AFT: Smarter Land Use Planning is Urgently Needed

Smart growth and investment in America's downtowns and main streets must occur now to secure the land that grows our food, according to American Farmland Trust. The organization Wednesday released its new report, Farms Under Threat 2040: Choosing an Abundant Future and the accompanying web mapping tool. AFT research shows Americans are paving over agricultural land at a rapid pace. From 2001-16, the nation lost or compromised 2,000 acres of farmland and ranchland every day. The report shows the U.S. is on track to convert 18 million acres of farmland and ranchland from 2016-40—an area the size of South Carolina. And it could get worse. If rural sprawl accelerates, America could squander one million acres of agricultural land every year and over 24 million by 2040. But if Americans choose a better path—embrace smart growth and minimize sprawl—they can save up to 13.5 million acres of the nation’s farmland. Find the full report at farmland.org.

House Lawmakers Introduce American Port Access Privileges Act

Two California Democrats Wednesday introduced the American Port Access Privileges Act in the House of Representatives. John Garamendi and Jim Costa say the bill follows up on the Ocean Shipping Reform Act. Representative Costa says, “We need to remove bottlenecks and mitigate congestion at our ports to carry out American exports.” The legislation would ensure fair trade for U.S. businesses and keep hard-won foreign markets accessible to agricultural exporters by codifying the current preferences for military, Jones Act, and other U.S.-flagged vessels in place at many major American ports. Additionally, the legislation would establish a secondary berthing preference for ocean-going commercial vessels servicing multiple ports in the United States, and ensure that the new preferential berthing would never interfere with U.S. Coast Guard orders for commercial vessels, port safety or collective bargaining agreements for port workers. The legislation is endorsed by the Agriculture Transportation Coalition, National Milk Producers Federation, and the California Farm Bureau Federation.

Vilsack Announces Bioproduct Pilot Program

The Department of Agriculture is accepting applications for a new pilot program to support the development of biobased products. Specifically, USDA is looking for products that have lower carbon footprints and increase the use of renewable agricultural materials, creating new revenue streams for farmers. The $10 million investment is part of the larger Bipartisan Infrastructure Law. Agriculture Secretary Tom Vilsack announced the program while visiting Iowa. Vilsack says, “This pilot program is a critical part of USDA’s commitment to enhancing the circular economy and providing additional revenue streams for farmers.” The program will help farmers take field residues and waste products and turn them into value-added products that create wealth and drive economic development in rural areas. Under this program, USDA’s National Institute of Food and Agriculture can award up to $10 million divided among the highest-rated applications that include eligible universities and private-sector partners. Program information can be found on the NIFA website.

House Ag Member Davis Loses Primary Election

A familiar face on the House Agriculture Committee lost in a primary election this week. Illinois Republican Representative Rodney Davis lost his reelection bid to Trump-backed Representative Mary Miller. Davis had represented Illinois' 13th Congressional District since 2013, and Miller had represented the 15th Congressional District since 2021. The districts were merged during a redistricting effort following the 2020 Census results and includes 35 central Illinois counties. The 52-year-old Davis served five terms representing the 13th District. Miller will face Democrat Paul Lange in the November general election. Former President Donald Trump held a campaign rally with Miller last weekend in Quincy, Illinois. In a statement, Davis says, “I’m proud of the work our team has done for our constituents since 2013,” adding, “We have delivered countless conservative policy solutions from historic tax cuts, student loan relief, farm programs, and investing in our transportation system.” Davis was endorsed by the Illinois Farm Bureau.

USDA Announces New Features for Market News App

The Department of Agriculture Wednesday announced additional commodities and features are available on the free USDA Market News App. The App provides producers and others along the supply chain with instant access to market information about conventional and organic products. Version 2.0 includes access to three additional commodity areas – Cotton and Tobacco, Dairy and Specialty Crops, as well as the ability to filter searches to see reports by Commodity Area and Market Type, the ability to add reports to Favorites and Subscriptions by Commodity Area and Market Type, an improved way to manage subscriptions and a calendar feature that provides access to previously released reports. USDA launched the first version of its free Market News app in February 2022, with access to about 800 livestock, poultry, and grain market reports. The USDA Market News app is available in both iOS and Android versions and may be downloaded through the Apple and Google Play stores.

USDA: Cost of a Home-grilled Cheeseburger up 21 Cents From 2021

Home-grilled cheeseburgers, a summer cookout staple, will cost consumers more this Independence Day weekend. USDA’s Economic Research Service says the ingredients for a home-prepared 1/4-pound cheeseburger totaled $2.07 per burger, with ground beef making up the largest cost at $1.20. This represents an increase of 11.3 percent compared to the $1.86 it cost to produce the same cheeseburger in 2021. Ground beef prices increased 16.9 percent and accounted for 17 cents of the increase between 2021 and 2022. Cheddar cheese and bread costs each rose about one cent per burger from 2021 to 2022. Iceberg lettuce prices rose the most, by 23.3 percent, but the relatively small proportion it contributes to the total cost of a burger means it added just two cents to the total. The American Farm Bureau Federation earlier this week also released its summer marketbasket survey, showing the cost of a July 4th cookout is 17 percent higher than a year ago.

Thursday Watch List

Markets

USDA's weekly report of export sales is due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims, reports on U.S. personal incomes and consumer spending and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly update of natural gas storage is due out at 9:30 a.m., followed by USDA's Acreage and June 1 Grain Stocks reports at 11 a.m. -- two reports that have a history of being market-movers.

Weather

Two fronts, one north and one south, will produce scattered showers across both regions on Thursday. Areas in the middle of the country will see seasonably warm temperatures and dry conditions, good weather for wheat harvest. Cooler conditions are found across the north and into Canada, where the better conditions for developing crops are found.

Survey Reveals Americans Want Clearer Product Labeling of Plant-Based ‘Chicken’

The National Chicken Council  Tuesday announced findings from a recent national survey of Americans regarding consumer attitudes about chicken and plant-based ‘chicken’ alternatives. Survey participants included individuals who consume meat and animal products, along with flexitarians, vegetarians and vegans. The results indicate the majority of Americans want clearer product labeling and separate shopping sections for plant-based products. NCC Senior Vice President of Communications, Tom Super, says, “This study shows there is overwhelming support for clearer packaging and separate store placement for imitation ‘chicken,’ and that the term ‘chicken’ should be reserved only for food products made from the actual animals.” One in five Americans reported that they accidentally purchased the plant-based product, believing it to be real chicken. Survey results also indicate that consumers, including those who eat plant-based ‘chicken,’ prefer authentic chicken for taste, affordability and cooking versatility. And, four in five Americans want plant-based options to clearly be labeled.

Supreme Court Rejects R-CALF Lawsuit

The Supreme Court this week denied R-CALF’s lawsuit against 13 state beef councils and the Beef Checkoff. The National Cattlemen’s Beef Association says the ruling effectively ends “yet another R-CALF attack on the Beef Checkoff and prevents the activist attorneys at Public Justice, from further diverting Checkoff and beef industry resources.” NCBA intervened in the lawsuit in its early days to help defend state beef councils from R-CALF, “who falsely attacked state beef councils.” NCBA says multiple court decisions rejected these allegations and reaffirmed the work and direction of the Beef Checkoff and those who guide it. NCBA CEO Colin Woodall says, “The Supreme Court’s rejection of R-CALF’s petition confirms the Beef Checkoff, and its overseers, are adhering to the letter and spirit of the laws that protect and guide producer investments in the program.” In the lawsuit, R-Calf claimed state beef checkoff organizations are private corporations and use half of the beef checkoff collection to fund private speech.

Wheat Industry Comments on Conclusion of FDA Study of Drought Tolerant Wheat

The Food and Drug Administration recently concluded it has no further questions regarding the safety of drought-tolerant HB4 wheat developed by Bioceres Crop Solutions Corp. In response, U.S. Wheat Associates and the National Association of Wheat Growers issued a joint statement this week. The groups say the finding by the FDA is not an approval for this or any other transgenic wheat to be planted for commercial sale in the United States. To date, the HB4 wheat has been approved for commercial production within a closed system in Argentina only. The trait has been approved for human consumption by regulators in Brazil in the form of flour, and in Australia, New Zealand and now in the United States. Bioceres recently announced it will seek approval to plant HB4 wheat in Australia, but it has not announced plans to commercialize it in the United States. The statement says, "The U.S. wheat industry recognizes the benefits and value that can be created through the prudent application of modern biotechnology."

Edge Dairy Farmer Cooperative Unveils Milk Pricing Reform Priorities

Edge Dairy Farmer Cooperative, one of the largest dairy co-ops in the country, stressed flexibility and fairness in announcing its priorities for reforming the federal milk pricing system this week. Edge CEO Tim Trotter says, “Edge is intently focused on strengthening the relationship between farmers and processors in a way that increases transparency, fairness and competition.” Differences across the Federal Milk Marketing Orders require added flexibility to meet their respective needs, and current markets driving milk outside the FMMO system point to a need for a standard set of "contracting principles" to build a more fair and equitable pricing system, according to trotter. Edge has researched, listened to members and engaged with industry leaders and other stakeholders from across the country for more than a year, including coordinating a multistate task force. Under the flexibility priority, Edge’s proposal accounts for differences in product mixes across the country. The cooperative says more regional flexibility would benefit all dairy farmers.

Recycling Used Beer Yeast for Environmental Protection

Brewer's yeast used to make beer is typically discarded once it's no longer needed. Sometimes, though, the leftover yeast is mixed into livestock feed as a source of protein and vitamins. Now, there may be even more reason to continue this practice, according to findings by a team of scientists with the Agricultural Research Service. Laboratory results suggest that using leftover brewer's yeast as a feed additive may benefit the environment by helping cows belch less methane into the air as a greenhouse gas that contributes to global climate change. Although spent brewer's yeast is sometimes used as a livestock feed additive, further cow feeding trials are necessary to fully assess its potential to reduce methane and ammonia on a farm scale, according to the researchers. Those results should give a better idea of the yeast's potential role as part of a larger, integrated approach to making animal agriculture more environmentally sustainable.

Goodyear Announces New Sustainable Soy-Based Tires

The Goodyear Tire & Rubber Company recently announced that two lines of its commercial tires are now made with a renewable soybean oil compound. The Goodyear Metro Miler G152 and G652 tires for transit buses, along with the popular Endurance WHA waste haul tire, are now made with soybean oil, which replaces a portion of the petroleum-based materials used in their production. Both the Metro Miler tires and the Endurance WHA waste haul tire continue to deliver high-performance benefits. The new soy-biobased tires build on the soy checkoff’s research investment and longstanding partnership with the global tire company. United Soybean Board Chair Ralph Lott says, “These big tires are another exciting way to deliver sustainable soy to more lives, every day.” Goodyear has a long-term goal to fully replace petroleum-derived oils in its products by 2040. This commitment, according to USB, drives additional demand for U.S. soy products, grown sustainably by U.S. soybean farmers.

Wednesday Watch List

Markets

Wednesday's reports start with an update of first-quarter U.S. GDP at 7:30 a.m. CDT. Fed officials will be speaking throughout the day at a banking conference in Europe and may scare investors, at times. At 9:30 a.m., the U.S. Energy Department will issue two weeks of inventory data, including ethanol production after encountering technical problems last week. USDA's quarterly Hogs and Pigs report is due out at 2 p.m.

Weather

A frontal boundary across the north will see a storm system riding along it on Wednesday, producing scattered showers and thunderstorms, some of which may be severe in the Northern Plains. A brief burst of heat is occurring ahead of the front today in the Northern and Central Plains, but temperatures across the rest of the country are much more seasonable. Meanwhile, a stalled front from the weekend continues to produce scattered showers in the Southeast and along the Gulf Coast. We also continue to watch a disturbance in the northwestern Gulf of Mexico for tropical development. It may become a short-lived tropical system before reaching the Texas coastline on Thursday.

Consumers Paying more for Independence Day Cookout

U.S. consumers will pay $69.68 for their favorite Independence Day cookout foods, based on a new American Farm Bureau Federation marketbasket survey. The average cost of a summer cookout for ten people breaks down to less than $7 per person. The overall cost for the cookout is up 17 percent or about $10 from last year, due to ongoing supply chain disruptions, inflation and the war in Ukraine. Survey results showed the retail price for two pounds of ground beef at $11.12, up 36 percent from last year, the largest year-to-year price increase in the survey. Several other foods in the survey, including chicken breasts, pork chops, potato salad, fresh-squeezed lemonade, pork and beans, hamburger buns and cookies, also increased in price. One bright spot for consumers is the average retail price for strawberries, which declined by 86 cents compared to a year ago. Sliced cheese and potato chips also dropped in price, 48 cents and 22 cents, respectively.

Farm Bureau Names New Executive Vice President

The American Farm Bureau Federation announced Joby Young as the organization's next Executive Vice President late last week. Young will take the role in mid-July following the retirement of Dale Moore. Joby will serve in a chief of staff role at AFBF. It's a familiar role for Young, who previously served in the same capacity at USDA and in Congress. AFBF President Zippy Duvall says, “The Farm Bureau family will be well-served by his strong leadership skills.” Young says he looks forward to starting in the new role, adding, "I'm honored to join the talented team at the American Farm Bureau Federation." Young is currently a partner at Horizons Global Solutions LLC, a consulting firm where he advises clients in the food and agriculture sectors. Young previously served as Chief of Staff in various USDA offices and mission areas, before becoming the Chief of Staff to the Deputy Secretary.

U.S., Taiwan, Hold First Trade Meeting

Trade officials from the U.S. and Taiwan met Monday for the inaugural meeting of the U.S.-Taiwan Initiative on 21st-Century Trade. U.S. Deputy Trade Representative Sarah Bianchi says, "This initiative will unlock market opportunities, promote innovation and create inclusive economic growth for our workers and businesses." The trade officials reaffirmed their shared interest in developing and deepening trade and promoting innovation. They also discussed the development of an ambitious roadmap for negotiations to reach agreements with high-standard commitments and economically meaningful outcomes. The commitments will cover several trade areas, including trade facilitation, regulatory practices, agriculture, anti-corruption, small- and medium-sized enterprises, digital trade, labor, environment, standards, state-owned enterprises, and non-market policies and practices. The trade officials also held roundtable conversations with several groups of U.S. and Taiwan stakeholders. Members of Congress and labor and business leaders also shared their views on ways the United States and Taiwan can jointly advance trade policies.

Guide Outlines Steps to Take When Pesticide Drift Occurs

The University of Illinois Extension has a pesticide drift guide available for farmers. The new guide helps producers and gardeners know what to do if pesticide drift is suspected. Damage can occur when pesticide drifts from its intended location onto adjacent fields and landscapes. Drift happens when pesticide spray particles and vapors escape from the intended target area. University of Illinois Extension weed science specialist Michelle Wiesbrook says, “The most common type of pesticide misuse is pesticide drift, and when it occurs, emotions can run high while seeking answers." There are two ways pesticides can be carried downwind to non-target areas: vapor drift and particle drift. Both types of drift should be considered when making an application, and steps should be taken to minimize their occurrence. The new free guide provides more information on drift and serves as a navigation tool for those faced with potential drift injury challenges. Read the guide at go.illinois.edu/drift.

BASF Donates $50,000 to Bee and Butterfly Habitat Fund Program

BASF Agricultural Solutions North America will donate $50,000 to The Bee and Butterfly Habitat Fund's Seed A Legacy pollinator habitat program. The donation is part of BASF's annual Living Acres #MonarchChallenge initiative. The Bee and Butterfly Habitat Fund will use BASF's donation to expand its Seed A Legacy pollinator habitat program with the goal of restoring high-quality pollinator habitat with free or reduced-cost seed to landowners across 12 Midwest states. Since its inception in 2015, the Monarch Challenge has resulted in the planting of 110,000 milkweed seedlings and the creation of more than 67,000 pollinator habitats. The fund works with landowners, conservationists, scientists, and other partners to build healthy and sustainable pollinator habitat with maximum benefits. Through the Seed A Legacy Habitat Program, each project receives free or heavily discounted pollinator seed mixes and the guidance to prepare, establish, and maintain the project for a minimum of five years.

Fuel Prices Decline for Second Straight Week

The national average gas price declined for the second straight week, down 8.8 cents to $4.48 a gallon Monday. The national average is up 28.3 cents from a month ago and $1.79 per gallon higher than a year ago. The national average diesel price declined 2.7 cents in the last week, to $5.79 per gallon. Gas Buddy's Patrick De Haan says, “gas prices have continued to fall for the second straight week as the price of oil has faltered, ushering in the drop we’re seeing.” De Haan says prices could fall again this week, even ahead of the Independence Day holiday weekend. However, any sudden jolts to supply could quickly cause a turnaround, and the risk remains that when the peak of hurricane season arrives, prices could spike again. According to GasBuddy, U.S. retail gasoline demand rose last week, up 1.6 percent compared to the prior week. U.S. crude inventories remain 14 percent below the five-year average.

Tuesday Watch List

Markets

Traders will continue to keep a close watch on the latest weather forecasts and even though there haven't been any export sale announcements lately, will check at 8 a.m. for possible news from USDA. An index on U.S. consumer confidence is due out at 9 a.m. CDT Tuesday. Grains are mostly higher early Tuesday, but may turn quiet ahead of Thursday's Acreage and Grain Stocks reports.

Weather

A cold front from the weekend has settled into the far South and Southeast where pop up showers will be likely. Another front is moving south out of Canada into the North-Central U.S. where more showers will be possible for the rest of the week as the front waffles around for the next several days. Showers will unfortunately be somewhat spotty and dryness is popping up in places around the region that could use a good soaking.

NCGA Applauds Ruling on Imported Fertilizers

The U.S. Department of Commerce made a final determination last week on imported fertilizers and unfair subsidies. The department found that urea ammonium nitrate fertilizer exported to America was subsidized and sold at less than normal value in the U.S. market during its period of investigation. The National Corn Growers Association says it’s an important step in the process, but the ruling won’t on its own lead to the placement of duties on nitrogen fertilizers shipped into the country. The final stage in the process is expected later this summer when the International Trade Commission makes a final ruling. “Placing tariffs on nitrogen fertilizers will land yet another blow to farmers, who are already dealing with a host of challenges,” says Brooke Appleton, NCGA vice president of public policy. “Farmers can’t farm with one hand tied behind their backs, and these actions getting pushed by fertilizer companies will tie their hands.”

White House Meets with Refiners on High Pump Prices but No Solutions Yet

U.S. Energy Secretary Jennifer Granholm recently expressed interest in possibly lifting smog-fighting gasoline rules to help fight high gas prices at the nation’s pumps. The secretary also backed off a plan to ban fuel exports during a wide-ranging meeting with refiners. Reuters says tensions are high between President Biden and oil refiners. The two sides departed from the meeting far apart on possible solutions. Industry sources familiar with the meeting say both sides will continue talking. Biden has recently been critical of oil industry CEOs for pulling in huge profits from a supply crunch made worse by Russia invading Ukraine. The White House is unhappy with the refining industry’s move to idle about one million barrels per day of production capacity since 2020. Administration officials say the companies need to use those profits to restart plants and help fill the supply gap. Refiners say investing in reopening plants carries significant financial risks.

International Grains Council Boosts Production Outlook

The International Grains Council raised its outlook for total global grain production in the 2022-2023 marketing year, while also increasing its forecast for ending stockpiles. Wheat and coarse grain production are now forecast at 2.255 billion metric tons, up from the May prediction of 2.251 billion. Ending stockpiles are forecast at 583 million metric tons. Wheat output is pegged at 769 million metric tons, unchanged from a month ago. Inventories are projected at 273 million tons, up from 271 million in May. Corn production is now expected to be 1.19 billion metric tons, up from the previous prediction of 1.184 billion. The IGC’s inventory forecast rose from 269 million tons last month to 271 million this month. The soybean production outlook rose to 390 million metric tons from 387 million in the last forecast. However, carryover stocks dropped from 58 million tons last month to 56 million in the new forecast.

Keep Kids Fed Act Passed in Both Chambers of Congress

The House and Senate each passed the Keep Kids Fed Act last week, but the bill had to return to the House because the Senate version was slightly different. The Hagstrom Report says the House passed the Senate’s version of the bill that requires the re-establishment of the reduced price category that Rand Paul of Kentucky insisted on including in the Senate version. The agreement between the leaders of each committee in charge of school meals originally merged the reduced price and free meal categories into one free meal category for the upcoming school year. The legislation also provides $3 billion in additional funding for the school meals program, with offsets coming from rescissions from the Agriculture Department and Small Business Administration programs. Senate Ag Committee Chair Debbie Stabenow says, “Schools and parents can rest easy knowing that help is on the way so kids can continue getting school and summer meals.”

Sustainable Oils Facility Opens New Facility for Renewable Diesel Production

Sustainable Oils opened a new state-of-the-art facility in Great Falls, Montana, last week. The facility works with over 100 U.S. farmers to grow camelina (cam-eh-LEE-nah), a plant used by their parent company Global Clean Energy to produce ultra-low carbon renewable fuels. Renewable diesel produced from camelina is a drop-in replacement for traditional diesel, but with fewer contaminants and far fewer emissions. The company says camelina has the potential to receive the lowest carbon intensity score of all the available feedstocks on the market today. Sustainable Oils specializes in the breeding, research, and marketing of camelina. They contract directly with farmers in the Northern Plains, High Plains, and Pacific Northwest to grow the camelina that will ultimately get used to create renewable fuel at Global Clean Energy’s refinery in Bakersfield, California. The company looks forward to enhancing economic opportunities for rural communities while producing some of the lowest-carbon renewable fuels in the world.

Application Period Open for Conservation Legacy Awards

Farmers have a chance to share the story of how conservation is part of their farm operations and get recognized with a Conservation Legacy Award. All U.S. soybean farmers are eligible to win the award, sponsored by the American Soybean Association, the United Soybean Board, the Soybean Checkoff, and several others. The award recognizes farm management practices of soybean farmers that are both environmentally friendly and profitable. The selection process is divided into four regions, including the Midwest, Upper Midwest, Northeast, and South. One farmer from each region will be recognized at the Commodity Classic and one will be the award recipient. Some of the eligible practices include reduced tillage, cover crops, and improving energy efficiency or water quality. Winners get an expense-paid trip for two to the Commodity Classic on March 9-11, 2023, in Orlando, Florida. Winners also get recognition at the ASA Awards Banquet at Commodity Classic. Find out more details at soygrowers.com.

Monday Watch List

Markets

Back from the weekend, a report on U.S. durable goods orders for May is due out at 7:30 a.m. CDT Monday, followed by a May pending home sales index at 9 a.m. USDA's weekly grain export inspections is due out at 10 a.m. with traders interested to see if soybean shipments can pick up. At 3 p.m., USDA's Crop Progress report will be out with updates of the latest crop condition ratings.

Weather

A cold front that swept through the country over the weekend is slowing down and will stall across the South on Monday. Periods of showers will form along the front through the week. Much more seasonable temperatures have filled in behind the front, eliminating the extreme heat of the last couple of weeks. While scattered showers and cooler temperatures that came with the front will reduce stress in some areas, there are pockets of dryness continuing to build in the heartland of the country.

USTR Says Tariffs Give U.S. “Leverage” on China

The U.S. has tariffs in place on over $300 billion worth of Chinese imports. U.S. Trade Representative Katherine Tai says those duties give the U.S. significant leverage on China, making them useful when negotiating with the Asian nation. Bloomberg says a debate is ongoing among members of the Biden administration on whether to keep those tariffs in place for the time being. “The China tariffs, in my view, are a significant piece of leverage, and a trade negotiator never walks away from leverage,” Tai said during Senate testimony. Biden recently said he’s in the process of deciding on whether to remove any of the duties first put in place by President Trump in 2018. Tai also points out that removing the tariffs would have a limited impact on the rapid rise in inflation. Earlier this month, Treasury Secretary Janet Yellen said that a reduction in duties may help bring down prices.

Iowa State University Report Says No Price Gouging on Fertilizer

A report from Iowa State University says fertilizer prices are four times higher than they were in 2020. While crop prices have doubled during the same period, higher fertilizer prices are contributing to rising costs in farm country. Iowa’s Attorney General requested the ISU report in February while questioning the justification of higher prices. Yahoo News says the six economists who wrote the report found no conclusive evidence that fertilizer companies are artificially inflating prices. The 58-page report says price increases are tied several factors, like supply chain disruptions, disease outbreaks, and many other factors. “We aren’t saying there’s no market manipulation at all,” says Chad Hart, an ISU economist. “We just can’t tease out if it was one of the components.” The ISU Center for Agricultural and Rural Development says researchers need more data to determine if companies are raising prices far beyond the level needed to offset rising costs.

Some G-7 Leaders to Push for Temporary Waivers on Biofuel Mandates

Leaders from the G-7 countries will meet on Sunday, and biofuel mandates will be among the discussion topics. Officials from Germany, Britain, and other G-7 members will push for temporary waivers on biofuel mandates to combat rapidly rising food prices. Reuters says the food crisis sparked by the Ukraine war has led to a food versus fuel debate among certain G-7 countries. Some policymakers are asking to ease mandates for blending biofuels into gasoline and diesel to increase the supply of global grain and vegetable oil. A British government official told Reuters, ”We’re quite keen to look at the issue of biofuel mandates to ensure that crops are prioritized for food consumption and not necessarily for use in fuels.” It’s not known ahead of the meeting on Sunday if there is enough support to temporarily waive biofuel mandates among the G-7 members. Talks are said to be in the preliminary stages.

North American-Owned Grain Terminals Hit in Ukraine

Two grain terminals owned by companies in North America were hit by a Russian attack in Ukraine. The University of Illinois’ farm policy news website says Canadian agribusiness Viterra, and U.S. grain trader Bunge said they had a grain terminal hit on Wednesday. Viterra reported that it had a terminal on fire. While there were no casualties, Viterra did say one employee was injured at the plant, which had been closed since Russia’s invasion began. The attack on Wednesday is also the second time Bunge has been targeted. Ukraine’s grain exports have dropped significantly from last year. During the first 22 days of June, exports were down 48 percent from 2021 at 907,000 tons. Russia is preventing shipments from Ukraine’s Black Sea ports, trapping thousands of tons of grain in the country. Experts say setting up alternative export routes won’t be sufficient enough quantities to keep up with global food demand.

Smithfield Foods Ranked on LinkedIn’s List of Top Companies

Smithfield Foods was named to LinkedIn’s Top Companies: Industry Edition List. Smithfield is ranked as one of the best workplaces for professionals to grow their careers in nine U.S. industries, including financial services, retail and consumer goods, and several others. “We take pride in being an industry leader at Smithfield and are honored that LinkedIn recognized our ongoing efforts to be an employer of choice,” says Keira Lombardo, chief administrative officer with Smithfield. “Our people are our greatest asset. Supporting our team members and their career growth continues to be a top priority for our company.” The LinkedIn platform’s Top Companies: Industry Edition List is designed to celebrate people and companies with more than 500 employees that are making an impact in the professional world. The platform’s methodology assesses data driving insight into company attributes, like professionals’ ability to advance, skills growth, company stability, external opportunity, company affinity, and others.

U.S. Domestic Honey Production Falls and Imports Rise

U.S. honey production has dropped by 1.4 percent per year during the past three decades, while honey imports have grown by 7.6 percent every year, so imports have been filling the domestic supply deficit. Imports have exceeded domestic honey production since 2005 and accounted for 74 percent of U.S. honey supplies in 2021. The top three foreign suppliers are India, Vietnam, and Argentina, and together they supply more than 71 percent of the total imports. Honey imports grew as domestic consumption of honey and honey-sweetened products increased. The expansion reached an all-time high last year when domestic production was at its lowest volume since 1991. During 2021, production in all three of the major honey-producing states, including North Dakota, South Dakota, and California, were 25 percent below 1991 levels, while production in the rest of the U.S. declined by almost half during the same period. Shrinking market production was mainly due to decreased honey production per colony.

Friday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT, followed by the University of Michigan's final estimate of U.S. consumer sentiment in June. At 2 p.m. CDT, USDA releases its June 1 estimate of cattle on feed with Dow Jones analysts looking for a 1.5% increase from a year ago. As usual, weather and outside markets will also get their fair share of attention.

Weather

Temperatures are increasing across much of the eastern half of the country Friday ahead of a storm system building in the Canadian Prairies and Northern Plains. That system will produce widespread showers and thunderstorms across the North-Central U.S. and Canada Friday into Saturday with the front continuing to track southeast through the rest of the weekend and early next week. While heat builds ahead of the front, it will fall off significantly behind it with temperatures below normal for a couple of days. Rainfall amounts will be spotty but could be heavy in localized areas.

Biden Proposes Federal Gas Tax Holiday

President Joe Biden Wednesday called on Congress and states to provide direct relief to consumers facing increased gas and diesel prices. The price of gas is up dramatically around the world, and by almost $2 per gallon in America, the White House says, “since Putin began amassing troops on the border of Ukraine.” The federal government charges an 18-cent tax per gallon of gasoline and a 24-cent tax per gallon of diesel. Those taxes fund highways and public transportation, through the Highway Trust Fund. But with gas prices near $5 a gallon on average across the country, President Biden is calling on Congress to suspend the gas tax for three months – until the end of September – to give Americans a little extra breathing room as they “deal with the effects of Putin’s war in Ukraine.” The President is also calling on Congress to ensure that a gas tax holiday has no negative effect on the Highway Trust Fund.

Senate Ag Committee Passes Meat Packing Special Investigator Act

The Senate Agriculture Committee Wednesday passed the bipartisan Meat Packing Special Investigator Act. The legislation will address anticompetitive practices in the meat and poultry industries. Senator Chuck Grassley says, “With the passage of this bill, my years-long beef with Big Cattle is one step closer to being settled.” The legislation would create the Office of the Special Investigator for Competition Matters within USDA’s Packers and Stockyards Division. The special investigator will have a team of investigators, with subpoena power, dedicated to preventing and addressing anticompetitive practices in the meat and poultry industries and enforcing antitrust laws. The committee also passed the Cattle Price Discovery and Transparency Act. National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane responded, “creating a duplicative, bureaucratic new special investigator role is the wrong approach.” National Farmers Union President Rob Larew says the committee action “is a welcome move towards boosting enforcement of competition laws that get to the bottom of abusive market practices.”

Dairy Farmer Calls for FMMO Update During Farm Bill Hearing

A dairy farmer told lawmakers this week the next farm bill needs milk pricing improvements. Seventh-generation Pennsylvania dairy farmer Lolly Lesher, a member of Dairy Farmers of America, testified on behalf of the cooperative and the National Milk Producers Federation during a congressional review of dairy provisions in the Farm Bill. Lesher highlighted the need for improvements to the Federal Milk Marketing Order system, as evidenced by the heavy revenue losses incurred by dairy farmers nationwide from a milk pricing change made in the previous farm bill. She says, “The change made to the Class I mover combined with the government’s heavy cheese purchases cost dairy farmers over $750 million in revenue in the last six months of 2020 alone.” The dairy industry is seeking consensus on a range of FMMO improvements, including the Class I mover, that can be taken to USDA for consideration in a federal order hearing.

NPPC Welcomes Biden Administration Siding with Farmers on Prop 12

The National Pork Producers Council welcomed a Supreme Court brief filed by the Biden administration in favor of ag groups regarding California’s Proposition 12. The state law seeks to ban the sale of pork from pigs that do not meet the state’s arbitrary production standards, including pork from pigs raised on farms outside of California. NPPC assistant vice president and general counsel Michael Formica says, “We commend the Biden administration for taking action to stop ill-considered ballot initiatives like California’s Proposition 12.” In a joint brief to the Supreme Court filed earlier this month, NPPC and the American Farm Bureau Federation argued Proposition 12 violates the U.S. Constitution’s commerce clause, which restricts states from regulating commerce outside their borders. The brief states that Proposition 12 “will require massive and costly changes across the entire $26-billion-a-year hog farming industry. And it inescapably projects California’s policy choices into every other state, a number of which expressly permit their farmers to house sows in ways inconsistent with Proposition 12.”

Clean Fuels Outlines Industry’s Beneficial Impact on Fuel Prices

Clean Fuels Alliance America Wednesday touted the benefits of biodiesel when it comes to the price at the pump to President Joe Biden and leaders in Congress. In a letter to the president and lawmakers, the organization says U.S. biodiesel and renewable diesel producers are working to extend fuel supplies and provide relief at the pump to American families. The letter expresses appreciation for the administration’s recent actions to grow Renewable Fuel Standard volumes for advanced biofuels and biomass-based diesel and provide additional infrastructure grants to improve consumer access to biodiesel. The letter states, “Our partners in the agriculture industry are investing more than $4 billion to expand the supply of renewable oils for both food and clean fuels.” The letter further highlights a recent study from the World Agricultural Economic and Environmental Service showing that U.S. biodiesel and renewable diesel production generates a four percent decrease in the price of diesel fuel.

Honey Imports Continue to Rise, Offsetting Declining U.S. Production

U.S. imports of honey continue to rise as U.S. production declines. New data from USDA Economic Research Service shows imports have exceeded domestic honey production since 2005 and accounted for 74 percent of total U.S. honey supplies in 2021. Over the last 30 years, U.S. honey production has declined by around 1.4 percent per year, while honey imports have grown by 7.6 percent per year, filling the domestic supply deficit. The top three foreign suppliers—India, Vietnam, and Argentina—supply more than 71 percent of imported honey. Honey imports have expanded with rising domestic consumption of honey and honey-sweetened products. This expansion reached an all-time high in 2021, when domestic production was at the lowest volume since 1991. In 2021, production in all three major honey-producing States—North Dakota, South Dakota, and California—were 25 percent lower than their 1991 levels, while production in the rest of the states declined by almost half during the same period.

Thursday Watch List

Markets

The U.S. Labor Department reports on weekly jobless claims at 7:30 a.m. CDT, the same time the U.S. Drought Monitor will be updated. At 9:30 a.m., the Energy Department's weekly inventory report, including ethanol production will be out, followed by USDA's monthly cold storage report at 2 p.m. CDT. Grain traders continue to inspect the latest weather forecasts and will keep an eye on outside markets and further Fed comments.

Weather

A section of an old front remains around Kansas that will be active with showers and thunderstorms on Thursday. Heat is advancing northward through the Plains and may bring some isolated showers to the Northern Plains. The heat comes ahead of the next system that is building in the Canadian Prairies. The far south remains hot with heat advisories and warnings still in place.

Number of U.S. Farms Continues Slow Decline

New data released Tuesday from USDA’s Economic Research Service shows the number of U.S. farms continues to decline slowly. After peaking at 6.8 million farms in 1935, the number of U.S. farms and ranches fell sharply through the early 1970s. Rapidly falling farm numbers in the mid-20th century reflected the growing productivity of agriculture and increased nonfarm employment opportunities. Since then, the number of U.S. farms has continued to decline, but much more slowly. In 2021, there were 2.01 million U.S. farms, down from 2.20 million in 2007. With 895 million acres of farmland nationwide in 2021, the average farm size was 445 acres, only slightly greater than the 440 acres recorded in the early 1970s. Meanwhile, technological developments in agriculture have influenced changes in the farm sector. Innovations have enabled continuing output growth without adding much to inputs. As a result, total farm output nearly tripled between 1948 and 2019.

Growers Disappointed Supreme Court Decides Not to Hear Glyphosate Case

Agriculture groups expressed disappointment regarding a Supreme Court decision denying consideration of the case Monsanto v. Hardeman, which pertains to state glyphosate health warnings. A coalition of groups issued a joint statement regarding the decision Tuesday, including the American Farm Bureau Federation, American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, and National Cotton Council. The joint statement claims, “We are disappointed the Supreme Court has decided not to hear this case, which has significant implications for our global food supply and science-based regulation.” On May 23, the groups sent a letter signed by 54 agricultural groups to President Biden urging him to withdraw a Solicitor General’s brief submitted to the Supreme Court advising against taking up the case. The Solicitor General’s brief argues federal pesticide registration and labeling requirements do not preclude states from imposing additional labeling requirements, even if those requirements run counter to federal findings.

Rural Bankers Expecting Recession

Rural bankers say they anticipate a U.S. recession, according to the latest Creighton University Rural Mainstreet Index. The region's overall reading for June slumped to 49.8, its lowest level since September 2020, and down from May's 57.7. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. Approximately 92.9 percent of rural bankers surveyed rate the likelihood of a U.S. recession above 50 percent. Only 7.1 percent rated a recession probability below 50 percent. However, on average, bank CEOs expect net farm income for grain farmers to be 12.6 percent above 2021 levels. The region's farmland price index for June advanced to 76.8 from May's 72.0, marking the 21st straight month that the index has moved above growth neutral. The June farm equipment-sales index climbed to 71.4 from May's healthy 66.9. This was the 19th straight month that the index has advanced above growth neutral.

USDA Trade Mission Underway in London

U.S. Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh (Bro-NAW) arrived Tuesday in London to launch a USDA agribusiness trade mission to the United Kingdom. Bronaugh is joined by a delegation of representatives from U.S. agribusinesses, farm organizations and state departments of agriculture, who are interested in exploring export opportunities in the United Kingdom. Bronaugh says, “The United Kingdom is a valued trading partner whose consumers demand the best quality products at a competitive price,” adding, “I’m excited for mission participants to engage with potential customers for their world-class agricultural products.” In 2021, the United Kingdom imported $1.9 billion of U.S. agricultural products, according to USDA. Trade mission participants engage directly with potential customers, receive in-depth market briefings, and participate in site visits. The USDA-sponsored trade mission to the United Kingdom is one of four international trade missions Agriculture Secretary Tom Vilsack announced in March. The United Kingdom trade mission concludes later this week.

USDA Announces Awards for Dairy Innovation Initiatives

The Department of Agriculture this week announced $80 million in awards under the Dairy Business Innovation Initiatives. The awards support processing capacity expansion, on-farm improvements, and technical assistance services to producers. The funds are being awarded non-competitively to the four current Dairy Business Innovation Initiatives at the California State University Fresno, the University of Tennessee, Vermont Agency of Agriculture, Food & Markets, and the University of Wisconsin. Additionally, USDA announced $22.9 million through a Request for Applications for funding provided by fiscal year 2022 appropriations to support the same Initiatives. The awards were made possible by supplemental funds from the American Rescue Plan Act. Jenny Lester Moffitt, USDA Undersecretary for Marketing and Regulatory Programs, says, "The Dairy Business Innovation Initiatives have proven to be an invaluable resource for dairy farmers and businesses because of their ability to provide targeted resources and funding through sub-awards at the local and regional level, maximizing impact."

Canada Cattlemen Oppose Warning Labels on Ground Beef

Canadian Cattle producers are raising concerns with Health Canada’s proposed regulations to put a front-of-package warning label on ground beef. The proposal from Health Canada is part of several changes to Canada's Food and Drug Regulations. The changes would require the usage of warning labels for foods high in sodium, sugar or saturated fat. If Health Canada moves forward with the proposed regulation, Canada will be the only country in the world to put a warning label on ground beef. This move would likely impact consumer confidence and be damaging to Quebec and other beef producers across the country. Approximately 90 percent of Canadians eat ground beef weekly, and adding a warning label on ground beef would send the wrong signal to Canadian consumers, according to the Canadian Cattlemen’s Association. Philippe Alain, CCA board member from Quebec, says, “The proposed policy change by Health Canada is misguided and will mislead consumers.”

Wednesday Watch List

Markets

Traders will continue to watch the latest weather forecasts, check for any export sales, while keeping an eye on Ukraine and outside markets. There are no significant reports out Wednesday and the Energy Department's weekly energy inventories will be out Thursday morning, due to this week's holiday schedule.

Weather

A cold front continues to move eastward across the Midwest on Wednesday with scattered showers from Kansas eastward through the Ohio Valley. Storms farther east could be strong to severe. Heavy rain also continues in the southern Rockies for the next few days, sometimes leaking into the High Plains as well, but overall showers are light. Heat continues south of the front for another day with heat advisories posted in spots from the Southern Plains to the Southeast and even ahead of the front in the Ohio Valley.

Tuesday Watch List

Markets

Back from a three-day weekend, traders will catch up on the latest weather forecasts, news from Ukraine and anything affecting outside markets. A report on U.S. existing home sales for May is due out at 9 a.m. CDT Tuesday, followed by USDA's weekly grain export inspections at 10 a.m. At 3 p.m., USDA's Crop Progress report will give an update on crop conditions and winter wheat harvest progress.

Weather

Heat that has built back into much of the country over the long holiday weekend continues across the South and eastern Midwest on Tuesday. A cold front pushing through the Midwest and into the Central Plains will bring temperatures down a few degrees. While it will have a few showers, they will be more limited today than what occurred in the Northern Plains on Monday.

Red Meat Exports Add Value to Corn and Soybean Producers

Record-level red meat exports of 18.7 billion dollars in 2021 had a major impact on the corn and soybean industries. An independent study by the Juday Group quantified the returns that red meat exports brought to corn and soybean producers in 2021 nationally and at state levels. Key findings from the 2021 export data showed that beef and pork exports accounted for 537 million bushels of corn usage, equating to 2.94 billion dollars. Pork exports accounted for 99.3 million bushels of soybean usage nationwide or the equivalent of 2.36 million metric tons of soybean meal worth 1.3 billion dollars. Beef and pork exports accounted for 3.4 million tons of DDGS usage, equating to 716 million dollars. “Beef and pork exports drive value directly back to the farm, and this study helps confirm the return on investment for all corn and soybean producers,” says U.S. Meat Export Federation Chair-elect and Iowa producer Dean Meyer.

Growers Frustrated with EPA Regarding Pesticide Impacts

American farmers are again at odds with the Environmental Protection Agency over the Endangered Species Act. The final EPA biological evaluations of neonicotinoids (Nee-oh-ni-KOH-ti-noids) and their impacts on endangered species are overly conservative and don’t use all available data. Grower groups like the American Soybean Association and the American Farm Bureau Federation are concerned the evaluations drastically overstate the impact of the pesticides on endangered species and their habitats. The groups say the evaluations for several neonicotinoid pesticides don’t incorporate scientific and commercial data that could have provided a more realistic picture of the potential impacts of the chemistries on different species. The groups pointed out the shortcomings during the public comment period, but EPA doubled down on the final evaluations. “Growers have, time-and-again, pointed EPA to real-world data to improve their endangered species assessments,” says American Soybean Association President Brad Doyle. “The agency has again chosen to disregard the data.”

Ag Groups Support the Ocean Shipping Reform Act

Ag groups positively reacted to President Biden signing the Ocean Shipping Reform Act, which will address the supply chain and shipping port issues hampering U.S. exports. “Exports add significantly to the bottom line of each producer,” says National Pork Producers Council President-Elect Scott Hayes. “More assurances that exports get safely to their destination is a big win for agriculture.” American Farm Bureau President Zippy Duvall personally spoke to President Biden last week about the legislation. “Addressing congestion at our ports and creating greater accountability for shipping companies is a positive step,” Duvall says. The National Milk Producers Federation and the U.S. Dairy Export Council both applauded the bill getting signed into law. “We’re asking the Federal Maritime Commission to implement these rules quickly and begin to conduct the new oversight to end the unfair practices that have impeded American dairy products from efficiently getting to their overseas customers,” says NMPF President Jim Mulhern.

USDA Receives Overwhelming Interest in Climate-Smart Commodities

The USDA says the second funding pool through the Partnerships for Climate-Smart Commodities opportunity received over 600 applications from more than 400 groups. While USDA is calculating the final numbers, the overall interest in the opportunity already exceeds more than $18 billion. “The results of the second funding pool clearly demonstrate the strong demand in the U.S. agriculture and forestry industry for solutions that expand markets for American producers and forest landowners, particularly those that are small or historically underserved,” says USDA Undersecretary for Farm Production and Conservation Robert Bonnie. “The second round of funding received significantly more applications than the first, and we’re looking forward to going through the large pool of applications.” The second funding pool was designed to support proposals between $250,000 and $5 million that emphasize the enrollment of small and-or underserved producers. The proposals could also include monitoring, reporting, and verifying activities developed at minority-serving institutions.  

U.S. Dairy Industry Signs MOU to Continue Sustainability Commitment

The USDA and the Innovation Center for U.S. Dairy signed a Memorandum of Understanding to continue working toward the dairy industry’s 2050 environmental stewardship goals. The MOU also addresses growing consumer demand for food produced in a way that’s good for the planet. The MOU extends and builds upon a pact originally signed in 2008. “In renewing this agreement with the Innovation Center for U.S. Dairy, USDA is recommitting to our vital work with dairy farmers to reduce methane emissions and improve the sustainability of their operations,” says USDA Deputy Secretary of Agriculture Jewell Bronaugh (bro-NAW). “We’ve seen tremendous interest in the production of climate-smart commodities, and the dairy industry is on the leading edge of that effort. The MOU builds on that effort” The Innovation Center’s 2050 environmental stewardship goals include achieving GHG neutrality, optimizing water use while maximizing recycling, and improving water quality by optimizing utilization of manure and nutrients.

Cattle Industry Fighting SEC Climate Rule

The National Cattlemen’s Beef Association filed comments on the Securities and Exchange Commission’s controversial greenhouse gas disclosure rule. The rule would require publicly-traded companies to disclose their direct, energy-electricity consumption, and supply chain emissions, creating a burden on cattle producers who supply beef to publicly-traded processors, restaurants, and retailers. “With cattle producers facing record inflation, rising input costs, and labor shortages, another bureaucratic rule is a burden we cannot afford,” says NCBA President Don Schiefelbein. “Policymakers should be focused on lowering costs and solving real problems facing agriculture, not creating more complex rules that require a team of lawyers to understand.” While the proposal is aimed at public companies, it would place a burden on cattle producers who supply beef to public entities. The federal government has also acknowledged that accurately calculating emissions on the farm or ranch level is impossible. EPA and USDA metrics are already calculated and should satisfy federal regulators.

Mixed Reaction to House Passage of Special Investigator Bill

The National Cattlemen’s Beef Association expressed strong disappointment after the House of Representatives passed the Lower Food and Fuel Costs Act. Their disappointment is because the bill incorporates the Meat and Poultry Special Investigator Act. NCBA VP of Government Affairs Ethan Lane says Congress is focused on political posturing through the Special Investigator Bill. NCBA says the investigator position will duplicate the work already being done by other federal agencies. House Ag Chair David Scott says the bill will ensure fair competition in the meat and poultry sectors, increase options at the pump, and provide support to America’s ag sector and food supply chain. The bill will permanently lift barriers to year-round sales of E15, something Growth Energy says would enable more access to a lower-cost, lower-emission option for hardworking families. “We’ve recently seen E15 deliver savings approaching 60 cents per gallon in some parts of the country,” says CEO Emily Skor.

House GOP Bill Targets Biden Ag Policies

House Ag Committee Ranking Member Glenn Thompson of Pennsylvania introduced a bill this week that Fox News says would “strike back” at several of the administration’s agricultural policies. It would also strike down a recently-proposed rule from the Securities and Exchange Commission that could potentially harm small farms. Thompson is introducing the bill with more than 20 cosponsors during a time when America is dealing with significant inflation, especially in food prices. The bill has several provisions that Thompson says would help in many ways, including rescinding the SEC Scope Three reporting rule. The rule requires public companies to report information like it’s carbon emissions but also from sources up and down their supply chains. Thompson’s bill also includes several provisions relating to fertilizer, including reinstating the National Environmental Policy Act of 2020, which would streamline mineral extraction for fertilizer production. The bill also reinstates the Trump-era Waters of the U.S. rule.

Eggs Costing $12 Per Dozen is “Unrealistic”

There’s no question a highly-contagious bird flu outbreak is reducing the size of the U.S. chicken flock and driving up the cost of eggs nationwide. Some social media claims say USDA predicts eggs will be $12 per dozen by this fall. Jennifer Smits, director of communications for the USDA’s Economic Research Service, says that USDA isn’t predicting eggs will be $12 per dozen later this year. Smith points out in USA Today that while the ERS does predict and follow agriculture and food trends, they don’t forecast specific retail egg prices. As of June 10, Federal Reserve economic data says the average price of a dozen Grade A large eggs in the U.S. was $2.86, and prices are predicted to dip to $1.70 per dozen in the fourth quarter of 2022. The inconsistent supply of eggs is driving up the cost this year, while overall food prices are 9.4 percent higher than 2021.

Arkansas Signs Major Pact with Israel

Israel, which has recently become a world leader in agricultural technology, signed a major economic pact with Arkansas. The two will share their research and technology, especially for agriculture, and that will broaden a trade relationship that’s already worth hundreds of millions of dollars. Trade between them last year reached more than $100 million dollars. Both sides have also benefited from agricultural and scientific research grants worth more than $400,000 since their partnership started in 2017. The Washington Free Beacon says a 2019 review of one agricultural grant between the two sides shows an economic partnership during the past four decades that’s added billions to the U.S. economy. Though much of Israel is desert and lacks water, the country has learned to grow some of the highest-yielding agricultural products, including tomatoes and cow’s milk. Agriculture is Arkansas’s largest industry, adding approximately $16 billion to the state’s economy every year.

Brazil Expecting Large Second-Corn Crop Despite Weather Concerns

Brazil’s second corn crop, called the safrina crop, is predicted to produce 3.4 billion bushels during the 2021-2022 crop season. Farmdoc from the University of Illinois says that’s 45 percent higher than the 2.4 billion harvested last year when drought hit Brazil. A harvest of 3.4 billion bushels this year would set a record. Data from Conab says the country may produce a historic crop even though April and May were drier than normal. The overall harvest of the second-corn crop is less than 10 percent complete. This year’s second-corn harvest began in Mato Grosso (MAH-toe GRAHS-so), the largest corn producer in Brazil, which accounts for almost half of the country’s production. Approximately 16 percent of the corn harvest in Mato Grosso is complete as of June 10, and yields are expected to be around 97.5 bushels an acre. Parana, the second-largest corn producer, currently has 80 percent of its fields in good condition.

FSA Accepting Nominations for County Committees

The USDA’s Farm Service Agency is now accepting nominations for local county committee members. County committee members make important decisions about how federal farm programs get administered on a local level. All of the nomination forms for the 2022 election must be postmarked or received in the local FSA office by August 1. “it’s a priority for USDA to integrate equity into its decision-making and policymaking,” says FSA Administrator Zach Ducheneaux. “That starts with our local county committees.” He also says they’re looking for enthusiastic, diverse leaders willing to serve other agricultural producers. Ag producers who participate or cooperate in a USDA program and reside in the Local Administrative Area that’s up for election can be nominated for candidacy. A cooperating producer is someone who has provided information about their farming or ranching operations to FSA, even if they haven’t applied for or received program benefits. Nationwide, 7,000 people serve on various county committees.

Friday Watch List

Markets

The Federal Reserve's report on industrial production in May is due out at 8:15 a.m. CDT Friday, followed by the Conference Board's U.S. index of leading indicators at 9 a.m. Traders will remain attuned to the latest weather forecasts, any news of an export sale, updates from Ukraine and the stock market. U.S. futures markets close at their normal times Friday and open next at 7 p.m. CDT Monday, allowing for a new national holiday, Juneteenth.

Weather

A frontal boundary became active over Missouri and Illinois Thursday night. Thunderstorm clusters are strong early Friday morning and pushing southeast into the Tennessee Valley. We will likely see that continuing through to the Southeast throughout the day and may remain strong. Cool temperatures are building north of this cluster and front across the eastern Midwest. But heat is starting to build back across the Northern Plains, becoming very hot over the weekend.

Other Food Sectors Welcome Ocean Shipping Reform Act

Agriculture groups responded positively to the passing of the Ocean Shipping Reform Act, along with industry representatives from the food and restaurant sectors. President Joe Biden was slated to sign the legislation into law Thursday (this) afternoon. The legislation should help address long-standing and systemic port disruptions impacting costs throughout the supply chain. Sean Kennedy of the National Restaurant Association says, “After months of advocating with our supply chain partners for these changes, we hope modernization of the Ocean Shipping Act will help reduce shipping costs and improve supply chain challenges.” Tom Madrecki with the Consumer Brands Association adds, “Decisive policy action is critical to combatting supply chain challenges as the consumer packaged goods industry continues to grapple with unprecedented production and shipping costs.” The association contends that the pandemic and subsequent disruptions highlighted the fragility of the complex supply chain system, the need to modernize decades-old ocean regulations, and unfair practices that hurt American manufacturers, farmers and consumers.

Farmers Union Urges Congressional Support Lower Food and Fuel Costs Act

In a letter to Congress Wednesday, National Farmers Union expressed support for the Lower Food and Fuel Costs Act and urged Members to support the bill. The legislation, NFU says, will provide fairness to farmers, lower prices for consumers, and fight back against decades of consolidation in agriculture. House lawmakers are considering the legislative package Thursday (today). National Farmers Union President Rob Larew says, “Farmers Union members are in strong support of bolstering USDA’s ability to investigate consolidation in the livestock industry.” The legislation would create a special investigator’s office at the Department of Agriculture to explore the issue. However, that issue has House Republicans and Democrats divided on the legislation. National Farmers Union also supports the provisions to expand processing capacity that will offer ranchers more opportunities to get their products to their communities. Another provision of the bill would make year-round E-15 sales permanent, also supported by NFU.

APHIS Announces New Resources Aimed at Preventing ASF Spread

USDA’s Animal and Plant Health Inspection Service Wednesday announced new efforts to prevent the introduction and spread of African swine fever in the United States. Through a campaign called Protect Our Pigs, APHIS will support pork producers, veterinarians, and pig owners with information and resources to help safeguard the swine population and the pork industry. APHIS is deploying a variety of outreach efforts to support these critical stakeholders. The new Protect Our Pigs page on the APHIS website will house materials such as downloadable fact sheets and posters, instructional videos, shareable social media graphics, a new interactive biosecurity guide, and offer the latest disease updates. Dr. Jack Shere, Associate Administrator at APHIS, says, “USDA is working every day to stop this disease from breaching our borders and the Protect Our Pigs campaign is just one of many ways we are doing that.” African swine fever is estimated to cost the U.S. $50 billion over ten years, if detected.

Vilsack Traveling to New Hampshire Friday

Agriculture Secretary Tom Vilsack will visit New Hampshire Friday to tout work by the Biden Administration to transform the nation’s food system. Vilsack will join Senator Maggie Hassan, a New Hampshire Democrat, at Brookdale Fruit Farm, a local family-owned and operated farm. The farm is one of the state's largest retail, pick-your-own, and wholesale growers of fruits and vegetables. USDA says the event will underscore its commitment to increase competition, bolster access to healthy, affordable food, ensure growers and workers receive a greater share of the food dollar, and advance equity as well as climate resilience and mitigation. In addition, Vilsack will make an announcement to help reduce costs for farmers and support local economies by providing funding to cut regulatory costs and increase market opportunities for farmers. That action, USDA says, will help build fair and transparent food systems rooted in local and regional production and create jobs.

Bronaugh to Lead United Kingdom Trade Mission

Representatives from 37 U.S. agribusinesses and farm organizations will join Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh for an agribusiness trade mission to London, June 22-24. Participants will engage directly with foreign buyers, receive in-depth market briefs from the Foreign Agricultural Service and industry trade experts, and participate in site visits. Bronaugh says, “I’m very excited to lead a delegation to the United Kingdom, one of our top trading partners,” adding, “The United Kingdom presents strong marketing opportunities for many U.S. consumer-oriented products.” U.S. agricultural exports to the United Kingdom totaled $1.9 billion in 2021. In addition to representatives from the following companies and organizations, Bronaugh will be joined by officials from the Georgia, Indiana, Maine, Massachusetts, Montana, New Mexico, North Dakota, Oregon, Pennsylvania, Texas, Washington, and Wisconsin departments of agriculture. The USDA-sponsored trade mission to the U.K. is one of four international trade missions Agriculture Secretary Tom Vilsack announced in March.

Argentina Not Likely to Increase Wheat Exports

It appears Argentina won’t be able to capitalize on the interruption of wheat supplies from the Black Sea, according to AgriCensus, a London-based Price Reporting Agency. The agency says weather, inflation and political uncertainty all combine to be detrimental to wheat exports for the nation. Argentine farmers face dry conditions with the second consecutive La Nina and worries of a third consecutive event. Initial estimates have the 2022/23 crop size at 20.5 million metric tons, down from the previous crop year’s record high of 22.4 million metric tons, with further cuts possible. Argentine farmers are reportedly cutting wheat acres in favor of barley, which is cheaper to grow. Input costs are another factor, as one analyst tells the agency, "This year there are going to be less hectares planted with wheat and less use in fertilizers this season." And the Argentine government has imposed a series of protective measures to tackle ever-rising domestic inflation levels in the country.

Thursday Watch List

Markets

USDA's weekly export sales report is set for Thursday at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, U.S. housing starts in May and an update of the U.S. Drought Monitor. At 9:30 a.m., the U.S. Energy Department releases its weekly report of natural gas storage and at 2 p.m., USDA's monthly Livestock, Dairy and Poultry report will be released.

Weather

A front that has been working across the northern tier of the country over the past few days will continue to shift through the eastern Midwest on Thursday. The tail end of it has stalled across Nebraska and Kansas. Both sections of the front will be active today, with potential for severe storms. The front marks the difference between a mild north and hot south for Thursday. Strong winds that flowed across the Northern Plains on Wednesday continue across the northern Midwest on Thursday, though not quite as strong.

Farm Groups Welcome Passage of Ocean Shipping Reform Act

The House of Representatives Monday sent the Ocean Shipping Reform Act to President Biden for signature. Agriculture groups responded positively, heralding the legislation that improves the oversight of ocean shipping. The bill will address many maritime disruptions obstructing the import and export of U.S. products at American ports over the past several years. American Farm Bureau Federation President Zippy Duvall says, “I was pleased to team up with President Biden to urge passage and look forward to him quickly signing the Ocean Shipping Reform Act.” U.S. Meat Export Federation President and CEO Dan Halstrom welcomed the passage, saying, “This legislation takes important steps forward in improving the shipping services available to U.S. exporters.” American Feed Industry Association CEO Constance Cullman adds, “passage of the Ocean Shipping Reform Act signals a course correction that will enable our industry to continue providing these essential goods to the global marketplace in a timely, cost-efficient way.”

USDA Extends Comment Period on Fertilizer Supply Chain Issues

The Department of Agriculture Tuesday extended the comment deadline regarding its “Access to Fertilizer: Competition and Supply Chain Concerns” Federal Register notice. Published in the Federal Register in March, the previous deadlines for comments were May 16, and June 15, 2022. USDA extended the comment deadline another month to July 15, 2022. Andy Green, USDA's Senior Advisor for Fair and Competitive Markets, says the new deadline allows "commenters to provide additional feedback regarding the role of capacity expansion and related strategies to directly enhance competition in the fertilizer market." Through the effort, USDA is seeking information on what obstacles exist to financing and developing new fertilizer capacity, expanding fertilizer manufacturing, and what other threats the fertilizer sector faces. In March, USDA announced plans for a $250 million investment in grants to support additional fertilizer production for farmers to address rising costs and spur competition. Fertilizer prices have more than doubled since last year.

Rep. Sharice Davids Assigned to House Ag Committee

The House Democratic Steering and Policy Committee recommended Representative Sharice Davids to join the House Agriculture Committee this week. The Kansas Democrat says, “I’m honored to have the opportunity to serve Kansans on the Agriculture Committee, especially as we gear up to consider the next Farm Bill.” Kansas Farm Bureau President Rich Felts says, “I know Representative Davids will be a strong voice on the committee for her constituents and Kansas agriculture” for the remainder of the current session of Congress. House Agriculture Committee Chairman David Scott says, “I am pleased to welcome her voice to our Committee.” Davids continues to serve as Vice-Chair of the Transportation and Infrastructure Committee and on the Small Business Committee, chairing the Subcommittee on Economic Growth, Tax, and Capital Access. The recommendation now goes to the full Democratic Caucus for approval. If approved, Davids will join Kansas Republican Representative Tracey Mann on the Committee.

Federal Government Primary Funder of US Ag Research

The Federal Government provides 64 percent of public agricultural research and development funding in the United States. USDA’s Economic Research Service released new data on ag research Tuesday. The data shows state governments and non-governmental sources, including funds generated by universities, account for the other 36 percent of funds for public agricultural R&D. Federal funds are delivered via external grants to universities and other cooperating institutions, and through appropriations to USDA agencies. Most of the federal funding for agricultural research performed by non-Federal institutions is managed by USDA's National Institute of Food and Agriculture. NIFA allocates the funds through grants to land grant and minority-serving institutions and through competitive grants open to all universities. Of the $1.6 billion in agricultural research by USDA research agencies, about $165 million was allocated to cooperative research agreements with universities. The National Science Foundation, National Institutes of Health, and other federal agencies are also important funders of agricultural research and development.

USDA Strengthens Partnerships with 1890s Universities

Agriculture Secretary Tom Vilsack and Dr. Paul Jones, Chair of the 1890s Presidents Council, signed a Memorandum of Understanding (MOU) to reaffirm and strengthen their ongoing relationship. The 1890s Presidents Council is an organization comprised of presidents and chancellors of historically Black colleges and universities. The MOU also establishes a new 1890 Task Force that will inject energy into USDA's efforts to collaborate with 1890s institutions in the food, agriculture and forestry sectors. The MOU signing followed discussions between USDA leadership and the 1890s Presidents Council as part of continued engagement and discussions with higher education associations to enhance USDA partnerships and investments with Minority-Serving Institutions. Secretary Vilsack states, "This signing reinforces USDA's commitment to our partners at the 1890s institutions." The 1890 Land-Grant institutions were established under the Second Morrill Act of 1890. USDA has a long history of investing in and supporting the nation's 1890 Land-Grant Institutions, which have been leaders in scientific innovation.

ASTA Releases Cover Crop, Conservation Resource

The American Seed Trade Association released an updated tool for farmers and landowners this week. ASTA updated a guide that helps farmers easily locate and contact professional seed suppliers for quality environmental, conservation, and cover crop seed. The interactive Conservation, Environmental, and Cover Crop Seed Resource Guide allows buyers to find lists of specific seed types by geographic location to support production and sustainability goals. ASTA President & CEO Andy LaVigne says, “Professionally produced and processed seed is designed to help farmers achieve success through managing the use of the right seed, at the right place, at the right time.” Professionally produced seeds are selected, harvested, cleaned, analyzed, processed, packaged for performance, and tested for purity and germination. Those steps, LaVigne says, “helps ensure you get the best quality seed to meet your production and sustainability goals.” You can find the resource on the ASTA website, betterseed.org.

Wednesday Watch List

Markets

A report on U.S. retail sales in May is set for Wednesday at 7:30 a.m. CDT. The U.S. Energy Department releases its weekly report of energy inventories, including ethanol production at 9:30 a.m. The latest weather forecasts remain important to traders and everyone is leery of outside market influences with the Federal Reserve's announcement and expected rate hike due out at 1 p.m. CDT Wednesday.

Weather

A front moving across the North-Central U.S. continues to produce areas of showers and thunderstorms. On Wednesday, storms will be concentrated in the Upper Midwest and may be strong to severe from Iowa into Wisconsin and adjacent areas of Minnesota and Illinois. All hazards will be possible and some significant damage may be possible. Additional thunderstorms will pop up in the Southeast later today with a threat for severe weather as well. Heat continues south and east of the front, hastening crop growth. Behind the front, temperatures are much cooler but winds are picking up and will be breezy across the Northern Plains.

AFBF and NPPC Tell Supreme Court Proposition 12 is Unconstitutional

The American Farm Bureau Federation and National Pork Producers Council filed a brief with the U.S. Supreme Court challenging the constitutionality of California’s Proposition 12. The state law seeks to ban the sale of pork from hogs that don’t meet the state’s arbitrary production standards, even if the pork was raised on farms outside of California. AFBF and NPPC argue Proposition 12 violates the constitution’s Commerce Clause, which restricts states from regulating commerce outside their borders. The brief states Proposition 12 “will require massive and costly changes across the entire $26-billion-a-year industry. And it inescapably projects California’s policy choices into every other State, a number of which expressly permit their farmers to house sows in ways inconsistent with Proposition 12.” NPPC and AFBF assert Proposition 12 unconstitutionally regulates commerce outside of California, governs activity outside of California’s borders and beyond its police powers, and imposes substantial burdens on out-of-state farmers and their customers.

Consumers Spend More on Food Away From Home in 2021

Consumers in the United States returned to pre-pandemic trends, purchasing more food away from home than food purchases intended for consumption at home. USDA’s Economic Research Service released the data Monday, which shows food away from home spending increased 21.1 percent in 2021 from the previous year. Food at home spending also increased, up four percent in 2021. In 2020, during the COVID-19 pandemic, real total food expenditures fell 6.6 percent from 2019. U.S. consumers’ food-spending patterns changed as efforts were made to limit the spread of COVID-19, which included stay-at-home orders. Food away from home spending decreased by 15.8 percent in 2020, while food at home spending increased by 3.9 percent. In 2021, real total food expenditures increased 12.2 percent from 2020. USDA describes food at home as food intended for off-premise consumption from retailers, and food away from home as food consumed at outlets such as restaurants or cafeterias.

Clean Fuels Applauds Chevron on Completion Acquiring Renewable Energy Group

Clean Fuels Alliance America CEO Donnell Rehagen welcomed news Monday that Chevron finalized its acquisition of Renewable Energy Group, a longtime Clean Fuels Alliance America member. As the acquisition is finalized, Chad Stone of Renewable Energy Group will continue to lead the Clean Fuels Governing Board as chair. Rehagen says, “This is a meaningful acquisition for our industry and for Clean Fuels for many reasons.” The company was one of the first to build a biodiesel plant in the United States. With 11 biorefineries in the U.S. and Europe and more than half a billion gallons of production of biodiesel and renewable diesel, Renewable Energy Group is also one of Clean Fuels’ largest members in terms of fuel production. California-based Chevron has steadily grown its clean fuels business, actively marketing its Renewable Diesel Blend at the pump in California. Renewable Energy Group will remain headquartered in Ames, Iowa, and will focus on growing Chevron's portfolio of lower-carbon fuels.

U.S. Ag Tractor, Combine Sales Fall Below Five-Year Average in May 2022

U.S. tractor and combine monthly unit sales in May 2022 fell below the five-year average for the first time since March 2020, while Canadian sales remained above the line. The Association of Equipment Manufacturers released the monthly data last week, which shows U.S. total farm tractor sales fell 14.5 percent for the month of May compared to 2021, and U.S. combine sales for the month declined 12.7 percent to 315 units sold. Total farm tractor sales and combine sales are both down 14.2 percent year-to-date. In Canada, unit sales fell 11.3 percent, and combine sales fell 28.4 percent. Year-to-date farm tractor unit sales are down 8.6 percent in Canada, while harvesters are down 28.1 percent. AEM’s Curt Blades says, “Supply chain remains the primary issue in the ag equipment market right now.” Blades points out another thing to keep in mind, especially when comparing numbers year-over-year, is 2021 sales were significantly above historic trends.

FFA Members Prepare for Careers in Plant Systems Pathways

This summer, 45 FFA members from across the country will arrive in St. Louis, Missouri, to explore careers in the plant industry. It’s all part of the Next Gen Conference offered by the National FFA Organization. The conference, which began in 2020, focuses on pathways from animal systems to biotechnology systems members might be interested in. The inaugural conference was held in February 2020 and put on hold for the past two years due to the COVID-19 pandemic. During the event, members will access new ideas, trends and opportunities that will connect them directly with industry leaders during the conference. The conference is designed specifically to give FFA members hands-on, industry-relevant experience. Members will also explore diverse plant operations around St. Louis and learn how to plan for their future careers. An FFA spokesperson says, “This year’s conference will help us cultivate future leaders in the plant systems pathway through a week of experiential learning, relevant education and networking.”

Gas Prices Surge Take National Average Above $5/Gallon

The nation's average gas price climbed for the eighth straight week, jumping 15.7 cents from a week ago to $5.01 per gallon. The national average is up 57.1 cents from a month ago and $1.94 per gallon higher than a year ago. The national average diesel price increased 13.8 cents in the last week and stands at $5.77 per gallon. Last week saw the national average reaching the $5 per gallon mark, with the most common gas price at $4.99 per gallon, up 50 cents from last week. GasBuddy's Patrick De Haan says, “For now, the upward momentum may slow down, but we are still just one potential jolt to supply away from heading even higher.” De Haan adds, “Should the rise in price finally start to slow demand’s rise, we could see some breathing room, but for now, it seems like Americans are proving resilient to record highs.”

Tuesday Watch List

Markets

The U.S. Labor Department will report on producer prices for May at 7:30 a.m. CDT Tuesday, one day before the Federal Reserve is expected to raise the federal funds target by a half-percent or possibly more. Traders will continue to keep close watch on the latest weather forecasts and any news regarding Ukraine with winter wheat harvest season approaching.

Weather

Heat has built in across a large area of the country east of the Rockies, but a cold front that is moving through the Northern Plains will bring temperatures down across northern areas through the week. On Tuesday, that front moves through Nebraska and the Upper Midwest. Thunderstorms have been active since last night across the Dakotas and continue this morning, getting into northwest Minnesota as well. More thunderstorms are expected to develop this evening and overnight along the front in Nebraska, Iowa, and southern Minnesota and could be severe with strong winds and large hail.

Smithfield Foods Closing Plant in California

Smithfield Foods says it will stop all harvest and processing operations in Vernon, California, in early 2023 due to the rising cost of doing business in the state. At the same time, the company will align its hog production system by reducing its sow herd in the western region. The company will shrink the size of its sow herd in Utah and is looking at options to exit its farms in Arizona and California. Smithfield harvests only company-owned hogs in Vernon. “We are grateful to our team members in the Western region for their dedication and invaluable contributions to our mission,” says Smithfield Chief Operating Officer Brady Stewart. “We are committed to providing financial and other transition assistance to employees impacted by this difficult decision.” The transition options for employees include relocation options to other company facilities and farms and retention incentives to ensure the business stays in operation until next year.

Dairy Leader Wants More Congressional Focus on Trade

Sheryl Meshke (MESH-key), CEO of Associated Milk Producers Incorporated, told a Senate subcommittee that the government must pursue expanded trade opportunities. The U.S. dairy industry is asking Congress to pursue additional market access opportunities and address export supply-chain delays so that the U.S. dairy industry can keep up with its global competitors. Meshke serves on the board of directors for the National Milk Producers Federation and the U.S. Dairy Export Council. “In pursuing exports, the U.S dairy industry faces experienced and well-established competitors who’ve been very active with free trade agreements,” Meshke said in testimony before the Subcommittee on Commodities, Risk Management, and Trade. She says the global playing field is slowly tilting against the U.S. due to competitors’ trade agreements with key dairy import markets. U.S. trade negotiators should also look for more access to priority markets like Southeast Asia, Japan, China, the Middle East, and the United Kingdom.

Corn Yield Unchanged in June WASDE Report

The June World Ag Supply and Demand Estimate report is calling for a U.S. corn planted area and yield forecast unchanged from May. This month’s 2022-2023 corn outlook is for larger beginning stocks, slightly higher use, and increased ending stocks. USDA will release its survey-based Acreage report on June 30. Corn’s season-average farm price is unchanged at $6.75 a bushel. The soybean supply and use projections include lower beginning and ending stocks and higher prices. Soybean export projections are raised 30 million bushels to 2.17 billion, reflecting strong export sales and reduced Brazilian exports. Soybean ending stocks are projected to be 280 million bushels, down 30 million from last month. The soybean season-average price is forecast at $14.70 a bushel, 30 cents higher than last month. The wheat outlook is for increased supplies, unchanged domestic use and exports, and higher stocks. All-wheat production is forecast at 1.7 billion bushels, with the season-average price unchanged at $10.75 a bushel.

Growth Energy Testifies on Advanced Clean Cars Regulation

Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley (BLY-lee) testified last week before the California Air Resources Board. He spoke to the board in response to its proposed Advanced Clean Cars II Regulation. The proposal set a goal of 100 percent zero-emission vehicle sales by 2035. During his testimony, Bliley encouraged CARB to develop clear policies reflecting the reality that liquid fuels will continue to play an important role in the transportation sector for decades. “In the existing light-duty fleet, higher bioethanol blends like E15 and E85 can get immediately deployed to achieve immediate GHG reductions, reduce harmful air toxics, and reduce consumer costs at the pump,” says Bliley. “Additionally, greater use of E85 will promote even further reductions in GHG and toxic emissions, as well as lower consumer costs because it sells for nearly $2 less per gallon than gasoline.” Consumers are facing record-high gas prices at the pump.

NCGA Celebrates June Dairy Month

June is National Dairy Month, and the National Corn Growers Association is celebrating the occasion by focusing on the relationship between the corn and dairy industries. Dairy cattle consume 30 percent of the dried distiller’s grains with solubles that are a co-product of producing ethanol. In 2021, DDGs used 1.05 billion bushels of corn. The NCGA engages with the dairy industry through the Innovation Center for U.S. Dairy, which recently hosted the 2022 Dairy Sustainability Alliance Spring Meeting in Illinois. NCGA’s Market Development Manager Michael Granche (GRAHN-chay) attended the conference and says it was great to take part in the high-energy conversations. “I enjoyed talking about sustainability in the dairy industry,” Granche says. “Now that it’s National Dairy Month, it’s a great time to celebrate all the hard work that goes into producing all the delicious dairy products we enjoy.” NCGA also says there are currently 93 million dairy cows in the U.S.

2022 “Rock the Crop” Concert Sweepstakes Underway

Firestone Ag kicked off the 2022 Rock the Crop Concert Sweepstakes with Nashville-based country music artist Dillon Carmichael. The sweepstakes event is billed as a celebration of U.S. agriculture. Building on a successful giveaway of a private concert last year, the farm tire manufacturer and the musician are collaborating again to unite music and agriculture in honor of America’s hard-working farmers and ranchers. “The past couple of years have been especially challenging for agriculture workers, so we’re excited to have Dillon Carmichael back on board to join us in thanking one lucky farmer or rancher with a private concert,” says Matt Frank, Firestone marketing product manager. Indiana farmer Carey Garwood won the inaugural concert in 2021. This year’s winner will host that private concert with Carmichael on their farm or ranch. “I’m thrilled to continue this partnership with Firestone and to have such a unique opportunity to personally celebrate America’s farmers,” Carmichael says.

Monday Watch List

Markets

Back from the weekend, traders will be examining the latest weather forecasts, especially as the outlook turned hotter late last week. Friday's WASDE estimates may still have some influence on trading and at 10 a.m. CDT, USDA's weekly report of grain export inspections will get attention, especially for soybeans where shipments have been lacking. At 3 p.m., USDA's Crop Progress report will include soybean and spring wheat crop conditions for the first time this season.

Weather

Heat advisories and warnings cover much of the country east of the Rockies over the next couple of days ahead of a storm system building in the Northern Plains and Canadian Prairies. This storm is bringing a warm front north through the North-Central U.S. with scattered showers and thunderstorms Monday morning. A cluster of these storms around southern Minnesota may last through the morning and become a line of severe storms across Iowa and Wisconsin and points southeast through Ohio later in the day. There is a significant risk of wind damage from these storms.

Biden Nominates McKalip to Ag Trade Post

President Biden will nominate Doug McKalip as the U.S. Trade Representative’s next chief agricultural negotiator. McKalip is a longtime USDA advisor and expert in agriculture and trade. The nominee has served as the senior advisor to Ag Secretary Tom Vilsack on trade, national security, and animal and plant health regulations since March 2021. Reuters says U.S. Trade Representative Katherine Tai calls McKalip a highly-qualified nominee with decades of experience in public service. “His institutional knowledge of USDA spans multiple administrations, from leading different offices to serving as a trusted adviser to Secretary Vilsack,” Tai says, “and he will help us continue the close collaboration between our agencies that’s enabled a lot of success.” The chief ag negotiator directs USTR’s negotiations aimed at boosting U.S. farm exports, such as the recent agreement allowing more American beef exports to flow into Japan. McKalip is in year 28 of working with the USDA.

Groups, Officials React Positively to McKalip Nomination

Many of agriculture’s leading groups and officials are reacting positively to the expected nomination of Doug McKalip to be the chief agricultural negotiator with the U.S. Trade Representative’s Office. McKalip has been a key agriculture policy official for three decades, and Ag Secretary Tom Vilsack says that makes him a great choice for the post. The U.S. Grains Council says McKalip will be able to use his strong background in farm and trade policy and his knowledge of biotechnology to advance U.S. global trade priorities. American Soybean Association CEO Stephen Censky says, “Doug understands the challenges facing agriculture, and we’re glad to have his expertise added to the USTR team.” Brian Kuehl of Farmers for Free Trade says McKalip is “well prepared for fighting for the needs of our nation’s farm and food interests.” The National Corn Growers Association is also pleased to see this nomination in place, as is the National Milk Producers Federation.

Commodity Classic Names New Show Director

Commodity Classic announced that Maureen Feck is the new Show Director and begins her new position on July 1. She comes to Commodity Classic from the True Value Company, where she was the Senior Director of Meetings and Events. In her prior role, Feck worked in the hardware and tools industry and grew attendance in bi-annual, city-wide conventions by 18 percent over two years. She developed events that are strategically focused on creating positive experiences for the people in attendance. Feck brings more than 15 years of hands-on event, communications, and management experience. She’ll play an integral role in the continued growth and innovation of agriculture’s premier trade and educational show. Her educational background includes a bachelor’s degree in communications from Purdue University in West Lafayette, Indiana. Her first Commodity Classic in the new role is scheduled for March 9-11, 2023, in Orlando, Florida. For more information on the event, go to commodityclassic.com.

Another Billion-Dollar Month for Beef Exports

The U.S. Meat Export Federation says U.S. beef exports maintained a remarkable pace in April, surpassing $1 billion for the third time in 2022. Beef exports totaled just over 124,400 metric tons in April, three percent higher than last year and the fifth-largest total on record, Export values soared 33 percent higher than last year to $1.05 billion. That trails only the record $1.07 billion total from March. “Global demand for U.S. beef continues to overcome enormous obstacles like inflationary pressures, logistical challenges, and recent lockdowns in China,” says USMEF President and CEO Dan Halstrom. April pork exports totaled 212,800 metric tons, 21 percent less than the large volume reported last year. Pork export value dropped 20 percent from a year ago to just over $600 million. Exports to top destination Mexico continue to run strong while a sharp decline in Chinese demand weighs on the market. April lamb exports increased 37 percent from 2021.

USDA Releases Poultry Tournament Rule

The USDA’s Agricultural Marketing Service released its long-awaited proposed changes to regulations under the Packers and Stockyards Act regarding the U.S. poultry industry. The changes include a list of disclosures and information live poultry dealers must furnish to poultry growers and sellers with whom the dealers make poultry-growing arrangements. “The proposal would establish additional disclosure requirements in connection with the use of poultry grower ranking systems to live poultry dealers to determine settlement payments for poultry growers,” says AMS. “The proposals are intended to promote transparency in poultry production contracting and give poultry growers and prospective poultry growers relevant information to help them make business decisions.” The Hagstrom Report says comments on the rule and other information collection aspects of it must get received by August 8. A National Chicken Council spokesman says the group is still evaluating the rule and its potential impact on the industry, but they will comment on the proposal.

Minnesota Farm is New U.S. Wheat Associates Chair

Rhonda Larson of East Grand Forks, Minnesota, started her term as Chair of the U.S. Wheat Associates Board of Directors on June 8 at the group’s annual meeting in Bend, Oregon. Michael Peters of Oklahoma is the new Vice-Chair, Clark Hamilton is the Secretary-Treasurer, and Darren Padget will serve for one year as the Past Chair. USW is the market development organization for the U.S. wheat industry. “I want to thank the entire wheat family for their support,” Larson said to the board of directors. “We heard a lot here about the challenges we face, but with your help, I look forward to representing wheat farmers in overseas markets.” She will represent growers at the World Trade Organization’s 12th Ministerial Meeting in Geneva, Switzerland, June 12-15. Larson has been a board member of the Minnesota Wheat Research & Promotion Council for 17 years, serving as chair from 2010 to 2012.

Friday Watch List

Markets

The U.S. Labor Department's consumer price index for May is due out at 7:30 a.m. CDT Friday and could shake up outside markets, followed by the University of Michigan's consumer sentiment index at 9 a.m. USDA's June WASDE and Crop Production reports at 11 a.m. don't normally shake prices up much but will add to the conversation of trying to get a handle on the bullish demand prices have been hinting at. Traders will also be watching the latest weather forecasts with talk of hotter U.S. temperatures on the way.

Weather

A cluster of thunderstorms that built across Oklahoma Thursday night will continue to trek east-southeast through the Delta on Friday. Risks for damaging wind gusts are rather high with the cluster and could bring some damage to the region. Lighter showers and thunderstorms will work across the Midwest throughout the day while it dries out in the Central and Southern Plains after a week of high activity.