EPA Finalizes Extension of Refinery Compliance Deadlines

The Environmental Protection Agency is working on finalizing proposed rolling compliance deadlines for 2020, 2021, and 2022. Ethanol groups like Growth Energy weren’t pleased with the announcement. Growth Energy CEO Emily Skor says delaying the compliance deadlines is completely contradictory to efforts to lower rising gas prices and increase the use of cleaner, low-carbon fuels. “By continuing to delay compliance deadlines, the EPA is creating uncertainty in the marketplace and stunting the blending of the biofuel needed to decarbonize transportation as the Renewable Fuel Standard intended,” Skor says. She also says it’s vital that the EPA moves forward on getting the RFS back on track. “EPA can start by swiftly finalizing the proposed volumes for 2022,” she adds. “Administrator Regan has emphasized time and again the need for transparency and certainty regarding the RFS. We need him to follow through on his promises to the industry and provide that certainty for biofuel producers.”

U.S. Ethanol Stocks Rising as Demand Sags

At one time, the ethanol industry appeared to have put the COVID-19 lull in the rearview mirror. Sky-high output and profit margins matched up. However, Reuters says demand is dropping while oil prices rise, which is leading to a record level of ethanol stocks. America’s ethanol stocks reached the lowest point in five years in December. However, stocks jumped more than 18 percent in the last four weeks, the biggest jump in records going back to 2010. The U.S. Energy Information Administration’s data says stocks hit 24.48 million barrels last week. The only time stocks were higher occurred between February and May of 2020. Output levels have been relatively normal since November after almost reaching all-time highs in October. But profit margins have been slashed dramatically in the last two months. Corn processing margins hit $1.80 per gallon in November, the strongest level since 2014. But last week, the margins were a few cents above zero.

Senators Write Letter to EPA on Refinery Exemption Denials

Senator Shelly Capito (Cah-PEE-toe) of West Virginia and several colleagues wrote a letter to EPA Administrator Michael Regan regarding the agency’s recent denial of refinery exemption petitions. The letter asks the Environmental Protection Agency to reconsider its proposed blanket denials of small refinery exemptions under the Renewable Fuel Standard. The senators say it runs counter to the clear congressional intent under the Clean Air Act. “We are puzzled by the action EPA took in these proposals, including the unprecedented and drastic step to propose a blanket denial of all 65 outstanding small refinery hardship petitions,” the letter says, “especially at a time of increasing gas prices and several small refinery closures.” They also say the current proposal not only neglects the economic impacts but nullifies Congressional intent by deliberately amending the Clean Air Act which allows for small refinery exemptions for those that face disproportionate economic hardship due to RFS compliance.

Report Looks at “Repurposing Farm Subsidies”

A new report from the World Bank and the International Food Policy Research Institute looked into farm subsidies and overall farm policies. The report says that repurposing current agricultural public policies “could deliver multiple benefits for people, the planet, and the economy.” Investing in climate-smart innovations that both increase agricultural productivity and reduce greenhouse gas emissions would have many benefits. The recommended innovations could reduce overall emissions from agriculture by more than 40 percent, restore 105 million hectares of agricultural land to natural habitats, and reduce the cost of healthy foods, which would also contribute to better nutritional outcomes.” Under a ”business as usual” scenario, the report estimates that greenhouse gas emissions from agricultural production will double by 2040, with 56 million hectares of new land being used for agriculture between 2020 and 2040. It also says that just eliminating support would lower farm output and increase poverty while generating only modest climate gains.

Cattle Industry Convention Features High-Profile Speakers

The 2022 Cattle Industry Convention and NCBA Trade Show is this week in Houston. The speaker lineup includes people ranging from sports heroes to global leaders. Ag Secretary Tom Vilsack will appear virtually. Robert Bonnie, the Undersecretary for Farm Production and Conservation, will appear live, and so will Dame Karen Pierce, the British Ambassador to the United States. This high-profile session takes place on Thursday and will provide updates on the business climate of the cattle and beef industry, conservation, and trade. “We’re thrilled to have Secretary Vilsack and Undersecretary Bonnie joining us at the convention,” says NCBA Vice President of Government Affairs Ethan Lane. “We take pride in our working relationship with the USDA.” Lane says they’re also pleased that Pierce will be joining the group  because increased access to global markets is a key tool for increasing profitability and opportunity for cattle producers across the country.”

U.S. Customs Seizes Prohibited Meat at the Mexican Border

Officials with U.S. Customs and Border Protection announced that their agriculture specialists seized prohibited meat products at the U.S.-Mexico border. Customs agents seized 243 pounds of prohibited pork bologna in two separate and unrelated incidents. “Pork products have the potential to introduce foreign animal diseases that can have devastating effects on the U.S. economy and agricultural industry,” says Director of Field Operations Hector Mancha. Officials seized 55 pounds of pork products on January 13 and another 188 pounds of bologna on January 21. The El-Paso Herald-Post says both the USDA and Department of Homeland Security are working to protect American agriculture against the introduction of pests and diseases at our nation’s ports of entry. Officials add that undeclared, prohibited agriculture items will get confiscated and can result in a large civil penalty for failure to declare at the border. The bologna was seized and destroyed by CBP agents per USDA regulations.  

Monday Watch List

Markets

Traders will be checking the latest weather reports from the weekend and for any news of possible change in the situation regarding Ukraine. At 10 a.m. CST, USDA will have its weekly report of grain export inspections. At 2 p.m., USDA will release its January 1 U.S. cattle inventory estimate.

Weather

A clipper system will move across the U.S.-Canada border Monday and Tuesday. It will bring some scattered showers and strong winds to the Northern Plains and Canadian Prairies. However, its front will be the focus for weather this week as widespread moderate to heavy mixed precipitation will develop across a large portion of the country Tuesday through Friday.

CA Judges Halts Enforcement of Prop 12 on Pork

A California judge ruled that enforcing Proposition 12 regulations on whole-pork sales should be halted due to the state’s lack of rules. The state’s Department of Agriculture is over two years late in finalizing regulations for pork producers, and the ruling delays enforcement until 180 days after the final rules take effect. Successful Farming says ag groups like the American Farm Bureau and National Pork Producers Council applauded the decision. “Farm Bureau is pleased that the court recognized that California rushed the implementation of Proposition 12 without clear enforcement rules,” says Farm Bureau President Zippy Duvall. Prop 12 bans the sale of pork from hogs that aren’t raised according to the state’s production standards. Any meat from hogs born of sows not housed in conformity with the state law can’t be sold in California, even if the animals got raised outside the state. The organizations say, for that reason, Prop 12 unconstitutionally restricts interstate commerce.

Iowa Trying Again for Higher Ethanol Blends

Iowa Governor Kim Reynolds is taking another shot at higher ethanol blends. She wants the state to require gas stations to offer fuel with higher ethanol blends. The Des Moines Register says a more wide-reaching proposal stalled out last year after disagreements between fuel retailers, renewable fuel providers, and transportation groups. “Iowans deserve access to fuel that’s less expensive, cleaner-burning, and grown and made right here,” Reynold says. Her new legislation recently passed the House Ways and Means Committee after hearing objections from transportation groups and gas stations, as well as praise from renewable fuel producers. Despite the disagreements, key lawmakers say they’re much closer to an agreement that both sides could accept. That’s compared to the wide gap that kept the legislation from passing in 2021. Lawmakers say the work they began a year ago, spending a lot of time in meetings, and trying to build a consensus may pay off in 2022.

Farmers are the Real Key to Environmental Mitigation Work

An Ohio corn farmer told officials from a federal interagency working group that the Environmental Protection Agency should look to farmers as it works to mitigate pesticide issues. “We respect the EPA’s responsibility to protect the environment, including endangered species,” said Patty Mann, a farmer from Jackson Center, Ohio. “We ask that the agency work closely with growers, the ones who often know the land the best, in developing and enacting mitigation measures.” Mann’s remarks came before the IWG, which is made up of the White House Council on Environmental Quality, the Departments of Agriculture, Commerce, and the Interior, and the EPA. Mann cautioned the officials against making a one-size-fits-all approach to the mitigation efforts. “The EPA must understand the real-world, on-farm implications of mitigation measures,” she says. “Every farm and landscape has its differences, so you must give some flexibility for the success of both farmers and the at-risk species.”  

Farm Labor App Announces College Ambassadors

AgButler announced it chose ten collegiate ambassadors who are committed to being advocates for the agricultural industry. The application serves in the connections business and as a solution to labor shortages in rural America. The AgButler Ambassadors are tasked with helping connect laborers and employers within the app using their own agricultural networks. “Our goal for the AgButler Ambassador program is to encourage the next generation of young people passionate about agriculture to stay invested in production agriculture and their rural communities,” says Kevin Johansen, Founder and CEO of AgButler. The 2022 ambassadors come from states like Minnesota, Missouri, Iowa, Michigan, South Dakota, Nebraska, and Colorado. “We are excited about each of the young people we selected and believe they are already top-notch advocates for the agricultural community.” Like well-known “ride-sharing” technology, farmers, ranchers, ag businesses can connect with available labor through AgButler. The labor is filtered by location, ratings, work experience, and availability.

Japanese Equipment Maker Kubota Developing Vineyard Robots

Japanese farm equipment manufacturer Kubota is trying to take vineyard farming in a brand-new direction. Nikkei (Nih-KAY) says Kubota is working with Tesla co-founder Ian Wright to make farming robots controlled by artificial intelligence. The partnership is working initially on robots that will help producers grow grapes. The grape-growing machines will move through vineyards on their own, with the AI analyzing camera images to select which branches to trim and how well the grapes are growing. The company plans to have the grape robots eventually handle harvesting too. Kubota says it anticipates demand from West Coast farms in the U.S. currently using conventional equipment. The company says it’s undertaking the project because global demand for food will rise 70 percent above the 2010 level while the number of farmers is declining in the world’s industrialized nations. Kubota already sells autonomous tractors to rice growers, and those units can run by themselves under human supervision.

RMA Extends Crop Insurance Flexibilities to June

Because of the ongoing impact of COVID-19, the USDA is extending program flexibilities to Approved Insurance Providers and agricultural producers until June 30 or later. These flexibilities had been scheduled to expire this month. “Our priority is to keep our producers and partners as safe as possible, while, at the same time, continuing to provide the best service we can,” says Marcia Bunger, administrator of the Risk Management Agency. “These unique times call for everyone to be as cautious and flexible as possible. Flexibilities include allowing notifications to get sent electronically, including policy-related information over the phone or by other electronic methods to select policy elections by sales closing, acreage reporting, and production reporting dates, including options, endorsements, and their forms. Producers may choose to sign forms electronically or do so within 60 days. Producers may also submit a request for a written agreement after the sales closing date.

Friday Watch List

Markets

At 7:30 a.m. CST Friday, there are reports on December U.S. personal incomes and consumer spending and the employment cost index for the fourth quarter. At 9 a.m., the University of Michigan releases its final index of consumer sentiment for January. Traders will continue to keep an eye on the latest weather forecasts and any news regarding Ukraine.

Weather

A frontal boundary working through the Midwest and toward the East Coast will create a Nor'easter tonight into Saturday with heavy snow and strong winds near the coast. The rest of the country will be quiet with cold air for most places outside of the Central Plains up through the Canadian Prairies.

USDA Announces Conservation Reserve Program Signups for 2022

Agricultural producers and landowners can sign up soon for the Conservation Reserve Program. The Department of Agriculture calls CRP a key tool in the Biden-Harris Administration effort to address climate change and achieve other natural resource benefits. The General CRP signup begins January 31 and remains open through March 11, and the Grassland CRP signup runs from April 4 to May 13. Producers and landowners enrolled 4.6 million acres into CRP signups in 2021, including 2.5 million acres in the largest Grassland CRP signup in history. There are currently 22.1 million acres enrolled, and FSA aims to reach the 25.5-million-acre cap statutorily set for fiscal year 2022. General CRP helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat.  Farmers and landowners interested in CRP should contact their local USDA Service Center to learn more or apply for the program.

Report: Concentration Not Affecting Pork Prices

A new report shows pork prices increased because of demand, higher input costs and labor shortages throughout the supply chain, not concentration in the meatpacking industry. Economists with Iowa State University, North Carolina State University and the National Pork Producers Council released the report Wednesday. The report also says pork prices in the United States are still lower than in many other countries. The pork packing industry is made up of fewer and larger plants than it was 50 years ago. Still, the industry's structure has changed little in recent decades, the report stated. Concentration levels today are about seven percent lower than they were five years ago because of new packing plants that opened from 2017 to 2020. National Pork Producers Council President Jen Sorenson adds, “This report shows the concentration level in the pork packing industry is not significantly higher than it was 15 years ago.”

USDA: COVID-19 Impact on Pork Processing Short-lived

USDA’s Economic Research Service says the impact of COVID-19 on processing rates was short-lived in the largest pork-producing region. Iowa, Kansas, Missouri, and Nebraska compose the largest hog processing region in the United States, where more than 40 percent of all U.S. hogs are processed. The region is also home to more large and medium-sized processing plants than other regions. In the first three months of the COVID-19 pandemic, March-May 2020, the region experienced a 40 percent decline in hog slaughter compared with rates during the same period in 2019. Labor shortages attributed to COVID-19 infections among workers resulted in slow production and temporary shutdowns at large processing plants for about ten weeks. However, when looking at hog slaughter and reported COVID-19 cases for the entire year, slaughter increased even as cases of infection also increased. From June 2020 through the end of December 2020, weekly slaughter rates were generally on par with 2019 levels.

USDA Invests $1 Billion to Improve Community Infrastructure in Rural Towns

The Department of Agriculture Wednesday announced a $1 billion investment to improve critical community facilities in 48 states, Puerto Rico and Guam. USDA says the infrastructure funding will increase access to health care, education and public safety while spurring community development and building sound infrastructure for people living in rural communities. USDA Deputy Secretary Jewel Bronaugh (Bro-NAW) says, “These loans and grants will help rural communities invest in facilities and services that are vital to all communities.” Bronaugh highlighted 731 projects that USDA is making in five programs that will fund essential community services. These programs include Community Facilities Direct Loans and Grants, Community Facilities Loan Guarantees, Community Facilities Technical Assistance Training Grants, Community Facilities Disaster Grants, and Economic Impact Initiative Grants. More than 100 types of projects are eligible for funding. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally recognized Native American tribes. Projects must be in rural areas with a population of 20,000 or less.

Grazing Loss Assistance Application Deadline Nears

Ranchers and livestock producers may be eligible for financial assistance through the Livestock Forage Disaster Program for 2021 grazing losses due to a qualifying drought or fire. Farm Service Agency Administrator Zach Ducheneaux (DOO-shah-no) says, “FSA is here to help offset these economic hardships and help producers rebuild with resilience.” The deadline to apply for the program is coming up on January 31, 2022. For the 2021 program year, 901 counties in 26 states and territories met drought severity levels that trigger eligibility. More than $473.1 million has been paid, to date, to livestock producers eligible for 2021 funding. For the Livestock Forage Disaster Program, qualifying drought triggers are determined using the U.S. Drought Monitor. The program provides payments to eligible livestock producers and contract growers who also produce forage crops for grazing and suffered losses due to a qualifying drought or fire during the normal grazing period for the county. Additional disaster assistance information can be found on farmers.gov.

USDA To Conduct First-Ever National Agroforestry Survey

The Department of Agriculture will conduct the first-ever National Agroforestry Survey. The National Agricultural Statistics Service is mailing the survey to 11,000 farmers and ranchers next week to gather information on agroforestry practices used for climate, conservation and production. NASS Agricultural Statistics Board Chair Joe Parsons says, "The results of this survey could catalyze important change by helping policymakers and farm groups more fully understand and support this aspect of agriculture." The survey is conducted cooperatively with the USDA National Agroforestry Center, a partnership between USDA's Forest Service and Natural Resources Conservation Service. The center will release the data in studies and publications. Highlights will give an overview of how agroforestry practices are used in regions across the United States. Producers can respond to the survey securely online at agcounts.usda.gov or by mail. The survey will take no longer than 50 minutes to complete if producers have all five agroforestry practices on their operations.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, along with weekly jobless claims, the first estimate for fourth quarter U.S. GDP, December durable goods orders and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage is set for 9:30 a.m. Traders will continue to keep track of the latest weather forecasts and may respond to news from AP late Wednesday that representatives from Russia, Ukraine, France and Germany expressed support for a ceasefire in eastern Ukraine and agreed to meet again in two weeks.

Weather

Another cold front is moving into the Upper Midwest Thursday morning and will spread south through the Midwest and Plains throughout the day. The front will produce some areas of limited snow showers but will bring in some colder air to the Midwest. The front will create a potential Nor'easter for the coastal Mid-Atlantic and Northeast on Friday.

Groups Come Together to Work on Supply Chain Issues

The International Dairy Foods Association, the Port of Los Angeles, and CMA CGM, a French shipping and logistics company, have formed the Dairy Exports Working Group. It will work to identify and address supply chain issues hampering U.S. dairy product exports. The announcement was made at the Dairy Forum, which is the annual IDFA conference. The groups will focus their efforts on West Coast ports, which is where most U.S. dairy products leave the country. The Hagstrom Report says they’ll also look at ways to streamline shipping from the nation’s midsection to the West Coast. “U.S. dairy exports reached a near-record $6.4 billion in 2020 and continued at a strong pace in 2021 because of high demand,” says Michael Dykes, IDEFA President. “That total could be much higher with more reliability and predictability in the supply chain.” The CMA CGM Group promised to offer more empty containers to U.S. exporters to help speed up shipping efforts.

Ag Groups Ready to Help with Developing New Farm Bill

Officials in Washington, D.C., are gearing up to debate reauthorizing the next farm bill in 2023. One group of grower-leaders intends to be a valuable resource for both corn growers and policymakers. The Risk Management and Transportation Action Team is a group that oversees much of the National Corn Growers Association’s public policy work on transportation, the farm safety net, and federal taxes. That group intends to play an active role in preparing NCGA for the 2023 Farm Bill. “We will be spending time evaluating the current farm bill commodity and crop insurance programs, supporting strong risk-management tools, and looking for areas of improvement,” says team chair Bill Leigh. “The work to protect key tax provisions never stops in Washington.” The current estate and gift tax exemptions will automatically lower in several years unless addressed by Congress. The Action Team will continue working to protect important tax provisions while the farm bill debate takes place in Washington.

Weekly Corn and Soybean Export Inspections Drop

Corn and soybean inspections for overseas delivery dropped during the week ending on January 20. Wheat assessments went in the other direction. USDA says corn inspections totaled 1.12 million metric tons, down from 1.24 a week earlier. That’s also lower than the 1.4 million assessed for delivery during the same week in 2021. Soybeans examined for export totaled 1.3 million metric tons. That’s down from 1.73 million tons inspected a week earlier and the 2.1 million tons assessed during the same week in 2021. Wheat inspections last week came in at just shy of 401,000 metric tons, up from 384,300 tons during the previous week but well below the 571,700 tons examined during the same week in 2021. Since the beginning of the marketing year in September, soybean inspections are at 34.8 million metric tons, well below the 45.6 million tons assessed during the same week in 2021. Wheat assessments since June 1 are 13.2 million metric tons.

Analyst says the U.S. Can Expect More Soybean Sales in 2022

Smaller than expected South American soybean crops likely mean more soybean export business for the U.S. in 2022. Reuters says Oil World, an oilseeds analyst, says major soybean export business will likely get pushed toward the U.S. in June and will continue from there. Oil World estimates that the combined soybean harvests in Brazil, Argentina, Paraguay, and Uruguay will fall to approximately 186.3 million tons. That total is 7.4 million tons below the prior season and the lowest numbers in four years. Uncertainty about the final crop size in South America may mean their farmers will be more hesitant to sell into the market, keeping more beans in stock as a hedge against inflation. “U.S. farmers will benefit as buyers in importing countries will likely shift their purchases to American soybeans from June or July onward,” says Oil World. “The biggest increase is likely to happen from September through December of 2022.”

Cornell, ARS Combine to Offer National Hemp Webinar Series

The USDA’s Agricultural Research Service is teaming up with Cornell University to launch a webinar series on hemp research. The goal is to broaden the scope of training, education, and connectivity within the U.S. hemp community. “Hemp is rapidly becoming a critical multi-use and economically significant crop, so this hemp series is designed to provide hemp-specific education, training, and networking opportunities to historically underserved communities,” says Zach Stansell, ARS Geneticist, and acting hemp curator.  “Training and educating new scientists from many different backgrounds is critical to achieving the most cutting-edge solutions to an array of issues producers face,” says Cornell Crop Specialist Daniela Vergara. “Those issues include everything from climate change to economic viability.” Research experts in academia, laboratories, production facilities, and private industry will give the online lectures. The first webinar will cover outdoor cultivation on January 26. For more information, including topics and webinar schedules, go to ars.usda.gov.

Coalition to Study Decontamination in the Event of an ASF Outbreak

The Swine Health Information Center started a coalition to study ideal methods for cleaning and disinfecting feed mills following a potential African Swine Fever Outbreak. Other organizations include the Institute for Feed Education and Research, the Animal Nutrition Association of Canada, and the United Soybean Board. “SHIC continues to look into all the ways diseases can get into and spread throughout the country,” says Executive Director Paul Sundberg. “It’s not just to identify pathways but to do something about them with this kind of research.” He also says that once the ASF virus gets into a feed mill, it will stay there for a long time, meaning the work is essential to address the risk to the U.S. swineherd. The project will examine the optimal methods for disinfecting feed mills, paying close attention to feed manufacturing equipment that’s not designed for disinfection. “Again, this work is essential to protecting the swineherd,” he adds.

Wednesday Watch List

Markets

Wednesday's reports start with December U.S. new home sales at 9 a.m. CST, followed by the Energy Department's weekly inventory report, including ethanol production at 9:30 a.m. Financial market watchers will tune in at 1 p.m. CST to hear the Federal Reserve's post meeting announcement. The federal funds rate will likely stay unchanged, but hints may be offered for an impending rate hike.

Weather

A batch of snow has moved south into the Texas and Oklahoma Panhandles Wednesday morning. The snow will weaken and eventually dissipate as it slides east later in the day. Cold air in the Midwest will push eastward throughout the day with a brief end to arctic air. But another cold front is gathering across southern Canada, ready to spread through the eastern half of the country Thursday and Friday.

Retaliatory tariffs Reduced U.S. Ag Exports Annually by $13.2 Billion

New data from USDA’s Economic Research Service shows retaliatory tariffs reduced U.S. ag exports annually by $13.2 billion. Specifically, the research points to six trading partners, Canada, China, the European Union, India, Mexico, and Turkey, that announced retaliatory tariffs affecting agriculture and food products in 2018. The retaliatory tariffs followed U.S. tariffs on steel and aluminum imports from major trading partners and on a broad range of imports from China. The agricultural products targeted for retaliation were valued at $30.4 billion in 2017, with individual product lines experiencing tariff increases ranging from two to 140 percent. USDA estimates annualized losses from mid-2018 through the end of 2019 totaled $13.2 billion across 17 commodity groups, led by soybeans, sorghum, and pork. While retaliatory tariffs affected all states, the Midwest experienced the largest losses. ERS researchers estimated Iowa lost $1.46 billion, Illinois, $1.41 billion, and Kansas, $955 million, all on an annualized basis.

Farm Futures Survey: More Soybean Acres Than Corn This Year

A survey from Farm Futures shows fertilizer prices are changing planting intentions. The January 2022 Farm Futures survey found that high input costs will drive U.S. growers to plant fewer corn acres in 2022 in favor of other crops with less expensive production costs. Some 93 percent of growers expect high input costs this year to slash profits. The survey results put Farm Futures 2022 projected corn acreage at 90.4 million acres and soybean acres at 92.4 million acres. The last and only time soybean acreage surpassed corn was in 2018, when 296,000 more acres of soybeans than corn were planted. Double crop winter wheat and soybean rotations have likely already consumed many of those corn acres, according to Farm Futures, which projects winter wheat acreage at 35.2 million acres. USDA releases its first look at 2022 acreage estimates Thursday, March 31, 2022. Farm Futures will conduct another grower survey ahead of the Prospective Plantings.

AFBF: Vaccine Mandate Will Lead to More Supply Chain Troubles

American Farm Bureau Federation President Zippy Duvall says a federal vaccine mandate on non-U.S. citizens traveling to the U.S. will lead to more supply chain issues. Last week, the Department of Homeland Security announced enforcement of the vaccine requirement, which includes essential workers, traveling to the United States. Duvall says Farm Bureau is concerned that the decision “will limit agriculture’s ability to grow safe and nutritious food.” Farm Bureau says DHS failed to provide proper notice of the mandate, which gives farmers, ranchers and agriculture suppliers no time to prepare. Farmworkers and truck drivers provide critical skills and have been designated as essential by the Cybersecurity and Infrastructure Security Agency. Duvall adds that further limiting the available workforce will exacerbate existing supply chain issues as families face rising prices and fewer options at the grocery store. The Homeland Security Department says the travel restriction will remain in place until April 21, 2022.

Army Corps Receiving Funding for Missouri River Infrastructure Projects

The U.S. Army Corps of Engineers Kansas City District will receive approximately $278 million under the Infrastructure and Investment Jobs Act. Almost $249 million of that is to repair damages caused by the 2019 flood to the Bank Stabilization and Navigation Project along the Missouri River from Rulo, Nebraska. to St. Louis, Missouri. In addition to Missouri River repairs, several lakes in the area will benefit from the funding. Tuttle Creek Lake in Manhattan, Kansas, will receive $15 million to repair rock embankments on the dam and perform other dam maintenance and infrastructure repairs. Overall, the U.S. Army Corps of Engineers received $17.1 billion in infrastructure funds across the nation for its Civil Works programs, projects and activities that will help the nation address current and future water resources infrastructure needs. The act’s appropriations also enable the Corps of Engineers to regulate development in waters of the United States.

Fuel Prices Increase Again Last Week

The nation's average gas price increased for the fourth straight week, climbing 1.8 cents from a week ago to $3.32 per gallon. The national average is up 3.3 cents from a month ago and 92.0 cents per gallon higher than a year ago. The national average price of diesel increased 5.4 cents in the last week and stands at $3.66 per gallon, the highest level since October 2014. Gas Buddy’s Patrick De Haan says, “With all eyes on the Russia/Ukraine situation, oil will likely remain north of $80 per barrel, with additional volatility.” De Haan says rising gas prices will likely persist as worries continue to overpower weak global consumption. Continued attention is focusing on Russia and the possibility of the world's second-largest oil producer making a move into Ukraine. U.S. retail gasoline demand fell last week as weather, rising unemployment figures and omicron may have all played some role in a big drop in gasoline demand.

Taco Bell Unveils 3rd Dairy-Based Beverage with Checkoff Support

Taco Bell is continuing its run of dairy-based beverages thanks to dairy checkoff support. Dairy Management Incorporated Monday announced the chain released the Island Berry Freeze that uses a shelf-stable creamer created by dairy checkoff scientists. It is Taco Bell’s third beverage launch featuring the dairy creamer, beginning with the Pineapple Whip Freeze in May of 2020 and the Mountain Dew Baja Blast Colada Freeze last May. Another popular Taco Bell item, the Grilled Cheese Burrito, is back on the menu. The burrito launched in the summer of 2020 and re-entered Taco Bell’s menu last fall with a double steak option. Taco Bell’s Heather Mottershaw says, “We’re grateful to have checkoff scientists working side-by-side with our team to continue pushing the envelope with items featuring dairy.” DMI’s Emily Bourdet adds, “our on-site scientists at Taco Bell have changed the game for how to incorporate dairy and creating excitement for Taco Bell fans.”

Tuesday Watch List

Markets

A report of U.S. consumer confidence in January at 9 a.m. CST is the lone entry on Tuesday's docket. Traders will check the latest weather forecasts, pause at 8 a.m. for a possible export sale announcement and watch for any indication of Russia's next move. Outside markets are anticipating Wednesday's announcement from the Federal Reserve.

Weather

A cold front that has sagged south through the Plains will have some light precipitation moving through western areas on Tuesday in the form of snow. While some moderate snowfall amounts up to about six inches are possible, liquid equivalents of 0.50 inches or less are not going to be enough to have an impact on the ongoing drought. Arctic cold temperatures for portions of the eastern Canadian Prairies into the Upper Midwest will make for some dangerously cold windchills for both humans and livestock.

Vilsack Already Thinking About Next Farm Bill

Ag Secretary Tom Vilsack spoke before the House Agriculture Committee last week and brought up the next farm bill. The Hagstrom Report says he wants the committee to use the next bill to help him move rural America from an “extractive economy” to a “circular economy.” He says a circular economy is one where the wealth stays as the opportunity and jobs are all created in rural areas. Some of the many ways to move rural communities into a circular economy include increasing processing capacity in rural America, encouraging biobased manufacturing, and finding ways to convert agricultural waste into renewable energy and fuel. “Lagoons of animal waste will become a thing of the past when that waste gets converted to energy,” he says. House Ag Chair David Scott of Georgia said during the hearing that after the next congressional break, the committee will then begin working on the 2023 Farm Bill.

China Didn’t Meet Phase One Commitment

China wound up $16 billion short of achieving its obligations under the Phase One Trade Deal with the U.S. A DTN report says the Biden administration is looking for ways to keep China buying agricultural products. Ag Secretary Tom Vilsack told the House Ag Committee that the administration is “putting them on notice that we want them to live up to the agreement.” The secretary told committee members that the U.S. has unfinished business when talking about the two-year trade deal which ended on January 1. Vilsack says China committed to buying $40 billion a year in ag products in 2020 and 2021. The Asian nation missed the goal by $13 billion in 2020 ($27 billion) and missed the goal by $3 billion ($37 billion) in 2021. Vilsack also says China didn’t yet revise its import rules for crop biotechnology approvals, dried distillers’ grains, ethanol purchases, and many other already agreed-on obligations.

Senators Talk Pesticide Registration Struggles with Regan

Four senators from farm country talked with Environmental Protection Agency Administrator Michael Regan about recent agency decisions that will restrict farmer access to crop protection products. The EPA has issued several decisions that will hinder farmers’ ability to control weeds and pests, which can cripple plants and severely undermine crop yields. The senators pointed out that will adversely impact farmers’ ability to efficiently and effectively produce the commodities that feed the world. The senators were Chuck Grassley and Joni Ernst of Iowa, Mike Braun of Indiana, and Dr. Roger Marshall of Kansas. “Crop protection products play a crucial role in food production, yet they’re a common target of the Biden administration,” they said in a joint statement after the meeting. The four say that EPA isn’t sufficiently engaged with USDA, the product registrants, and growers to fully understand what the implications of their decisions can be. They include decisions on biological evaluations, Dicamba, and Chlorpyrifos.

South Korea Lifts Temporary Ban on Canadian Beef

South Korea is lifting its temporary suspension of Canadian beef imports. Reuters says the ban began after Canada detected a case of BSE, or “Mad Cow Disease,” in December. Canada’s Agriculture Minister Marie Claude-Bibeau (BEE-boh) says South Korea halted the shipments after Canada last month reported its first BSE case in six years. China and the Philippines issued their own suspensions soon after that. On social media, Canada’s agriculture department says it’s “great news for our cattle sector.” Bovine Spongiform Encephalopathy is a fatal disease of the nervous system in cattle. Canada is the eighth-largest beef and veal exporter. December’s BSE case took place in an eight-year-old beef cow in Alberta. Canada’s newest BSE case is atypical, meaning it’s a form of disease that can occur naturally in older cattle. That’s opposed to classical BSE, which can be caused by an animal that unsuspectingly eats contaminated feed.

NCGA Director Named to Board of America’s Watershed Initiative

The America’s Watershed Initiative recently named its 2022 Board of Directors Executive Team. Rachel Orf, the National Corn Growers Association Director of Stewardship and Sustainability was elected as the board’s Secretary. “It’s an honor to serve on the board and be a part of an organization that works across so many sectors and states,” says Orf. “The health of the Mississippi River Watershed is critical to ensuring the river remains productive and healthy for future generations.” In announcing the new board, America’s Watershed Initiative says, “We are made up of public, private, and nonprofit leaders working together voluntarily to improve the health of the Mississippi River Watershed by informing, advocating, and leveraging improved decision-making about the watershed’s natural resources.” AWI is built on support and guidance from industry and commerce, conservation, local communities, government, and academia. Interested people can learn more about AWI and NCGA’s involvement at AmericasWatershed.org.

Iowa Plant Converting Corn Stover to Natural Gas

One of Iowa’s most plentiful resources is corn stover. The Iowa State Extension website says that stover is now being used to create renewable natural gas that heats Iowa homes and businesses. The Verbio North America Plant in Nevada, Iowa, has been converting chopped corn stalks into natural gas since December 7. Once converted, the natural gas enters an Alliant Energy pipeline that traverses central Iowa. Using anaerobic digestion, eight large digesters combine the corn stover with the bacteria of livestock manure, which results in the conversion of corn residue into biomethane gas that’s equivalent to the natural gas found in fossil fuels. The plant is in its early stages and plans to expand in the next several months, and the goal of the expansion is to provide enough renewable gas to heat up to 5,000 homes. Iowa produces the most corn in the United States, and the stover is what’s left behind on the ground after harvest.

Monday Watch List

Markets

Traders will likely be keeping a close watch on the latest weather forecasts and any news pertaining to Ukraine over the weekend. USDA's weekly report of grain inspections is due out at 10 a.m. CST, followed by USDA's monthly cold storage report at 2 p.m.

Weather

The last in a series of a clippers is moving through the country over the next couple of days, bringing another shot of cold, arctic air for a good portion of the country, along with some light snows to the Midwest. The front will sag through the Plains with some light snow as well but will not impact the drought throughout the region.

Input Prices Greatest Threat for 2022

The Latest Rural Mainstreet Index shows rising input prices as the top threat in 2022 for farmers. Released Thursday, the index declined in January, though it remained above growth neutral for the 14th straight month. Overall, the region's reading for January fell to 61.1 from December's 66.7. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. The region’s farmland price index decreased to a very strong 88.5 from December’s record high of 90.0. This month, bankers were asked to identify the greatest 2022 risk for farmers in their area. Bankers overwhelmingly named rising farm input prices, such as fertilizer, as the top farm threat. Bankers ranked disruptions of the delivery of farm inputs and rising interest rates as the second and third greatest 2022 threats to farm operations. However, one Iowa banker says, “Increased input costs have raised our average farmer break even points, but current commodity prices still produce moderate gains in all areas of financial statements.”

Grassley, Colleagues Urge Infrastructure funds for Missouri River Flood Control

Midwest lawmakers urge the federal government to prioritize funding for flood mitigation and prevention projects along the lower Missouri River. Iowa Republican Senator Chuck Grassley and Missouri Republican Representative Sam Graves led nearly a dozen colleagues in a letter to Michael Connor, Assistant Secretary for Civil Works, on the issue. Specifically, the lawmakers are pushing Connor to utilize funding from the Infrastructure Investment and Jobs Act to invest in flood-related projects for the Lower Missouri River Basin, including the Navigation and Flood Control Studies and the Bank Stabilization and Navigation Project. As the letter states, the legislation also provides funding to complete site-specific studies to address immediate needs along the river. Grassley says, “When I voted for the bipartisan infrastructure bill, I was voting for exactly this type of federal support for critical infrastructure.” The letter comes as the Department of the Army begins to allocate funding from the infrastructure package for the Army Civil Works Program in Fiscal Year 2022.

USDA Releases 2020 Pesticide Data Program Annual Summary

The Department of Agriculture this week published the 2020 Pesticide Data Program Annual Summary. The summary shows that more than 99 percent of the samples tested had pesticide residues below benchmark levels established by the Environmental Protection Agency. The report for 2020, issued by USDA’s Agricultural Marketing Service, marks the 30th year of survey results. Over the 30 years, USDA has tested 126 commodities, including fresh and processed fruits and vegetables, dairy, meat, poultry, grains, fish, rice, specialty products and water. Monitoring results for more than 310,000 samples through the years are available on the Pesticide Data Program website. Each year, USDA and EPA work together to identify foods to be tested by the program on a rotating basis. In 2020, tests were conducted on 9,600 samples from 18 commodities of fresh and processed fruits and vegetables. AMS partners with cooperating state agencies to collect and analyze pesticide residue levels on the selected food commodities.

Per Acre Water Use in Irrigated Farmland Declining

Information updated this week from USDA’s Economic Research Service shows per-acre water usage is declining on irrigated farmland. Since 1969, the amount of water used per acre irrigated has decreased substantially. The average water use per irrigated acre was more than two acre-feet in 1969, declining to nearly 1.5 acre-feet by 2018. One acre-foot equals roughly 325,000 gallons. USDA says efficient water application technologies, such as the transition from gravity-based to pressurized irrigation systems, have driven the reduction in water use per acre of irrigated land. However, irrigated acreage in the U.S. grew from less than three million acres in 1980 to more than 58 million in 2017. The expansion of irrigated acreage reflects Federal, State, and local investment in irrigation infrastructure to deliver surface water to farms and ranches. Additionally, the expansion is partly due to advancements in well drilling and pumping technologies, facilitating growth in groundwater-based irrigated agriculture.

Operation Lifesaver Releases New Rail Safety Resources

Operation Lifesaver, Inc., the national non-profit rail safety education organization celebrating its 50th Anniversary in 2022, is releasing new rail safety resources to help farmers and farm machine operators stay safe and avoid incidents around railroad tracks and trains. Across the U.S., farm vehicles often cross railroad tracks on private roads in agricultural areas. According to preliminary 2020 Federal Railroad Administration statistics, 325 crossing collisions comprising 17 percent of total incidents occurred at private railroad crossings, resulting in 22 fatalities and 111 injuries. The new OLI materials are available in English and Spanish and include rail safety education presentations, lesson plans and handout materials for students. OLI Executive Director Rachel Maleh says the materials “provide actionable advice to farm communities on how to work safely near railroad tracks and trains.” The rail safety education materials for youth were developed with input from members of national youth development programs 4 H and the National FFA Organization. The new materials are available at oli.org.

Cover Crops: Beyond the Field and in the Garden

Cover crops aren’t just for your fields anymore, they are beneficial to your garden, too. The University of Illinois Extension says using cover crops in the home garden has many benefits, including soil structure, drawing nutrients up from deep in the soil, and increasing soil fertility. Cover crops are planted before a garden is planted or after harvest and can also be planted in areas that are unused for the season. There are two types of cover crops to consider, warm-season and cool-season. Warm-season cover crops are planted in spring or summer before the garden is planted or in a fallow area. Buckwheat, cowpeas, and crimson clover are warm-season are common cover crops used in the home garden. Cool-season cover crops are planted in late summer or early fall after the vegetables are harvested. Oats, winter wheat, winter rye, and crimson clover can be used as cool-season cover crops. After cutting down the cover crop, leave the cut portion as a mulch on top of the soil or till it into the ground.

Friday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CST, followed by the Conference Board's U.S. index of leading indicators at 9 a.m. Traders will keep a close watch on the latest weather forecasts and any news concerning Russia and Ukraine. USDA's cattle on-feed report for January 1 is set for release at 2 p.m. CST.

Weather

An arctic cold front has been slowly sliding through the Southeast and precipitation along the front will fall into the cold-air side of the front Friday with a mix of freezing rain and snow, mostly for the Carolinas and especially tonight. Another front is moving through the Canadian Prairies and Northern Plains with a mix of showers as warmer air pushes the arctic air eastward. Winds are also fairly strong across the region both ahead and behind the front which could cause visibility issues with blowing snow.

Trade War Retaliation Cost Agriculture $27 Billion in Exports

Tariffs imposed on American agricultural exports in retaliation for Section 232 tariffs on steel and aluminum imports from key trading partners cost agriculture a lot of export sales. Combine that with the Section 301 tariffs on Chinese imports and China’s retaliatory actions, and it led to an overall $27 billion reduction in U.S. ag exports from mid-2018 to the end of 2019. Six trading partners, including Canada, China, the European Union, India, Mexico, and Turkey all responded to the U.S. tariffs by implementing retaliatory duties on America’s agricultural and food exports. A summary of a report from the Economic Research Service says state-level losses were largely focused in the Midwest, with Iowa, Illinois, and Kansas accounting for roughly 11 percent, 11 percent, and seven percent, respectively, of all losses. Soybeans accounted for the largest share of the total losses at 71 percent, followed by sorghum and pork. Brazil gained most of the lost U.S. soybean trade.

Mississippi River Locks/Dams Get $829 Million for Improvements

The U.S. Army Corps of Engineers is investing $829.1 million in investments for modernizing locks and dams along the Mississippi River. The funding was made available through the bipartisan Infrastructure Investment and Jobs act. “Our agriculture, manufacturing, and shipping industries rely on a functioning and efficient lock and dam system along the Mississippi River to move goods,” says Iowa Senator Chuck Grassley. The long-time Iowa senator was one of 19 Republicans to back the bipartisan infrastructure bill. The funds will help modernize and expand seven outdated locks at the most congested locations along the Upper Mississippi and Illinois Rivers. The Upper Mississippi River System transports more than 60 percent of America’s corn and soybeans. Enhancing the reliability and capacity of the seven highest-use and most-delayed locks will ensure an environmentally-conscious and safe method for transporting bulk commodities continues well into the next generation. Two billion dollars will go toward ecosystem restoration.

NCGA Testifies Against WOTUS Changes

The National Corn Growers cautioned the EPA on Tuesday about moving forward with a rule that could give the government expanded regulatory power across American farmlands. NCGA President Chris Edgington gave testimony as the Environmental Protection Agency considers a proposed rule revising the definition of “Waters of the United States” under the Clean Water Act. The proposed rule would give the federal government leeway to assert jurisdiction over features that are remote from and carry only minor volumes of water to downstream navigable waters. “The Clean Water Act simply doesn’t allow the agencies to insert themselves into local and farmer land-use decisions in the manner that was proposed,” said Edington during testimony. “There is a limit under the CWA to the direct federal control over land-use decision and policies.” The Iowa farmer added that proper CWA policy respects the roles of each participant in the system, including landowners, citizens, and all levels of government.

Vilsack Highlights USDA’s Market Development Efforts

Ag Secretary Tom Vilsack says his agency went to work early in 2021 on addressing supply chain disruptions the ag sector experienced during the pandemic. He identified a wide range of improvements, which produced a more diversified food system that serves farmers, ranchers, and consumers. “The COVID-19 outbreak has been tragic and heartbreaking for our communities and families, but the disruptions it allowed us an opportunity to identify and address vulnerable spots in our food system,” he says. “Those disruptions to the agricultural sector highlighted the need for our nation’s food system to be more diversified, thereby creating more options for producers and consumers while enhancing the resiliency of our food sector.” Vilsack highlighted several USDA steps, including providing $1 billion in American Rescue Plan funds for expanding independent processing capacity in the U.S. Also, $32 million in grants will help 167 meat and poultry processing facilities reach more customers by becoming federally inspected.

FFA Members Tour California Agriculture

Earlier this month, 46 current and former state FFA officers visited California to learn about the wide variety of agriculture the state has to offer. Members recently flew into California and toured a number of the state’s agribusinesses. Stops included the largest U.S. producer of caviar, a fourth-generation ranch practicing responsible carbon farming, and many others. They also visited with California’s Secretary of Agriculture, Karen Ross, the vice-chair of California’s Water Board, and the vice president of state government affairs from Western Growers. During the second week of the tour, the FFA members visited berry farms, nurseries, a horse ranch, and a feedlot. They also went whale-watching and explored the Muir (Meer) National Forest. The young people spoke with a wide variety of agricultural experts on the trip and learned about practices they could take home to their communities. The experience was made possible through sponsorship help from John Deere and Bunge (BUN-gee).

Brazil Coffee Crop Looking Smaller Than Expected

Brazil’s government says its farmers will harvest 55.74 million bags of coffee in 2022. That number is 16.8 percent higher than last year, but experts say that’s a smaller amount than most people in the world’s largest coffee producer were expecting. Reuters says the smaller-than-expected number is important because Brazil’s coffee production is the key to balancing global supplies. If the smaller numbers are realized, it could cause a deficit and sustain coffee prices that are currently around 10-year highs. Total production is going to fall far short of the 2020 record, the previous “on-year” crop, which was estimated at 63 million bags. Rabobank predicts that Brazil will harvest 63.5 million bags, while Hedge Point Global Markets is guessing 65.8 million bags. “It does confirm the general pessimism about the 2022 on-cycle crop,” says Ryan Delaney of Coffee Trading Academy. The worst drought in 90 years and several severe frost events hit Brazil’s coffee fields last year.

Thursday Watch List

Markets

U.S. weekly jobless claims and an update of the U.S. Drought Monitor are set for 7:30 a.m. CST, followed by U.S. existing home sales for December at 9 a.m., weekly natural gas storage at 9:30 a.m. and weekly U.S. energy inventories at 10 a.m. USDA's weekly export sales report will be released Friday morning, due to this week's holiday.

Weather

A strong cold front on the leading edge of arctic air continues to push southeast through the country on Thursday. A band of rain and snow is accompanying the front from the Southeast up the East Coast. Cold air has settled into the middle of the country but not for long. Another system moving through the Pacific Northwest and western Canada will start to bring showers into the Prairies and Northern Plains later today and tonight as temperatures moderate a bit.

Vilsack Announces New 10 Year Strategy to Confront the Wildfire Crisis

The Department of Agriculture Tuesday announced a comprehensive response to the nation’s growing wildfire crisis. The effort is called “Confronting the Wildfire Crisis: A Strategy for Protecting Communities and Improving Resilience in America’s Forests.” The strategy outlines the need to significantly increase fuels and forest health treatments to address the escalating crisis of wildfire danger that threatens millions of acres and many communities across the United States. The Forest Service will work with other federal agencies and partners to strategically focus on fuels and forest health treatments. The strategy highlights new research on what Forest Service scientists identified as high-risk "firesheds” – large, forested landscapes with a high likelihood that an ignition could expose homes, communities, infrastructure and natural resources to wildfire. Firesheds, typically about 250,000 acres in size, are mapped to match the scale of community exposure to wildfire. The groundwork will begin in areas identified as being at the highest risk, based on community exposure.

EPA Proposes Rule to Improve Pesticide Crop Groupings

The Environmental Protection Agency Tuesday opened a 60-day comment period requesting public comments on the sixth proposed rule in a series of revisions to the pesticide crop grouping regulations. Crop groups are established when residue data for certain representative crops are used to establish pesticide tolerances for a group of crops that are botanically or taxonomically related. EPA sets these tolerances, which are the maximum amount of a pesticide allowed to remain in or on a food, as part of regulating pesticides. Specifically, EPA is proposing to amend Crop Group 6: Legume Vegetables; Group 7: Foliage of Legume Vegetables; Group 15: Cereal Grains; and Group 16: Forage, Fodder, and Straw of Cereal Grains. The proposed rule includes changes to the terminology in the names of Groups 6, 7 and 16, and the addition of commodities and modifications that increase efficiencies in assessing the risks of pesticides used on crops grown in and outside of the United States.

NBB Rebrands to Clean Fuels Alliance America

The National Biodiesel Board Tuesday unveiled its new name and new brand, Clean Fuels Alliance America. The organization announced the change during the opening session of the 2022 National Biodiesel Conference and Expo. The transformation to Clean Fuels helps further the organization’s position as a proven, innovative part of America’s clean energy mix. Leaders say the change also helps the industry represent all its industry members: biodiesel, renewable diesel and sustainable aviation fuels. Donnell Rehagen, CEO of Clean Fuels, says, “Our new name and brand represents the connected energies of our members and positions our industry for a clean fuels future.” The National Biodiesel Conference and Expo’s theme for 2022 is “All In” and represents the momentum being carried by all players in the biodiesel, renewable diesel, and sustainable aviation fuel industry. This year, more than 600 attendees are hearing from experts on supply and decarbonization and the opportunities ahead for the industry.

NASDA Sets 2022 Federal Policy Focus

The National Association of State Departments of Agriculture set its federal policy focus for 2022 with added emphasis on the food and production supply chain. Announced Tuesday, NASDA members selected nine issues as the organization's primary policy focus for 2022. They include the 2023 Farm Bill, animal health, climate resiliency, food safety, the food and production supply chain, infrastructure, international trade, workforce development and defining "waters of the United States." NASDA CEO Ted McKinney says, “Our members see these issues as priorities we must address to best serve the farmers, ranchers and communities in their states.” Food supply chain issues, animal health, the 2023 Farm Bill and defining WOTUS are not new issues to NASDA, but the organization is giving heightened attention to these areas in 2022. Carrying over priorities from 2021, NASDA will continue to support the creation of new free trade agreements, the expansion of broadband access and voluntary and incentive-based climate-smart agricultural programs.

Farmland Market Ended Strong in 2021

Land sales continued at a torrid pace at Farmers National Company during the last quarter of 2021. The dollar volume of land sold by the company during October through December was up 53 percent compared to last year and up 106 percent from two years ago. The number of transactions was up 23 percent, and total acres sold were up 11 percent year over year. This was indicative of the increase in the selling of land in various regions. Sellers came to the land market because of the opportunity to capture the much higher land prices and for some, to get ahead of what was once thought to be potential tax changes. Iowa continued to be the most active with selling and with setting new price highs. Going forward, Farmers National Company says land sales activity for the first quarter of 2022 seems to be leveling off to more normal for this time of year.

Small Family Farms Produce Majority of Poultry and Eggs, And Hay

USDA's Economic Research Service reports most values of cotton, dairy and specialty crops are produced on large-scale family farms, according to 2020 data. USDA defines a family farm as one in which the principal operator and related family own the majority of the assets used in the operation. Large-scale family farms have an annual gross cash farm income of $1 million or more. However, small family farms produced the bulk of hay production, 59 percent, and poultry and egg output, 49 percent, in 2020. Poultry operations are often classified as "small" because most output is under a production contract arrangement, with a contractor paying a fee to a farmer who raises poultry to maturity. Additionally, more than one-quarter of beef production occurred on small family farms that generally have cow/calf operations. Another 42 percent of beef production occurred on large-scale family farms, which are more likely to operate feedlots.

Wednesday Watch List

Markets

Wednesday's only official report starts early as December U.S. housing starts are set for 7:30 a.m. CST. Traders will keep close watch over the latest weather forecasts and any news of an export sale. The Energy Department's weekly inventory report is due out Thursday, due to Monday's holiday.

Weather

An arctic cold front continues to push southeast through the country on Wednesday. It is going to pick up some moisture from the Gulf of Mexico today with scattered showers developing for the Delta and Midsouth regions, which may include some snow tonight. Cold air continues to build in behind the front across the Plains and Midwest with another brief arctic chill.

Groups React to Supreme Court Decision on Vaccines

The Supreme Court handed down a ruling last week on mandatory COVID-19 vaccines in large workplaces. The court says the Occupational Safety and Health Administration doesn’t have the authority from Congress to impose a vaccine mandate on larger employers. The Hagstrom Report says several agricultural and food groups issued reactions to the court’s decision. The National Council of Farmer Cooperatives says, “The action shows that OSHA needs to consider other alternatives to encourage vaccinations for workers across the country. NCFC has consistently said that forcing difficult testing and enforcement actions on employers would not help achieve that goal and would likely magnify the labor shortages being experienced across the agriculture and food supply chain.” The National Grocers Association says the ruling “takes some pressure off independent community grocers who already face staffing shortages during a nationwide labor crisis.” Greg Ferrara, the NGA CEO, says grocers remain focused on doing what they do best, providing their communities with food.”

NCBA Backs WOTUS Recommendations from Advisory Committee

The Environmental Protection Agency’s Farm, Ranch, and Rural Communities Advisory Committee recently issued a report on the Waters of the U.S rule. “NCBA strongly supports the committee’s recommendation to develop a clear and limited WOTUS definition and protect key exemptions for common agricultural features,” says Scott Yager, NCBA’s Chief Environmental Counselor. “NCBA encourages the EPA to listen to its own advisory committee’s recommendations, which are clear: farmers and ranchers need clear rules and regulatory certainty.”  Among the recommendations are ensuring EPA’s compliance with the Clean Water Act and Supreme Court precedent limiting federal jurisdiction over bodies of water. They also recommend a clear definition of WOTUS that’s easily interpreted by farmers and ranchers and protecting WOTUS exemptions for common agricultural features like farm ditches and stock ponds, prairie potholes, and other small, isolated water features. They also recommend that EPA reconsider the roundtable process to make sure all stakeholders have a voice in the rulemaking process.

New EPA Pesticide Policy May Limit New Chemistries

The Environmental Protection Agency is reversing decades of practice in an attempt to further the Agency’s compliance with the Endangered Species Act when evaluating new pesticides and ingredients. In the new policy, EPA will evaluate the potential effects of each new active ingredient on federally threatened or endangered species and their designated critical habitats before the agency will register a new AI. EPA will also initiate Endangered Species consultations with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service. The EPA typically didn’t assess the potential effects of conventional pesticides on listed species when registering new AIs. EPA says that typically resulted in not enough protection and resource-intensive litigation. The agency says its new policy should reduce these kinds of court cases and improve the legal defensibility of newly-approved active ingredients. Michael Freedhoff of the EPA says his agency is taking a “critical step” to register new pesticides in a way that prioritizes protection.

Microsoft Puts $50 Million Into Sustainable Jet Fuel

Microsoft is putting $50 million into a LanzaJet facility in Georgia that will produce jet fuel from ethanol. LanzaJet says its facility will start producing sustainable jet fuel next year. Reuters says experts consider the airline industry one of the hardest to decarbonize. Governments and investors are trying to boost incentives to produce lower-carbon emitting jet fuel. LanzaJet says work is almost complete on its Freedom Pine Fuels Biorefinery. Plans are to start producing 10 million gallons of sustainable aviation fuel and renewable diesel per year from sustainable ethanol in 2023. The plant will also produce sustainable fuels from waste-based feedstocks. Last year, the White House announced a goal to lower aviation emissions by 20 percent by 2030 as environmental groups place increasing pressure on the industry to lower its carbon footprint. Microsoft created its Climate Innovation Fund that will invest $1 billion over four years to speed up the development of carbon removal technology.

Research on Hemp Compounds and COVID-19

Oregon State University researchers have identified hemp compounds that show an ability to prevent the virus that causes COVID-19 from entering human cells. The university researchers say a pair of cannabinoid acids bind to the COVID-19 spike protein, which stops the virus from infecting people. OSU says this “spike protein is the same drug target used in COVID-19 vaccines and antibody therapy.” A disease or virus follows a specific process for infecting a person, and a drug target is any molecule critical to that process that can be disrupted to stop any infection or progression. “The cannabinoid acids are abundant in hemp and many hemp extracts,” says Richard van Breemen, an Oregon State researcher. “They aren’t controlled substances like THC, the psychoactive ingredient in marijuana, and they have a good safety profile in humans.” He also says the research shows the hemp compounds were equally effective against the alpha and beta variants of COVID-19.

USDA Seizes Illegally Imported Animal Products from China

The USDA’s Animal and Plant Health Inspection Service seized and destroyed more than 1,900 pounds of prohibited pork, poultry, and ruminant products from New York City-area retailers. APHIS says the items came from China, lacked the required import permits and health certificates, and therefore are considered a risk for introducing invasive plant and animal pests and diseases into the U.S. The contraband was seized over the course of October through December. The agency is concerned about these prohibited products because China is a country affected by African Swine Fever, Classical Swine Fever, Foot-and-Mouth Disease, as well as several other problems. ASF is the biggest concern as the disease has spread through China and much of Asia, as well as within parts of the European Union. In recent months, ASF was confirmed in pigs in the Dominican Republic and Haiti. ASF doesn’t affect humans but is a deadly disease that decimated China’s hog industry.

Tuesday Watch List

Markets

U.S. futures markets are closed Monday for Martin Luther King Jr. Day. Grain futures will resume trading at 7 p.m. CST Monday evening. USDA's weekly report of grain inspections will be released at 10 a.m. Tuesday and is the only significant report on Tuesday's docket. Traders will pay close attention to the latest weather forecasts and watch for any news of an export sale.

Weather

After some warmer conditions over the last week or so, conditions are about to change again. A clipper moving across the U.S.-Canada border will bring down some cold, Canadian air across the country, starting in the Northern Plains on Tuesday and spreading southeast through the rest of the country over the next few days. Despite the drastic changes in temperature, little precipitation is expected from the system on Tuesday. It will have to wait until Wednesday as the arctic front crosses the Ohio River to gain any significant moisture as it pushes southeast the rest of the week.

EIA Predicts Record U.S. Oil Production Next Year

Amid talks of climate change and a future of electric vehicles, a recent forecast suggests 2023 U.S. oil production will surpass the 2019 record. The U.S. Energy Information Administration released the forecast this week, predicting U.S. oil production will average 12.4 million barrels per day in 2023. EIA Acting Administrator Steve Nalley says, “We expect global demand for petroleum products to return to and surpass pre-pandemic levels this year, but crude oil production grows at a faster rate in our forecasts.” The forecast predicts U.S. crude oil production will increase for nine consecutive quarters, from the fourth quarter of 2021 through 2023. EIA also expects OPEC to increase its crude oil production to 28.9 million barrels per day in 2023, up from an average of 26.3 million barrels per day in 2021. EIA forecasts that U.S. commercial crude oil inventories will reach 465 million barrels at the end of 2023, about 11 percent more than the end of 2021.

Nigeria Opens Market to Some U.S. Pork

The United States can now export sausage and similar products to Nigeria, which this week announced it is partially opening its market to U.S. pork. The National Pork Producers Council welcomed the move by the West African nation. NPPC President Jen Sorenson says, “Nigeria has the largest GDP of any African country, with a population of just over 211 million, we are excited to be the first U.S. protein to be allowed access to the Nigerian market.” Sorenson thanked the Department of Agriculture and the Federal Republic of Nigeria for their efforts to reach an agreement. While other U.S. pork products, along with beef and poultry, remain ineligible to be exported to Nigeria, NPPC is optimistic that the country’s partial opening will lead to more access for the U.S. pork industry. The U.S. pork industry in 2021, through November, exported more than $7.5 billion of product to more than 100 countries.

AEM Releases Year-End 2021 Equipment Sales Numbers

Nearly 360,000 total tractors and combines left dealer lots in 2021 in North America. U.S. and Canadian unit sales of ag tractors and combines finished 2021 with gains of more than ten percent in nearly every segment in both countries. The Association of Equipment Manufacturers released the data this week that shows U.S. total farm tractor sales gained 0.3 percent for December compared to 2020, while combine sales for the month saw a gain of 25.3 percent. Those gains contributed to a total gain for the year of 10.3 percent for tractors, and 24.7 percent for combines. In Canada, tractors sales in December grew 10.5 percent, while combines fell 17.6 percent year-over-year. However, total sales for 2021 were up 19.4 percent for tractors, and up 23.1 percent for combines. AEM’s Curt Blades says, “Sales gains over an already-successful 2020 came despite the supply chain issues and workforce challenges that made 2021 a challenging year for manufacturers.”

USDA to Invest up to $225 Million in Partner-Driven Conservation

The Department of Agriculture Thursday announced up to $225 million in available funding for conservation partners through the Regional Conservation Partnership Program. The program is partner-driven and leverages collective resources to find solutions to address natural resource challenges on agricultural land. This year’s funding announcements include opportunities for projects that address climate change, benefit historically underserved producers and support urban agriculture. Natural Resources Conservation Service Chief Terry Cosby says, “We’re harnessing the power of partnership to create lasting solutions to global challenges, like climate change.” Funding is open to agriculture and silviculture associations, non-government organizations, Indian tribes, state and local governments, conservation districts and universities, among others. USDA is accepting project proposals for the program through April 13, 2022. Partners are expected to offer value-added contributions to amplify the impact of the funding in an amount equal to or greater than the NRCS investment. View the funding opportunity on grants.gov.

Nebraska Bill Seeks Funding for Small Meat Processors

Nebraska Family farms and local independent meat processors stand to benefit from a bill introduced in the state Legislature, according to the Nebraska-based Center for Rural Affairs. Passed unanimously in 2021, legislation established the Independent Processor Assistance Program, which provides a roadmap for increasing local processing capacity and expanding market access for small producers. However, the bill did not include funding for the program, as lawmakers recognized it would be an ideal match for the federal relief dollars flowing to the state. How to spend those relief dollars is a question being addressed in the 2022 state legislative session. A new bill seeks $10 million in State Recovery Funds from the federal American Rescue Plan Act to fund the assistance program. Officials in 18 states, including those bordering Nebraska, have developed their own grant programs. The Center for Rural Affairs says those programs show that the Independent Processor Assistance Program can help the supply chain in Nebraska.

Bayer Launches Testing4AG Program

Bayer this week announced the launch of its Testing4Ag program. The program allows research scientists from around the world to submit novel chemistries to Bayer for testing in hopes of identifying potential new modes of action to control fungal diseases, insect pests, or weeds. Testing4Ag, a part of Bayer's Open4Ag partnership development and innovation approach, seeks to develop the newest generation of crop protection products that safely and sustainably address the changing needs of producers. A Bayer spokesperson comments, “Testing4Ag will combine the transformative ideas of pioneering researchers with Bayer's knowledge, experts, and resources without taking ownership of the intellectual property participants contribute." Testing4Ag is executed in partnership with Halo and will help scientists learn more about their own compounds through testing and transparent results. The submitted compounds will be assessed via biological testing against a wide variety of plant pathogens, weed species, insect and nematode pests, and/or vectors. Learn more at www.Testing4Ag.com.

USDA: Corn and soybean production up in 2021

Increased acreage and higher yields for corn and soybeans led to record high soybean production and near-record high corn production, according to the 2021 Crop Production Annual Summary. U.S. corn growers produced 15.1 billion bushels, up seven percent from 2020 and the second-highest on record. Corn yield in the United States is estimated at a record high 177.0 bushels per acre, 5.6 bushels above the 2020 yield. Area harvested for grain, at 85.4 million acres, is up four percent from 2020. Soybean production for 2021 totaled a record-high 4.44 billion bushels, up five percent from 2020. With record-high yields in 21 states, the average soybean yield is estimated at 51.4 bushels per acre, the second-highest on record. For 2021, all cotton production is up 21 percent from 2020, at 17.6 million 480-pound bales. The U.S. yield is estimated at 849 pounds per acre, up two pounds from last year’s yield.

Latest Consumer Price Index Released

The Consumer Price Index for All Urban Consumers increased 0.5 percent in December on a seasonally adjusted basis after rising 0.8 percent in November. The all-items index increased 7.0 percent before seasonal adjustment, the U.S. Bureau of Labor Statistics reported Wednesday. The food index increased 0.5 percent in December, following larger increases in each of the three previous months. Five of the six major grocery store food group indexes increased in December. The index for fruits and vegetables increased the most, rising 0.9 percent over the month as the index for fresh fruits increased 1.8 percent. The index for nonalcoholic beverages rose 0.8 percent in December, and the index for dairy increased 0.7 percent. The index for other food at home rose 0.6 percent, and the index for cereals and bakery products increased 0.4 percent. The index for meats, poultry, fish, and eggs declined in December, falling 0.4 percent after rising at least 0.7 percent in each of the last seven months.

Smaller Loans Limit Agricultural Lending

Smaller sized loans limited agricultural lending activity at the end of 2021. The Survey of Terms of Lending to Farmers shows non-real estate agricultural loans at commercial banks decreased by 13 percent in the fourth quarter, and the yearly average was the lowest since 2012. The Kansas City Federal Reserve Bank released the data Wednesday and says the decline was driven by a sharp drop in operating loans and lending at banks with the largest farm loan portfolios. Despite an increase in the number of all types of loans, the average size of all non-real estate and operating loans was more than 20 percent and 30 percent less than a year ago, respectively. Despite intensifying concerns about rising input costs impacting producer returns, commodity prices remained elevated and supported profit opportunities through the end of the year. Higher costs are likely to put upward pressure on demand for credit, but strong farm income and working capital could also supplement financing for some borrowers.

EPA Renews Enlist Product Registrations with New Control Measures

The Environmental Protection Agency this week issued seven-year registrations for two herbicide products, Enlist Duo and Enlist One. The new product labels incorporate robust control measures to protect non-target plants and animals, according to the EPA. Both products were set to expire in January. The new control measures include prohibiting Enlist product application when rainfall is expected to occur within 48 hours and when soil can no longer absorb water, and prohibiting irrigation that would result in runoff within 48 hours of application. EPA will also require mandatory education and training materials that emphasize the importance of pollinators and pollinator habitats. Other measures include minimizing Enlist product application when soybean and cotton crops are in bloom to reduce risks to insect pollinators, such as honey bees, and prohibiting use in counties where EPA identified risks to on-field listed species that use corn, cotton or soybean fields for diet and/or habitat.

Growth Energy Announces 2022 Policy Priorities

Growth Energy Wednesday released an outline of the organization's 2022 top federal priorities for the U.S. biofuel industry. Growth Energy CEO Emily Skor says of the policy objectives, “If we want to decarbonize the transportation sector, we must use all the tools in the toolbox – including plant-based biofuels like ethanol, which reduce carbon emissions by 46 percent compared to gasoline.” Specifically, Skor highlighted the association’s key priorities, focusing on opportunities for regulators and policymakers to promote cleaner fuel choices, reduce carbon emissions, and protect the environment. The objectives incorporate restoring certainty to the Renewable Fuels Standard, including finalizing strong Renewable Volume Obligations for 2021 and 2022, rejecting improper and illegal retroactive cuts to the already finalized 2020 RVOs and rejecting all pending and improperly granted small refinery exemptions. Other priorities for Growth Energy include eliminating barriers to higher blends of low-carbon ethanol, and utilizing biofuels as a low-cost pathway to achieve climate goals.

USDA Invests $9M to Expand Reach and Increase Adoption of Climate-Smart Practices

The Department of Agriculture announced Wednesday a $9 million investment in new Cooperative Extension and USDA Climate Hubs partnerships. The investment seeks to bolster climate research and connect and share climate-smart solutions directly with the agricultural community.  Agriculture Secretary Tom Vilsack says the partnerships “will strengthen climate research efforts and accelerate the development, adoption and application of science-based, climate-smart practices that benefit everyone.” The investment is part of the National Institute of Food and Agriculture’s Agriculture and Food Research Initiative, the nation’s leading competitive grants program for agricultural sciences. The new program area provides effective, translatable, and scalable approaches to address climate change through regional partnerships, including the USDA Climate Hubs, and further extends outreach through organizations such as the Cooperative Extension Service. The initial six funded projects include research efforts at the University of California-Davis, Pennsylvania State University, Montana State, Ohio State University, the Desert Research Institute, and the USDA Caribbean Climate Hub.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, along with weekly U.S. jobless claims, the December producer price index and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage is due out at 9:30 a.m. Traders will keep watching the latest weather forecasts and for any news of export sales.

Weather

With only some isolated showers in the Midwest on Thursday, most of the country's primary growing regions will be warm and dry. The combination is not favorable for wheat in the southwestern Plains where drought continues to grow.

India Opening to U.S. Pork

The National Pork Producers applaud the U.S. and Indian government’s announcement that U.S. pork exports are on their way into India, the world’s second-most populated country. “After decades of work, a market that had been closed to U.S. pork is getting opened,” says NPPC President Jen Sorenson. “We look forward to the new access.” India has a population of 1.26 billion people, which means the potential market opportunity is a significant one. U.S. Meat Export Federation President and CEO Dan Halstrom says his group has many industry contacts in India that are excited for the opportunity to bring in U.S. pork. “While the volume going into India right now is small, USMEF sees long-term potential in the retail, processing, and foodservice sectors.” USMEF also sees emerging opportunities in e-commerce. U.S. Trade Representative Katherine Tai says, “India’s agreement to allow U.S. pork imports is great news and a significant development for American producers and Indian consumers.”

Biden, Vilsack Reassure Farm Bureau Members

President Biden and Ag Secretary Tom Vilsack tried to reassure American Farm Bureau members that the administration has their back. The Hagstrom Report says that, in a short video, the president assured the mostly Republican-leaning members that America needs farmers “three times a day.” Biden also pointed out that farmers deserve affordable inputs and the right to repair their equipment. Secretary Vilsack says that while ag exports have grown, challenges remain. Vilsack says that support for trade among Americans needs to get restored, adding that, “We’re going to enforce the agreements that we have. That’s the first step in rebuilding trust.” Exports to China have grown, but he says the Asian nation is “$16 billion light” under their commitment to making purchases. Vilsack also told the Farm Bureau convention that he was pleased by a USMCA trade panel that concluded Mexico was not living up to the dairy provisions.  

Groups Voice Support for Existing Pesticide Law

CropLife America joined more than 350 organizations engaged with pesticide products in a letter sent to Congress affirming their support for the current pesticide regulatory system. The letter is in response to legislation that would undermine the science-based standards in the Federal Insecticide, Fungicide, and Rodenticide Act. “This legislation undermines the work of the EPA’s career scientists in the evaluation of pesticide registration and use,” says Chris Novak, president and CEO of CLA. “The evaluation of each pesticide requires EPA scientists to review hundreds of studies to determine whether a pesticide can get safely used.” The groups point out in the letter that the proposed legislation would jeopardize the availability of pesticide products by imposing an unscientific process that could remove pest-control options from the market. Congress amended FIFRA several times to strengthen the regulatory standard for safety, most recently through the Food Quality Protection Act that added specific protections for infants and children.

NCGA Focusing on Driving Demand in 2022

Exports and animal agriculture make up nearly 70 percent of the annual U.S. corn demand. The National Corn Growers Market Development Action Team has a primary goal of driving demand for America’s corn farmers. “Last fall, we announced the winners of the Consider Corn Challenge, engaged with our animal ag partners on a variety of projects, and worked with trade industry partners to promote the benefits of U.S. Corn,” says Action Team Chair Troy Schneider. “We’re going to build on our wins from 2021 and continue to make strides in this space during 2022 and beyond.” Their priorities this year include increasing demand for U.S. animal agriculture domestic demand and exports; supporting research into corn and corn co-product use within animal feed; Identifying new and supporting existing industrial uses of corn; supporting the development of trade policy that opens markets, removes barriers, and advances international demand for corn and corn products.

Groups Reaffirm Support for Glyphosate Safety

Groups representing farmers, ag retailers, landscaping, and golf course professionals showed strong support for continued access to glyphosate. Their response came after oral arguments in litigation regarding glyphosate registration. Ten groups, including the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, are parties in the case supporting glyphosate registration. The group reminded the court that nearly every pesticide regulatory body in the world has studied glyphosate and found the herbicide is non-carcinogenic and can get used safely. The U.S. Environmental Protection Agency found that when the product is used according to the label, glyphosate doesn’t pose a risk to human health.  They also note that many important conservation practices get supported by glyphosate, such as reductions in field tillage, which cuts greenhouse gas emissions, conserves water, and improves soil health. It also helps in creating wildlife habitat, and watershed buffers can get enhanced by having access to safe and effective herbicides like glyphosate.

CattleFax Releases a Cow-Calf Survey

CattleFax has released its annual Cow-Calf Survey. The information requested in the survey provides participants and the rest of the industry with valuable data regarding industry benchmarks and trends. Survey participants will get a results summary packet containing useful benchmarking information that will allow them to evaluate their own operation. The information in the packet will include cow-calf profitability, tendencies of high and low return producers, regional data, and other valuable materials are also included. To get a results packet, survey participants have to submit a valid email address. All individual results will be confidential and remain anonymous. Participants who complete the survey and submit a valid email address will also be entered into a drawing to win a $700 CattleFax voucher. The survey can get accessed at CattleFax.com, selecting the About tab at the top of the page, and clicking on the 2021 Cow-Calf Survey on the sidebar. The deadline to complete the survey is February 21.

Wednesday Watch List

Markets

Wednesday has a big lineup of reports, starting with the December consumer price index at 7:30 a.m. CST and followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. At 11 a.m. CST, USDA simultaneously releases its WASDE report, a Dec. 1 Grain Stocks report, a Winter Wheat Seedings report and a Crop Production Annual Summary. The Federal Reserve's Beige Book comes out at 1 p.m. CST.

Weather

There will be very little chance of precipitation across the primary growing regions on Wednesday while temperatures will be above normal just about everywhere outside of the Southeast. Building drought continues to be a feature for the Southern Plains wheat areas

U.S. Meat Production Slowing

Meat companies and union officials tell Reuters that rising COVID-19 infections among workers are forcing meat plants to slow production and the government to replace slaughter inspectors. Meatpacking was an early epicenter of COVID in 2020 and is now the latest sector to be disrupted by the Omicron variant. Cargill, one of the country’s top beef producers, operated a few of its plants at a lower slaughter capacity last week. A Cargill plant in Dodge City, Kansas, was getting by with a skeleton crew at one point. Less slaughter capacity means a smaller beef supply is available despite booming demand for the product. Farmers also have to keep cattle longer in feed yards or on ranches. USDA estimates beef producers killed 112,000 cattle last Friday, down six percent from 2021 and matching January third levels that were the lowest since October. Pig slaughter was down about five percent from last year on Friday as well.

Farm Bureau Campaigning Against WOTUS Changes

American Farm Bureau successfully campaigned last year against changes to the stepped-up basis provision in estate tax law. Now, Farm Bureau President Zippy Duvall asked members to put that same energy level into the Biden administration’s proposed changes to the Trump Waters of the United States rule. The administration wants to go back to an earlier rule that Farm Bureau says will bring the heavy hand of the federal government onto farmers’ lands. “We need that same energy and passion when it comes to WOTUS,” Duvall said during an address at the group’s annual convention. “It is critical that this administration understands that we shouldn’t need a team of lawyers and consultants just to farm our land.” Courtney Briggs, a senior director of congressional relations, says, “Farm Bureau liked the Trump rule because it created a clear line between what’s in and what’s out.” Members are urged to send comments to the EPA before February 6.

Pork Exports May Top 2020’s Record Amount

Numbers from the U.S. Department of Commerce say exports of U.S. pork are on pace to top 2020’s record total of $7.7 billion. From January through November, the U.S. pork industry shipped more than $7.5 billion worth of products to foreign destinations, compared to just over $7 billion from the same period in 2020. The top five markets for American pork are China, Japan, Mexico, Canada, and South Korea, the same top five destinations from 2020. What helped boost the 2021’s numbers were countries like the Philippines, which imported 92 percent more pork in 2021 compared to 2020. U.S. pork exports also have greater access to Vietnam, which will cut its tariff on imported frozen pork on July 1. The National Pork Producers Council says it will continue to press the administration on increasing trade opportunities, including joining the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership. NPPC also wants China to drop its tariffs on U.S. pork.

USDA Offers Expanded Conservation Program

The USDA’s Natural Resources and Conservation Service announced several new and expanded opportunities for climate-smart agriculture in 2022. The updates include the nationwide availability of the Conservation Incentive Contracts Option under the Environmental Quality Incentives Program. Other opportunities include a new and streamlined EQIP Cover Crop Initiative and added flexibilities for producers to easily re-enroll in the Conservation Stewardship Program. “America’s farmers are on the frontlines of climate change,” says NRCS Chief Terry Cosby. “We have to continue to support and expand the adoption of conservation approaches to support producers in their work to address the climate crisis and build more resilient operations.” NRCS is also announcing a new partnership with Farmers for Soil Health, a joint initiative of the United Soybean Board, the National Corn Growers Association, and the National  Pork Board. Farmers for Soil Health works to advance the use of soil health practices such as cover crops on corn and soybean farms.

Groups Want Dicamba Lawsuit Revived

A group of environmental organizations led by the Center for Food Safety and the Center for Biological Diversity wants new life given to their lawsuit over dicamba registrations. DTN says the groups are asking a federal court to lift a stay and speed up their lawsuit demanding that the Environmental Protection Agency vacate the 2020 dicamba registrations of Engenia, Tavium, and XtendiMax. The groups filed a motion in U.S. District Court while showing a new report from the EPA that they say details continuing widespread alleged dicamba damage in 2021. George Kimbrell, legal director at the Center for Food Safety, says EPA is content to sit on smoking gun evidence that it was wrong to re-register dicamba. “Our farmers and the environment can’t wait through more delays, so we’re asking the court to allow our lawsuit to proceed so we can do the EPA’s job of ensuring over-the-top dicamba use doesn’t harm agriculture or the environment,” he says.

Grain Weevil Company Wins Ag Innovation Challenge

Grain Weevil Corporation is the winner of the American Farm Bureau’s eighth annual Ag Innovation Challenge. The Grain Weevil is a grain bin management robot that improves quality and eliminates the need for farmers to enter grain bins. Grain Weevil wins $50,000 in prize money to help grow their business. Nebraska-based Birds Eye Robotics was the runner-up with its autonomous robot that helps maintain poultry houses and improves animal welfare by encouraging bird activity. Caravan Tech of Alabama won the People’s Choice Award with their real-time remote management solutions for ranchers and cattle breeders. The Ag Innovation Challenge is designed to help Farm Bureau members to showcase business innovations being developed for use in agriculture. “Start-up companies like those we’re honoring at the convention help to shape the future of agriculture,” says Farm Bureau President Zippy Duvall. “It’s a pleasure to recognize these entrepreneurs for the innovative solutions they’ve developed that will help U.S. agriculture.”

Tuesday Watch List

Markets

After Brazil's crop agency, Conab, issues new crop estimates Tuesday, there are no other official reports on Tuesday's docket. Traders will closely watch the latest weather forecasts and are apt to be jittery ahead of Wednesday's three USDA reports: a WASDE report, a quarterly grain stocks report and an estimate of winter wheat seedings from NASS.

Weather

Arctic air continues to push eastward through the country and is being replaced across the West and the Plains by much warmer air on Tuesday. Outside of some lake-effect snow this morning and a few showers for the Pacific Northwest, the country should be rather dry today.

November Beef Exports Set New Value Record

The value of U.S. beef exports set another record in November, topping $1 billion for the second time in 2021. USDA data compiled by the U.S. Meat Export Federation says November pork exports were lower than the previous year, but year-to-date export value maintained a record value pace. November beef exports totaled over 123,600 metric tons, up seven percent from 2020 and the fourth-largest monthly volume in the post-BSE era. The value was $1.05 billion, 49 percent higher year-over-year. Year-to-date exports through November were on a record volume pace at 1.32 million metric tons. Pork exports were over 237,500 metric tons, down eight percent from last year and a six percent reduction in value at $658 million. Through November, pork export volume fell slightly below the record pace of 2020 at 2.71 million metric tons. The value of pork exports through November reached $7.5 billion, nearing the annual record of $7.71 billion set in 2020.

Brazil Soybeans Estimates Drop

Brazilian soybean crop estimates dropped sharply last week because of weather concerns. A mix of conditions that are too dry in some areas and too wet in others means the Brazil crop will no longer be a record-setter. Successful Farming says the crop should come in around 133.4 million metric tons, down from a previous forecast at 144.7 million metric tons. Rio Grande (GRAHN-day) do Sul, the third-largest bean producer in Brazil, recently saw nine out of the ten hottest temps in the country during the previous week. The top temperature was 102.2 degrees. About 15 percent of the soybeans are blooming going into the key crop development period in January and February. In Parana (pair-ah-NAH), the second-largest producing state in the country, only half of the crop is pod-filling and big losses are ahead. USDA expects Brazil to produce 144 million metric tons of soybeans, but that estimate came from the December WASDE report.

USDA Funding Will Continue to Support School Meals

Ag Secretary Tom Vilsack announced that the agency made an adjustment in school meal reimbursements to help schools continue to serve children healthy meals. The move will add an estimated $750 million more into school meal programs across the nation. The goal is to make sure that federal reimbursements keep pace with food and operational costs, while ensuring children can continue to get healthy meals at school. “USDA understands that balancing the pressures of COVID-19 with the need to feed children nutritious meals continue to be a priority for schools across the country,” Vilsack says. School lunch reimbursement rates don’t typically increase during the school year. However, because of COVID, USDA allowed schools to benefit from the highest rates available, which are typically reserved for USDA’s Summer Food Service Program. The adjustment will help ensure that the purchasing power of schools can keep pace with the cost of living.