The deadline for the USDA’s second round of funding for Climate-Smart Commodities is Friday, June 10. This funding pool is for partners proposing projects between $250,000 and $5 million. The proposals should emphasize the enrollment of small and-or underserved producers, and-or monitoring, reporting, and verification activities developed at minority-serving institutions. “We’re excited to see the many innovative projects designed to build new opportunities for these producers,” says USDA Undersecretary for Farm Production and Conservation Robert Bonnie. “The sheer number of applications we’ve already received is a testament to the high interest in this opportunity.” The undersecretary also says, from the very beginning, they’ve ensured that this effort is inclusive across a broad cross-section of agriculture. “In this funding pool, we’re especially looking for innovative approaches that expand markets for small and historically underserved producers,” Bonnie adds. Information on how to apply, frequently asked questions, and additional information and resources are available at usda.gov.
Welcome
Tuesday, May 31, 2022
Ag Groups Respond to New USDA’s Proposed Poultry Rules
Ag groups responded to USDA’s proposed poultry marketing disclosure requirements and the advanced notice of proposed rulemaking under the Packers and Stockyards Act. American Farm Bureau President Zippy Duvall says his organization appreciates USDA working to create more transparency in the poultry industry. “Farmers deserve to know what they are getting into and understand how they are getting paid,” he says. “Making sure farmers have access to important information about their poultry company, inputs, stocking densities, and feed disruptions is good for everyone in the food value chain.” He says there are no easy answers and that AFB will review these proposals in detail. National Farmers Union President Rob Larew says poultry growers have endured an unfair contracting system for far too long. “All livestock producers continue facing heavily concentrated markets with insufficient protections from anti-competitive practices,” Larew says. “We’re happy with the first in a series of three rules that are being introduced.”
Japan Commits to Double Its Ethanol Demand
President Biden made a trip to Japan recently, and during discussions with the Japanese prime minister, Japan committed to reducing its dependence on imported petroleum by 2030. That means they’re doubling their demand for ethanol, including sustainable aviation fuel and on-road fuel, possibly representing more export opportunities for the U.S. The U.S. Grains Council says America’s Ambassador Rahm Emanuel continually supported expanding ethanol use in Japan. “Expanding bioethanol use in Japan is a strategic goal of the Council,” says USGC Vice President Cary Sifferath. “Ambassador Emanuel and his team have been an essential partner for USGC to discuss the benefits of increased biofuels use to the Japanese consumer and a way for Japan to meet its carbon emissions goals.” USGC President and CEO Ryan LeGrand and Sifferath recently traveled to Tokyo, where ethanol was a major topic of discussion. Japan currently ranks as the fourth-largest market for U.S. ethanol during the 2021-2022 marketing year.
West Nile Virus Still a Threat to Horses Despite Drought
While much of the western U.S. endures widespread drought, people may think mosquito season won’t be as intense. However, just because there’s no rain doesn’t mean there are no mosquitoes. “Some of the most significant West Nile outbreaks have happened without significant rainfall,” says Dr. Justin Talley, Head of Entomology and Plant Pathology at Oklahoma State University. “Just because you don’t see water doesn’t mean there are no breeding areas around.” He shared four tips for protecting horses from West Nile Virus. The first is to vaccinate your horses. Number two is hanging high-powered livestock fans. Third, get rid of as much standing water as possible and clean the horses’ water sources once a week. The last is to minimize a horse’s exposure during mosquito feeding times at dusk and dawn. The disease can attack and inflame a horse’s nervous system and is spread by mosquitoes after feeding on infected birds and rodents.
Bill Would Prohibit China From Purchasing Ag Land in the U.S.
Washington Representative Dan Newhouse recently introduced a bill aimed at preventing the Chinese government from purchasing public or private land in the U.S. The bill is called the Prohibition of Agricultural Land for the People’s Republic of China Act. The bill would also prevent the purchase of land by foreign nationals associated with the Government of China. Additionally, the legislation would prohibit the same associations from participating in any USDA programs except food safety inspections. “We hail from the greatest country in the world, and there is simply no reason we should be reliant on a communist country like China for our food supply,” Newhouse says. “If we cede responsibility of our food supply over to an adversarial nation, we could be forced into exporting food grown within our borders and meant for our own use.” China’s American agricultural land holdings have risen during the last decade to $2 billion worth of land.
Arkansas to Host Next Farm Bill Field Hearing
Senate Ag Committee Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) say the committee will hold a field hearing in Arkansas on Friday, June 17. The hearing is designed to get input from agricultural producers and stakeholders as the process of writing the next farm bill gets underway. “Our last farm bill passed with the most bipartisan support of all time,” Stabenow says. “At our first hearing in Michigan, we heard from farmers and others about how we can improve and strengthen this important legislation, grow our economy, and meet serious new challenges facing the country.” Arkansas Senator Boozman also says his state’s agricultural producers are proud to help feed and clothe the world. “It’s important to seek the input of our farmers and ranchers to strengthen and improve the policies affecting their operations,” Boozman says. Witnesses at the hearing will include agricultural producers, industry stakeholders, and rural community supporters.
Tuesday Watch List
Markets
Back from the three-day weekend, traders will catch up on the latest weather happenings and any news, especially any updates from Ukraine. After an 8 a.m. CDT pause to see if USDA has an export sale announcement, there will be a report on U.S. consumer confidence for May at 9 a.m. and USDA's weekly report of grain export inspections at 10 a.m. Much attention will be given to planting progress updates in USDA's Crop Progress report at 3 p.m.
Weather
A system or series of disturbances that had moved through the Northern Plains over the Memorial Day weekend culminated in a stronger storm system Monday. That system pushed a cold front from the Southern Plains into the Midwest. Showers and thunderstorms continue along that front Tuesday morning and there may be some severe storms from the Texas Panhandle into Michigan throughout the day.
Friday, May 27, 2022
Administration Steps to Strengthen Food Supply Chains
Ag Secretary Tom Vilsack announced more support, resources, and new rules designed to strengthen the American food supply chains. The new actions will promote fair and competitive agricultural markets, prevent abuse of farmers by poultry processors, and make prices fairer for farmers and American consumers. One of those actions is a proposed rule under the Packers and Stockyards Act intended to protect poultry growers from unfair and deceptive practices in the meat and poultry industry. “Growers say the ‘tournament system’ of payment is ripe for abuse,” Vilsack says. USDA will also make $200 million available to provide financing to independent meat and poultry processors to start up or expand operations. Vilsack also announced another $25 million in investments for workforce training designed to create and expand upon good-paying jobs that can strengthen the meatpacking industry by attracting and retaining employees. USDA is also planning a complete review of its programs to ensure they promote competition.
New Chicken Regulations Are a “Solution Searching for a Problem”
The USDA announced new regulations for the poultry industry that the National Chicken Council isn’t supporting. “This is a solution looking for a problem,” says Mike Brown, NCC President. “The last thing the administration should be doing is pushing increased regulations, red tape, and costs onto businesses at a time of record inflation and input costs.” The organization says this will do nothing to lower food prices, increase competition, or reduce inflation. “This will raise grocery bills for Americans and increase food insecurity,” Brown adds. The NCC says raising chickens under contract is one of the most reliable sources of income to help keep families on the farm. The contract provides income and insulation from market risks like feed costs, floods, and droughts. “It’s ironic that these regulations are getting proposed under the guise of promoting competition,” Brown says. “The performance-based structure of raising chickens is literally the definition of competition.”
Producers Can Request Voluntary CRP Termination
The USDA will allow participants in the Conservation Reserve Program to request voluntary termination if they are in the final year of a CRP contract. They can make that request following the end of the primary nesting season for the fiscal year 2022. Participants approved for this one-time, voluntary termination don’t have to repay rental payments. It’s flexibility implemented this year to help mitigate the global food supply challenges caused by Russia’s invasion of Ukraine and other factors. “We’ve heard from many producers who want to better understand their options to help respond to global food needs,” says FSA Administrator Zach Ducheneaux. Producers will be able to hay, graze, begin land-preparation activities, and plant a fall-seeded crop before October 1, 2022. In colder climates, this flexibility may allow for better establishing a winter wheat crop or better prepare the land for spring planting. FSA will mail letters explaining options to producers with expiring contracts.
Over 40 Groups Ask USTR for Tariff Relief
A diverse group of more than 40 American food and agriculture leaders sent a letter to U.S. Trade Representative Katherine Tai on tariffs. The groups are asking for the suspension, reduction, or elimination of tariffs to ease the burden of retaliatory tariffs on rural America. The letter was led by Farmers for Free Trade and came as the administration is working on a mandatory review of recently increased tariffs. Tariff changes are under review as part of the White House’s efforts to address inflation. “Tariff relief could not come at a more important time,” the letter says. “Rural America and small businesses are facing significant challenges due to the lingering impacts of COVID-19, logistical and supply chain disruptions, record inflation, and the increasing impact of the war in Ukraine.” The groups say removing tariffs on food and agriculture inputs and subsequent removal of burdensome retaliatory tariffs would provide immediate relief to U.S. food producers.
Strong Global Demand for Beef Facing Inflation Pressures
The U.S. Meat Export Federation began its spring conference this week in San Antonio, Texas. USMEF President and CEO Dan Halstrom gave attendees a report on first-quarter red meat exports, which were impressive despite mounting economic and logistical challenges. He’s optimistic that 2022 results will be strong but cautioned that inflation pressures around the world are constricting consumer spending power. “To date, demand for U.S. red meat has been as strong as I’ve ever seen in all my years in the meat business and remarkably resilient,” Halstrom says. “But the question is at what point do these inflationary pressures start to constrict disposable income for the global consumer, and we see a crack in demand?” Red meat exports could potentially approach the $20 billion milestone this year. He also highlighted foodservice and retail trends that exploded during COVID-19 and are likely here to stay, such as grocery sales through e-commerce platforms.
Diary Industry Supports USDA Container Program for Ag Exports
The National Milk Producers Federation and the U.S. Dairy Export Council welcome the USDA plan to offer additional support to agricultural exporters through the Commodity Container Assistance Program. The initiative will provide funding from the Farm Service Agency to exporters to reduce the costs of sourcing containers at the Oakland and Seattle-Tacoma “pop-up” port locations. “We’ve been asking for relief from these ocean shipping challenges for two years,” says NMPF president and CEO Jim Mulhern. “While we continue to seek solutions from carriers and Congress, these steps demonstrate USDA understands the challenges. This should offer immediate relief for exporters.” The pop-up sites are intended to offer off-terminal locations for empty container storage, increase access for agricultural shippers to use them, and free up port terminal space for freight operations. The FSA payments will help cover the costs of moving the containers between ports and pop-up yards, as well as storage at the pop-up sites.
Friday Watch List
Markets
At 7:30 a.m. CDT Friday, the Census Bureau will release personal income and consumer spending data for April. Traders will be watching the latest weather forecasts, checking for any updates of Russia's offer to allow food and grain out of Ukraine and will also watch for any news of an export sale. Trading volume could be lower heading into the Memorial Day weekend, possibly opening the door to strange happenings.
Weather
A system that has brought moderate to heavy rain throughout the week continues to slowly push eastward on Friday. Showers continue over the eastern Midwest through the East Coast. A system in the Pacific Northwest will push into the Northern Plains and Canadian Prairies later today, bringing scattered showers and shutting the door on the good drying conditions for North Dakota and eastern Prairies. Waves of showers will continue through the weekend into early next week.
Thursday, May 26, 2022
U.S. Dairy Supports U.S. Pursuit of Full Canadian USMCA Compliance
The National Milk Producers Federation and U.S. Dairy Export Council Wednesday applauded the Biden administration for its initiation of a second U.S.-Mexico-Canada Agreement dispute panel. The dispute panel focuses on Canada’s ongoing refusal to meet its USMCA dairy trade obligations. The first USMCA dispute panel launched by the U.S. government determined in January that Canada violated the agreement's dairy tariff-rate quota provisions. On May 16, Canada published its final revised USMCA dairy TRQ approach, which failed to fix its USMCA-violating practices. To address the additional problems Canada’s revised approach has raised and to defend the integrity of the agreement, the U.S. Trade Representative’s Office has brought an additional case. NMPF President and CEO Jim Mulhern says, “Canada continues to flout these trade commitments and plays games rather than meet its signed treaty commitments.” The dairy groups say Canada’s updated TRQ system continues to block key stakeholders in the Canadian food and agriculture sector from accessing the TRQs.
UK’s Kendamil in Talks to Export Infant Formula to U.S.
Kendamil is in advanced discussions with the Food and Drug Administration to become the first international manufacturer to export significant quantities of infant formula to the United States. Kendamil is a brand of Kendal Nutricare, and is the only British-made infant formula. Kendamil offers organic and conventional cow formulas, along with goat formula, which would be a first in the U.S., where, unlike in Europe, no goat milk is today certified for sale to infants under one year old. Kendamil has been in discussions with the FDA for several weeks since news first broke of the formula shortages and the measures announced from the Biden Administration to bring international brands into the United States. Ross McMahon, CEO of Kendal Nutricare commented, "We have received the call for assistance from the FDA and Kendamil stands ready to act.” Kendal Nutricare expects to meet the needs of at least 150,000 U.S. households during the import period.
Soybean Farmers Share 2023 Farm Bill Priorities
The American Soybean Association Wednesday shared the organization’s 2023 Farm Bill priorities. ASA President Brad Doyle, who grows soybeans in Arkansas, says, “Getting to this point has involved a thoughtful information-gathering process that began back in September 2021.” Priorities for ASA include improving the Title I farm safety net for soybeans, continuing the voluntary, incentive-based, flexible approach to conservation programs, investing into promotion of U.S. commodities globally, building biobased and biofuels opportunities, and ensuring broadband coverage is accessible throughout rural America. As the House and Senate Agriculture Committees lay the foundation for the 2023 Farm Bill, ASA hopes its initial priorities list will provide insight and assure soy growers' interests are considered as the farm bill process continues with hearings this year and legislative development next year. Doyle adds, “We wanted to assure as many farmer voices and soy states as possible were involved to make this a comprehensive list tailored to their needs.”
Study Examines Competitiveness of U.S. Inland Waterways
The National Waterways Foundation released a study this week focused on the current state of the U.S. inland waterways system. The study found that the ability for the United States to maintain a position of strength depends on a regular assessment of infrastructure needs and multimodal development strategies. Two factors, in particular, the aging infrastructure and competition from other countries' inland waterway networks, pose a risk to the economic and national security advantage of the United States. Increased investment levels from the Infrastructure Investment & Jobs Act offer an opportunity to greatly enhance the reliability and usefulness of the U.S. inland waterways system. Clearing the backlog of U.S. projects is needed to bring some facilities into more modern practice. Waterways Foundation Chairman Matt Woodruff adds, “We must be alert to the investments being made in the waterways of other nations that can erode our advantage and, where necessary, invest to increase the efficiency of our system to stay ahead.”
More Farmers Adding Fall Cover Crops to Fields
Cover crops are an increasingly popular management practice farmers use to provide seasonal living cover between their primary commodity cash crops. Farmers often plant cover crops in the fall to provide winter cover for soil that otherwise would be bare. Over the past decade, USDA’s Economic Research Service says fall cover crop adoption has grown in the United States. On fields growing corn for grain, 0.6 percent of the acreage used a fall cover crop before the 2010 crop. By 2016, 5.5 percent of corn-for-grain acreage had a fall cover, and by 2021, 7.9 percent of corn-for-grain acreage followed a fall cover crop. This represents a 44-percent increase in fall cover crop adoption on corn-for-grain fields between 2016 and 2021. The growth in adoption of cover crops on cotton fields is similar, with a 46-percent increase between 2015 and 2019. The average growth in cover crop adoption was similar for each target crop, as evident in the average year-over-year changes.
Co-ops Can Lead the Way for On-Farm Private Broadband
As American agriculture grapples with scarce labor and increasing costs, one solution could lie in precision agriculture applications that can maximize output while reducing costs. Crop and livestock producers can supercharge operational efficiency with advanced precision technologies such as data analytics, connected equipment, robotics and automation. The lack of affordable, reliable broadband access in rural America, however, has hindered widespread adoption of precision ag technologies. That may be changing with the increasing availability of private wireless networks. CoBank’s Knowledge Exchange reports agricultural cooperatives are in an ideal position to work with communication companies to deliver carrier-grade, high-speed private wireless networks to their farmer members at costs that were unthinkable just a few years ago. CoBanks Kenneth Scott Zuckerberg says, “Offering these network solutions could be a new, reliable revenue source for U.S. farm supply cooperatives.” On the farm, private networks can help facilitate the collection, transmission, storage and computation of large amounts of data in real-time.
Thursday Watch List
Markets
USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and updates of first quarter GDP and the U.S. Drought Monitor. A 9 a.m., there is a report on pending U.S. home sales for April, followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Traders will continue to examine the latest weather forecasts, news regarding Ukraine and any news of an export sale.
Weather
A system continues to slowly make its way eastward on Thursday. Areas of scattered showers and thunderstorms continue to press on east of the Mississippi River, with additional showers over Missouri as well. Areas of heavy rain and some severe weather will be possible. The Northern Plains has another dry day to allow for drainage and potentially additional planting in and around North Dakota before showers move back in Friday evening.
Wednesday, May 25, 2022
USDA Invests $770 Million to Expand Market Opportunities for Rural Businesses
Agriculture Secretary Tom Vilsack Tuesday announced $770 million to help create better market opportunities for rural businesses. The investments include $640 million for 122 projects to help people living in socially vulnerable communities. Vilsack says the investments “demonstrate how USDA remains committed to helping people in rural America create new and better market opportunities. USDA is making a total of 154 investments through three programs specifically designed to create economic opportunities for people and businesses in rural areas. The funding will help rural America keep resources and wealth right at home through job training, business expansion and technical assistance. It will help companies hire more workers and reach new customers. It will open the door to new economic opportunities for communities and people who historically have lacked access to critical resources and financing. It will also help entrepreneurs and business cooperatives create jobs, grow businesses, and find new and better markets for their products.
Lawmakers Press Surface Transportation Board on Rail Disruptions
A bipartisan group of Senators urges the Surface Transportation Board to ensure reliable, consistent rail service for American industries and shippers. Republicans Chuck Grassley of Iowa and Kevin Cramer of North Dakota, along with Democrat Tammy Baldwin of Wisconsin, made the request in a letter with 19 other colleagues. The lawmakers say, “We are very concerned over the significant rail service disruptions occurring throughout the U.S. freight rail network.” Further, the group says, “We urge the STB to examine all constructive options towards ensuring reliable, consistent rail service is available to shippers across the U.S.” The letter also outlines concerns and issues raised by customers and labor organizations during an STB hearing last month. Farmers and grain shippers report they are unable to get empty railcars, leading to significant delays in delivering commodities to energy producers forced to curtail production. The letter is supported by the National Grain and Feed Association, National Mining Association, American Chemistry Council and Growth Energy.
Dairy Sustainability Alliance Meeting Addresses Marketplace Opportunities
Navigating social, environmental and economic issues facing dairy businesses in a world shifting from COVID-19 restrictions took center stage at the 2022 Dairy Sustainability Alliance Spring Meeting. The Dairy Sustainability Alliance is a multi-stakeholder initiative of the checkoff-founded Innovation Center for U.S. Dairy and includes more than 165 companies and organizations. More than 270 representatives of the dairy value chain organizations, including 25 dairy farmers, attended in person or virtually, last week. Many of the organizations have adopted the U.S. Dairy Stewardship Commitment signaling support for farmers, cooperatives and processors who voluntarily advance sustainability leadership and transparently report progress. Dairy Management Inc. and Innovation Center CEO Barbara O’Brien says, “never has it been more urgent as we work to meet the growing demands and expectations of both customers and consumers around personal wellness, environmental sustainability and food security.” The event showcased many topics in dairy sustainability, highlighting the work of the alliance.
Bronaugh to Host Roundtable on Farmers’ Mental Health
Agriculture Deputy Secretary Jewel Bronaugh (Bruh-NAW) travels to Wisconsin Friday to host a Roundtable on Farmers’ Mental Health. The event is part of the Department of Agriculture’s efforts in recognizing May as Mental Health Awareness Month. The Deputy Secretary will host the roundtable discussion with Senator Tammy Baldwin in Arlington, Wisconsin. From volatile market demand for their products to bad weather, farmers often face numerous challenges that can create or exacerbate stress, anxiety and trauma. USDA has worked to ensure that farmers and families in rural communities have access to the resources they need to address mental health challenges. In October, USDA announced an investment of nearly $25 million for 50 grants supporting Farm and Ranch Stress Assistance Network State Department of Agriculture projects, which connect farmers, ranchers, and others in agriculture-related jobs to stress assistance programs, which provide vital support, ranging from mental health and legal issues to family and youth stress.
Farm Bureau to Host ‘Farmers Saving Lives’ Virtual Event for Mental Health Month
In recognition of May as Mental Health Month, the American Farm Bureau Federation will host a free virtual event, Farmers Saving Lives, on Tuesday, May 31, at 2:00 p.m. Eastern. The live event will feature compelling stories from three Farm Bureau members who believe that advocating for mental health wellness is a way to save lives in rural and farming communities. Farmers, ranchers and their families are encouraged to attend via telephone, smartphone or tablet from planters, harvesters, greenhouses, dairy barns, farm trucks, classrooms and carpool lines. AFBF President Zippy Duvall says, “We’re holding this virtual event on the last day of Mental Health Month to remind everyone that our work does not stop on June 1 – it continues throughout the year.” According to AFBF national research polls, a strong majority of farmers and farmworkers say financial issues, farm or business problems and fear of losing the farm impact farmers’ mental health. You can register for the event online, and learn more at fb.org.
U.S. Wine Imports Reach Nearly $7.5 Billion in 2021
Growing consumption of wine in the U.S. has contributed to an increase in wine imports, from 127 million gallons in fiscal year 2000 to 456 million gallons in 2021, reaching nearly $7.5 billion in value. USDA’s Economic Research Service reports most wine imports come from the European Union, accounting for 75 percent of the total value and 50 percent of the volume. Specifically, the top two countries of origin, Italy and France, each supplied about $2.5 billion in wine imports in 2021, although the volume from Italy was more than twice that of France because of its lower average price. In 2020, imports from the EU temporarily decreased in response to a 25-percent U.S. tariff placed in late 2019 on French, German, Spanish, and English wine that was lifted in early 2021. While the United States is a net importer of wine, it exported $1.5 billion in 2021 to destinations including Canada, the United Kingdom, and Japan.
Wednesday Watch List
Markets
At 7:30 a.m. CDT Wednesday, traders will catch the April report of U.S. durable goods orders and then pause at 8 a.m. to see if USDA has an export sale. The Energy Department's weekly report of energy inventories, including ethanol production is set for 9:30 a.m., followed by a recap of the minutes of the latest Federal Reserve meeting at 1 p.m. The latest weather forecasts remain important and the more hopeful among us await word of Russia's surrender.
Weather
A storm system that has brought moderate to heavy rainfall across the Central and Southern Plains earlier this week is spreading those showers eastward across the Mississippi River on Wednesday. More areas of moderate to heavy rain are expected and may cause some localized flooding and planting delays. Dryness in the Northern Plains will promote drying of soils and planting progress for the next couple of days.
Tuesday, May 24, 2022
Farm Groups Welcome Indo-Pacific Economic Framework
The Biden Administration Monday announced the Indo-Pacific Economic Framework. The White House says the plan is a 21st century economic arrangement designed to tackle 21st-century economic challenges. Those challenges include the digital economy, ensuring secure and resilient supply chains, and major investments in clean energy. The plan will engage partners that facilitate agricultural trade through science-based decision-making and the adoption of sound, transparent regulatory practices. Agriculture groups welcomed the launch of the framework. U.S. Grains Council President and CEO Ryan LeGrand says the framework “is a new approach to trade negotiations that will hopefully still create the same positive, high-standard outcomes for U.S. farmers." American Farm Bureau Federation President Zippy Duvall says the framework "will help reduce barriers, improve the adoption of science-based standards and grow American agricultural exports." Krysta Harden, U.S. Dairy Export Council President and CEO, adds the framework “offers a chance for the United States to have a positive impact on the trading environment in a vital area of the world.”
Ag Groups Call For Withdrawal of Solicitor General’s Supreme Court Brief on Glyphosate
In a letter to President Biden, 54 agricultural groups expressed concern with a recent amicus brief submitted by the U.S. Solicitor General to the Supreme Court. The brief advises the court against taking up a case regarding pesticide labels. The groups, including the American Farm Bureau Federation and major U.S. commodity organizations, called on the president to swiftly withdraw the brief. They warned the new policy would set a dangerous precedent that threatens the science-based regulatory process. The groups are worried the new policy, along with having environmental impacts, could ultimately hinder the ability of U.S. farmers to help meet growing global food needs intensified by the invasion of Ukraine. At question is whether California can require a cancer warning label for the popular herbicide glyphosate when thousands of studies, decades of scientific consensus, and numerous global regulatory bodies—including the U.S. Environmental Protection Agency—agree the herbicide is not a carcinogen.
Lack of Grain Exports Driving Global Hunger
A global food crisis, already impacted by the COVID-19 pandemic and climate change, is being driven to famine levels worldwide by the war in Ukraine and the resulting lack of grain exports. The United Nations Security Council last week heard from experts on the war's impact on global food security. David Beasley, Executive Director of the World Food Program, stated, "When a nation that is the breadbasket of the world becomes a nation with the longest bread line of the world, we know we have a problem." Even before the Ukraine crisis, the world was already facing an unprecedented, perfect storm because of conflict, climate change and the COVID-19 pandemic. And, price increases in major food crops have made an additional 400 million people food insecure over the last five months. Some experts warn the world only has ten weeks of wheat supply left. Ukraine and the Russian Federation together export 30 percent of global cereals and 67 percent of sunflower oil.
Retail Food Price Inflation Varies by Location
New data from USDA’s Economic Research Service shows retail food price inflation varies by locality. From 2012 to 2021, increases in retail food prices ranged from an average of 2.4 percent a year in Honolulu, Hawaii, to 0.9 percent in the Dallas-Fort Worth, Texas, area. Retail food includes food bought in grocery stores as opposed to restaurants. Differences in transportation costs and retail overhead expenses, such as labor and rent, can explain some of the variation among cities because retailers often pass local cost increases on to consumers in the form of higher prices. Differences in consumer preferences among cities for specific foods may help explain variation in inflation rates, as well. For example, a city whose residents strongly prefer foods with less price inflation, such as fresh fruits and vegetables, might experience lower food-at-home price inflation than a city whose residents buy more beef and veal. Across the United States, prices increased by an average of 1.4 percent a year over the ten-year period.
Lawmakers Raise Concerns about FDA Guidance for Plant-Based Beverages
A group of lawmakers tell the White House there's "no reason" to start allowing regulation regarding plant-based beverages labeled as animal products. Senator Cory Booker, a Colorado Democrat, and Mike Lee, a Utah Republican, led the effort in a letter to the White House Office of Management and Budget. The lawmakers say, “for decades, the FDA has declined to clarify standards for plant-based milks, even as other federal agencies have increasingly adopted plant-based milks and names into programs.” The letter highlighted a recent legal ruling that “found that the use of qualifying terms such as soy, almond or oat next to the term ‘milk’ mitigates against confusion regarding nutritional equivalency.” The letter also outlined that the “FDA has not previously asked producers to disclose other wide variations in nutritional components” - including among milks derived from different animals. However, label clarity has long-been a priority for U.S. dairy groups. The National Milk Producers Federation points out that the FDA's own standards define milk as an animal product.
Gas Prices Jump, Diesel Declines
The national gas price increased for the fifth straight week, while diesel declined slightly. GasBuddy reports the average national gas price increased 11 cents last week to $4.57 per gallon, while diesel fell 1.7 cents to an average of $5.53 per gallon. GasBuddy's Patrick De Haan says, “Gasoline prices surged over the last week to new record highs, but have finally started to slow their rise with diesel also finally cooling off.” Still, with more Americans planning to hit the road for Memorial Day this year compared to last, prices will be over $1.50 per gallon higher than last year. Oil has seen slight upward moves as China lockdowns have eased, boosting demand for petroleum, while the start of the U.S. summer driving season is just days away, and could prevent oil from seeing any significant downturns. U.S. crude oil inventories fell 3.4 million barrels last week. U.S. retail gasoline demand saw a slight fall last week, down .6 percent from the prior week.
Tuesday Watch List
Markets
Traders will pause at 8 a.m. CDT Tuesday to see if USDA has an export sales announcement and then notice the 9 a.m. report of April new home sales. The latest weather forecasts continue to get widespread attention as well as any news regarding Ukraine.
Weather
A storm system in the Southern Plains will bring areas of moderate to heavy rainfall on Tuesday, with additional showers to the southwestern Midwest, Delta, and Southeast as well. Heavy rain in parts of Kansas, Oklahoma, and Texas could cause some localized flooding. Dryness in the Northern Plains could lead to some better planting progress where areas have been too wet.
Monday, May 23, 2022
Strong Farm Economy Continues to Support Credit Conditions
Agricultural credit conditions improved in the first quarter of 2022, and farm real estate values continued to increase alongside strength in the American farm economy. Following a year of accelerating increases, the value of non-irrigated cropland across much of the country has soared through March of this year. The sharp growth in land values persisted despite a slight increase in farm loan interest rates. Farm loan repayment rates continued to increase, and credit conditions remained strong. The Kansas City Fed says the outlook for agricultural credit conditions remained optimistic alongside persistently strong commodity prices. However, many district lenders expect conditions to soften in the coming months alongside the pressure on profit margins from higher input costs and harsh drought conditions in large parts of rural America. Farm real estate markets also remain strong, but smaller profit margins or higher interest rates could limit gains in land value in the year ahead.
Feed Industry Association’s Board Advocates in Washington, D.C.
The American Feed Industry Association’s Board of Directors recently held its annual spring meeting in Arlington, Virginia. As part of the meeting schedule, they spent time advocating for key industry priorities on Capitol Hill and conducted other official business, including approving new Board leadership and members. The 44 Board members met with elected officials in the House and Senate about improving the Food and Drug Administration’s animal food review program. They also talked about resolving ongoing supply chain and export issues that are hindering the industry’s ability to satisfy customers’ orders in a timely and cost-effective way. Board members also highlighted the industry’s work to provide solutions to national climate change priorities. “Our Board leadership impressed upon policymakers how removing key regulatory and trade barriers now will secure our industry’s ability to continue delivering feed, ingredients, and pet food to the marketplace into the future,” says AFIA President and CEO Constance Cullman.
Smart Farm Technology Open to Attacks by Hackers
Experts say it’s important to realize that modern farm technology is vulnerable to attacks by hackers, which could leave the supply chain exposed to further risk. The University of Cambridge issued a report noting that automatic crop sprayers, drones, and robotic harvesters are susceptible to an attack. BBC says both the United Kingdom’s government and the FBI are warning that the cyber-attack threat is growing. John Deere says it’s working to fix any weak spots in its software. James Johnson, Deere’s chief information security officer, says the company has been working with several ethical hackers to find vulnerabilities. CNH Industrial is also working to improve its security posture. Benjamin Turner, chief operating officer at a British company called Agrimetrics, says, “Hacking into one tractor can upset a single farmer’s profitability. Hacking into a fleet of tractors can suddenly give you the power to affect yields in whole areas of a country.”
India Considers Allowing More Wheat Shipments
India has a great deal of wheat sitting at ports because of a sudden ban on exports that prevented dealers from loading cargoes. Reuters says trade and government sources say that the Indian government is considering allowing traders to ship out some of that wheat. The Indian government banned wheat exports over a week ago because of a heatwave that hurt the country’s wheat output. The sudden prohibition on shipping wheat left 1.8 million tons of grain at India’s ports with nowhere to go. Last Tuesday, the government gave permission to ship grains awaiting customs clearance before they can get shipped out of the ports. However, traders are putting pressure on the government to further relax its restriction on grain shipments. A New Delhi-based grain dealer says, “Piecemeal relaxations are not going to help, and the government needs to resolve the issue in the next few days to avoid a chain of payment defaults.”
Hereford Association Researching Sustainable Genetics
The American Hereford Association is partnering with Colorado State University on a research project regarding sustainable genetics. AHA executive vice president Jack Ward says individual cattle producers and the collective beef industry will continue to get asked to do more with less as it relates to environmental and economic sustainability. “That’s why we’re excited to begin this cooperative research agreement with Colorado State University,” Ward says. “It will leverage decades of AHA research and data collected by our members aimed at characterizing genetics associated with production efficiency, which plays a key role in environmental and economic sustainability.” More specifically, the research will enhance understanding of the genetic differences in seedstock relative to methane production and nitrogen excretion. As a genetic trait in cattle, methane emission appears to be moderately inheritable with modest-to-strong correlations to the economically relevant production traits. Direct emissions from the animal ag sector account for 3.8 percent of U.S. greenhouse gas emissions.
Growth Energy, EPA Reach Settlement on 2023 RVO Deadline
Growth Energy and the Environmental Protection Agency reached a settlement on a deadline for issuing the 2023 Renewable Volume Obligations for blending ethanol into the fuel supply. The EPA is expected to file a notice in the Federal Register on Monday seeking comment on a proposed decree that would require the EPA propose the 2023 RVOs by no later than September 16, 2022. The agency would then finalize it no later than April 28, 2023. EPA’s notice comes after Growth Energy filed a notice of intent to sue and a complaint in federal district court after the EPA failed to set the RVOs by the Congressionally-mandated deadline. “Securing a deadline for the 2023 RVO is a significant victory in our mission to ensure certainty when it comes to biofuel blending says Growth Energy CEO Emily Skor, “especially as we face a new era of the RFS when volumes are set by EPA and not Congress,”
Monday Watch List
Markets
Back from the weekend, traders will be checking the latest weather forecasts, news from Ukraine and pause at 8 a.m. CDT to see if USDA announces an export sale. The stock market will also get plenty of attention after major indices toyed with new one-year lows last week. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Canadian markets are closed Monday for Victoria Day.
Weather
A disturbance in the Southeast and a storm system developing in the Plains will make for some pretty wet conditions for a lot of the country on Monday. Both of these features slowly move east this week, keeping many areas wet and causing some planting delays. Moderate to heavy rainfall potential exists in the drought areas in the southwestern Plains. It is likely too late to help out wheat, but could benefit summer crops, especially corn and soybeans.
Friday, May 20, 2022
Senate Legislation to Address Baby Formula Shortage
Senate Ag Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) led a bipartisan group of senators who introduced legislation to address baby formula shortages. The bill is aimed at helping families who rely on the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The Access to Baby Formula Act has a companion bill in the House. It would give USDA more flexibility during a crisis like the shortages currently facing the country. The flexibility would ensure that the brand or type of formula families can buy isn’t restricted by program rules, allowing families to purchase whatever is available in the store. Formula manufacturers would be required to have a plan in place to respond to shortages. “This is an extremely stressful time for parents who are looking high and low for baby formula,” Stabenow says. “Almost half of all babies born in the U.S. rely on the WIC program.”
Nutrien to Build World’s Largest Clean Ammonia Plant in Louisiana
Nutrien says it is evaluating a site in Louisiana as the place to build the world’s biggest clean ammonia facility. The new plant would leverage low-cost natural gas, tidewater access to world markets, and high-quality carbon capture and sequestration infrastructure at its existing facility in Geismar, Louisiana. The goal would be to serve the growing demand in agriculture, industrial, and emerging energy markets. “Our commitment to developing and using both low-carbon and clean ammonia is prominent in our strategy to provide solutions that will help meet the world’s decarbonization goals while sustainably addressing global food insecurity,” says Ken Seitz, Nutrien’s Interim President and CEO. The plant will have an annual production capacity of 1.2 million metric tons of clean ammonia and capture at least 90 percent of its carbon emissions. That means the new facility will be able to permanently sequester more than 1.8 million metric tons of carbon in dedicated geological storage every year.
Kansas/Oklahoma Winter Wheat Tour Finding Lower Yields
On Wednesday, scouts on the Wheat Quality Council’s 2022 winter wheat tour traveled from Colby to Wichita, Kansas, stopping in wheat fields along six different routes. The scouts surveyed 254 wheat fields throughout western, central, and southern Kansas and northern counties in Oklahoma. The wheat in Southwest Kansas looks rough because of drought, and South Central Kansas is struggling because of dryness. Wheat following corn generally had poor yields, while wheat on fallow had some of the higher yields. The calculated yield was 37 bushels per acre in Kansas. Chris Kirby from the Oklahoma Wheat Commission reported that the state’s production is estimated at 60 million bushels this year, down from 115 million last year. Wheat harvest on the southern border of Oklahoma began this week, and with temperatures expected well above 100 degrees, the harvest will move much faster. USDA estimates that Oklahoma will likely yield 25 bushels an acre, down from 39 last year.
U.N. Wants Ukraine’s Ports Opened for Grain Shipments
The United Nations is talking with Russia about the possibility of opening up Ukraine’s Black Sea ports for grain shipments to get exported. Ukraine is one of the largest grain producers in the world and usually exports goods through its seaports. However, Russia controls the Black Sea ports, which has forced Ukraine to export by train or through its smaller ports along the Danube River. Reuters says that Russia responded to the U.N. appeal by saying that sanctions on Russia would have to get reviewed if it were to allow the ports to reopen. U.N. Food Chief David Beasley appealed directly to Russian President Vladimir Putin, saying, “If you have any heart at all, please open these ports.” Russia’s Deputy Foreign Minister says the sanctions imposed on Russia by the U.S. and EU are interfering with normal free trade, including food products like wheat, fertilizers, and many other goods.
NAMI Responds to “Special Investigator” Legislation
The House Agriculture Committee voted to approve the Meat and Poultry Special Investigator Act, and the North American Meat Institute called it “redundant, wasteful, and costly.” Julianna Potts is CEO of NAMI, and she says, “The committee voted to approve the bill despite our opposition, along with the opposition from the country’s largest livestock producer organizations.” She also says USDA and the Justice Department already have the authorities the bill would grant, making this expansion of government bureaucracy with its required staff and offices “duplicative.” Her organization points out that the special investigator this bill would establish would feel emboldened and obligated to bring as many new cases as possible, warranted or not, to test the legal limits of the new rules. “The resulting legal uncertainty and market chaos will accelerate unpredictable changes in livestock and poultry marketing that will add costs to both producers and consumers during a time of high inflation,” Potts says.
More Cotton Growers Take Part in Cotton Trust Protocol During Year Two
The U.S. Cotton Trust Protocol is designed to bring quantifiable and verifiable goals and measurements to the key sustainability metrics of U.S. cotton production. The good news is more growers took part during the 2021-2022 crop year than did during the program’s pilot. The initiative’s new vision is to set a new standard in sustainable cotton production where full transparency is the reality and continuous improvement in reducing the environmental footprint is the central goal. “During our second year, we doubled the number of U.S. cotton growers in the program with an estimated 1.1 million cotton acres enrolled,” says Dr. Gary Adams, president of the Cotton Trust Protocol. Virtually all of the top 100 global brands created lists of sustainable raw materials and publicly stated their sourcing will come from these lists over the next 5-10 years. The Trust Protocol was designed to meet and exceed the rigorous criteria for the lists.
Friday Watch List
Markets
USDA's cattle on-feed report for May 1 is the only significant report on Friday's docket and will be out at 2 p.m. CDT, well after the market close. Traders may be a little gun shy after Wednesday, keeping part of their attention on happenings in the stock market and other parts on the latest weather forecasts, any export sales news and events in Ukraine.
Weather
A strong cold front across the Upper Midwest and Central Plains will push southeast on Friday. Scattered showers and thunderstorms will follow the front and a few severe storms will be possible. Some heavier rain in spots will lead to some more planting delays. Cold air funneling in behind the front will lead to a mix of rain and snow in the Northern Plains and some accumulating snow in the Colorado foothills later today into Saturday. Frosts are expected across a wide area of the Plains overnight.
Thursday, May 19, 2022
Study: Agricultural Export Programs Offer Excellent Returns
A recent economic study indicates public-private U.S. agricultural export market development programs remain highly effective and generate a substantial return on investment. The study, welcomed by the Coalition to Promote U.S. Agricultura Exports, was conducted by IHS Markit and Texas A&M University. The researchers say MAP and FMD have accounted for 13.7 percent, or almost $648 billion, of all the revenue generated by U.S. agricultural exports between 1977 and 2019. In letters sent last month, members of the Coalition and additional organizations asked U.S. House and Senate agricultural appropriations subcommittee leadership to maintain funding of at least $200 million for the Market Access Program and $34.5 million for the Foreign Market Development program in fiscal year 2023. Citing strong competition for growing global food demand, the organizations said, “these modest investments are invaluable as we race to reclaim global export markets shut off during the pandemic and diversify markets amid war and geopolitical unrest.”
NCBA Condemns Meat and Poultry Special Investigator Act
The National Cattlemen’s Beef Association Wednesday condemned the Meat and Poultry Special Investigator Act of 2022, approved by the House Agriculture Committee. NCBA Vice President of Government Affairs Ethan Lane says the legislation was rushed through the legislative process “without consideration of the confusing bureaucratic mess it would create.” The special investigator bill would create a new position in the Department of Agriculture with prosecutorial and subpoena power. The North American Meat Institute agrees in a statement, adding, “USDA and the Department of Justice already have the authorities this bill would grant making this expansion of government bureaucracy.” However, National Farmers Union says the bill would increase enforcement of competition laws and boost USDA’s resources to investigate abusive market practices. NFU President Rob Larew says, “Greater enforcement of competition laws by USDA will better ensure America’s independent family farmers and ranchers have a chance to succeed in today's marketplace, now dominated by monopolies.”
Spanberger, Gonzalez, Introduce American Food Supply Chain Resiliency Act
House lawmakers Abigail Spanberger, a Virginia Democrat, and Anthony Gonzalez, An Ohio Republican, introduced the American Food Supply Chain Resiliency Act this week. The bipartisan legislation seeks to strengthen supply chains across the agriculture industry and lower food costs for consumers. The bill would establish Supply Chain Regional Resource Centers through cooperative agreements with the Department of Agriculture. The centers would offer locally tailored coordination, technical assistance, and grants — leading to more resilient, diverse, and connected supply chains. USDA recently announced its intention through the Agricultural Marketing Service to create Regional Food Business Centers. The Spanberger-Gonzalez legislation would codify the centers, renaming them Supply Chain Regional Resource Centers. Under their legislation, these Centers would support supply chain coordination in their region, fund technical assistance providers to offer guidance to food businesses and farms, and provide small grants to entities looking to expand or start their operations in a certain region.
Food Away From Home Spending Dropped During Pandemic
The first year of the COVID-19 pandemic saw the temporary closures of restaurants in the United States, prompting a decline in Food Away From Home Spending. Spending decreased at each of the nine types of food-away-from-home outlets measured in the USDA Economic Research Service’s Food Expenditure Series from 2019 to 2020. Although existing infrastructure, such as drive-through services, enabled limited-service restaurants to comply with pandemic safety measures, these establishments still saw a 6.7-percent decline in annual spending. Full-service restaurants, which accounted for more Food Away From Home spending than all other outlets from 1997 to 2019, experienced a decrease in spending of 31.7 percent in 2020. This was partly due to pandemic-related closures during some of the year. Hotels and motels, recreational places, and drinking establishments also experienced closures and capacity restrictions throughout much of 2020. Food spending fell 42.9 percent at hotels and motels, 37.7 percent at recreational places, and 40.7 percent at drinking places.
Wholesale Prices Show Another Big Increase
Proposed Fertilizer Policies Could Protect Farmer Profits, Environment
A new University of Illinois study explores potential policy solutions to reduce nitrogen loss while still protecting farmers’ bottom lines. Federal and state governments have shied away from regulating nitrogen fertilizer use, but voluntary and incentives-based programs have not been particularly successful, according to the researchers. University of Illinois assistant professor Nicolas Martin says, “We want to generate discussions on such policies, rather than provide definitive answers on which policy will be the best.” The first policy would modify price ratios, imposing a tax on nitrogen at a set ratio relative to the corn price. The second policy would charge farmers a fee for excess nitrogen leaching from fields above baseline levels. The third would subtract nitrogen removed in grain at harvest from nitrogen applied as fertilizer and would charge a fee for the balance. The final policy reflected a voluntary nitrogen reduction program like current programs in the Midwest. Among the four policies, the nitrogen leaching fee showed the best outcome.
Thursday Watch List
Markets
USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday along with U.S. weekly jobless claims and an update of the U.S. Drought Monitor. There are reports on U.S. existing home sales in April and the Conference Board's U.S. index of leading indicators at 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Weather forecasts and any export sales news also remains important to traders.
Weather
A system moving through the North-Central U.S. and a small disturbance moving from the Southern Plains eastward will be the focus for scattered showers and thunderstorms throughout the day Thursday. Some areas of severe weather will be possible along with heavy rainfall that will make for more difficult planting conditions. Heat will be a concern across the Southern Plains as temperatures move back into the triple digits. Cold air will filter into the Northern Plains later today as the system spreads southeast across the North-Central U.S. That may lead to some snow mixing in tonight across the Northern Plains.
Wednesday, May 18, 2022
Stabenow Calls on USDA to Address Effects of Baby Formula Shortage for WIC Families
Senate Agriculture Committee Chair Debbie Stabenow called on the Department of Agriculture Tuesday to address the infant formula shortage for those relying on the Special Supplemental Nutrition Program for Women, Infants, and Children program. The Michigan Democrat says, "Millions of Americans rely on the WIC program to get baby formula for their children, so the current shortages are extremely concerning for parents across our country." USDA is providing WIC families with the flexibility to use their benefits to buy different types of formula products. Senator Stabenow requested more information from USDA on its use of these and other flexibilities and opportunities for additional action to support WIC families. Meanwhile, Abbott, the company whose infant formula plant is shut down, has agreed to enter a consent decree with the Food and Drug Administration. The decree is an agreement between FDA and Abbott on the steps necessary to resume production and maintain the facility.
USDA Extends Deadline for Public to Comment on Input Competition Challenges
The agriculture sector has more time to comment on the impacts of concentration and competition challenges in seed, fertilizer, other agricultural inputs, and retail markets. The Department of Agriculture this week announced a 30-day extension to the public comment period. The new deadline is June 15, 2022. Three requests for information were published in the Federal Register on March 17, 2022, each with a 60-day comment period ending May 16, 2022. USDA seeks information about competition matters related to fertilizer, seed and agricultural inputs, particularly related to the intellectual property system, and food retail, including access to retail for agricultural producers and small and medium-sized food processors through wholesale and distribution markets. To enhance fair and competitive markets, the initiative supports additional fertilizer production for farmers and spurs competition to address rising costs, including price hikes from the war in Ukraine, and recent supply chain disruptions. All written comments should be posted online at www.regulations.gov.
USDA Accepting Applications to Help Cover Costs of Organic, Transitioning Producers
The Department of Agriculture is accepting applications for the Organic and Transitional Education and Certification Program and Organic Certification Cost Share Program. The programs help producers and handlers cover the cost of organic certification, along with other related expenses. Farm Service Agency Administrator Zach Ducheneaux (DOO-shah-know) says, “By helping with organic certification costs – long identified as a barrier to certification – USDA has helped producers participate in new markets while investing in the long-term health of their operations.” To apply, producers and handlers should contact the FSA at their local USDA Service Center. As part of completing the applications, organic producers and handlers will need to provide documentation of their organic certification and eligible expenses. Organic producers and handlers may also apply for the Organic Certification Cost Share Program through participating State agencies. The Organic Certification Cost Share Program covers 50 percent or up to $500 per category of certification costs in 2022.
Rural Land Market Outlook Remains Strong
Following record sales in 2021, the rural land market continues to surge this year. This offers opportunities for both sellers and buyers of farm, recreational and other rural land, according to Whitetail Properties Real Estate. Low property inventories resulting from last year's strong market point to land values remaining high for sellers. Meanwhile, rising interest rates this year could suggest reduced demand, but that is only one factor. Alex Gyllstrom, the company's marketing director, says, “It can be projected that rural land values will stay at the higher end of the market because of current inflation.” While these factors create a sense of urgency for those looking to sell land, they also present an upside for buyers. Whitetail Properties Real Estate offers advice for sellers to provide curb appeal, document farm value, and get leases in writing. For buyers, the company suggests they work with a rural lender, think long-term, and consider a partnership agreement.
Iowa Governor Signs Biofuels Legislation into Law
Iowa Governor Kim Reynolds Tuesday signed into law some of the most comprehensive state biofuels legislation in the nation. The legislation is expected to boost the sale of higher blends of biodiesel through an incentive-based approach. Among other things, the bill increases a Biodiesel Production Tax Credit from two to four cents per gallon while updating the state’s Renewable Fuel Infrastructure Program to increase access to higher blends of biofuels. Clean Fuels CEO Donnell Rehagen says, “Iowa joins the ranks of Illinois, Minnesota and others with some of the most forwarding-thinking legislation that values the production and use of biodiesel.” The legislation also would provide access to E15 statewide by 2026 and update the E15 promotion tax credit to $0.09 per gallon year-round through 2025. Growth Energy CEO Emily Skor applauded the bill’s passage, saying the bill “offers drivers across Iowa the opportunity to not only save money at the pump but to make a simple change for the environment.”
Cargill Announces Plans to Build new Soybean Plant in Southeast Missouri
Cargill Tuesday announced plans to build a new soybean processing facility in Southeast Missouri. The facility will have an annual production capacity of 62 million bushels of soybeans. Cargill anticipates breaking ground on the project early next year with plans to be operational in 2026. The new facility will add approximately 45 full-time positions to the region when complete. With its location on the Mississippi River, the facility will operate year-round and provide farmers opportunity to take advantage of increased domestic demand versus relying solely on seasonal exports. Missouri Soybeans CEO and Executive Director Gary Wheeler says, “Missouri Soybeans is very pleased with the new build of a soybean crush facility in Pemiscot County and the direct impact it will bring to our farmers in Southeast Missouri.” Cargill has had a presence in Missouri since 1936 and currently operates across 11 locations in the state and employs nearly 1,200 people.
Wednesday Watch List
Markets
Wednesday morning's reports start with April housing starts at 7:30 a.m. CDT, followed by the Energy Department's weekly energy inventories, including ethanol production at 9:30 a.m. Traders will check the latest weather forecasts, pause at 8 a.m. for a possible export sale announcement and stay tuned to events in Ukraine.
Weather
A disturbance moving through the Midwest is and will continue to create scattered showers across mainly the Midwest throughout the day. This could lead to some areas of planting delays. A few showers and thunderstorms will also be possible in the southwestern Plains, but be very spotty and unhelpful to the current drought situation. Heat will exacerbate the drought as well.
Tuesday, May 17, 2022
USDA to Provide Approximately $6 Billion to Commodity and Specialty Crop Producers
The Department of Agriculture Monday announced that commodity and specialty crop producers impacted by natural disaster events in 2020 and 2021 will soon receive emergency relief payments. The payments totaling approximately $6 billion come from the Farm Service Agency's new Emergency Relief Program to offset crop yield and value losses. Agriculture Secretary Tom Vilsack says, "These emergency relief payments will help offset the significant crop losses due to major weather events in 2020 and 2021 and help ensure farming operations are viable this crop year." Last September, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act, which includes $10 billion in assistance to farmers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters experienced during calendar years 2020 and 2021. FSA recently made payments to ranchers impacted by drought and wildfire through the first phase of the Emergency Livestock Relief Program. More details, including eligibility, are online at fsa.usda.gov.
Dairy Groups: Retaliatory Tariffs Required as Canada Refuses its USMCA Obligations
National Milk Producers Federation and the U.S. Dairy Export Council Monday called on the U.S. government to levy retaliatory tariffs on Canada. The call comes after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement concerning dairy market access. In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas system violates the terms of USMCA. Canada issued a new TRQ proposal in March, which included only inconsequential changes. Monday's announcement shows no indication that Canada intends to comply with its USMCA commitments, according to the dairy groups. Jim Mulhern, president and CEO of NMPF, says, “Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations.” In April, the groups filed public comments on the matter with Global Affairs Canada. The comments noted the proposed changes “continue to fall woefully short of full compliance.”
Farm Groups Welcome USDA Undersecretary for Trade Nominee
The Biden admiration last week announced the nomination of Alexis Taylor as USDA Undersecretary for Trade. Taylor currently serves as the Oregon Director of Agriculture, after previously overseeing the USDA’s Farm and Foreign Agricultural Services during the Obama administration. Taylor is an Iowa native, who moved to Oregon after working 12 years in Washington D.C. U.S. Grains Council President and CEO Ryan LeGrand congratulated Taylor on her appointment, saying she is “a highly qualified candidate to be the USDA Undersecretary for Trade.” National Association of Wheat Growers CEO Chandler Goule says, “I have worked with Alexis for over fifteen years and know the industry appreciates her experience and understanding of the agriculture community and trade issues.” U.S. Meat Export Federation President and CEO Dan Halstrom adds, “USMEF had many opportunities to work with Taylor in her previous roles at USDA and we are confident she will be a strong and effective advocate for U.S. exporters and all of U.S. agriculture.”
Lawmakers Urge USDA to Address Infant Formula Shortages
A group of Senators urges the Department of Agriculture to address "extremely high levels of corporate concentration" in the infant formula marketplace. The request comes as infant formula shortages are occurring nationwide. Senate Democrats Tammy Duckworth, Cory Booker and Amy Klobuchar say, “The infant formula industry has reached an alarming level of corporate concentration with four companies–Abbott Nutrition, Mead Johnson, Gerber, and Perrigo–controlling nearly 90 percent of the infant formula market.” The lawmakers say the concentration creates a serious risk to infant health if there is any disruption to a major manufacturer’s supply. Meanwhile, Agriculture Secretary Tom Vilsack urged states to adopt flexibilities to support families. Vilsack says, “USDA will continue the work we started in February, working not only within our department, but across the federal government, suppliers and partners to end this infant formula crisis as quickly as possible.” The flexibilities are included in the Special Supplemental Nutrition Program for Women, Infants, and Children.
R-CALF Launches No Rancher Left Behind Campaign
R-CALF USA last week announced the launch of “No Rancher Left Behind,” a rancher/farmer conversation and awareness campaign. The campaign is a collaboration between R-CALF USA and Coy Young, a Missouri cattle rancher who recently testified before Congress about the stresses he faces as a cow-calf producer. “No Rancher Left Behind” is set to feature informational graphics on social media and a resource webpage with hotline numbers and links to other helpful information, but perhaps most notably, weekly support group style, virtual meetings for ranchers to gather and converse in a safe place. Young came up with the idea for the campaign after struggling with his own market-related financial challenges and recently shared his story with the New York Times. Young adds, “If we can help each other when we’re hurting and in need, that’s the greatest accomplishment that could ever come from this campaign and these meetings.” Learn more at r-calfusa.com.
National Gas Price Spike Continues
The nation's average gas price increased for the fourth straight week, rising 15.3 cents from a week ago to $4.46 per gallon. The national average is up 39.1 cents from a month ago and $1.43 per gallon higher than a year ago. The national average price of diesel increased three cents in the last week and stands at $5.55 per gallon. GasBuddy's Patrick De Haan says, "Prices later this week could be closer to $5 per gallon than $4, as demand continues to edge higher and inventories of both gasoline and diesel continue to decline." The summer driving season kicks off with Memorial Day, and China announced it would begin to reopen Shanghai, its largest city, after COVID lockdowns and reduced oil demands. De Haan adds, “While the increases may start to slow in the days ahead as pump prices catch up to oil, there isn’t much reason to be optimistic that we’ll see a plunge any time soon.”
Tuesday Watch List
Markets
A report on U.S. retail sales for April is due out at 7:30 a.m. CDT Tuesday, followed by the Federal Reserve's report on industrial production in April at 8:15 a.m. Traders will keep an eye on the latest weather forecasts and watch for any news of an export sale.
Weather
A disturbance exiting the Rockies into the Plains will be the cause of some areas of showers and thunderstorms on Tuesday across the North-Central U.S. Some storms could be severe with a greater wind and hail threat in Nebraska, Kansas, Missouri, and southwest Iowa. The showers will delay planting progress where they hit, but other areas will be able to see fieldwork completed.
Monday, May 16, 2022
Inflation will Burden U.S. Economy for Several Years
Overall consumer prices during April were 8.3 percent higher than last year, and America’s families can expect inflation to continue pressuring their wallets for the next few years. That conclusion is from American Farm Bureau’s economists who analyzed the inflation numbers in their latest Market Intel report. They expect inflation to stay above five or six percent for the foreseeable future. The report says too much money was created by the Federal Reserve Bank, mostly in 2020, and it’s inevitably turning into inflation. “Thankfully, the Fed has begun steps to address this, but it will likely take a few years to approach their long-term target of two percent per year,” the report says. It also says the Fed injected $6.4 trillion into the economy between March 2020 and the end of 2021, a 42 percent increase in the money supply in 22 months, which is too much money to be absorbed by economic growth.
Ag Credit Conditions Stay Strong While Outlook Softens
Farmland values continue to increase at a rapid pace through the end of 2021. Alongside sustained strength in farm income and credit conditions, the Kansas City Fed says the value of all types of farmland was over 20 percent higher than last year. The recent strength in agricultural real estate markets has been supported by strong demand, historically-low interest rates, and vastly-improved conditions in the farm economy. Lenders say the outlook is mostly-favorable for agriculture in the Tenth District, but rising input costs are a risk to the sector. The possibility of weaker ag income and higher interest rates in the economy remain risks for farmland markets. Even with the uncertainty around input costs, lenders expect favorable conditions in the economy to support farm finances and lead to more gains in farmland values during 2022. Despite risks, the Fed says ag appears to be well-positioned in the year ahead.
NAMI: House Report Distorts Meatpacker Efforts to Fight COVID
The North American Meat Institute says the House Select Subcommittee on the Coronavirus Crisis’ recent report distorts the truth about the meat and poultry industry’s efforts to protect workers from COVID. The report says meatpackers worked with the Trump administration to make sure they could stay open during the pandemic. Julie Anna Potts is president and CEO of the North American Meat Institute, the national trade association for the meat and poultry packers and processors. “The Meat Institute and its member companies voluntarily provided hundreds of thousands of pages to the Committee,” she says. “The report ignores the rigorous and comprehensive measures companies enacted to protect employees and support their critical infrastructure workers.” She also says the meat industry spent billions of dollars to reverse COVID-19’s trajectory. “The committee uses 20-20 hindsight and cherry-picks data to support a narrative that doesn’t tell the whole story of the early days of a national emergency,” Potts adds.
Purdue Report Shows Gaps in Urban-Rural Food Satisfaction
A Purdue University report says people living in urban and rural areas share many of the same concerns about food prices and availability, including the impact of recent bird flu outbreaks. However, the monthly Consumer Food Insights Report says differences remain in food insecurity and diet satisfaction. Some of the key results from this month’s survey report showed that 60 percent of consumers are concerned about the impact of bird flu on food prices. Food spending is nine percent higher than in January, but food demand remains price insensitive. Fourteen percent of all households and 23 percent of rural households are facing food insecurity. Seventy-one percent of people in urban areas and 61 percent of rural residents are facing food insecurity. Jayson Lusk, Agricultural Economics Professor at Purdue, says, “Rural Americans struggle more often than urban Americans to buy the food they want. Current economic conditions appear to have further disadvantaged rural Americans.”
Zoetis Supports Families of America’s Military
Representatives from Zoetis presented the company’s first donation to Folds of Honor to help support their work honoring America’s military heroes. Based in Oklahoma, Folds of Honor provides academic scholarships to the families of men and women who have fallen or been disabled while serving in the U.S. armed forces. Jared Shriver, senior vice president of U.S. Cattle and Pork at Zoetis, presented a donation totaling $122,000 to Folds of Honor on May 11. “Zoetis is grateful for the opportunity to help fund scholarship programs for the families of the heroes that help protect our rights and freedoms as Americans,” Shriver says. Folds of Honor was founded in 2007 by Lt. Colonel Dan Rooney, a fighter pilot who served three combat tours in Iraq. Folds of Honor has awarded nearly 35,000 scholarships in all 50 states. “The support from Zoetis helps us continue to provide opportunities,” says Ben Leslie, VP at Folds of Honor.
Export Sales Hit Marketing-Year Lows
USDA says sales of corn, beans, and wheat to overseas buyers plunged to marketing-year low points during the week ending on May 5. Agency data says corn sales during the week dropped to 192,700 metric tons, down 75 percent from the previous week and 80 percent from the prior four-week average. It’s also the lowest total since the marketing year began on September 1, 2021. Japan was the top corn buyer at 132,600 metric tons. Soybean sales during the week hit 143,700 metric tons, 80 percent lower than the previous week and 74 percent year-over-year. Indonesia was the top buyer with 66,200 metric tons. Wheat sales dipped to 14,100 metric tons, the lowest since the grain marketing year began on June 1 of last year. That total was 88 percent lower than the previous week and 79 percent from the average. Colombia was the top buyer with 40,000 metric tons.
Monday Watch List
Markets
Back from the weekend, traders will be checking the latest weather forecasts, outside market news and may even still be pondering USDA's estimates from Thursday. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Special attention will be given to corn and soybean planting progress, both likely showing big gains in the latest week.
Weather
A system from the weekend will continue to push showers through the eastern U.S. on Monday, including some severe weather potential. The front to the system is hung up back across West Texas where additional showers and thunderstorms will develop later in the day. Those, too, may be severe. The spotty nature to the showers will not help out many of those in drought, however.
Friday, May 13, 2022
USDA Accepting Applications for Philippines Trade Mission
U.S. exporters are invited to submit applications to the USDA for an agricultural trade mission to the Philippines, July 18-21. The mission to Manila will allow U.S. growers, producers, and exporters explore a thriving market that’s expected to emerge from COVID-19 with one of the strongest growth forecasts in Asia. The Philippines is the eighth-largest export market for American agricultural and food exports, averaging $3.1 billion annually during the last five years. USDA says the country offers tremendous export potential thanks to its young and fast-growing population, strong consumer preference for American foods and beverages, and robust service-based economy. “The Philippines sets itself apart from the rest of the world with a U.S. partnership that spans decades and has a bright trade future,” says Daniel Whitley, administrator of the USDA’s Foreign Agricultural Service. Some of the strongest export opportunities in the Philippine market include beef, pork, poultry, cheese, vegetables, and many more.
European Union to Help Ukraine Export Grain
The European Commission says it will work with the EU governments to help Ukraine export millions of tons of grain currently stuck in the country. As part of the Russian invasion, Russia’s navy has blocked Ukraine’s Black Sea ports. Ukraine was the fourth-largest grain exporter during the 2020-2021 season, selling 44.7 million tons abroad, mainly to China, Africa, and Europe. The closed seaports are causing problems getting grain out of Ukraine and threatening the world’s food supply, especially in poorer regions like Africa. Reuters says getting Ukraine’s products out quickly by train is challenging too because the country’s rail system has different widths of track from Europe. That means the grain has to get transferred at the border to different trains. To make things even worse, there aren’t a lot of transfer facilities on the border. The Commission will take several steps to prioritize Ukraine’s grain shipments at their terminals.
First 2022 Winter Wheat Production Calls for Lower Yield
U.S. farmers are expected to produce 1.17 billion bushels of winter wheat this year. It’s the first winter wheat production forecast for 2022 issued by the National Agricultural Statistics Service. The forecast calls for an eight percent drop from 2021. As of May 1, the U.S. yield is expected to average 47.9 bushels per acre, down 2.3 bushels from last year’s average of 50.2 bushels. Hard Red Winter Wheat production is forecast at 590 million bushels, down 21 percent from last year. Soft Red Winter Wheat is predicted to be 354 million bushels, expected to be a two percent drop from 2021. White Winter Wheat, at 230 million bushels, is up 38 percent from last year. Of the White Winter Wheat production, 15.7 million bushels are Hard White, and 214 million bushels are Soft White. NASS surveyed roughly 9,300 producers from across the country in preparation for this production report.
May WASDE Report Shows Lower Corn, Higher Soybean Production
The May World Ag Supply and Demand Estimates call for lower corn and higher soybean production in 2022-2023. The corn outlook calls for lower domestic use, exports, ending stocks, and higher prices. The corn crop is projected at 14.5 billion bushels, 4.3 percent less than the USDA trend from February. Total corn supplies will decline 2.7 percent to 15.9 billion bushels. The season-average corn price is projected at $6.75 a bushel. The soybean outlook is for higher supplies, crush, exports, and ending stocks this year. The soybean crop will be 4.64 billion bushels, five percent higher than last year. Soybean supplies will be 4.89 billion bushels, up four percent from last year. The season-average soybean price will be $14.40 a bushel, up $1.15 from last year. U.S. all-wheat production is projected at 1.72 billion bushels, 83 million higher than last year. The all-wheat yield will be 46.6 bushels an acre, with the price at a record $10.75 a bushel.
Ethanol Production Rises to Highest Point in a Month
The Energy Information Administration says ethanol output rose to the highest level in a month during the week ending on May 6. Ethanol inventories increased for the first time in six weeks. Ethanol production rose to an average of 991,000 barrels a day, up from 969,000 barrels during the prior week. It was also the highest level since April 8. In the Midwest, which produces the most of any region in the country, production rose to 941,000 barrels a day, up from 915,000 the week before. It's also the highest level in the Midwest since April 8. The Midwest was the only region that saw an increase. Gulf Coast and West Coast production levels remained the same at 24,000 and 9,000 barrels a day, respectively. Rocky Mountain output dropped to 12,000 barrels a day, the lowest output since December. Ethanol inventories increased to 24.14 million barrels during the week, the highest since April 15.
CFTC Will Hold Meeting on Voluntary Carbon Markets
The Commodity Futures Trading Commission will hold its inaugural Voluntary Carbon Markets Convening on June 2. Participants will discuss issues related to the supply and demand for high-quality offsets, including the product standardization and data necessary to support the integrity of carbon offsets’ greenhouse gas emissions avoidance and reduction claims. They’ll also discuss issues that relate to the market structure for trading carbon offsets and carbon derivatives as well as what potential challenges and opportunities in these markets may look like. “As companies increasingly turn to derivatives markets to manage risk and keep pace with global efforts to decarbonize, I look forward to CFTC facilitating these discussions,” says CFTC Chair Rostin Benham. He also says the goal is to foster innovation in crafting solutions to the climate crisis while ensuring integrity and customer protection. “We’ll also be gathering information from a variety of market participants in the voluntary carbon markets,” Benham adds.
Friday Watch List
Markets
The University of Michigan's early index of consumer sentiment for May is due out at 9 a.m. CDT, the only significant report on Friday's docket. Traders will still be digesting Thursday's new estimates from USDA and we'll see how the market responds to Thursday's limit-up close in September Minneapolis wheat. The latest weather forecasts continue to get widespread attention as does any news regarding Ukraine or planting progress here in the U.S.
Weather
A low pressure system in the Northern Plains will continue to move northward through the Canadian Prairies through Saturday, bringing scattered showers and thunderstorms and locally heavy rainfall to keep planting pace slow in these areas. The front to the system continues to move through the central Midwest and southeastern Plains on Friday with more showers and thunderstorms. Areas that have seen really good planting weather all week will have to deal with showers.
Thursday, May 12, 2022
Biden Announces Action for Farmers on Issues Stemming from Russia War
President Joe Biden visited an Illinois farm Wednesday to announce action for U.S. farmers in the wake of the Russia/Ukraine war. The measures include increasing the number of counties eligible for double cropping insurance. The Biden administration is seeking to expand insurance for double cropping to as many as 681 additional counties, bringing the total number of counties where this practice qualifies for crop insurance to as many as 1,935, so more American farmers have the financial security to start or expand double cropping. Another measure would cut costs for farmers by increasing technical assistance for technology-driven precision agriculture and other nutrient management tools. The third measure would double funding for domestic fertilizer production. President Biden is doubling his initial $250 million investment in domestic fertilizer production to $500 million to lower costs and boost availability for farmers, so they can obtain the inputs they need at prices they can afford to maximize yields.
Senators Claim USTR Office Lacks Transparency
Senate lawmakers call on the U.S. Trade Representative’s Office to dramatically improve transparency and consultation with Congress on pending trade negotiations. Led by Republican Senator Chuck Grassley of Iowa, members of the Senate Finance Committee cited negotiations to waive intellectual property rules at the World Trade Organization, where details became public before Congress was briefed or shown the agreement, as a recent example. A joint statement from the lawmakers says, “We want to ensure that this failure to consult properly with Congress will not be replicated in other areas.” Congress has primary authority to regulate tariffs and commerce with foreign nations under Article I, Section 8 of the Constitution. It delegates authority to the executive branch, with the requirement that it be consulted about trade policies. Grassley has frequently raised concerns about operations at the USTR. Last August, he called on President Biden to immediately appoint qualified individuals to the position of Chief Agricultural Negotiator at the USTR.
AEM Releases April 2022 Equipment Sales Numbers
Tractor and combine sales declined in April for the second month in a row, according to the Association of Equipment Manufacturers. U.S. total farm tractor sales fell 22.3 percent in April compared to 2021, while U.S. combine sales for the month declined 5.6 percent. Total farm tractor sales are now down 13.7 percent year-to-date, while combines are down 14.5 percent. In Canada, unit sales fell in all segments again for a 19 percent decline in total farm tractor sales, while combine sales were down as well, falling 14.1 percent. Year-to-date farm tractor unit sales are down a 7.7 percent in Canada, while harvesters are down 28 percent. Curt Blades of AEM says, “Supply chain remains the number one difficulty our member manufacturers are facing,” adding, “At the same time, we’re comparing to record numbers from 2021, and while these numbers may look disappointing, they remain above the 5-year average.”
Labor Force Participation Decreased Less in Rural Areas During Pandemic
From 2007 to 2019, labor force participation rates decreased 2.6 percentage points for people aged 25 to 64 in the rural United States and 0.7 percentage points for the same age group in urban areas. The labor participation rate is the percentage of the population that is working or actively looking for work. USDA's Economic Research Service released data Wednesday that shows the larger decrease in rural participation reflects a slower recovery in those areas after the Great Recession, which lasted from December 2007 to June 2009. Labor force participation rates for people aged 25 to 64 decreased again from 2019 to 2020 due to the COVID-19 pandemic but decreased less in rural counties than in urban counties. Rates declined the most from 2019 to 2020 for people aged 16 to 24 and fell the most in that age group in urban counties. In 2021, labor force participation rates for each age group remained below pre-pandemic levels in rural and urban counties.
FFAR and Kroger Foundation Fund Food Waste Research
The Foundation for Food & Agriculture Research, in collaboration with The Kroger Co. Zero Hunger | Zero Waste Foundation, announced the Food Waste Challenge Wednesday. The challenge aims to develop an original, innovative methodology for quantitative measurement for food waste generated in U.S. households. Objective, quantitative measurements would provide an accurate picture of the sources of food waste and benefit efforts to reduce this waste across the food system. U.S. household food waste is likely underestimated. Traditionally, multiple methods have been used to track household food waste, including surveys or specialized applications. However, the methods are inconsistent and use different understandings of food waste. Additional research is critical to reducing food waste and supporting interventions, requiring original approaches to gathering accurate and standardized measurements. Applications are due July 13, 2022. Each grantee may receive up to $1 million. The Food Waste Challenge webpage includes more information about this funding opportunity and instructions on how to apply.
USDA, EDA, Launch Resource Guide for Rural Economic Development
The Department of Agriculture and the Economic Development Administration Wednesday unveiled a joint resource guide. The guide seeks to help community organizations access USDA and EDA resources to build strategies to boost economic development in rural America. USDA Rural Development Under Secretary Xochitl (So-CHEEL) Torres Small says, “The guide we are unveiling today will better equip people with the tools they need to make their communities more attractive, economically viable and safe places to live and work.” The resource guide outlines programs and services that can be used to advance community and economic development in rural communities through four key focus areas: Planning and technical assistance, Infrastructure and broadband expansion, Entrepreneurship and business assistance, and workforce development and livability. The guide also features information and links to USDA Rural Development and U.S. Economic Development Administration key priorities and resources. The resource guide is available online at https://www.rd.usda.gov.
Thursday Watch List
Markets
USDA's weekly report of export sales is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, the U.S. producer price index for April and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Traders remain close to the latest weather forecasts and will be ready for USDA's WASDE and Crop Production reports, both due out at 11 a.m. CDT. You can still join DTN's WASDE webinar at 12:30 p.m. or register at DTN.com and listen later at your convenience.
Weather
A system that produced severe storms across the Upper Midwest on Wednesday will continue to produce strong thunderstorms Thursday. Early morning thunderstorms across the Dakotas and Minnesota will give way to a broken line of strong to severe storms from the eastern Dakotas to central Kansas this afternoon that will push into the Upper Midwest in the evening and overnight hours. All modes of severe weather will be possible. Additional showers and thunderstorms will develop farther west across Montana and Wyoming as the main low pressure center deepens in the area. Elsewhere, hot and dry conditions will continue to favor spring planting, though some isolated showers will be possible in the Mid-Atlantic and Southeast this afternoon.
Wednesday, May 11, 2022
USDA: Strong Interests in Partnerships for Climate-Smart Commodities
The Department of Agriculture says the first round of funding through the Partnerships for Climate-Smart Commodities received more than 450 proposals ranging from $5 million to $100 million each. The deadline for the proposals closed on Friday. The applications USDA received came from more than 350 groups across various sectors. Agriculture Secretary Tom Vilsack says the “funding opportunity has created tremendous interest from a diverse cross-section of groups from across the country.” Proposals in the first funding pool include large-scale pilot projects that emphasize the greenhouse gas benefits of climate-smart commodity production and include direct, meaningful benefits to a representative cross-section of production agriculture. Over the next few months, USDA will evaluate the applications and rank them based on the technical criteria provided in the funding opportunity. Awards for the first round of funding are anticipated later this summer. The deadline for the second round of funding is Friday, June 10, 2022.
SEC Extends Comment Period on Climate-Reporting Rule
The American Farm Bureau Federation and National Pork Producers Council welcomed the Securities and Exchange Commission's comment period extension for a proposed rule. The groups say they need more time to evaluate “The Enhancement and Standardization of Climate Related Disclosures for Investors” rule. The proposal would require public companies to report on Scope 3 emissions, which result from activities from assets not owned or controlled by a publicly-traded company but contribute to its value chain. While farmers and ranchers would not be required to report directly to the SEC, they provide almost every raw product that goes into the food supply chain. Farm Bureau President Zippy Duvall says, “America’s farmers and ranchers need time to fully understand the consequences of this 510-page proposal.” NPPC Chief Executive Officer Bryan Humphreys adds, “The additional time provided by the SEC allows farmers to provide more valuable information to the Commission as it continues to work on developing its disclosure rule.”
Grassley, Klobuchar Lead Push for Avian Influenza Outbreak Funding
Iowa Republican Senator Chuck Grassley and Minnesota Democrat Amy Klobuchar led an effort this week for more funding to help address the highly pathogenic avian influenza outbreak. The Senators told the Senate Appropriations Committee leaders, “Although the virus poses minimal risk to human health, it has serious implications for U.S. poultry producers, rural communities, and our agricultural economy.” HPAI has been detected in 32 states across the country and has killed over 36 million birds, to date. The lawmakers say, “Given the recent outbreak, the ongoing increase in confirmed HPAI cases, and the likelihood of further spread, we urge the Subcommittee to make funding for the APHIS avian health program a high priority.” The funds, they say, are critical to continue HPAI response measures by USDA. As of Friday, the HPAI outbreak has impacted around 19 sites across Iowa alone, affecting 13 million birds – more than any other state.
ESMC, Sorghum Checkoff, Launch Project to Create Ecosystem Services Credits
Ecosystem Services Market Consortium and the United Sorghum Checkoff Program Tuesday announced the launch of a carbon pilot project in Western Kansas for sorghum farmers. The program seeks to generate high-quality carbon, greenhouse gas, water quality and biodiversity credits in ESMC’s market program. The project will test ESMC’s streamlined programming to create environmental credits from sorghum farmers’ fields. Many of the farmers are new to private voluntary ecosystem markets linked to conservation practice adoption, so the project will also develop knowledge, capacity and repeatability to continue expanding support for sorghum growers in the region. The research project covers about 5,000 acres in Western Kansas and is working with sorghum farmers interested in implementing conservation practices such as nutrient management and edge of field practices. Sorghum farmers can earn credits from increased soil carbon, reduced or avoided greenhouse gases, improved water quality, and preserved habitat at field edges that increase plant, bird and insect biodiversity and populations.
NFU Supports White House Affordability Connectivity Program
National Farmers Union welcomed this week’s Affordability Connectivity Program announced by the White House. The program seeks to close the U.S. digital divide by making reliable, high-speed internet affordable to many families in rural and urban communities. The program will provide an estimated 48 million qualifying families with a $30/month benefit to apply towards a high-speed plan and get it at zero cost. NFU President Rob Larew says, “Reliable and affordable high-speed internet is a necessity in today’s world whether you are a farmer or rancher accessing markets and precision agriculture or you and your family are connecting to your schools and jobs.” The Bipartisan Infrastructure Law included $65 billion to make sure we expand access to broadband internet in every region of the country. President Joe Biden, announcing the Program Monday, said broadband, among other things, allows “farmers to use precision agriculture technology to improve their yields.” Participating providers include AT&T, Verizon, Cox, Comcast, and other providers who serve rural communities.
USDA: High Fiber Diets Associated with Less Antibiotic Resistance
USDA's Agricultural Resource Service says healthy adults who eat a diverse diet with at least 8-10 grams of soluble fiber a day have fewer antibiotic-resistant microbes in their guts. A new study from ARS scientists shows microbes that have resistance to various commonly used antibiotics are a significant source of risk for people worldwide, with the widely held expectation that the problem of antimicrobial resistance is likely to worsen throughout the coming decades. The researchers found that regularly eating a diet with higher levels of fiber and lower protein levels, especially from beef and pork, was significantly correlated with lower levels of antimicrobial resistance genes among their gut microbes. Healthy adults eating a diverse diet with at least 8-10 grams of soluble fiber a day have fewer antibiotic-resistant microbes in their guts. Soluble fiber is found in foods such as grains, beans, lentils, nuts, and some fruits and vegetables.
Wednesday Watch List
Markets
At 7:30 a.m. CDT Wednesday, the U.S. Labor Department will issue its consumer price index for April and no relief from high prices is expected. At 9:30 a.m., the Energy Department releases its weekly inventory report, including an update on ethanol production. As usual, traders remain focused on the latest weather forecasts and any news regarding Ukraine, but have not seen a daily export sale announced since April 28. The U.S. Treasury reports on the federal budget for April at 1 p.m.
Weather
After a day's break in the North-Central U.S., scattered showers and thunderstorms return to the region on Wednesday, making planting more difficult. A zone of showers and thunderstorms will also develop across the Plains from Nebraska to the southwestern Plains as well, expanding from where they occurred on Tuesday. Severe weather will be a high possibility in both regions, but especially around northwest Iowa and southwest Minnesota this afternoon and early evening. Eastern areas of the country will continue to enjoy good planting weather.