIS final rule was more than 20 years in the making, with six pork plants operating faster line speeds through a program begun in 1997 under the Clinton administration.

USMEF Elects New Officers

The U.S. Meat Export Federation announced Mark Swanson as the new USMEF chairman, succeeding Pat Binger of Cargill Protein North America. Swanson, chief executive officer of Colorado-based Birko Corporation, heads an officer team reflecting the wide range of USMEF membership sectors. Dean Meyer, a corn, soybean and livestock producer from Iowa, is the new USMEF chair-elect, and Minnesota pork producer Randy Spronk will serve as vice-chair. The newest USMEF officer is Steve Hanson, a rancher from Nebraska. The officers were announced at the conclusion of the USMEF Strategic Planning Conference and board of directors meeting late last week. Since joining USMEF in 2008, Swanson said Birko has benefited significantly from the federation's expertise and from the contributions exports make to the growth and profitability of the U.S. red meat industry. Swanson says USMEF staff and technical knowledge is “what propels us to outpace the competition, because we're simply better at understanding the markets."

Tuesday Watch List

Markets

A report on October U.S. retail sales is due out at 7:30 a.m. CST Tuesday, followed by the Federal Reserve's report on October U.S. industrial production at 8:15 a.m. USDA's Livestock, Dairy and Poultry Outlook will be released at 2 p.m. Traders will check the latest weather forecasts and watch for any news of an export sale.

Weather

A frontal boundary will move through the Northern Plains on Tuesday. It will be dry but breezy. Good weather conditions will continue for final harvest and fieldwork activities elsewhere. The dryness continues to be a concern for winter wheat in the Southern Plains, however.

Refiners Betting on Support from Biden

U.S. oil refiners are upping the ante in the battle over biofuels in an attempt to win support from the Biden administration. Reuters says they’re making moves in the biofuel credit market that may end up forcing them to close plants and fire workers if the president doesn’t bail them out from Renewable Fuel Standard requirements. The RFS requires refiners to blend biofuels into their fuel supply or buy RIN (Renewable Identification Number) credits from those that do the blending. A Reuters study says some of those refiners that had been buying a lot of credits are now building short positions in the credit market. They’re betting that President Biden will side with refiners and roll back the RFS. However, this would anger the Farm Belt, who say this is nothing but a political shakedown. Refiners know that rising fuel prices have the administration’s attention. “These refineries are daring the Biden administration to make them lay in the bed they made intentionally by running up massive short positions on biofuel credits,” says Brooke Colman, executive director of the Advanced Biofuels Business Council. A Reuters review of financial filings shows refiners that had little outstanding biofuel credit liabilities have let them climb to record highs in the third quarter of this year.

Vote on Bonnie Nomination Likely This Week

The Senate Agriculture Committee approved the nomination of Robert Bonnie as the USDA Undersecretary for Farm Production and Conservation three months ago. The position is one of the most important at USDA as the undersecretary oversees the agency’s farm subsidy and land stewardship programs, which cost over $10 billion a year. The departmental scope covers public nutrition, international trade, ag research, meat safety, and rural economic development. Successful Farming says several senators placed hold actions on Bonnie for reasons mostly unrelated to the nominee. Bonnie was trained in forestry and served as an undersecretary in the Obama administration. He joined USDA as a climate advisor on the same day Joe Biden took office. Bonnie has been at the forefront of the administration’s plans to mitigate climate change. During his confirmation hearing this year, he said that actions on global warming would be voluntary, incentive-based, and locally-led. “If they don’t work for producers and landowners, they’re not going to work for the climate,” he said during his testimony.

October Ag Tractor and Combine Sales Stay Positive

Overall unit sales of both ag tractors and combines continued their growth above an already-rapid pace set last year. The latest data from the Association of Equipment Manufacturers says U.S. total farm tractor sales climbed 4.8 percent in October compared to last year. U.S. self-propelled combine sales climbed 73 percent, the fourth month in a row of growth near or above 20 percent for harvesters. The under-40 horsepower segment stayed positive, growing 4.5 percent, while the mid-size 41-100 horsepower was up 4.1 percent. Heavy-duty units saw another strong month, with units over 100 horsepower up 10.3 percent. But the articulated four-wheel drive segment continued to slow in sales, down 6.3 percent. Year-to-date farm tractor sales remain up 11.4 percent and combine growth moved to 24 percent. Canadian sales were positive, with both ag tractors and combines finishing the month in the black. “We’re pleased to see ag equipment sales remain positive, despite the very real supply chain challenges,” says Curt Blades, senior vice president of agriculture services at AEM. “We remain optimistic that the positive sales trends will continue along with the ongoing strength in the ag economy.”

Grains Council, Texas Reps Promote Sorghum Overseas

The U.S. Grains Council and the Texas Department of Agriculture visited Spain last week to look into export opportunities for U.S. sorghum and distiller’s dried grains with solubles in 2022. The group met with Spanish grain importers and compound feed producers during the trip. “Spain produces about 36 million metric tons of compound feed annually,” says Paige Stevenson, USGC manager of global trade. “They’re also the largest pork producer in the European Union. Spain is historically a significant buyer of U.S. sorghum, so this mission was an important one.” The USGC says the Council and Texas sorghum exporters engaged in a dialogue with their customers to help ensure that U.S. sorghum is not overlooked as the Spanish market makes its purchasing plans for the upcoming year. The mission team had one-on-one meetings with Spanish grain importers, feed producers, and hog producers. Spanish importers hold American sorghum in high regard, and the trip resulted in heightened interest in the commodity. “As a result of the trip, we immediately received follow-up calls from the Spanish industry asking for price and quality specifications,” says Stevenson. “That highlights the importance of sitting down with your customers face-to-face.”

Wheat Industry Leaders Meet in Kansas City, Talk Shipping

The boards of directors for the U.S. Wheat Associates and the National Association of Wheat Growers met last week in Kansas City. Supply chain issues were one of many topics during the meetings. “Supplier delivery times have slowed dramatically, not only for manufacturers but also for service providers,” said Esther George, President and CEO of the Federal Reserve Bank of Kansas City, one of the keynote speakers. “That’s due in large part as shipping times from Asia to the West Coast have doubled, and transit costs have skyrocketed.” Daniel Whitley, USDA’s Foreign Agricultural Service Administrator, was another speaker. He talked about the long and successful public-private partnership between “cooperator” organizations like USW and FAS. He also noted the significant expected increase in U.S. agricultural exports for 2021-2022 to more than $175 billion in value, which includes an estimated $7 billion in U.S. wheat exports. Greg Borossay from the Port of San Diego previewed some expansion plans that will introduce bulk freight loading capacity, including for grains. There’s also a project in the works to create a barge service between San Diego and marine ports in central and northern California, along with Oregon and Washington state.

Lasers May Be the Future of Weed Control

Carbon Robotics is working on what may be the future of weed control in agriculture. They’re building a rectangular vehicle a little smaller than a compact sedan, which rolls across farmland. While it’s moving, the vehicle shoots concentrated bursts of infrared light into the rows. Observers hear audible crackles and get the distinct smell of burning vegetation as weeds smolder next to unscathed crops. Paul Mikesell, the founder of Carbon Robotics, says the unmanned Autonomous Laser Weeder covers 15-20 acres per day and kills up to 100,000 weeds an hour. The infrared lasers shoot from beneath the vehicle’s undercarriage. There’s no manual chopping crew, no soil disturbance beyond the wheel traction, and no herbicide use, an important fact given agriculture’s push toward sustainability. “We spent almost three years designing a system that targets weeds on its own while rolling through a field,” Mikesell says. “It operated entirely on its own and separate from any human action.”

Monday Watch List

Markets

Starting the third week of November, traders will be checking the latest weather forecasts and will hold their breath at 8 a.m. CST to see if any of the rumors of U.S. soybean sales to China get announced. USDA's weekly report of grain inspections is due out at 10 a.m. CST and will be followed by an estimate of the U.S. soybean crush in October from the National Oilseeds Processors Association. USDA's Crop Progress will give estimates of row crop harvest progress and winter wheat planting progress at 3 p.m. CST.

Weather

An active pattern will continue across the country for the week, but it will be a relatively quiet transition day on Monday between systems. The next system will come into the Pacific Northwest this evening with scattered showers that will extend into the Canadian Prairies.

Dairy Industry to Meet Next Week

Dairy Industry groups will meet next week in Las Vegas for their annual joint meeting. The National Milk Producers Federation, National Dairy Promotion and Research Board, and United Dairy Industry Association will meet November 14-17. Attendees will hear how the dairy industry groups are working to “Make Every Drop Count” for U.S. dairy farmers. Key topics and issues include sales, sustainability, nutrition policy, trade regulations, animal care, and changes in the global dairy marketplace. The national Young Cooperator program will also hold its annual session November 14-15. In addition to NMPF’s Town Hall session, the conference will feature a panel discussion of how NMPF and the national checkoff are working to defend the sustainability of real dairy products, particularly as the marketing environment in the dairy category becomes even more competitive. Another panel will discuss National Milk’s work with the U.S. Dairy Export Council to create high-value new opportunities for American dairy exports.

USMEF Conference Focuses on Booming Demand, Supply-Side Challenges

The U.S. Meat Export Federation Strategic Planning Conference this week welcomed members from across the nation. The meeting covered booming demand for U.S. red meat in both established and emerging markets. USMEF President and CEO Dan Halstrom told attendees demand for U.S. red meat may be at the most robust level he has ever seen. He noted that U.S. beef exports to Japan, South Korea and China/Hong Kong are all on track to exceed $2 billion this year, and pork exports are up slightly in volume and significantly in value over last year's record pace. Total red meat export value will reach about $18 billion this year, including more than $2 billion in variety meat. This represents a rebound for variety meat exports, which took a step back in 2020. Halstrom tempered his optimism, however, due to West Coast port congestion and other transportation obstacles, as well as a persistent labor shortage and heightening regulatory burdens.

R-CALF Statement on Cattle Market Price Discovery and Transparency Bill

R-CALF USA awaits the full text of the compromise Cattle Market Price Discovery and Transparency Bill to analyze the legislation. The final language of the compromise is not yet publicly available. However, reacting to the news, R-CALF CEO Bill Bullard says, “Publicly available information does not indicate the compromise bill does what we asked.” Bullard says, “We asked Congress to immediately force the dominant packers to begin competing for cattle and give consumers the opportunity to choose where they want their beef produced.” The organization will review the bill before making a final decision. Bullard says R-CALF will determine if the bill can immediately restore lost competition to the market, if it can immediately ensure timely market access for all participants, and if it treats all independent cattle producers and feeders equally. Finally, the organization wants to see if the legislation “truly rebalances the market power” between disaggregated cattle producers and the highly concentrated beef packers.

Meat Institute Announces Ambitious Climate Target

The North American Meat Institute this week announced that 100 percent of its members will have delivered independently approved science-based greenhouse gas reduction targets in line with the Paris Climate Agreement goals by 2030. The Meat Institute's new targets released alongside its sustainability framework are the latest commitments launched through the Protein PACT for the People, Animals, and Climate of Tomorrow, which unites 12 leading U.S. agricultural organizations committed to taking measurable action to accelerate progress toward global development goals. Meat Institute President and CEO Julie Anna Potts comments the framework "will drive momentum and generate technical support for meatpackers and processors of all sizes to establish independently approved science-based targets to reduce greenhouse gas emissions.” The Meat Institute will support members in setting greenhouse gas reduction targets to be approved by the Science Based Targets Initiative, which independently assesses and approves companies' targets in line with its strict criteria.

National Farmers Union Announces 2022 Women's Conference

National Farmers Union this week announced the 2022 Women's Conference to connect women in agriculture and provide education on business skills and innovative marketing tactics. NFU Education Director Emma Lindberg says, "This conference will not only prepare attendees for success in agriculture, but it will also provide them with their own network of women farmers and ranchers they can reach out to throughout the year." Farmers, policymakers, educators, and specialists will present on several subjects, including business management, leadership, community building, and more. The 2022 Women's Conference will be a hybrid event with virtual sessions focusing on cooperatives, business management, and food sovereignty. The Virtual event runs January 10-13, and the in-person event January 15-18 in Nashville, Tennessee. Farmers Union members are invited to attend the in-person conference, and non-members are welcome to attend the virtual conference. Find more details about the 2022 National Farmers Union Women’s Conference online at www.nfu.org.

EPA Fines Pesticide Applicator for Alleged Violations of Federal Pesticide Law

The Environmental Protection Agency recently fined Nutrien Ag Solutions Inc. for allegedly applying pesticides in Kansas that were canceled by the federal government. The Colorado-based company, which sells, distributes, and applies pesticides mainly for farming operations, will pay $668,000. In 2020, EPA canceled the use of certain pesticides containing the active ingredient dicamba, in response to a Ninth Circuit Court order vacating the registration of those pesticides. The Court cited, among other things, evidence that dicamba could drift onto neighboring crops and damage them during high winds. According to EPA, Nutrien Ag Solutions violated the Federal Insecticide, Fungicide, and Rodenticide Act when it allegedly used two dicamba products in a manner inconsistent with the approved label on at least 27 occasions. Further, EPA alleged that the company violated the law on 33 occasions when it applied other dicamba products on multiple Kansas farms during periods of high wind speeds in violation of pesticide label requirements.

Friday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CST Friday, followed by the University of Michigan's early November index of consumer sentiment. Traders will check the latest weather forecasts and watch for any new export sales.

Weather

A deep low pressure system continues to spin over Minnesota, bringing in some cold and windy conditions, along with a bit of snow in the Upper Midwest. As the low moves east, showers will spread through the Eastern Corn Belt through the day but should only be light rain for the most part. The system has caused many weather issues for the remaining harvest and is not letting go just yet.

Consumer Price Index: Food Prices Higher Again in October

The Consumer Price Index increased 0.9 percent in October on a seasonally adjusted basis after rising 0.4 percent in September, the Bureau of Labor Statistics reported Wednesday. Over the last 12 months, the all-items index increased 6.2 percent, the largest 12-month increase since November 1990. The food index increased 0.9 percent in October, the same increase as in September. The food at home index increased 1.0 percent over the month as all six major grocery store food group indexes continued to rise. The index for meats, poultry, fish, and eggs continued to rise sharply, increasing 1.7 percent following a 2.2-percent increase in September. The index for beef rose 3.1 percent in October. The index for other food at home rose 1.2 percent, its largest monthly increase since April 2020. The index for cereals and bakery products rose one percent, while the index for dairy rose 0.2 percent, and the index for fruits and vegetables advanced 0.1 percent. 

White House: Infrastructure Deal to Improve Supply Chain

A White House fact sheet released Wednesday says the bipartisan infrastructure deal will improve the supply chain. The report says the infrastructure legislation will make fundamental changes that are long overdue for ports, airports, rail and roads to ensure supply chains are more resilient and efficient from future shocks. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide, and no U.S. port ranks in the top 50 ports for efficiency. The legislation invests $17 billion in port infrastructure and waterways and $25 billion in airports to address a variety of issues. Despite global disruptions due to the pandemic, The White House says America is moving record numbers of goods from ports to shelves and homes. The Ports of Long Beach and Los Angeles, which import 40 percent of all containerized imports into the country, are handling the most in their history, 17 percent more than their previous record year.

Farm Households Received Estimated $2,100 From Economic Impact Payments

In 2020, U.S. family farm households received $4.3 billion in federal assistance during the Coronavirus pandemic from Economic Impact Payments. Researchers at USDA’s Economic Research Service this week say the estimated average was $924, $2,408, and $2,466 for single, head of household, and joint filers, respectively. The disparity partly reflects the lower income thresholds for single households, which resulted in some not receiving the maximum payment and others not receiving payments at all. Additionally, since unmarried people with dependents were assumed to file as head of household, these households were estimated to have received an additional $500 per dependent. Among family farm households, ERS researchers estimated that 18 percent of single filers did not receive a payment, compared with 17 percent of head of household filers, and 13 percent of joint filers in 2020. In April and May 2020, U.S. households of all types, farm or otherwise, received more than $266 billion from the program.

North American Meat Institute: Grassley-Fischer Bill Ignores Economic Fundamentals

The North American Meat Institute says the Grassley-Fischer bill to improve fairness in the cattle market ignores the analysis of beef and cattle markets by the country’s leading agricultural economist. Further, the organization says the bill’s mandated government intervention will have unintended consequences that will hurt livestock producers and consumers. NAMI President Julie Anna Potts says, “In a rush to do ‘something,’ this bill would replace the free market with government mandates and harm those it is intended to protect: livestock producers.” According to one independent analysis using USDA data, since August, prices for producers have been well above the five-year average and above prices in 2020. The Cattle Price Discovery Act is seen as a compromise between lawmakers to “return fairness to the cattle marketplace dominated by four major meat packers.” North American Meat Institute members process the vast majority of U.S. beef, pork, lamb, and poultry, according to the organization.

Expect Volatile Natural Gas Prices This Winter

Extreme cold in February led to lower-than-average natural gas storage levels through the summer, prompting concerns about winter weather this year and volatile natural gas prices. In its November Short-Term Energy Outlook, the U.S. Energy Information Administration estimates that U.S. natural gas storage levels had built to within three percent of the previous five-year average at the end of October. EIA Acting Administrator Steve Nalley says, “Winter temperatures will be the key driver of natural gas demand, inventories, and ultimately prices.” Despite relatively high natural gas prices, the U.S. electric power sector continues to use significant amounts of natural gas for generation. In addition, EIA estimates that U.S. natural gas exports of liquefied natural gas averaged 9.8 billion cubic feet per day in October, which is 37 percent above the October 2020 level, and essentially at capacity. U.S. natural gas exports will most likely remain close to capacity this year and in 2022 to meet demand.

Thursday Watch List

Markets

Thursday, November 11 is Veterans Day and there are no significant reports scheduled, but U.S. futures markets are open. Canola will not trade Thursday. Traders will check the latest weather forecasts and anticipate USDA's weekly export sales report, due out Friday morning at 7:30 a.m. CST.

Special thanks to all you veterans for your service.

Weather

A strong system is intensifying over Minnesota early Thursday, pushing a line of moderate showers along the Mississippi River eastward through the rest of the day. The system is also increasing its winds on the backside of the system while it pulls down cold Canadian air and a batch of snow into the Northern Plains. That will cause some blowing snow, drifting, and blizzard conditions with wind gusts of 35 to 50 mph and occasionally higher into Friday.

USDA Raises Corn Yields, Lowers Soybean Estimate

The USDA released its November Crop Production and World Ag Supply and Demand Estimates this week, and the agency numbers show more corn production for 2021-2022. The corn outlook calls for greater production, increased corn use for ethanol, and marginally lower ending stocks. Corn production is forecast at 15.06 billion bushels, up 43 million from last month on a .5 bushel increase in yield to a record 177.0 bushels per acre. The season-average corn price received by producers is unchanged at $5.45 per bushel. The soybean outlook is for lower production and exports and higher ending stocks. Soybean production is forecast at 4.42 billion bushels, down 23 million on lower yields. Exports are reduced this month, reflecting reduced global imports and lower-than-expected shipments through October. The season-average soybean price is $12.10 a bushel, down 25 cents. The 2021-2022 wheat outlook calls for lower supplies, higher domestic use, reduced exports, and slightly higher ending stocks. Projected ending stocks are up slightly to 583 million bushels, up three million over last month but still the lowest ending stocks since 2007-2008. The season-average farm price is up 20 cents a bushel to $6.90.

Chinese Soybean Imports Drop to Lowest Level Since March

China’s October soybean imports dropped over 41 percent lower than the same time a year ago, hitting the lowest level since March 2020. Reuters says poor crush margins curbed demand and Hurricane Ida limited U.S. shipments. The world’s biggest soybean buyer purchased 5.1 million tons of the commodity in October, compared to 8.69 million tons last year. Chinese imports also dropped from 6.8 million tons in September. In the first ten months of 2021, China bought 79.08 million tons of soybeans. China’s crushers increased their purchase earlier this year because of possible strong demand from a rapidly recovering pig herd. But demand recently dropped after pig supplies outpaced the demand, leading to plunging prices and wiping out farmers’ profits. Prices did pick up a bit in October after farmers were hit with heavy losses during the summer. Crush margins were low as recently as early September after hitting a record low in June. Margins began to improve later in September because of declining inventories. The U.S. was also hit with shipping issues as Hurricane Ida hit the Gulf Coast in early September, damaging at least three of the near dozen export terminals located along the Mississippi River between Baton Rouge, Louisiana, and the Gulf of Mexico.

Senators Announce Plan to Improve Cattle Market Fairness

Republican Senators Chuck Grassley of Iowa and Deb Fischer of Nebraska joined Democrats Jon Tester of Montana and Ron Wyden of Oregon in announcing the Cattle Price Discovery and Transparency Act. The compromise cattle market bill is part of Grassley’s work to return fairness to the cattle marketplace dominated by four major meatpackers. “I frequently hear from independent cattle producers struggling to get a fair price for their cattle while the nation’s four largest packers operate in the shadows,” Grassley says. “The bill takes several steps to improve cattle price transparency and will improve market conditions for independent producers across the country.” The Senators plan to introduce the act in the coming days. Among the many changes it will make, the legislation will establish regional mandatory minimum thresholds of negotiated cash and negotiated grid trades based on each region’s 18-month average trade to enable price discovery. It would also require the USDA to create and maintain a publicly-available library of marketing contracts between packers and producers in a manner that ensures confidentiality. The proposal is endorsed by a number of state and national organizations, including the American Farm Bureau, the National Farmers Union, and many others.

USDA Awards $25 million for Conservation Innovation Projects

The USDA announced its awarding $25 million to conservation partners across the country for 18 new projects under the Conservation Innovation Grants On-Farm Conservation Innovation Trials program. The On-Farm Trials’ projects support the widespread adoption and evaluation of innovative conservation approaches in partnership with farmers and ranchers. This year’s awarded projects accomplish goals like increasing the adoption of new approaches and technologies to help agricultural producers mitigate the effects of climate change, increasing the resilience of their operations, and boosting soil health. “Farmers, ranchers and forest landowners play a crucial role in charting the course towards a climate-smart future,” says Terry Cosby, Natural Resources Conservation Service boss. “On-Farm Trials enable partners to work with producers to test and adopt new climate-smart systems on their operations that support agricultural production and conserve natural resources, while also building climate resilience.” Among the many awarded projects, one is called “Climate-Smart Irrigation for Drought, Fertility, and Structural Resilience on Almond Systems,” with the study located in California. Another project in both California and Oregon will study irrigation projects for the future. Other Conservation Innovation Grants cover studies on flood irrigation water management, low-cost gravity-powered drip irrigation, enhanced efficiency fertilizers, methane emissions in dairy cattle, and many other topics.  

Wet October Lifts Severe Drought in Iowa

Severe drought was driven from across Iowa for the first time in over a year. A Successful Farming article says the credit for that goes to widespread rainfall in October that made it one of the wettest on record. The Iowa Department of Natural Resources says roughly five inches of rain fell around the state. Tim Hall, the DNR’s hydrology resources coordinator, says, “The widespread, above-normal rainfall during October was just what we needed in Iowa. Soaking rainfall ahead of winter’s freeze will set us up for a much better start to next year.” The U.S. Drought Monitor shows less than half the state is abnormally dry or in moderate drought. That’s a big turnaround from June when over half the state was in either severe or moderate drought. While the dry conditions had farmers concerned, some timely rains salvaged some of the crop yields. It’s the first time since July 2020 that no part of the state suffered from severe drought. Many areas in Iowa got more than double the normal amounts of rainfall. For example, Estherville picked up just over seven inches during October. The only place in the state with less-than-normal rainfall was the northeast corner.

Paper Clover Campaign Raises $1.3 Million for 4-H

Tractor Supply Company announced its 2021 Fall Paper Clover Campaign raised a record-setting total of just over $1.3 million for 4-H youth around the country. Program contributions support 4-H members’ participation in camps, educational programs, and leadership experiences. All Paper Clover proceeds support 4-H youth in the state from which it was collected. A Tractor Supply Company spokesperson says, “It’s heartwarming to see how invested our communities are in supporting young people and their ability to participate in 4-H’s invaluable learning experiences.” During 11 years of partnership, Tractor Supply has raised more than $17 million for 4-H youth through their Paper Clover Fundraiser, impacting more than 120,000 students. The funds support scholarships for camps and leadership experiences for 4-H youth across the country. If someone can’t attend an in-person event, 4-H also offers 4-H at Home, Virtual Camp, and Camp in a Box. This year, Tractor Supply also donated an additional $250,000 to the 4-H Tech Changemakers Program, a new opportunity empowering young people to take control of digital literacy and economic prosperity in their community.

Wednesday Watch List

Markets

At 7:30 a.m. CST Wednesday, the U.S. Labor Department returns with a report of consumer prices for October, an ongoing concern in what is gradually becoming a post-pandemic era. At 9:30 a.m., the Department of Energy will release weekly energy inventories with much attention drawn to last week's levels of ethanol and crude oil production. The U.S. Treasury reports on the October budget deficit at 1 p.m.

Weather

A storm system is entering the Plains Wednesday and will move eastward with a line of showers and thunderstorms into the western Midwest later in the day. Moderate rain will slow the remaining harvest but the rain is skipping over the southwestern Plains. This area is extremely dry and winter wheat conditions continue to deteriorate here.

Ag Groups Praise Infrastructure Legislation Passage

Weekend passage in the House of Representatives of the Infrastructure Investment and Jobs Act led to a slew of farm groups praising the action. The House passed the $1.2 trillion bipartisan infrastructure package, which includes $550 billion in new spending. The historic bipartisan infrastructure bill addresses the critical infrastructure needs of family farmers, ranchers, and rural communities, according to the National Farmers Union. NFU President Rob Larew responds, “The bill strengthens our food supply chain as it makes tremendous, much-needed investments in the roads, bridges, dams, and waterways that family farmers and ranchers depend on." Farm Bureau President Zippy Duvall says broadband provisions in the legislation are critical for agriculture, adding, "Investments in physical infrastructure like broadband will be critical to bridging the digital divide." For rural America, the bill includes $110 billion for roads and bridges and $65 billion to expand rural broadband. Ports and waterways will receive $17 billion.

Survey: 54% of Equipment Dealers Don’t Support Deere Strike

A majority of equipment dealers don’t support striking John Deere workers, according to a recent poll from Farm Equipment Magazine. The poll found roughly 54 percent of dealers indicated they do not support the strike, while 37 percent said they did, and 8.5 percent weren't sure. Deere workers have rejected two tentative contract agreements since the strike began. UAW members voted to reject the most recent offer, with 55 percent voting against and 45 percent voting for the agreement. The results show just four of the 12 Deere facilities included voted against the tentative agreement. Following the vote, a spokesperson for Deere and Company says there will not be a third contract offer to striking union workers. Farm Equipment Magazine reports commentary from dealers who do not support the strike suggested Deere's record profits don't necessarily mean employees should see raises. Dealers that do support the strike accused Deere of prioritizing its shareholders.

Producers Still Have Time to Respond to USDA Hemp Survey

It is not too late to respond to the 2021 Hemp Acreage and Production Survey, according to USDA’s National Agricultural Statistics Service. The survey collects information on the acreage, yield, production, price and value of hemp in the United States. USDA NASS said Monday, “Every response matters to ensure we have accurate data needed to inform decisions about the hemp industry.” If a survey recipient is not a current hemp producer, the recipient is encouraged to respond to a few simple questions at the beginning of the questionnaire to ensure NASS does not contact them regarding hemp in the future. The survey will set the benchmark for hemp acreage and production to assist regulatory agencies, producers, state governments, processors and other key industry entities. NASS has begun phone follow-up with survey recipients. Producers can complete their survey through phone interview, online at agcounts.usda.gov, or mailing their completed questionnaire. Results will be released in February of next year.

Red Meat Exports Remain on Record Pace Through Third Quarter

Both U.S. beef and pork exports are on a record pace through September, according to the U.S. Meat Export Federation. Beef exports posted one of the best months on record in September, at 123,600 metric tons, up 20 percent from a year ago and the fourth largest volume of the post-BSE era. Export value jumped 59 percent to $954.1 million, the second-highest month on record, trailing only August 2021. For the first three quarters of 2021, beef exports increased 18 percent from a year ago to 1.08 million metric tons, valued at $7.58 billion, up more than $2 billion from the same period last year. Pork exports totaled 219,680 metric tons in September, down one percent from a year ago, but value was eight percent higher at $608.3 million. For January through September, exports were one percent above last year's record pace at 2.24 million metric tons, while value climbed nine percent to $6.23 billion.

Most U.S. Counties Exempt Groceries from Sales Taxes

Foods purchased at grocery stores were exempt from sales taxes in 57 percent of U.S. counties in 2019, according to new data from USDA’s Economic Research Service. Using county-level tax data in combination with the USDA’s National Household Food Acquisition and Purchase Survey, researchers at USDA recently examined whether grocery taxes are associated with how much money U.S. households spend on food at retail outlets and restaurants. USDA-ERS found that grocery taxes were associated with differences in food spending among lower-income households that were eligible for the Supplemental Nutrition Assistance Program but did not participate in it. Among those households, researchers were able to associate taxes on groceries with reduced food spending at retail stores and increased food spending at restaurants. However, Federal law and USDA regulations stipulate that foods purchased with SNAP benefits are exempt from state and local sales taxes, and no such relationship was found among households participating in SNAP.

University of Missouri to Launch Mobile Meat Processing Training

The University of Missouri's College of Agriculture, Food and Natural Resources will provide mobile meat processing training next year. The university will send two mobile meat processing training centers throughout the state as part of a pilot program to address the labor shortages within the meat processing industry. The Missouri Department of Agriculture provides funding for the effort through its Meat and Poultry Processing Grant Program. Organizers describe one of the mobile units as a 'hot dog plant on wheels.' The training center is designed to teach meat processing skills. The other will be set up as a mobile retail storefront with a point-of-sales system. That unit will be used to provide training on retail sales and marketing of products. The mobile centers will be self-contained units and will be used throughout the state as small processing plants don't always have time to train employees. They will also teach consumer relations, managing budgets, inventory management and marketing.

Tuesday Watch List

Markets

At 7:30 a.m. CST Tuesday, the U.S. Labor Department will release the producer price index for October, a topic on many investors' minds. At 11 a.m., USDA will release its WASDE and Crop Production reports for November with all eyes on the corn and soybean crop estimates. Traders will watch for any export sales news and any surprises in USDA's reports.

Weather

A storm system is moving into the western states on Tuesday with scattered showers that may be at least partially beneficial for winter wheat in the Pacific Northwest. Mostly fair weather is expected east of the Rockies that should favor the remaining harvest.

Governors Explore Ways for States to Expand Biofuel Sales

A bipartisan group of governors asked the Biden administration for guidance on an action that could expand fuel sales containing a higher ethanol blend. The letter was sent following action by an appeals court that struck down a 2019 ruling that allowed year-round sales of E15. Reuters says farm and biofuel groups were angered by the ruling after spending a lot of time advocating for year-round sales which boosted demand for their products. The seven governors point out that a section of the Clean Air Act allows governors to effectively request from the EPA that E15 be sold in their state year-round. “In the wake of the court decision, we are exploring all our options to ensure retailers can sell E15 to consumers all year long without interruption,” the group says in their letter. Groups like the Iowa Renewable Fuels Association and the national Renewable Fuels Association were grateful for the letter. “We all hope either Congress or the EPA will take action to preserve year-round access to E15 across the country,” says Iowa Renewable Fuels Association President Monte Shaw. “But if no timely solution can be found, governors have the authority to implement solutions state-by-state.”

USDA Emphasizes Commitment to Climate at COP26

USDA Secretary Tom Vilsack attended the 26th United Nations Climate Change Conference in Glasgow, Scotland. He emphasized USDA’s support for President Biden’s whole of government approach to combatting climate change, creating good jobs, and economic growth in the U.S. During the conference at various events, he highlighted USDA partnerships and initiatives that put agriculture, forestry, and rural communities at the center of global solutions to climate change. “Climate change is happening,” Vilsack says. “It threatens to disrupt our food systems, worsen food insecurity, and negatively impact the livelihoods of our agricultural producers. Now is the time to address this.” Vilsack also told conference attendees that the U.S. can lead the way with investments in climate-smart solutions that improve the profitability and resilience of agricultural producers and improve forest health while creating new income opportunities and building wealth that stays in rural communities. Vilsack touched on several topics, including building support for the Agriculture Innovation Mission for Climate Initiative launched last week. He also highlighted the Climate Smart Agriculture and Forestry Partnership Initiative, as well as the USDA-supported Pathways to Dairy Net-Zero.

Supply Chain Holes Will Take Time to Fill

Supply chain issues are challenging the agricultural sector, and farmers and ranchers hoping for quick solutions may be out of luck. DTN says a House Ag Committee hearing focused on transportation problems that are slowing the export of goods and commodities across the U.S. and the world. The Associated Press reports a significant backlog of ships entering U.S. waters out west and fewer ships making a voyage back across the ocean as a big reason that U.S. exports have slowed down. Gregg Doud, a former USTR Chief Ag Trade Negotiator, says the logistical problems aren’t going to get solved soon. “So much of the U.S. ag exports are in containers, so the lack of containers heading back across the ocean is significant,” Doud says. “80 percent of what leaves the Port of Tacoma, Washington, goes out on backhaul or as agricultural products to Asia. Right now, the shipping industry would much rather speed up the process and get those empty containers back to Asia without reloading first.” Ted McKinney, a former USDA Undersecretary, says COVID played a big part in the problem but not the only one.  “When China can order empty containers to come back and then pay for it, I’ll bet you the industry isn’t the one that’s paying the bill for the empty containers to return,” McKinney says.

Conner Disappointed with OSHA Vaccine Mandate Exemptions

The Occupational Safety and Health Administration released exemptions to the mandatory COVID-19 vaccine mandate for large, private employers. The Hagstrom Report says the mandate won’t take effect until January 4 and goes into effect after harvest season. Chuck Conner, president of the National Council of Farmer Cooperatives, says he’s still disappointed that the exemptions didn’t include other accommodations. “I’m disappointed that OSHA’s exemptions don’t adopt several commonsense accommodations to recognize the unique nature of agriculture,” Conner says. “The deadline does take farmers past harvest and does exempt employees working exclusively outdoors. However, implementing this standard will be disruptive and it contains no provisions included to help ensure the integrity of the food and agriculture supply chain.” He also points out that NCFC will provide formal comments to OSHA outlining their concerns further and will work with members to look for ways to minimize the disruptions the requirements will cause to a critical sector of the U.S. economy.

New Leadership Program Designed to Help Animal Agriculture

Emerging leaders in agriculture have a new opportunity to get next-level leadership and professional development training specifically focusing on animal agriculture. It’s called Advanced Training for Animal Agriculture Leaders, a program created and sponsored by the United Soybean Board and the National Institute for Animal Agriculture. It’s designed to empower professionals in the early or middle part of their careers to build on previous leadership development experiences and collaborate with peers across the industry. “Advanced Training for Animal Agriculture Leaders is a win for program participants and a win for the animal agriculture industry,” says J.J. Jones, NIAA executive director. “Developed as a 2.0 leadership experience, the program will not only give participants world-class hands-on training but also put their training into practice.” Jones also says it’s a chance to create meaningful connections with one another and advance real solutions to real animal agricultural challenges. The 16-month program focuses on four areas of development: critical thinking, leadership development, connecting and relating skills, and operational excellence.