Biodiesel to Turbo Charge American Biofuel Growth

A new report from CoBank says the recent investment surge in U.S. renewable diesel production capacity is likely to ignite a period of growth and transition for the biofuels industry. “The outlook for biofuels is good as the U.S. and other developed countries embrace renewable liquid transportation fuels as a solution to reduce greenhouse gas emissions,” says Ken Zuckerberg, lead grain and farm supply economist for CoBank. “Renewable diesel offers the most intriguing opportunity in the biofuels space because the growth potential is extraordinary.” Several industry stakeholders are planning to build new soybean crush and refineries during the next two years, which would increase U.S. renewable diesel production capacity to 6.5 billion gallons by 2030. Soybean oil is the most common feedstock for producing renewable diesel. CoBank says U.S. soybean acreage would need to grow by 17.9 million acres to fill the supply gap created by the additional crush and refinery projects.

USDA Expands PACE Coverage

USDA says it has expanded its Post-Application Coverage Endorsement (PACE) insurance option for corn farmers who “split-apply” nitrogen on their crops. The coverage now includes most counties in Iowa, Illinois, Minnesota, and Wisconsin, where non-irrigate corn is insurable. USDA rolled out PACE earlier this year to support stewardship of fertilizer and will continue to offer it in select counties of Indiana, Kansas, Michigan, Nebraska, Ohio, and the Dakotas. “PACE provides an additional risk management tool for corn growers,” says NCGA President Chris Edgington. PACE provides coverage for the projected yield lost when producers are unable to apply the post-nitrogen application due to field conditions created by the weather during the V3 through V10 stages. “We’re always working to offer risk management options and opportunities in the best interest of producers and their operations, and that also support and encourage environmental and climate-smart practices,” says Risk Management Agency Administrator Marcia Bunger.

Smithfield to Pay $75 Million to Settle Price-Fixing Suit

Smithfield Foods agreed to pay $75 million to settle a price-fixing lawsuit. Reuters says consumers accused the meat producer and several competitors of conspiring to inflate prices in the U.S. pork market by limiting supply. Smithfield spokesman Jim Monroe says the company denied liability in settling, and that the accord reduces the distraction, risk, and cost of protracted litigation. “The agreement also limits a substantial portion of Smithfield’s remaining liability in the nationwide case,” he says. In other litigation, Smithfield previously reached settlements worth $83 million with direct purchasers and $42 million with commercial purchasers, including restaurants. Some of the other defendants include Hormel Foods, Tyson Foods, and data provider Agri Stats, Inc. Smithfield agreed to provide cooperation that the plaintiffs’ lawyers say will strengthen their cases against the remaining defendants. Smithfield is based in Virginia and owned by Hong Kong-listed WH Group, which calls itself the world’s largest pork company.

Ag Groups React to White House Conference on Hunger

Several U.S. ag groups and stakeholders took part in the White House Conference on Hunger, Nutrition, and Health. Jim Mulhern president and CEO of the National Milk Producers Federation, thanked the White House for inviting him to the conference. “We know from decades of working in this area that dairy products and the nutrients they provide will be vital to reaching the conference goals,” he says. Colin Woodall, CEO of the National Cattlemen’s Beef Association, also attending the conference. “We will continue to highlight beef’s role as an excellent source of protein for all ages, especially those Americans lacking iron and other essential beef nutrients,” Woodall says. National Farmers Union President Rob Larew says they’re standing together to end hunger in the United States. “Access to safe and nutritious food is a basic human right, so we’re advocating for strong federal nutrition programs that emphasize fresh and locally-produced food,” Larew says.

NCGA Selects Eight for Research Ambassador Program

The National Corn Growers Association announced it has picked eight new research ambassadors for the 2022-2023 academic year. They are all secondary students from some of the nation’s top universities, including the University of Minnesota, Purdue University, the University of Wisconsin-Madison, and others. It’s the second year of the program which NCGA is building momentum. The program was developed and funded by the NCGA Sustainable Ag Research Action team. The objective is to build a network of future leaders in the ag sector. Ambassadors must show academic excellence, leadership potential, and be involved in research relevant to corn production. “We’re continuing to build bridges between the research lab and the farm field,” says Sustainable Ag Research Action Team Chair Jason Lewis. Ambassadors receive a financial reward of $2,500, as well as up to $750 for registration and travel reimbursement to participate in research conferences, and fully-funded travel to NCGA events.

Beef Campaign Takes Fine Dining to New Places

Colorado Angus rancher Ty Walter recently rock climbed a 100-foot high ledge to enjoy fine dining with a celebrity. In a cliff-side setting, Walter joined actor, comedian, and host Joel McHale to talk about cattle production and what makes Certified Angus Beef® brand products consistently superior, all while enjoying a four-course meal at an elevation of 8,500 feet. After a two-mile hike, the pair rock climbed up the ledge to help promote the Certified Angus Beef brand. There, Walter and McHale enjoyed the four-course meal prepared by CAB Executive Chef Ashley Brennemen. “Every meal doesn’t have to be this extreme, but we wanted to showcase Certified Angus Beef products in a way that would inspire people to create their own flavor adventure,” Brenneman says. Walter adds that, “The thing I was most nervous about was dropping my fork.” The adventure is available on the Certified Angus Beef Brand Test Kitchen YouTube Channel.

Friday Watch List

Markets

Reports on U.S. personal incomes and consumer spending for August are due out at 7:30 a.m. CDT Friday, followed by the University of Michigan's index of U.S. consumer sentiment at 9 a.m. More Federal Reserve officials speak again Friday. At 11 a.m., USDA will release its quarterly Grain Stocks report and Small Grains 2022 Summary. Traders will also keep an eye on outside markets and follow the latest weather forecasts.

Weather

Ian, which strengthened back up to hurricane strength Thursday night, will move onshore over South Carolina Friday afternoon. Heavy rain from the system is already pouring into the Carolinas. Far eastern Georgia and Virginia will see rain from the system as well. A weaker disturbance has parked itself over the northern Rockies and is spreading isolated showers through the Northern Plains, and has also made for a few showers out into Minnesota and a few sprinkles cannot be ruled out for portions of the Central Plains as well. Otherwise, harvest conditions are quite good with rising temperatures for most agricultural areas.

Stabenow Addresses White House Hunger Conference

Senate Agriculture Committee Chair Debbie Stabenow addressed the White House Conference on Hunger, Nutrition, and Health Wednesday. The Michigan Democrat was part of a panel with U.S. Secretary of Health and Human Services Xavier Becerra, House Appropriations Committee Chairwoman Rosa DeLauro and New York City Mayor Eric Adams. Stabenow says, "As long as we have hunger and food insecurity in America, we have work to do, and as Chairwoman, I'm confident that the strong anti-hunger and nutrition framework we've built can help to tackle it." In conjunction with the White House Conference, Stabenow released a fact sheet detailing the Committee's recent work on anti-hunger and nutrition issues. That work includes a 21 percent increase in Supplemental Nutrition Assistance Program benefits, investments in the food bank network and focusing on nutrition education, among other topics. Stabenow adds now is the time to build on the progress to eliminate hunger and commit to a healthier America.

FDA Proposes Updated Definition of ‘Healthy’ Claim on Food Packages

The Food and Drug Administration Wednesday proposed updated criteria for labeling foods with the nutrient content claim "healthy" on their packaging. The proposal comes the same day as the White House Conference on Hunger, Nutrition, and Health. The rule would align the definition of the “healthy” claim with current nutrition science, the updated Nutrition Facts label and the current Dietary Guidelines for Americans. FDA says more than 80 percent of people in the U.S. aren’t eating enough vegetables, fruit and dairy. And most people consume too much added sugars, saturated fat and sodium. The proposed rule is part of the agency’s ongoing commitment to helping consumers improve nutrition and dietary patterns to help reduce the burden of chronic disease. The proposed rule would update the “healthy” claim definition to better account for how all the nutrients in various food groups contribute and may work synergistically to create healthy dietary patterns and improve health.

Atrazine Proposal Comment Deadline Nears

The deadline to submit comments on the Environmental Protection Agency’s atrazine proposal is next Friday. The National Corn Growers Association is encouraging growers to join its call-to-action and submit comments to the EPA on the important role atrazine plays in their work. The call-to-action was launched over the summer as EPA began revising its registration for atrazine. EPA is proposing a level of concern for atrazine at 3.4 parts per billion, down from the current level of 15 parts per billion. The move would significantly impair the effective use of atrazine on farms, according to NCGA. Brooke S. Appleton, NCGA vice president of public policy, says, “Reducing the effectiveness of this important herbicide will hinder the work of farmers and turn the clock back on our conservation efforts.” Since the organization launched the call to action on July 20, more than 3,000 growers have commented. EPA’s open comment period closes on October 7. You can submit comments via ncga.com.

Grassley, Brown Propose Banning Foreign Individuals from Obtaining U.S. Farm Credit

Senators Chuck Grassley and Sherrod Brown introduced legislation this week to prevent foreign individuals from obtaining credit and financial services through the Farm Credit System. The Iowa Republican and Ohio Democrat content that currently, certain foreign individuals and entities are eligible to receive credit through this government-sponsored enterprise. Grassley states, “The expansion of foreign-owned farmland is a justified cause for concern among many family farmers and ranchers. Brown adds, “American taxpayer dollars should not be used as a financing tool for foreign governments to undermine our national security and take our family farms.” FCS was established in 1916 to provide credit to rural areas when commercial lenders were avoiding farm loans. It is mandated and limited by statute to serve agriculture. In 2021, FCS had a portfolio of roughly $210 billion in farm loans. Since 1997, regulations have allowed FCS associations to extend credit to certain foreign nationals who are not permanent residents of the United States and to foreign-owned entities.

USDA to Invest $8 Million to Expand Monitoring of Soil Carbon

The Department of Agriculture plans to invest $8 million to support and expand carbon monitoring in soils. The investment also supports the assessment of how climate-smart practices affect carbon sequestration. The investment is part of USDA's efforts to build out a national soil carbon monitoring network, which was kicked off with soil carbon monitoring on Conservation Reserve Program acres in 2021. USDA's Natural Resources Conservation Service requests proposals for regional projects focused on soil organic carbon stock monitoring, which are due November 28, 2022. The investment in building out the soil carbon monitoring network is part of USDA's comprehensive effort to address climate change through climate-smart agriculture and forestry. NRCS Chief Terry Cosby says, “Soil health management practices and activities are a tremendous part of our strategy when it comes to climate-smart agriculture and forestry.” Additional information is available in the notice of funding, which will appear on grants.gov

U.S. Red Meat Industry Commemorates 45 Years in Japan

Leaders representing the U.S. red meat industry recently traveled to Tokyo to commemorate the 45th anniversary of the inaugural U.S. Meat Export Federation office, which opened in Tokyo in 1977. Japan has consistently been a top customer and is the leading international market for U.S. red meat, purchasing nearly $4.1 billion in 2021. Through July 2022, U.S. red meat exports to Japan reached $2.4 billion. The U.S.-Japan trade partnership is highly valued by those in the U.S. pork, beef and lamb industries. While in Tokyo for meetings, market visits and a celebration event attended by 200 importers, distributors, trade media and U.S. exporters, industry representatives expressed appreciation for the business relationships developed over the past 45 years and expressed a commitment to serve the Japanese market well into the future. The group traveling to Japan included representatives of the U.S. beef and grain industries, meeting with key leaders, traveling to local grocery stores and meeting with influencers.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, an update of second-quarter U.S. GDP and an update of the U.S. Drought Monitor. At 9:30 a.m., the U.S. Energy Department's weekly report of natural gas storage will be released. USDA's quarterly Hogs and Pigs report is set for 2 p.m. with expectations for an annual inventory decline of 1.6%.

Weather

Cold temperatures are producing frosts again this morning in the Midwest from eastern Iowa into Michigan. Outside of the cold though it is rather dry with mostly good harvest weather across much of the country. Ian has been downgraded to a tropical storm overnight as it pushed across the Florida Peninsula with heavy rainfall. The storm will spend the day offshore before pushing north toward South Carolina. Rains will begin to impact the Southeast Coast tonight with heavy rain expected for Friday and Saturday from eastern Georgia up through Virginia that will impact harvest and may cause flood damage.

White House Hunger Conference Today (Wednesday)

The long-awaited White House Conference on Hunger, Nutrition and Health convenes today (Wednesday). The goal of the conference is to end hunger and increase healthy eating and physical activity by 2030. The White House Tuesday released its national strategy with actions the federal government will take to drive hunger solutions. Pillars of the strategy include improving food access and affordability, integrating nutrition and health, empowering consumers to make healthy choices, supporting physical activity and enhancing nutrition and food security research. President Joe Biden says, “This important conference and the commitment to a national strategy on ending hunger and healthier eating will build on the research and knowledge we now have to make America truly a stronger, healthier nation.” Agriculture Secretary Tom Vilsack added, “The Strategy lays out big goals, and we need everyone - local, state, and tribal governments, Congress, private companies, nonprofit organizations, and everyday citizens - to work together to achieve them.”

USDA Funding Seeks More US Fertilizer Production

A new federal grant program announced Tuesday seeks to increase American-made fertilizer production. Agriculture Secretary Tom Vilsack announced the $500 million in grants, intended to spur competition in the fertilizer sector and combat price hikes on U.S. farmers. The Fertilizer Production Expansion Program is part of a government-wide effort to promote competition in agricultural markets. The Commodity Credit Corporation grants will support independent, innovative and sustainable American fertilizer production to supply American farmers. Funds also will expand the manufacturing and processing of fertilizer and nutrient alternatives in the U.S. and its territories. USDA plans for a 45-day application window for applicants to receive priority for projects that increase the availability of fertilizer and nutrient alternatives for farmers to use in crop years 2023 or 2024. USDA will also offer an extended application window for financial assistance to significantly increase American-made fertilizer production to spur competition and combat price hikes.

Ongoing Western Drought Most Intense in 20 Years

USDA’s Economic Research Service Tuesday reported the ongoing Western drought is the most extreme drought in the region since 2000. As of September 19, 2022, the U.S. Drought Monitor classified more than 18 percent of land in the Western States as experiencing extreme or exceptional drought. In July of this year, more than 32 percent of land was in those categories. Drought conditions in the Western States gradually subsided in the latter months of 2021 but began intensifying again during the first half of 2022. The U.S. Drought Monitor categorizes drought in a region according to soil moisture, streamflow, and precipitation levels. Regional designations are primarily based on historical weather patterns. For agriculture, drought can mean diminished crop and livestock outputs, as well as reduced farm profitability. Drought also reduces the quantity of snowpack and streamflow available for diversions to irrigated agricultural land. These impacts can reverberate throughout the local, regional, and national economies.

Funds Available for On-farm Storage Damaged by Recent Natural Disasters

The Department of Agriculture this week announced funding to help farmers rebuild on-farm storage systems impacted by recent natural disasters. USDA will make $20 million available to farmers in Kentucky, Minnesota, South Dakota and surrounding areas to rebuild damaged storage facilities damaged in 2021 and 2022 by natural disaster events. The assistance will help producers who were hard-hit by disasters and are currently struggling with a lack of available grain storage have the resources they need as they head into the 2022 crop harvest. The assistance from USDA's Farm Service Agency will help producers affected by the December 2021 tornadoes that passed through eleven counties in Kentucky, as well as producers in Minnesota and South Dakota affected by derechos in May 2022 and July 2022. Similar to other USDA cost-share programs, USDA anticipates that the funds will cover 75 percent of the eligible expenses associated with grain storage capacity costs with building grain storage capacity or purchasing equipment.

AFT Announces Solar Energy Development Partnership

American Farmland Trust Tuesday announced a partnership with Edelen Renewables and Arcadia. The Farmers Powering Communities seeks to combat climate change through solar energy development while protecting America’s farmland and ranchland. The partnership provides more farmers with the opportunity for a new revenue stream and brings renewable energy to communities where it has not yet been available. Farmers Powering Communities will advance community solar projects of 25 to 50 acres to provide green energy to those who do not have access to rooftop solar – connecting them with local solar farms and bringing resiliency to more Americans. Community solar projects bridge the gap, connecting people to shared solar facilities. The partnership will identify the best land for new solar farms, establish installations and link them to local energy providers who will provide the power to residents at costs lower than the market average. Development will begin in 2023 across a number of states that have active community solar programs.

USDA NASS, NASDA, Celebrate 50 Year Partnership

USDA's National Agricultural Statistics Service and the National Association of State Departments of Agriculture celebrate 50 years of working together. The partnership provides timely, accurate and useful statistics in service to U.S. agriculture. NASS and NASDA are celebrating the anniversary during the NASDA annual meeting this week in Saratoga Springs, New York. NASS Administrator Hubert Hamer says, “NASDA enumerators do an incredible service for NASS, the producers, our nation, and the world.” NASS works closely with state departments of agriculture to support their agricultural statistics needs and reduce duplication with federal programs. NASDA provides vital, grassroots support for the NASS mission by employing thousands of part-time enumerators who assist farmers and ranchers with ag census and survey responses through telephone and in-person interviews. The partnership allows NASDA staff to focus on data collection, which is essential for accurate data reports, while NASS staff concentrate on survey integrity and data analysis.

Wednesday Watch List

Markets

An index of pending U.S. homes sales in August is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. More Federal Reserve officials will also be speaking at public appearances and are apt to get attention. Traders will continue to watch Hurricane Ian and the latest weather forecasts and are still nervous about the direction of outside markets.

Weather

Hurricane Ian, a powerful Category 4 storm, is set to move into west-central Florida during the day Wednesday and Wednesday night. In addition to the strong winds from the storm center, the hurricane will be producing heavy, flooding rains as well. Colder air has settled into the Midwest and frosts are occurring in the Upper Midwest states Wednesday morning. Some very isolated lake-induced showers may continue in a couple of spots on the southern end of the Great Lakes, but most areas will remain dry with good harvest conditions continuing.

USDA Announces Action to Spur Competition, Protect Producers and Reduce Costs

The Biden administration Monday announced two new Department of Agriculture efforts to support fair and competitive meat and poultry markets. The efforts include publishing the proposed Inclusive Competition and Market Integrity Rules Under the Packers and Stockyards Act to protect farmers and ranchers from abuse, and a new $15 million Agricultural Competition Challenge to ramp up collaboration with the State Attorneys General on enforcement of competition laws, such as laws against price-fixing. The two efforts come from the White House Competition Council, which held a meeting Monday. Agriculture Secretary Tom Vilsack says, "USDA is focused on building new, fairer, and more resilient markets, protecting producers, and reducing food costs." Earlier this year, USDA and the Department of Justice announced their commitment to work closely together to effectively enforce federal competition laws, including by launching the FarmerFairness.gov complaint portal for reporting suspected violations of federal competition law.

USMCA Partners Host Environmental Committee Meeting

Officials from the United States, Mexico and Canada met last week as part of the U.S.-Mexico-Canada Agreement’s Environment Committee. The committee was established as part of the USMCA to oversee the Environment Chapter's implementation and provide a forum to discuss and review chapter implementation. At the meeting, the officials discussed progress and challenges faced in implementing the environmental obligations since the Agreement's entry into force in 2020. The committee also discussed follow-up items from the first Committee meeting, including the findings of a mapping exercise to identify gaps and opportunities for trilateral collaboration for implementing Chapter 24 commitments, recognizing the need to ensure complementarity and avoid duplication with efforts already underway by the Commission for Environmental Cooperation. In addition, the committee held a public session to share information and hear from stakeholders from Canada, Mexico, and the United States regarding the implementation of Chapter 24.

Insured Acreages Vary Widely Across Fruit and Nut Specialty Crops

USDA's Economic Research Service Monday reported insured acres of specialty crops vary widely across specific crop types. USDA’s Risk Management Agency offers Federal Crop Insurance Program products to cover specialty crops in counties with enough data available to offer a sound insurance product. Using cherries as an example, crop insurance is available for cherry growers who operate in counties with a high number of cherry acres. Because of this, farmers used federal crop insurance to cover about 65 percent of all cherry acres. Cherry growers outside of those counties used the USDA Farm Noninsured Crop Disaster Assistance Program to cover about 20 percent of all cherry acres, leaving only 15 percent of acres not covered by any risk management program. For some crops, however, federal risk management programs covered only a small portion of acres. Kiwifruits and strawberries, for example, had less than 15 percent of acres covered, while hazelnuts had less than one percent.

AEM Hosts Record-breaking DC Fly-in

The Association of Equipment Manufacturers Monday reported a record attendance for its Washington, D.C. fly-in last week. Representing equipment manufacturers and suppliers from across the country, participants met with 70 lawmakers. The group advocated for pro-manufacturing policies that will help equipment manufacturers succeed in the United States and around the world. AEM’s Kip Eideberg says, “As Congress continues its legislative business through the end of the year, we will continue to remind lawmakers that they need to reach across the aisle and work to move our country forward.” AEM members advocated for domestic supply chain investments, precision agriculture incentives to support climate-smart practices, and a grant program that supports workforce development. AEM says tariffs continue to hurt the equipment manufacturing industry. AEM asked lawmakers to establish a permanent Section 301 tariff exclusion process so American manufacturers can petition the Office of the U.S. Trade Representative to remove tariffs needed for domestic manufacturing and the national economy.

Merck Animal Health to Acquire Virtual Fencing Developer

Merck Animal Health recently announced an agreement to acquire Vence, an innovator in virtual fencing for rotational grazing and livestock management. Vence provides enhanced technology for producers and ranchers to track, monitor and manage the movement of cattle through a high-tech platform of virtual fencing solutions. Using a computer or smartphone, customers can manage cattle movement and facilitate rotational grazing. Vence's virtual fencing technology can reduce the need for fencing to subdivide pastures and allows producers and ranchers to manage their cattle and grass inventory, while reducing costs of labor and fencing materials. Merck Animal Health president Rick DeLuca says, “Vence is a natural fit with Merck Animal Health's growing portfolio of animal intelligence products that include identification, traceability and monitoring products.” The acquisition is expected to be completed in the third quarter of 2022, subject to closing conditions. Vence is available in the United States and parts of Australia.

Mixed Week for Fuel Prices

Ending the 14-week stretch of gas prices declining, the nation's average gas price posted a rise of 3.2 cents from a week ago to $3.67 per gallon. The national average is down 17.5 cents from a month ago but 49.3 cents higher than a year ago. The national average diesel price declined 5.1 cents the last week and stands at $4.88 per gallon. Refinery snags in some areas of the country contribute to wild fluctuations as areas of the West Coast, Pacific Northwest, Great Lakes and Plains have seen significant refinery issues leading to supply challenges. However, the Northeast and Gulf Coast continue to see normal activity at refineries and prices there have dropped. The disconnect between regions grows larger and will likely remain abnormal for the next few weeks. Gas Buddy’s Patrick De Haan says, “A slew of unexpected refinery disruptions, including fires and routine maintenance, have seemingly all happened in a short span of time.”

Tuesday Watch List

Markets

A report on U.S. durable goods orders in August will be out at 7:30 a.m. CDT Tuesday, followed by August new home sales and the Conference Board's index of U.S. consumer confidence for September at 9 a.m. Several Fed officials are also scheduled to speak throughout the day and will likely get attention. Traders will keep an eye on the latest weather forecasts and news from Ukraine, but are most jumpy about Fed policy and prospects for higher interest rates ahead.

Weather

A shot of colder air is settling into the Midwest on Tuesday. Some limited frosts are noted around northern Minnesota into northern Wisconsin, but most areas are remaining on the warm side of freezing. Some showers are still hanging around the Great Lakes. Otherwise, dry conditions continue across most of the country, favoring the continued harvest. Bands of heavy rain from Hurricane Ian are pounding southern Florida as the storm crosses Cuba into the Gulf of Mexico and the state is bracing for its landfall Wednesday night or early Thursday.

USDA Panel Targets County Committee System

The Equity Panel investigating discrimination within the agency wants USDA to consider eliminating the county committee system that’s played a big role in managing the Farm Service Agency’s agricultural programs. Industry Update Dot Com says the Fairness Committee voted to recommend in an interim report to Ag Secretary Tom Vilsack that the USDA do research and analysis on possibly ending the district county committee system and develop a fairer alternative for all farmers. The analysis should include what the county committees are currently doing in creating disparities for minority farmers. That should include the historical role of the district committee system and the current displacement of minority farmers. The commission also recommends that USDA immediately put a program in place that ensures minority county committee councilors have access to the FSA administrator to report real-time problems or issues in the county. The final report will be completed and submitted to Vilsack soon.

Wheat Growers Applaud Efforts to Increase Export Promotion Funding

America’s wheat growers have a long history of valuing export market development by supporting the successful public-private partnership with USDA’s Foreign Agricultural Service. That’s why U.S. Wheat Associates and the National Association of Wheat Growers applaud the introduction of the Cultivating Revitalization by Expanding American Agricultural Trade and Exports (CREAATE) Act of 2022 in the Senate. The legislation would double the funding for the Market Access Program and Foreign Market Development Program, both of which are administered by the FAS. “MAP funding hasn’t increased from $200 million since 2006, and FMD funding hasn’t changed from $34.5 million since 2002,” says USW Chair Rhonda Larson. “However, our foreign competition in most global markets, including wheat, has grown.” USW also uses MAP and FMD funding to enable greater use of U.S. wheat in food aid programs which have taken on more significance due to the Russian invasion of Ukraine that disrupted the global wheat trade.

The Cattle Contracts Library Pilot Program Moves Ahead

The USDA’s Agricultural Marketing Service published a Notice to Trade related to the Cattle Contracts Library Pilot Program. The National Cattlemen’s Beef Association says the Library is designed to be a tool for cattle producers, making information available that may allow them to capture unrealized value for their livestock. “We are pleased to see the pilot program progressing and note the important decision to use the Livestock Mandatory Reporting statutes as a basis for any subsequent rulemakings,” says NCBA Vice President of Government Affairs Ethan Lane. “We look forward to continuing to work with staff at AMS to ensure the success of this tool as well as the protection of our members’ proprietary business information.” The Consolidated Appropriations Act of 2022 directed the AMS to create a Cattle Contracts Library Pilot Program to increase market transparency for U.S. cattle producers. AMS is drafting a rule to ensure complete contractual information gets reported.

USDA Extends Deadline for Grazing Land Agreements

The USDA extended the application deadline for Grazing Lands Conservation Initiative Cooperative Agreements to October sixth. USDA is investing up to $12 million in partnerships that expand access to conservation technical assistance for livestock producers and increase the use of conservation practices on grazing lands. Project proposals for GLCI Cooperative Agreements will identify and address barriers to accessing grazing assistance for producers. The projects should address several concerns, including local natural resource concerns, use climate-smart agriculture and forestry practices and principles, and encourage existing and new partnerships through emphasizing equity in advancing the resource needs of underserved communities. The projects should also identify and implement strategies to quantify, monitor, report on, and verify conservation benefits associated with grazing management systems. NRCS Chief Terry Cosby says privately-owned grazing lands cover almost 30 percent of the landscape, so addressing climate change and conserving resources will happen through voluntary practices. To apply, go to grants.gov.

Stabenow, Boozman Expect Votes on USDA, FSA Nominees

Senate Ag Chair Debbie Stabenow says she’s hopeful the Senate will confirm three agriculture nominees this week by unanimous consent. The Hagstrom Report says Alexis Taylor is the nominee for USDA undersecretary for trade and foreign agricultural affairs. Jose Emilio Esteban is nominated for USDA undersecretary for food safety. Vincent Logan is the nominee for the Farm Credit Administration Board. Ag Committee Ranking Member John Boozman also hopes they can be confirmed this week. Under questioning, Taylor says she’ll work on difficult issues like Mexico’s potential ban on biotech corn. Logan, the chief financial officer with the Native American Agriculture Fund, repeatedly promised to work with young and beginning farmers. When answering questions, Esteban said he's passionate about preventing salmonella and pledged to work together with all parties on “how we get there.” The Senate Finance Committee recently approved Doug McKalip’s nomination as Chief Ag Negotiator, and he’s waiting for Senate confirmation.

U.S. Export Sales Take a step Back

USDA data shows export sales of corn, beans, and wheat all fell week-to-week during the seven days ending on September 15. Corn sales during the week dropped sharply to 182,300 metric tons from 583,000 tons during the previous week. Japan was the biggest buyer at 83,200 metric tons. Exports for the week hit 563,000 metric tons, up from almost 427,000 tons the prior week. Soybean sales to overseas buyers dropped to 446,000 metric tons, sharply lower than 843,000 tons a week earlier. Egypt was the top buyer with 174,000 metric tons of beans. Exports during the week totaled over 522,000 metric tons, up from almost 374,000 during the prior week. Wheat sales during the week came in at 183,500 metric tons, with Indonesia the top buyer with 136,000 tons. The USDA report says wheat exports from the U.S. totaled 678,000 metric tons, up slightly from 676,800 tons a week earlier.

Monday Watch List

Markets

Back from the weekend, traders will check the latest weather forecasts, harvest anecdotes, any news from Ukraine or Russia and be wary of outside markets after Friday's widespread risk-off selling. Several Federal Reserve officials are also scheduled to speak Monday and may get attention. USDA's weekly export inspections report is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m.

Weather

A push of colder air is moving into the Midwest for Monday and will spread out across eastern areas of the country this week. Some showers will continue near the Great Lakes because of it. Other areas will be warmer and drier. The country awaits the arrival of Hurricane Ian, which is forecast to make a Florida landfall and bring widespread rain and wind damage into the Southeast later this week and weekend.

USDA Providing Over $500 Million to Expand Rural Broadband

USDA Secretary Tom Vilsack announced that his agency is awarding $502 million in loans and grants to help provide high-speed internet in rural America. The funds will be available for rural residents and businesses in 20 states. USDA is making these investments through the third funding round of the ReConnect Program. “High-speed internet will improve the rural economy,” says Vilsack. “It will help rural businesses grow and get access to new markets, as well as help rural residents get access to more and better health care and educational opportunities.” The secretary also calls rural America the country’s “backbone.”  To be eligible for the funding, an applicant must serve in an area where high-speed internet service speeds are lower than 100 megabits per second for downloads and 20 Mbps for uploads. The agency will have more investment announcements in the coming weeks. For more information about investment in rural areas, go to rd.usda.gov.

Court Ruling Reinstates Modernized Endangered Species Rules

Modernized Endangered Species Act regulations will be reinstated after the Ninth Circuit Court of Appeals ruled that a district court improperly vacated 2019 revisions. The appeals court found that the district court erred by reversing the regulations without determining whether they were actually unlawful. American Farm Bureau President Zippy Duvall says they appreciate the ruling by the Court of Appeals. “The revisions to the Endangered Species Act protected at-risk animals while ensuring that farmers could continue feeding America’s families,” he says. “This ruling doesn’t end the debate about modernizing the ESA, but it sends an important message to the lower courts that their job is to rule based on law.” This is the second appellate court ruling to favor the Farm Bureau in the Ninth Circuit Court of Appeals in the past month. In August, the Court overturned a lower court’s ruling that prohibited AFBF from defending the delisting of the gray wolf.

NCGA Hosts Next Generation of Ag Leaders for Policy Institute

The National Corn Growers Association hosted a group of student delegates from the Agriculture Future of America during the AFA’s Policy Institute in Washington, D.C. The NCGA staff provided a tour and overview of the work the organization does and led discussions around how the national and state associations work collaboratively across the country to increase opportunities for America’s corn farmers. “AFA does incredible work, helping equip the next generation of agriculturalists with the tools and networking experience they’ll need to have successful careers and impact positive change,” says NCGA Market Development Manager Michael Granche’ (GRAHN-chay). “AFA doesn’t just refine their skills but gives them the confidence to walk up to a stranger and tell their ag story.” NCGA was able to engage with the student delegates through different workshops and roundtable opportunities. The Corn Growers will also be a sponsor of AFA’s Leaders Conference held in November in Kansas City.

September Wheat Production Forecast Unchanged

The USDA’s 2022-2023 September wheat production forecast is unchanged from August at 1.783 billion bushels. 2022-2023 wheat exports are also unchanged from the previous month at 825 million bushels, and there are no by-class changes. U.S. wheat exports for June and July 2022 reached a total of 117 million bushels, down 23 percent from the same time last year. September U.S. wheat imports are unchanged at 110 million bushels, up from 95 million in 2021-2022. America’s wheat imports for June and July totaled 23 million bushels, up 50 percent from the same period in 2021. The 2022-2023 season-average farm price is projected at $9 a bushel, down 25 cents from the previous month. However, it would still be a record. Wheat futures markets remain volatile on a daily basis, underscored by uncertainty regarding the continuity of shipments from the Black Sea region. Recent data says prices may be lower in the coming months.

China Food Security Policy May Mean Lower Soybean Demand

A Bloomberg article has a large number of soybean farmers around the world worried about the future of Chinese soybean demand. The Chinese government is attempting to boost the country’s food security by trying to lower the number of soybeans turned into animal feed. The farm ministry says feed grains are the biggest problem when it comes to China’s food supply. Ministry officials are asking the feed sector to learn from some of the country’s top producers who have successfully cut down on the amount of soybean meal used in their livestock rations as their main source of protein. China is by far the biggest importer of soybeans in the world, and the import bill last year totaled more than $50 billion. Bloomberg says, “Even modest shifts in soy consumption would help control both import costs and inflation and represent a worry for ‘legions’ of overseas farmers that rely on Chinese demand.”

NCGA Asks Senate to Confirm USDA Nominees

The National Cattlemen’s Beef Association is urging the Senate Ag Committee to confirm key nominees for Undersecretary for Food Safety and Undersecretary for Trade and Foreign Agricultural Affairs in the USDA. “Cattle producers need strong, stable leadership in top positions at USDA, and we ask the Senate to move quickly on confirming these highly qualified nominees,” says Ethan Lane, vice president of government affairs for NCBA. Dr. Jose Emilio Esteban, who currently serves in USDA’s Food Safety and Inspection Service, is the nominee for Undersecretary for Food Safety. Alexis Taylor, the current director of the Oregon Department of Agriculture, is the nominee for Undersecretary for Trade and Foreign Agricultural Affairs. NCBA has worked closely with Dr. Esteban, who they say is an extremely qualified candidate for the position of undersecretary. They also have worked closely with Taylor in previous roles at USDA and on Capitol Hill, calling her a “proven advocate for farmers and ranchers.”

Friday Watch List

Markets

USDA's cattle on-feed report for September 1 is the only significant report Friday and is expected to stay close to last year's total of 11.23 million head. Traders will continue to keep track of weather, outside market news, events from Ukraine and any word regarding the vote on the rail workers' contracts.

Weather

A weak system is moving through the Corn Belt on Friday. Areas of isolated showers and a few thunderstorms are expected as the system drifts eastward. Showers may produce a few delays to the ongoing corn and soybean harvest, but not much. Cooler temperatures to the north oppose hot temperatures that continue across the south. Winter wheat areas in Kansas and Nebraska have seen a few showers this week, but conditions continue to be poor for most areas.

Biden Administration Invests $178 Million in International Food for Progress Projects

The Department of Agriculture will invest $178 million in seven international development projects on four continents to support U.S. government priorities. The projects include promoting climate-smart agriculture, facilitating trade and addressing the root causes of migration in Central America. Agriculture Secretary Tom Vilsack announced the funding Wednesday and says, "By partnering with private-sector organizations, local governments, and local producers and businesses, we are helping to build more equitable and resilient food systems." Through Food for Progress, USDA donates U.S. agricultural commodities to eligible entities such as private voluntary organizations and foreign governments, which then sell the commodities on the local market and use the proceeds to support agricultural, economic or infrastructure development programs. USDA will donate 240,000 metric tons of commodities this year, valued at $129.6 million. The seven new Food for Progress projects funded by USDA in 2022 are in addition to 41 projects currently underway in 38 countries.

USDA Funding International School Feeding Projects

The Department of Agriculture will invest $220 million in eight new school feeding projects. The projects are expected to benefit more than a million children across 2,200 schools in food-insecure countries in Africa and East Asia. Agriculture Secretary Tom Vilsack announced the funding Wednesday, awarded through the McGovern-Dole International Food for Education and Child Nutrition Program. This year's awards are part of the $2 billion investment to strengthen global food security, announced by President Joe Biden at the United Nations General Assembly. USDA's 2022 commitment includes direct financial support for the projects and funding for purchasing and transporting 41,350 metric tons of U.S.-grown commodities to be donated to the projects for use in school meals. The awards also include $23.7 million for purchasing nearly 13,000 tons of locally or regionally produced commodities, supporting producers and supply chains in the target countries, and improving the nutritional diversity of school meals.

2022/23 Rice Imports Projected at an All-time High

U.S. rice imports for the 2022/23 marketing year, August–July, are projected to rise 16 percent from a year earlier and to reach the highest volume on record at 44 million hundredweight. USDA’s Economic Research Service reports imported rice is also projected to account for almost 32 percent of domestic use of rice in 2022/23, the highest share on record. Imports of long-grain and the combined classes of short- and medium-grain rice are projected at all-time highs. For long-grain rice, growing consumer preference for Asian aromatic rice, such as jasmine rice from Thailand, has increased import purchases. In addition, the United States has been importing a much smaller volume of regular milled long-grain rice from South American suppliers. Increasing imports are spurred by reduced production in California, where a second consecutive year of drought has reduced the size of the rice harvest. The California rice crop is forecast down 38 percent from a year earlier and is expected to be the smallest crop since 1977/78.

Report: Gen Z Prefers Quick Service Restaurants

Older Gen Zs, ages 18-24, in the U.S. are discerning when choosing restaurants, according to new data by the NPD Group. Although price matters to this group, their taste preferences and definition of value dictate the type of restaurants they visit. As a result, Gen Zs skew towards quick service restaurants, particularly fast casual, that balance value and focused menu. In the 12 months ending July 2022, Gen Zs made five billion restaurant visits, 4.3 billion visits were to quick-service restaurants, and 736 million were to full-service restaurants. Overall quick service traffic was flat compared to a year ago, while Gen Zs fast-casual visits were up four percent in the period compared to a year ago. Gen Zs favor major fast-casual chains that provide the menu items they want, value for the money, and messaging that reflects their interests, like organics and sustainability, according to NPD's recently released Winning Gen Z Consumers study.

Pork Board Receives $155 Million in Climate-Smart Funds

The National Pork Board received three grants totaling $155 million as part of the USDA Partnerships for Climate-Smart Commodities funding. The three grants are part of the $2.8 billion awarded to 70 selected projects in the first round of funding for the program. The first grant, valued at $20 million, will incentivize soil health and manure management practice adoption and support on-farm sustainability reports for pork operations. The second grant, totaling $95 million, will support a program to advance the adoption of cover crops and conservation tillage in 20 states. The third grant, worth $40 million, will support testing and evaluating climate-smart data in all segments of agriculture in ways that add increased value and support to producers. National Pork Board Sustainability Vice President Ashley McDonald says, “Pork producers stand out as leaders in sustainability with the data aggregation tools they have invested their dollars into already, continually driving to position U.S. pork as the protein of choice here.”

Clean Fuels Hires Fuel Economist Jonathan Martin

Clean Fuels Alliance America Wednesday announced the appointment of Jonathan Martin as its first Director of Economic and Market Analytics. Martin, most recently an economist with Marathon Petroleum Co., brings ten years of experience in oil and gas corporate economics to this newly created role. He will be based in Ohio. Well-versed in synthesizing and analyzing data, Martin is strategically positioned to support Clean Fuels in economic analysis of planning and policy decisions. Martin has a bachelor's degree in chemical engineering from Rose-Hulman Institute of Technology, Terre Haute, Indiana. Clean Fuels CEO Donnell Rehagen says, “As the diversity of clean fuels grows, we are dedicating additional resources to better predict market trends for our organization and our members.” Martin adds, “I hope to apply my background in energy economics and analytics to help our members and the industry stay abreast of shifting market trends and potential growth opportunities.”

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The Conference Board's index of leading indicators for August is due out at 9 a.m. Traders continue to watch the latest weather forecasts and world events with special attention lately on the Fed and Wednesday's comments from Russia's President Putin.

Weather

A cold front continues to sag south into the southern reaches of the country Thursday but is starting to lose its strength. Still, cooler fall temperatures continue to filter a bit farther south than where they were Wednesday and the heat ahead of the front is being tamped down toward the Gulf Coast. A system in the West will move into the Plains later today and is already producing scattered showers for portions of the Northern and Central Plains, especially around the Nebraska-Kansas border.

Grassley Introduces Bipartisan Biochar Research Network Act

Senator Chuck Grassley of Iowa Tuesday introduced the Biochar Research Network Act. The Iowa Republican’s legislation seeks to study the effectiveness of biochar, which is a carbon-rich material produced from biomass. Specifically, the bill would establish a national biochar research network to test the impact of biochar across various soil types, application methods and climates to learn more about its capacity to benefit farmers and the environment. Grassley says, “A lot of work remains to fully understand the benefits biochar could provide, and that’s why I’m honored to lead the introduction of the Biochar Research Network Act.” The proposed research network would work to understand productive uses for biochar to help with crop production and climate mitigation. The network would also assess biochar’s potential for soil carbon sequestration and deliver cost-effective and practical information to farmers on sustainable biochar production and application. A companion bill was recently introduced in the U.S. House of Representatives.

NCBA Extremely Disappointed with White House Biotechnology Executive Order

The National Cattlemen’s Beef Association expressed disappointment Tuesday over an Executive Order announced last week. The White House last week released the Executive Order on Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy. NCBA President Don Schiefelbein says, "Unfortunately, we are extremely disappointed that this Executive Order also addresses fake meat production under the guise of food security." He adds, "Supporting cell-cultured, fake meat products is the wrong approach, and the administration should remain focused on supporting America's farmers and ranchers." NCBA encourages the administration to support the biotechnology innovations already occurring in the cattle industry. According to the organization, technology like gene editing is critical to improving cattle health and wellbeing, while also helping the U.S. cattle industry demonstrate climate neutrality by 2040. NCBA says cattle producers play an important role in ensuring food security and has long fought for policies that help producers remain in business while raising the highest quality beef in the world.

USDA Expands SNAP Online Shopping, Adds New Retailers

The Department of Agriculture continues to expand opportunities for Supplemental Nutrition Assistance Program, or SNAP, participants to conveniently shop online for groceries. USDA reported Tuesday more than 150 additional retailer chains now offer online shopping to SNAP participants, representing thousands of stores. In collaboration with state agencies and vendor partners, USDA expanded the availability of SNAP online purchasing to 49 states and the District of Columbia, providing more than 99 percent of all SNAP participants with access to online purchasing. USDA's Stacey Dean says, "Expanding the diversity of our online shopping retailers is a critical component of our nutrition security goal to provide better access to healthy, safe, affordable foods." In July 2022, just over three million SNAP households shopped online, a substantial increase from March 2020, when about 35,000 SNAP households shopped online. In the last four months, 44 retailers were added to the program, representing 1,240 store locations.

CoBank: Off-farm Income Increasingly Important

A new study shows increasing dependence on off-farm employment and income reveals the growing economic interconnection of rural communities and surrounding cities. According to a study by researchers at the University of Missouri, 82 percent of U.S. farm household income now comes from off-farm sources. The study was commissioned by CoBank and completed in partnership with CoBank's Knowledge Exchange. Most farmers cited reliable income as the top reason for off-farm employment, as one-half of farm households have negative farm income in a typical year. Health and retirement benefits were also cited as key reasons for off-farm jobs within farm households. Among the study's key findings is that rural communities have increasingly diverse economies, and success within a rural community's agricultural sector is largely dependent on other sectors of the regional economy at large. Today, only 6.5 percent of workers in rural counties are employed in agriculture, compared to 15.4 percent in 1970.

AEM Releases Sustainability Toolkit for Manufacturers

The Association of Equipment Manufacturers recently unveiled its equipment industry Sustainability Toolkit. The toolkit provides assessments and resources to help manufacturers and their supply chains minimize operational impact on the environment. The toolkit aims to advance the equipment manufacturing industry's efforts to align with evolving regulation and support a more sustainable world. AEM President Megan Tanel says the toolkit is “a resource to help our member companies take action to deliver lasting change to protect the environment.” AEM Sustainability Council Chair Karen Cecil adds, "The assessments in the toolkit provide actionable best practices for improving sustainability opportunities and efficiency, plus minimizing risks." The toolkit offers action plans, tools, and best practices to implement under four phases of the sustainability maturity model. The toolkit also features several assessments designed to help company leaders navigate the evolving sustainability landscape and identify areas for improvement.

New Leader Brings Innovative Perspective to CropLife America Policy Efforts

CropLife America Tuesday announced the hiring of incoming Vice President, Government Relations Peggy Browne. With years of experience in agriculture, government, and policy, Peggy will use her expertise to lead CropLife America's government relations team. CropLife America president and CEO Chris Novak says, "Peggy's background and passion for agriculture, her understanding of government, and her demonstrated leadership will help CropLife continue to move industry priorities forward." Before joining CLA, Browne worked for USDA's Farm Service Agency —starting first in Oregon as the state executive director before moving to Washington, D.C., as the deputy administrator of field operations. Browne also recently worked on the Senate Agriculture Committee. Browne founded and was president and CEO of Browne Consulting, where she worked with farmers to develop and manage conservation projects, advised clients on water rights issues, Farm Bill programs and more. Her agriculture experience is grounded in her experience as a farmer/rancher in Oregon, where she served as vice president of the Oregon Farm Bureau.

Wednesday Watch List

Markets

A report on U.S. existing home sales in August is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly energy inventory at 9:30 a.m. CDT. Ethanol production has slowed lately and will be watched in the 9:30 a.m. report. Wednesday is the final day of the Federal Reserve's two-day meeting and you will want to be seated for the increase in interest rates expected to be out at 1 p.m.

Weather

Heat remains in place across a good portion of the south Wednesday, but a strong fall cold front continues to work its way southeast through the country. Areas of showers and thunderstorms will come along with the front, being strongest across the eastern Great Lakes later Wednesday and Wednesday night, extending back to Colorado. Temperatures behind the front are some 20 to 30 degrees lower than they were yesterday.

Legislation Would Reduce Regulation on Trucking Industry

Legislation introduced last week would remove burdensome government regulations from the trucking industry, according to Senator Mike Rounds. The South Dakota Republican introduced the Trucking Regulations Unduly Constricting Known Service-providers, or TRUCKS Act. Rounds says the regulations are burdensome to agriculture, school districts and trucking companies. In 2012, then-President Obama signed into law legislation that set in motion a new rule that created a requirement for Entry-Level Driver Training. The final rulemaking went into effect earlier this year. All new drivers who wish to obtain their Commercial Driver’s License must now complete Entry-Level Driver Training, adding a burdensome requirement at a time when the American Trucking Association estimates a nationwide trucker shortage of 80,000 drivers. The bill would allow states to issue a new “Small Business Restricted CDL” so Entry-Level Driver Training requirements would not affect small businesses with nine CDLs or less. The U.S. Custom Harvesters have endorsed the legislation.

Not All Happy with Climate-Smart Practices Funding

The Climate-Smart agriculture partnerships funding announced last week has some environmental groups drawing criticism. While welcomed by many in the food and agriculture sector, environmental group Friends of the Earth says some of the funding recipients are unacceptable. Funding recipients and partners include a range of corporations, universities, NGOs, trade associations, farms, tribal organizations, and state agencies. USDA is expected to soon make another announcement of $700 million for smaller projects under this initiative. Jason Davison, Senior Food and Agriculture Campaigner at Friends of the Earth, says, “Unfortunately, several of them will funnel tens of millions of taxpayer dollars to some of the most egregious climate offenders — Big Ag corporations like JBS, Cargill, and ADM.” Davison adds, “Many of these corporations and trade associations have historically fought climate mitigation measures, refusing to report data on their emissions and other pollution.” Friends of the Earth called on Congress and the Department of Agriculture to ensure transparency and accountability for the projects.

USDA Funds Six International Research Projects on Climate-Smart Agriculture

USDA’s Foreign Agricultural Service Monday announced grants for research and educational partnerships focused on climate-smart agriculture in tropical countries. Foreign Agricultural Service Administrator Daniel Whitley announced the $300,000 in funding to six U.S. universities. Whitley says, “We’re confident that they can collaborate on climate solutions that contribute to food security and agricultural sustainability, both locally and globally.” The Foreign Agricultural Service is awarding the funds under the Scientific Cooperation Research Program. FAS is awarding approximately $50,000 each to Tennessee State University, the University of Hawaii at Manoa, Texas State University, the University of Missouri, the University of Nebraska, and Louisiana State University. Whitley noted that this year's awards support two of USDA's top priorities under Agriculture Secretary Tom Vilsack and Deputy Secretary Jewel Bronaugh: putting agriculture at the center of solutions to the global climate crisis; and advancing racial justice, equity and opportunity in USDA program administration through the involvement of three prominent minority-serving institutions. 

Food Insecurity Rates Differ Across States

USDA’s Economic Research Service Monday released data showing the variations of food insecurity across the nation. Food insecurity rates vary across States because of household-level characteristics, State-level characteristics, and State-level policies. The estimated prevalence rates of food insecurity during 2019-21 ranged from 5.4 percent in New Hampshire to 15.3 percent in Mississippi. The estimated national average was 10.4 percent. The prevalence of food insecurity was significantly higher than the national average in nine States and lower than the national average in the District of Columbia and 14 States. In the remaining 27 States, differences from the national average were not statistically significant. USDA monitors the extent of food insecurity in U.S. households at the national and State levels through an annual U.S. Census Bureau survey. State-level estimates are obtained by averaging three years of data. Food-insecure households are those that had difficulty at some time during the year providing enough food for all members of the house due to a lack of resources.

Dickhut Retiring from Farmers National Company

Farmers National Company Monday announced Randy Dickhut (dick-hoot), Senior Vice President of Real Estate Operations, will retire on September 30, 2022. He retires after more than 20 years of work and leadership within the company. Dickhoot began his career with Farmers National Company in 2002 as a Farm Manager in West Central Illinois. In 2006, he moved to Omaha, Nebraska when promoted to the Vice President of Client Relations, and will complete his tenure with the company as the Senior Vice President of Real Estate Operations. Farmers National Company also announced that Paul Schadegg, Western Area Sales Manager, has been promoted to Senior Vice President of Real Estate Operations. Paul brings a wealth of knowledge and expertise to his new role with 20+ years of real estate and farm management experience. Farmers National Company, an employee-owned company, is the nation's leading agricultural landowner services company.

Murky Future for Fuel Prices

Fuel prices fell again last week, but GasBuddy says the near-term future is murky. The decline marks the 14th consecutive week of declines. The nation's average gas price declined 3.9 cents from a week ago to $3.64 per gallon. The national average is down 25.7 cents from a month ago but 45.9 cents higher than a year ago. The average diesel price declined 7.0 cents last week and stands at $4.93 per gallon. However, this week could change the downward trend, according to GasBuddy’s Patrick De Haan, who says, “With some issues arising in Plains and Great Lakes states as the transition to winter gasoline begins, I think we have the best potential to see the weekly trend of falling prices snapped.” West Coast states also continue to see increases as unexpected refinery issues continue to percolate, preventing a downward move. De Haan adds, “diesel prices should continue to ease after a much-needed jump in inventories last week.”

Tuesday Watch List

Markets

A report on U.S. housing starts in August is due out at 7:30 a.m. CDT and is the only significant report of the day. Traders will keep an eye on the latest weather forecasts for the U.S. and South America, watch for a possible export sale announcement and any news regarding Ukraine or Wednesday's expected rate hike.

Weather

A strong cold front has dropped out of Canada and into the Northern Plains on Tuesday morning. The front will continue southeast through the day, getting into the Central Plains and the Upper Midwest by tonight. Limited showers are expected with the front, but some better thunderstorms will be possible around Wisconsin in a couple of rounds. Hot temperatures continue ahead of the front while much cooler temperatures follow behind it by about 20-30 degrees.

Agricultural Share of Exports Hit High Mark in 2021

The value of all U.S. exports has grown at an average annual rate of six percent since 2002 and reached a record high of $1.4 trillion in fiscal year 2021. The USDA says while the bulk of U.S. exports consists of industrial supplies and capital goods, agriculture’s share of total U.S. exports has steadily increased. Between fiscal years 2002 and 2021, the value of agricultural exports rose by an average of 11 percent every year, exceeding the overall rate of increase for the rest of American exports. In 2021, ag producers accounted for 12 percent of the total value, up from nine percent in 2002. Even as total U.S. exports dropped 12 percent when COVID-19 began in fiscal year 2020, ag exports stayed steady because of surging shipments of soybeans, corn, and pork to China. In 2021, total U.S. exports rebounded by 14 percent as global demand recovered and trade restrictions relaxed. 

USDA Resumes Export Sales Reports

U.S. soybean exporters are off to a decent start as far as sales in the new marketing year. However, the first USDA report in several weeks says the shrinking U.S. crop, questionable Chinese demand, and South American competition are all threats to future sales opportunities. Reuters says those factors are pressuring U.S. corn exports too, but the latest level of sales was already uneventful ahead of the U.S. harvest. Technical issues prevented USDA from publishing weekly U.S. export data for almost a month. The data released last week included four weeks of sales ending on September 8. The data drought spanned marketing years as 2022-2023 began on September 1 for corn and soybeans. Soybean sales beat expectations in those four weeks at 5.75 million tons. For the 2022-2023 marketing year, U.S. corn sales during those four weeks hit 2.465 million tons. Total corn sales in the new marketing year reached 12.3 million tons.

Farmers Union Holds Successful D.C. Fly-In

Last week, more than 250 members of the National Farmers Union came to Washington, D.C., from all over the country to advocate for family farmers. During the week, members attended hundreds of Congressional meetings, met with over a dozen federal agencies, and directly participated in discussions with Ag Secretary Tom Vilsack, Commodity Futures Trading Commission Chair Rostin Benham, and many others. “This has been an incredibly productive and successful fly-in for National Farmers Union,” says NFU President Rob Larew. “It’s a testament to the passion and interest of our members that they’re willing to take time away from the farm and come to Washington and build bipartisan support for Fairness for Farmers and their farm bill priorities.” Ag Secretary Tom Vilsack says National Farmers Union, in many respects, has been the architect and the designer of the work the Biden administration is doing in terms of farm country and agriculture.

Taiwan Team to Purchase 69.8 Million Bushels of U.S. Wheat

Representatives from the Taiwan Flour Millers Association signed a letter of intent last week with U.S. Wheat Associates to buy 1.9 million metric tons of U.S. wheat over the next two years. Officials from U.S. Wheat Associates say that’s about 69.8 million bushels of American wheat worth $576 million. The signing took place at the Capitol Building in Washington, D.C. Taiwan is the sixth-largest U.S. wheat export market and the seventh-largest overseas market for U.S. agricultural products. “American farmers place great value on the relationship between U.S. agriculture and Taiwan,” says Michael Peters, USW Vice Chairman. “We pride ourselves as being dependable partners who grow the highest quality agricultural products in the world.” The team from Taiwan also signed Letters of Intent with the U.S. Soybean Export Council and the U.S. Grains Council to purchase soybeans and corn. The total estimated commitment in the three letters is estimated at $3.2 billion.

RIPE Awarded $80 Million for Pilot Conservation Program

Rural Investment to Protect our Environment (RIPE) and its partners have been awarded $80 million for a pilot program by USDA’s Partnerships for Climate-Smart Commodities program. RIPE is a producer-led organization advancing RIPE 100. It’s a conservation program that would pay producers $100 per acre or animal unit for stewardship, offering equitable payments above costs associated with practice implementation. Under the three-year program, the pilot will help producers in Arkansas, Minnesota, North Dakota, and Virginia prove the value of paying farmers and ranchers $100 per acre or animal unit for stewardship practices that deliver public value through carbon sequestration, greenhouse gas reductions, improved soil health, water quality and conservation, and other environmental practices. Other key principles of the pilot include easy enrollment, equitable payments, and no penalty for early adopters. Participants will get technical support in learning how to implement climate-friendly practices such as cover crops, no-till, nutrient management, and more.

Lamb Board Hosts Farm Tours for Food Influencers

People who influence opinions about food are taking to the backroads of America and learning how American lamb is raised while natural resources are protected. The American Lamb Board selected key market areas for the tours, including Boston, Seattle, Boulder, and Napa. “Our Lamb Checkoff engages with food influencers because they add another layer of credibility to our messages,” says ALB Chairman Peter Camino (Kah-MEE-no). “We’ve had numerous occasions when influencer relationships created opportunities we didn’t anticipate.” On August 1, a group of 25 Boston-area chefs and food media influencers made the trip to a farm in Boxford, Massachusetts, and enjoyed a deep dive into learning about lamb. The tour shed light on the intricacies of raising sheep in New England and highlighted the regenerative farming practices the producer already employs. The next tour was held on September 18 and hosted a group of influencers at Ninety Farms, located near Seattle.

Monday Watch List

Markets

Back from the weekend, traders may be a little cautious with an eye on outside markets as the Federal Reserve starts a two-day meeting Tuesday and is expected to increase the federal funds rate target on Wednesday. Traders will also be checking for rain prospects, especially for HRW wheat areas. USDA's weekly report of export inspections is due out at 10 a.m. CDT Monday, followed by the Crop Progress report at 3 p.m.

Weather

Scattered showers left over from the weekend continue over the eastern Midwest on Monday. Additional showers are developing with a weak system in the Northern Plains and Canadian Prairies. But over the rest of the country and particularly in the Central Plains, heat is building with temperatures well above normal forecast for the next couple of days. Recent showers did not fall over much of the winter wheat areas of the country which continue to suffer drought while the heat is also unfavorable. Showers may have and continue to have some negative effect for mature corn and soybeans waiting to be harvested.

Tentative Railroad Agreement Reached

The Biden administration helped to broker a deal between the major railroads and labor unions. The agreement avoids a rail shutdown but still has to be approved by a vote of union members. The biggest issue in the dispute wasn’t pay but working conditions. Some freight rail engineers and conductors faced on-call schedules that could see them called to work on short notice up to seven days a week. CNN says roughly 30 percent of America’s freight moves by rail. Recently harvested crops would be stuck, unable to reach processing plants and risk spoiling. The shutdown would have likely made inflation worse, cost the U.S. economy up to $2 billion a day, and affected the agriculture, manufacturing, and energy sectors of the economy. Emily Skor, CEO of Growth Energy, told Reuters that the deal is great for the ethanol industry as much of the country’s biofuel supplies are moved by railroads.

Wheat Growers Applaud Rail Agreement

The National Association of Wheat Growers and U.S. Wheat Associates applaud the tentative agreement between the railroads and rail union representative that averted a potential Friday rail shutdown. While the union members have to vote on the deal, they have agreed not to strike while the deal goes through ratification. “COVID-19 forced rail laborers into a tough situation as essential workers, and we applaud their willingness to come to an agreement,” says NAWG CEO Chandler Goule. “We also appreciate the railroads understanding the severity of the situation and taking steps to improve their services.” Wheat growers are uniquely reliant on rail due to the large distances between production and consumption. “Our country’s reputation as the world’s most reliable wheat supplier depends heavily on functioning rail transportation and that won’t change in the future,” says USW President Vince Peterson. Railroads have moved more than one billion bushels of wheat during the last five years.

NCBA Wants Limited Greenhouse Gas Rule

The National Cattlemen’s Beef Association reiterated the need for a limited version of the Securities and Exchange Commission’s greenhouse gas disclosure rule. SEC Chair Gary Gensler recently testified before the Senate Committee on Banking. “The SEC’s proposed greenhouse gas disclosure rule is aimed at large publicly-traded companies but would lead to unintended consequences for small businesses like farms and ranches,” says NCBA Chief Counsel Mary-Thomas Hart. “The rule would require data that simply does not exist at the farm or ranch level and increases the regulatory burden on individual cattle producers.” She also says they’re asking the SEC to limit their proposed rule to avoid unintentional impacts to farms and ranches across the country. The greenhouse gas rule would require businesses up and down the beef supply chain to disclose their greenhouse gas emissions, including farms and ranches. The rule would also expose individual producers to additional levels of legal liability.

Court Rules GMO QR Codes Unlawful

A U.S. District Court says the USDA’s decision to allow genetically engineered foods to only be labeled with a QR code was unlawful. The Center for Food Safety says USDA is required to add additional disclosure options to those foods under the USDA’s Bioengineered Food Disclosure Standard. “This is a victory for all Americans,” says Meredith Stevenson, Center for Food Safety staff attorney and counsel in the case. “The decision marks a key step toward ending the food industry’s deceptive and discriminatory GMO food labeling practices, which have kept consumers in the dark by concealing what’s in their products.” The Court sent back to the agency the QR code portions of the 2018 Trump administration rules for GMO labeling that went into effect on January 1 of this year. The Center also says the court now confirmed that the USDA acted unlawfully in allowing standalone QR code and other electronic GMO labeling.

Subcommittee Hearing Covers Pros and Cons of “Right to Repair”

The House Small Business Subcommittee heard from both sides in the right-to-repair debate in agriculture. Industry Update Dot Com says lawmakers will have to consider measures that would require machine manufacturers to give customers the software, parts, and tools they want to make their own repairs. Ken Taylor of the Equipment Dealers Association expressed concern that giving people access to internal software in their equipment would allow them to change emissions and safety controls in tractors and other implements. While dealers already sell several parts directly to farmers, the manufacturer’s association doesn’t want customers tampering with controls for safety, environmental, and health reasons. Gay Gordon-Byrne represented the Repair Association and said farmers just want to be able to get parts and make repairs themselves. “All this worry about modifying emissions and tweaking tractors isn’t repair,” she says. “We just want to do something simple that’s been complicated by these questions.”

Farmers for Soil Health Thankful for Funding

The National Corn Growers Association applauded a recent USDA decision to allocate up to $95 million in funding to help farmers accelerate their cover crop adoption. The funding will support Farmers for Soil Health, which works to advance conservation practices to improve soil health across the U.S. The FFSH collaborative is comprised of commodity groups, including the NCGA, the American Soybean Association, the National Pork Board, and the United Soybean Board. “We appreciate the USDA for recognizing the important role that farmers play in combatting climate change,” says NCGA Vice President of Production and Sustainability Nathan Fields. “These funds will help us identify and support practices that work for corn growers, expand the use of cover crops, and build on our efforts to lower greenhouse gas emissions.” Fields also says the funding will help NCGA reach 30 million acres of cover crops by 2030 through funding cost-share and technical assistance.

Friday Watch List

Markets

Early Friday, traders will be checking to see if there is anything new regarding the tentative agreement between rail companies and workers. The latest weather forecasts will also be checked for the possibilities of rain next week in the southwestern U.S. Plains. At 9 a.m. CDT, the University of Michigan will report on U.S. consumer sentiment and USDA's Livestock, Dairy and Poultry Outlook will be out at 1 p.m.

Weather

A disturbance from Thursday continues with some showers from Kansas into Minnesota Friday morning. Another system will move from the central Rockies into the Central and Northern Plains late in the day and produce another smattering of scattered showers from Kansas northward late today and tonight. Most of the rest of the country will remain dry with above-normal temperatures, heavily influenced by warm lows this morning.

USDA Investing $2.8 Billion in Climate-Smart Commodities Partnerships and Projects

Ag Secretary Tom Vilsack says the USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. USDA’s initial investment of $1 billion is expected to triple to more than $3 billion in pilot projects that will create market opportunities for American commodities produced using climate-smart practices. These projects will expand markets for climate-smart commodities, leverage greenhouse gas benefits of climate-smart commodity production, and provide meaningful benefits to production agriculture. Applicants submitted more than 450 project proposals for the first round of funding. “There is strong and growing interest in the private sector and among consumers for food that’s grown in a climate-friendly way,” Vilsack says. The strength of the 70 projects led USDA to increase its investment from the $1 billion announced earlier this year. More information on Partnerships for Climate-Smart Commodities and program details are available at usda.gov.

NACD: “Leave No Producer Behind”

The National Association of Conservation Districts is one of 70 partners selected to participate in USDA’s Climate-Smart Commodities Program. The NACD will receive a grant of up to $90 million over three years for technical, financial, and marketing assistance. The association intends to advance grassroots efforts that ensure producers and local communities are prepared to meet growing demand and have access to climate-smart commodity markets. The NACD’s goal is to leave no producer behind. “We’re thrilled about the opportunity to invest in local communities through the Climate-Smart Commodities Program,” says NACD President Michael Crowder. “We know that producers are more likely to implement climate-smart practices if transition risks are minimized and they have ready access to profitable market opportunities.” Roughly 70 percent of land in the lower 48 states is privately owned, which means implementing sound conservation practices relies on individual producers. This assistance will support producers in making sound conservation decisions.

Scott Speaks On Soil Health, Regenerative Practices After House Ag Hearing

House Agriculture Committee Chair David Scott spoke after a hearing titled “Soil Health Practices and Programs that Support Regenerative Agriculture. ”As I noted after my first hearing as Chair in 2021, changing weather patterns have introduced significant risks to agricultural production, forest resources, and the economy will affect risk-management tools, financial markets, and global food security,” Scott says. “The risks to agriculture are why topics like soil health are important to consider.” He also says the witnesses at the hearing provided the committee with valuable insight to help them better understand the conservation and economic benefits of soil health practices and how they support regenerative agriculture. “The lessons we learned through the Dust Bowl led to the creation of the Natural Resources Conservation Service,” Scott adds. “In the face of growing climate challenges, managing soil health is one of the most effective ways farmers can increase productivity and protect natural resources.”

Nestle Getting Into the “Fake-Milk” Market

Nestle is trying to establish a presence in the animal-free dairy market by working with Perfect Day, a startup company trying to create a milk-like beverage from microflora. The genetically-engineered microflora will be programmed to produce proteins similar to cow’s milk, but Nestle says the microflora milk will have a smaller environmental footprint. Nestle says it will try out the new beverage in a handful of stores later this year. The company says it’s only the beginning of new dairy products. “Innovating alongside leaders like Nestle is a key part of how we’re making an impact,” says Perfect Day CEO Ryan Pandya. Perfect Day is also working with several other manufacturers to bring animal-free milks to market. They’re working with Betterland Foods, another new company that introduced lactose-free milk in whole or creamy varieties. Tomorrow Farms introduced its Bored Cow Flavored Milk brand that uses Perfect Day’s animal-free whey proteins.

Ten Semi-Finalists Advance in Ag Innovation Challenge

The American Farm Bureau, in partnership with Farm Credit, announced that ten teams advanced to the semifinal round of the 2023 Farm Bureau Ag Innovation Challenge. “The future of agriculture depends on innovative solutions to the challenges that we’re facing today,” says AFBF President Zippy Duvall. “The entrepreneurs behind the start-up companies we’re recognizing are committed to helping rural communities and supporting farmers and ranchers in their mission to provide the food, fuel, and fiber we all rely on.” The competition is an opportunity for individuals to showcase ideas and business innovations in agriculture. It’s the ninth year of the challenge, which was the first national business competition focused exclusively on rural entrepreneurs launching food and agriculture businesses. The ten semi-finalist teams are being awarded $10,000 each and will compete at the AFBF convention in Puerto Rico. Four teams will then advance to the final competition during the annual convention.

Thursday Watch List

Markets

Fingers crossed, USDA is expected to have weekly export sales data, updated through September 8 available at 7:30 a.m. CDT Thursday, data that was stopped as of August 11 after technical issues got in the way. Also at 7:30 a.m., there will be weekly U.S. jobless claims, August retail sales and an update of the U.S. Drought Monitor. At 9:15 a.m., the Federal Reserve's report on industrial production will be out, followed by natural gas storage at 9:30 a.m. and a soybean crush estimate for August from the National Oilseeds Processors Association later Thursday morning.

Weather

Weak disturbances continue to move from the West into the Northern Plains, producing more scattered showers on Thursday. Another little disturbance will create scattered showers farther south through the Central and Southern Plains as well. These storms may be briefly strong enough this afternoon and early evening to become severe, but any moderate to heavy rain will be isolated. The few areas that do receive rain will be happy to do so for winter wheat planting, though there may be some delays for corn and soybean maturity. Outside of the rain potential, it continues to be hot in the middle of the country as a ridge of high pressure is largely in control.

August Consumer Price Index Increases

The Consumer Price Index increased 0.1 percent in August on a seasonally adjusted basis after being unchanged in July. The Bureau of Labor Statistics reported Tuesday Increases in the shelter, food, and medical care indexes were the largest contributors to the broad-based monthly all items increase. The food index increased 0.8 percent in August, the smallest monthly increase in that index since December 2021. The food at home index rose 0.7 percent in August as all six major grocery store food group indexes increased. The index for other food at home rose 1.1 percent, while the index for cereals and bakery products rose 1.2 percent over the month. The meats, poultry, fish, and eggs index, the fruits and vegetables index, and the nonalcoholic beverages index all increased 0.5 percent in August. The index for dairy and related products increased 0.3 percent over the month, the smallest increase in that index since November 2021.

Executive Order Seeks Advancement of Biotechnology

An Executive Order by President Joe Biden announced this week focuses on advancing biotechnology and biomanufacturing innovation. Specifically, the order seeks innovative solutions in health, climate change, energy, food security, agriculture, supply chains, and national and economic security. The White House says, “For biotechnology and biomanufacturing to help us achieve our societal goals, the United States needs to invest in foundational scientific capabilities.” Of note, the order will bolster federal investment in key research and development areas, boost sustainable biomass production, create climate-smart incentives for American agriculture, and expand market opportunities for bioenergy and biobased products. Within 180 days, the order directs the Agriculture Secretary to issue a report assessing how to use biotechnology and biomanufacturing for food and agriculture innovation. This includes improving sustainability and land conservation, increasing food quality and nutrition, increasing and protecting crop yields, protecting against plant and animal pests and diseases, and cultivating alternative food sources.

Organic Trade Reaches $3.4 Billion in 2021

USDA’s Economic Research Service Tuesday reported organic trade reached $3.4 billion in 2021. Since 2011, there has been an uptick in the total value of imported organic products, partially because more products are being tracked and partially because more high-value organic products, such as blueberries and squash, are being imported into the United States. The United States also exports organic food, and those exports have been steadily rising since 2011, reaching $0.7 billion in 2021. For example, the United States exported 2.4 thousand metric tons of organic fresh cultivated blueberries, with more than 90 percent headed to Canada in 2021. In the same year, the United States imported 41.5 thousand metric tons of organic fresh cultivated blueberries. Importers of organic products must either be USDA-certified or belong to a trading partner with an organic recognition agreement with the United States. Countries with such agreements include Canada, the European Union, Japan, South Korea, Switzerland, Taiwan, and the United Kingdom.

North American Combine Continue Unit Sales Growth in August, Tractors Mixed

Combine sales grew for August in both the U.S. and Canada, while total tractors fell in the U.S., but grew in Canada, according to the latest data from the Association of Equipment Manufacturers. Total U.S. ag equipment unit sales rose above the five-year average for the first time since April 2022. U.S. total farm tractor sales fell 11.7 percent for August compared to 2021, while combine sales for the month grew 25.8 percent to 790 units sold, making for a three-month growth streak for that segment. In Canada, growth in all segments led Canadian unit sales to its first positive year-over-year month in unit sales since January 2022. Overall unit sales in tractors were up 7.2 percent, and combine sales grew 33.1 percent to 221 units sold. Year-to-date farm tractor unit sales are down 6.7 percent in Canada, while harvesters cut their losses down to 13.7 percent.

Lawsuit Seeks Documents from EPA Regarding Dicamba Harms

The Center for Food Safety this week filed a Freedom of Information Act lawsuit against the Environmental Protection Agency. The lawsuit claims the EPA is unlawfully withholding records about the impacts of dicamba. The lawsuit, filed in the U.S. District Court of Northern California, alleges that EPA withheld public records from an agency report showing that control measures in its 2020 dicamba registration decision failed to reduce the number, severity, or geographic extent of dicamba-related incidents compared to prior seasons. Meredith Stevenson, staff attorney at the Center for Food Safety, says the action "reflects the agency's pattern of thwarting the public's access to information under FOIA." In June 2022, the center submitted a FOIA request to EPA, seeking documents referenced in the agency's December 2021 report on dicamba. The EPA has yet to produce any records, prompting CFS to now sue under FOIA law. The lawsuit comes amid an ongoing lawsuit challenging the legality of EPA's 2020 registration of over-the-top dicamba pesticide uses on dicamba-resistant cotton and soybeans.

Farm Foundation Hosting Antimicrobial Stewardship Forum

Farm Foundation this week announced a forum on Antimicrobial Stewardship in Agriculture: How Far Have We Come and What's Next? The free online forum is set for Tuesday, September 27, at 9:00 am CDT. Farm Foundation says antimicrobial resistance poses a serious public health threat and has the potential to affect society, the economy and the health of animals and humans. The latest Forum will examine scientific evidence related to antimicrobial use and the effects of antimicrobial resistance in agriculture. The forum will also address key public policies shaping discussions around stewardship, resistance and what challenges need to be addressed in the long and short term. Shari Rogge-Fidler, Farm Foundation President and CEO, says, “We're proud to provide a space where farmers and industry stakeholders alike can engage on a crucial topic.” The event is being held virtually via Zoom and is free to attend, but registration is required. Find details and registration at: farmfoundation.org/AntimicrobialForum.

Wednesday Watch List

Markets

The U.S. Labor Department's producer price index for August may be anti-climactic Wednesday, but will be out at 7:30 a.m. CDT followed by a new round of crop estimates from Statistics Canada. The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. and includes weekly ethanol production. Traders will continue to watch the latest weather forecasts and keep an eye on outside market concerns after Tuesday's sell-off in the stock market.

Weather

A ridge of high pressure is building over the middle of the country Wednesday. Temperatures will continue to increase for most areas, especially with regards to morning lows. Disturbances off in the West will move northeast, producing scattered showers for the Northern Plains. Some isolated showers will also get into portions of the Central and Southern Plains. The heat and overall dryness will continue to be unfavorable for those looking to plant winter wheat.

USDA Forecasts US Corn, Soybean, and Cotton Production Down from 2021

Corn, soybean, and cotton production is down from 2021, according to Monday's Crop Production report issued by USDA's National Agricultural Statistics Service. Corn production is down eight percent from last year, forecast at 13.9 billion bushels, while soybean growers are expected to decrease their production one percent from 2021, forecast at 4.38 billion bushels. Meanwhile, cotton production is down 21 percent from 2021 at 13.8 million 480-pound bales. Planted corn area is estimated at 88.6 million acres, down one from the previous estimate. Area planted to soybeans is estimated at 87.5 million acres, down one percent from the previous estimate, but cotton planted area is estimated at 13.8 million acres, up 11 percent from the previous estimate. The U.S. season-average soybean price is forecast at $14.35 per bushel, unchanged from last month. Meanwhile, USDA's World Agricultural Supply and Demand report raised the season-average corn price ten cents to $6.75 per bushel. USDA also lowered the season-average farm price for wheat 25 cents to $9.00 per bushel.

The Fertilizer Institute urges Congress Act to Avoid a Freight Rail Shutdown

The Fertilizer Institute over the weekend again urged Congress to take action to avoid a freight rail shutdown on September 16. TFI sent a letter to Congressional leaders pushing for intervention to prevent a stoppage from occurring. TFI President and CEO Corey Rosenbusch says, "A stoppage hasn't yet happened, but we are already feeling the negative effects of non-resolution." Rail carriers announced Friday evening that shipments of fertilizer products, such as ammonia – a key fertilizer and building block for approximately three-fourths of all fertilizer – will start coming off rail networks this week. Rosenbusch contends the situation will get exponentially worse every day there is no resolution, adding, "if they cannot reach an agreement, Congress must act to avoid an economic catastrophe that will only add to inflation and increase consumer pain." Congress can prevent rail workers from striking and has done so before, in 1986 when then-President Ronald Reagan intervened in the strike of workers for Maine Central railway.

Lawmakers Ask USTR To Protect Growers from Unfair Practices by Mexico

Lawmakers led by Florida Senator Marco Rubio recently asked U.S. Trade Representative Katherine Tai to investigate the flood of surplus agricultural products from Mexico. The request, filed as a petition under Section 301 of the Trade Act of 1974, says actions by Mexico over the last two decades have burdened and restricted U.S. commerce. The lawmakers say that for more than 20 years, Mexico has leveraged heavy subsidies and low wages in a scheme to conduct a “conquest of external markets” and displace Florida’s seasonal and perishable agricultural industry from the domestic U.S. market. Specifically, the petition names fruits and vegetables grown with subsidized horticultural infrastructure and other forms of Mexican government support as a marketplace burden for U.S. growers, and may allow Mexico the ability to set market prices that harm American consumers. Provisions of the amended Trade Act of 1974 gives USTR authority to investigate and redress unreasonable trade practices that burden and restrict U.S. commerce.

Food Insecurity in Households with Children Reached Two-decade Low in 2021

USDA’s Economic Research Service reported Monday food insecurity in U.S. households with children reached a two-decade low in 2021. The Economic Research Service monitors the prevalence of food insecurity in U.S. households with children by measuring food insecurity for the household overall, as well as for adults and children separately. The first measure, food insecurity in households with children, indicates that at least one person in the household—whether an adult, a child, or both—was food insecure. The second measure, food insecurity among children, indicates that households were unable at times to provide adequate, nutritious food for their children. Both annual measures improved in 2021. In 2021, 12.5 percent of households with children were food insecure, a significant decrease from 14.8 percent in 2020 and the lowest point in two decades. The prevalence of food insecurity among children in 2021 was 6.2 percent, down from 7.6 percent in 2020. The decline means that in 2021 nearly 2.5 million fewer children lived in households that experienced food insecurity.

Organic Produce Association Elects Chairman

The Organic Produce Association recently elected Theo Cristantes Jr as chairman. Cristantes is the chief operations officer for Wholesum and has been serving in an acting capacity since the fall of last year. The Organic Produce Association consists of members in the organic produce industry who focus on science-based policymaking and the ability to be innovative while respecting the tradition of organics and the integrity of the USDA Organic Seal. Crisantes, a trained agronomist, has worked for more than 20 years in the organic produce industry, growing certified organic tomatoes, peppers, squash, cucumbers, and eggplants at his family's third-generation farming operation. Wholesum currently supports over 21.8 million square feet of greenhouses and grows 2,500 acres of in-ground produce. Crisantes says, "I look forward to working with all our OPA members to address key issues with the goal of expanding the production and consumption of organic produce."

Fuel Prices Decline Again

The nation's average gas price declined for the thirteenth consecutive week, down 7.6 cents from a week ago to $3.67 per gallon. The national average is down 26.9 cents from a month ago but 52.3 cents higher than a year ago. The national average diesel price declined 5.5 cents last week and stands at $5.01 per gallon. However, Gas Buddy's Patrick De Haan says, "we're seeing drastically different price behaviors from coast to coast, with some areas seeing noticeable increases while others are seeing decreases." Refinery issues in California are leading to increases in areas supplied by the state's refineries, including Arizona, Nevada, Oregon, Washington and California. Gasoline supply remains tight for the East Coast with some modest moves up, while prices continue to edge lower in the Plains, South and areas of the Great Lakes. Last week saw an 8.8-million-barrel rise in U.S. oil inventories, while U.S. gasoline demand fell 5.4 percent last week.

Tuesday Watch List

Markets

The U.S. Labor Department will release its report on consumer prices for August at 7:30 a.m. CDT Tuesday, watched by a big crowd looking for clues to future Fed policy. Traders are still digesting USDA's new estimates on Monday and will keep an eye on weather as well as the response of outside markets to Tuesday's CPI report. The Treasury department reports on the federal budget at 1 p.m.

Weather

A ridge of high pressure is moving from the Rockies into the Plains on Tuesday and temperatures will rise in response. The ridge also comes with dryness as it pushes a system into the Northeast. The heat and dryness will exacerbate drought conditions in the Plains for winter wheat planting, but will help to dry-down corn and soybeans for harvest. Across the West, several small disturbances will make for some showers which will move northeast through the Northern Plains and Canadian Prairies over the next several days.