USDA Sees Record Demand to Advance Clean Energy in Rural America

The Department of Agriculture reports record demand for funding to advance affordable and reliable clean energy in rural America. Agriculture Secretary Tom Vilsack says, “The Inflation Reduction Act is driving investment in rural communities across the nation, particularly in places that for too long have been left out or left behind.” The Inflation Reduction Act made nearly $13 billion available to support clean energy infrastructure for rural America through USDA Rural Development programs. In May, USDA made $9.7 billion available under the New Empowering Rural America program for member-owned rural electric cooperatives, and received 157 proposals from nearly every state. Also in May, USDA made $1 billion available under Powering Affordable Clean Energy to fund new clean energy projects and energy storage in rural America. So far, USDA has received requests for more than $7.8 billion through letters of interest. USDA has also seen substantially more interest than funding available under the Inflation Reduction Act in USDA’s Natural Resources Conservation Service.

Animal Rights Groups Welcomes Bill to End Milk Mandate

Legislation introduced recently would give kids a nutritionally equivalent, plant-based milk option to cow’s milk in the National School Lunch Program. Welcomed by animal rights groups, the Addressing Digestive Distress in Stomachs of Our Youth Act requires public schools to offer a nutritionally equivalent soy milk option and allows USDA to reimburse schools for those purchases, just as it does for cow's milk. Animal Wellness Action President Wayne Pacelle says, “The federal government is overreaching by subsidizing and promoting milk beyond its natural appeal to consumers.” Under law, USDA provides a reimbursement of $1 billion for cow’s milk to public schools across the country, placing a carton of milk on every tray. Earlier this year, the National Milk Producers Federation responded, “The latest ploy among the vegan, animal rights and plant-based lobbies is to suddenly paint themselves as social justice crusaders, demanding that their nutritionally inferior products should now be treated as legitimate milk substitutes in federal nutrition programs.”

Federal Complaint Alleges Environmental Violations by eBay

The Environmental Protection Agency and Department of Justice this week filed a complaint against eBay. The complaint alleges eBay allows the unlawful selling of pesticides, violating the Clean Air Act, the Federal Insecticide, Fungicide, and Rodenticide Act, commonly known as FIFRA and the Toxic Substances Control Act. FIFRA prohibits the unlawful distribution or sale of unregistered, misbranded, and restricted-use pesticides, and authorizes EPA to issue Stop Sale, Use, or Removal Orders. The complaint also alleges that eBay has unlawfully distributed or sold at least 23,000 such products, and that some of those sales directly violate a stop sale order issued to eBay in 2020 and amended in 2021. Examples of these pesticides include a high-toxicity insecticide banned in the U.S., restricted-use pesticides that only certified applicators may apply, and products fraudulently claiming to protect users against SARS-CoV-2. The complaint also targets aftermarket parts that defeat motor vehicle emission controls.

2022 Potato Production Down 3 Percent

The Department of Agriculture this week released the 2022 Potatoes Summary. The report presents potato estimates of acreage, yield per acre, production, farm disposition, season average price, value, and utilization of sales, including processing for the 2022 season. All potato production in 2022 totaled 399 million hundred-weight, down three percent from the 2021 crop. Harvested area, at 911,400 acres, was down one percent from 2021. The average yield of 438 hundred-weight per acre was down six hundred-weight from the previous year. The value of all potatoes sold in 2022, at $4.80 billion, increased 23 percent from the previous year. The average price, at $12.90 per hundred-weight, was up $2.70 from 2021. The quantity of potatoes sold from the 2022 crop totaled 373 million hundred-weight, down three percent from 2021. Potatoes used for chips increased three percent, while frozen French fries utilization dropped one percent, and dehydrated potatoes fell seven percent.

Turkey Growers Increase Flock Size

While U.S. Trade Representative Katherine Tai visited a North Carolina Turkey Farm to celebrate market access to India, USDA reported increased turkey production this week. The September USDA Turkey Raised report indicated a four percent increase from 2022. Turkeys Raised in the United States during 2023 is forecasted at 219 million this month. The top six states account for 68 percent of the turkeys produced in the United States during 2023. The largest turkey-producing state is Minnesota, at 39.0 million turkeys, up five percent from the previous year. North Carolina produced 29.0 million turkeys, up four percent from a year ago. Arkansas produced 27.5 million turkeys, up six percent from last year. Indiana produced 20.0 million turkeys, unchanged from last year. Missouri produced 18.0 million turkeys, up six percent from last year, and Virginia is up one percent from the previous year at 15.4 million turkeys. Turkeys raised preliminary estimates include young turkeys intended for meat production and breeder turkeys reaching maturity during the calendar year.

USDA: Lower Income Countries Spend More on Food

Consumers in low-income countries spend a greater proportion of their budgets on food than those in higher-income countries, according to USDA’s Economic Research Service. As incomes rise with economic development and urbanization, the share of income spent on food tends to fall, while discretionary spending on household goods, education, medical services, and recreation tends to increase. In low-income African and South Asian countries, spending on food accounted for more than 40 percent of total consumer expenditures in 2022. This contrasts with higher-income economies in Latin America, including Argentina, Colombia, and Mexico, where an average of about 22.5 percent of budgets was spent on food. In emerging markets such as Brazil, India, and China, where incomes are rising, the share of discretionary income spent on nonfood categories has increased. In higher-income economies, including the United States, Switzerland, Australia, and Canada, disposable incomes remain larger, and the food share of consumer expenditures is smaller than those in countries where urban communities are still expanding.

Friday Watch List

Markets

The Federal Reserve's favorite inflation indicator, the PCE index is due out at 7:30 a.m., the same time as reports on U.S. personal income and consumer spending. USDA's September 1 Grain Stocks and Small Grains Summary are both due out at 11 a.m. CDT Friday, followed by DTN's webinar at 12:30 p.m.

Weather

A frontal boundary moved into the Northern Plains Thursday and will largely stall there into Minnesota for Friday. Pockets of scattered showers and thunderstorms will be possible in these areas. Some isolated showers may pop up farther south across the Plains as well. Temperatures south and east of the front will continue to climb higher.

Americans Want Their Food Produced Domestically

A new survey from the American Sugar Alliance shows American voters recognize the importance of agriculture. The poll says they want Congress to prioritize American farmers in the next farm bill, provide them with a strong and reliable safety net, and protect them from foreign businesses that could displace American farmers and workers and disrupt our national food supply. Almost two-thirds of the respondents in the survey say the nation’s food supply should be less dependent on foreign suppliers. The results cut across political parties and geographical regions. As far as where America should buy its sugar from, eight times as many voters preferred American-made sugar compared to those who preferred imported sugar. “Clearly, voters value domestic sugar production and don’t want to depend on foreign suppliers for an essential food ingredient,” says Cassie Blaedow, Chair of the American Sugar Alliance. Approximately 11,000 family farmers raise sugar beets and sugarcane.

USDA Will Begin Issuing $1.75 Billion in Emergency Relief

The USDA began issuing more than $1.75 billion in emergency relief payments to eligible farmers and livestock producers. These much-needed payments are helping farmers and ranchers recover following natural disasters in 2020, 2021, and 2022. “USDA provides substantial economic support for America’s farmers and ranchers through its critical farm payments,” says Ag Secretary Tom Vilsack. “These payments reflect the incredible and cumulative financial hits brought on by devastating natural disasters which agricultural producers nationwide have endured while fulfilling their commitment to produce our food, fiber, and fuel.” He also says the additional assistance offsets tremendous losses and is a valuable investment not only for farmers and ranchers but also for the economic success of rural and urban communities and our nation’s food security for generations to come. This week, the Farm Service Agency will issue more than $581 million in 2021 and 2022 drought and wildfire emergency relief to eligible ranchers.

Merck Awards Scholarships to Future Veterinarians

Merck Animal Health announced it has awarded $90,000 in scholarships to 18 bovine veterinary students in partnership with the American Association of Bovine Practitioners. Scholarship recipients were selected based on their academic achievements, career goals, work experience, and interest in veterinary medicine. The scholarships were recently given out during the 2023 AABP Annual Conference in Milwaukee, Wisconsin, with each winner getting $5,000. “Merck Animal Health is proud to honor these veterinary students who represent the future of our field and the cattle industry,” says Justin Welsh, DVM and executive director of livestock technical services for Merck. Fred Gingrich, DVM and executive director of AABP, says he’s very excited about what the future holds for these outstanding students and the talents and skills they will bring to the veterinary profession as they embark on their careers. “We are incredibly grateful to Merck Animal Health for its continued partnership and support,” Gingrich says.

Legislation Helps Organic Producers Meet Growing Demand

New legislation was introduced in both chambers of Congress to give organic producers the tools they need to increase their capacity, reach new markets, and grow their businesses. The Organic Market Development Act would codify and increase support for a newly announced USDA program that aims to solve supply chain gaps for the organic market through grants to farmers and businesses as demand increases for organic products. In 2021, U.S. sales of organic food products reached $52 billion, nearly doubling the sales done in 2010. Senate bill sponsor Tammy Baldwin (D-WI) says the legislation will build on the success of the Organic Market Development Grant Program and allow more producers to access these resources and tools to grow America’s agriculture economy. The legislation builds on the initial $75 million annual authorization by maintaining the base CCC investment and adds $25 million in appropriations for 2024 and each fiscal year thereafter.  

NCGA Campaign Call for a Level Playing Field

The National Corn Growers Association launched a grassroots advocacy campaign to encourage the National Highway Traffic Safety Administration to provide a level playing field for biofuels like ethanol. The organization wants corn growers and advocates to make their voices heard by submitting comments to the agency. The campaign comes after NHTSA proposed hiking the Corporate Average Fuel Economy Standard, referred to as the CAFÉ Standard. It regulates how much fuel a vehicle consumes per mile. The agency’s current proposal would move the fleet average for small cars and light trucks from 44 to 58 miles per gallon by 2032. NCGA President Tom Haag says the proposal sets an unattainable goal and concerning precedent. “Auto manufacturers will be forced to overlook viable solutions in high-octane biofuels like corn ethanol to meet these standards,” Haag says. “This would minimize the role biofuels play in reducing greenhouse gas emissions and saving consumers money.”

Missouri Farmland Sale Sets New Record

A Missouri farmland auction broke the previous record set in Iowa as 115 acres of land sold for a record amount. The Missouri farmland sale smashed the previous record of $30,000 an acre set in Iowa. The bill of sale from Dyer and Fenner Auctioneers said the record sale happened last week in Saline County, Missouri. Two farmers got into a bidding war, and, in only 15 minutes, the 115 acres set the new record at $34,800 per acre. The buyer wasn’t an investor. The winning bid came from a farmer named Jeff Baxter from neighboring Carroll County, Missouri. Area farmers say the competing bidder was a farmer whose home farm touches the land that was up for sale. Farm Journal’s AgWeb says the bidding started at $15,000 an acre for the piece of ground that’s been in the same family for four generations, and the bids climbed very fast.   

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. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m. USDA's Hogs and Pigs report for September 1 is due out at 2 p.m.

Weather

An upper-level trough that has been meandering through the Midwest all week continues across eastern regions with areas of showers on Thursday. A new front has moved into the Northern Plains and will be the focus for areas of showers and thunderstorms going into next week. Above-normal temperatures continue to build where showers and clouds do not occur.

USDA Expands Access to School Breakfast and Lunch

The Department of Agriculture Tuesday announced it is giving an estimated 3,000 more school districts in high-need areas the option to serve breakfast and lunch to all students at no cost. The expansion is possible through the Community Eligibility provision, commonly known as CEP. Agriculture Secretary Tom Vilsack says the effort "Will decrease childhood hunger, improve child health and student readiness, and put our nation on the path to better nutrition and wellness." CEP is a simplified meal service option that allows schools to provide meals at no cost to all students without requiring families to apply for free and reduced-price meals. School districts receive federal funding based on a formula using existing data, and local or state funds must fill any gap between program costs and federal support. Previously, at least 40 percent of students had to live in households participating in federal assistance programs for a school or school district to be eligible for CEP. This final rule lowers that threshold from 40 percent to 25 percent.

Report: Organic Strawberries Bring Higher Prices

New data from USDA's Economic Research Service shows organic strawberries offer growers higher prices than conventional strawberries. Fresh strawberry prices tend to exhibit strong seasonal trends partly because of their relatively short shelf life. In the United States, grower prices for fresh organic strawberries move in tandem with conventional strawberry prices throughout the year while also typically running 40 to 50 percent higher than conventional prices—this difference is known as a price premium. In late fall and throughout winter, supply wanes even though demand remains robust. During this period, grower price premiums for organic strawberries rise above typical levels. From 2018–2022, the highest average price premium was in January, when organic strawberry prices were 74 to 88 percent higher than conventional strawberries. Price premiums in July averaged 18 to 24 percent. Since 2008, domestic organic strawberry acreage has tripled in California, which provides about 75 percent of U.S. organic strawberry production.

Lawmakers Seek Action on Wildland Firefighter Pay Reform

A group of Senators called on Senate Majority Leader Chuck Schumer to consider wildland firefighter pay reforms. Led by Colorado Democrat Michael Bennet, the lawmakers seek advancement of permanent, comprehensive pay reform for the country's wildland firefighters as temporary pay increases are set to end. Short-term pay increases for over 22,000 federal firefighters will run out this week unless Congress takes action. In a letter, the senators note the increasing threat posed by wildfires in the U.S. and issues that have contributed to firefighter recruitment and retention challenges in recent years – including low pay, unaffordable housing, and strain on their mental health. The lawmakers say, “Firefighters deserve fair pay, support for their mental and physical health, and time to recover from their dangerous work.” They conclude by urging Schumer to move forward on permanent, comprehensive pay reform in line with the President’s Budget Request for Fiscal Year 2024 and the Wildland Firefighter Paycheck Protection Act.

USDA Report Details Cold Storage Food Supply

USDA’s September Cold Storage Report shows lower dairy and meat supplies and seasonally higher frozen fruit and vegetables. The report released this week shows total natural cheese stocks in refrigerated warehouses on August 31, 2023, were down slightly from the previous month but up one percent from August 31, 2022. Butter stocks were down 12 percent from last month but up four percent from a year ago. Total frozen poultry supplies were down slightly from the previous month, but up one percent from a year ago, and total pounds of turkey in freezers were up two percent from last month. Frozen fruit stocks were up six percent from last month but down two percent from a year ago, while frozen vegetable stocks were up 18 percent from last month and five percent from a year ago. Finally, red meat supplies in freezers were up one percent from the previous month but down 15 percent from last year.

USTR Visits North Carolina Turkey Farm

U.S. Trade Representative Kathrine Tai visited a North Carolina Turkey Farm Tuesday, celebrating recent market access wins for U.S. agriculture in India. Tai joined North Carolina Governor Roy Cooper for a tour of North Carolina State University’s Talley Turkey Education Unit, and participated in a roundtable event with turkey producers. Earlier this month, the U.S. and India reduced tariffs on frozen turkey, frozen duck, fresh blueberries and cranberries, frozen blueberries and cranberries, dried blueberries and cranberries, and processed blueberries and cranberries. The effort will give North Carolina farmers and agriculture producers greater opportunity to reach India’s large, untapped market for turkey exports. North Carolina is one of the United States’ largest exporters of turkey, accounting for about ten percent of U.S. turkey exports to the world each year. From 2017 through 2022, North Carolina averaged $50 million in annual exports of turkey products to the world. From 2017 through 2022, the U.S. exported over $3.1 billion of turkey to the world.

NOAA Providing Funding for Tribal Lands Drought Resiliency

The National Oceanic and Atmospheric Administration this week announced funding to support drought resilience on tribal lands. NOAA is providing the funding to support projects that will help tribal nations address current and future drought risk. Commerce Secretary Gina Raimondo says, “Enhancing drought resilience with tribal partners in the West is a crucial step in building a Climate-Ready Nation.” Proposals may request funding of up to $700,000 total to be disseminated in the first year and expended over three years in the form of cooperative agreements. A total of 3-5 projects may be funded depending on the project budget requested. Applications should be developed by or in full partnership with tribal nations to fund the implementation of activities that address current and future drought risk in the context of a changing climate on tribal lands across the Western U.S. The NOAA Climate Program Office’s National Integrated Drought Information System anticipates a funding allocation of approximately $2 million, pending the availability of funds in Fiscal Year 2024.

Wednesday Watch List

Markets

A report of U.S. durable goods orders is set for 7:30 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. CDT. Traders continue to monitor the latest weather forecasts and any news from the Black Sea region.

Weather

An upper-level low pressure system continues to meander slowly through the Eastern Corn Belt Wednesday, with areas of scattered showers and thunderstorms. Some pockets of heavy rain have developed in the rainfall over the last few days, which continues Wednesday as well.

Bill Introduced to Protect Farmland Used for Renewable Energy

Senators Tammy Baldwin and Chuck Grassley Monday introduced the Protecting Future Farmland Act. The new legislation supports farmers’ land stewardship efforts as many choose to deploy solar energy on their land. The legislation will ensure that federal investment in rural energy projects prioritizes both land stewardship and responsible deployment of renewable energy to protect America’s farmlands for future cultivation. Baldwin, a Wisconsin Democrat, says, “we need to support our farmers’ land stewardship efforts and help them protect the farmland that is critical to the future of our rural economies and national food security.” Grassley, an Iowa Republican, adds, “We must be certain that embracing solar doesn’t damage our most valuable commodity: our rich Iowa soil.” Agricultural landowners are increasingly interested in using their land for solar energy production. About 83 percent of new solar projects are installed on farmland and ranchland, with almost 50 percent placed on the most productive, versatile, and resilient land.

Legislation to Boost Oversight of Foreign Ag Purchases Advances

The U.S. House Committee on Financial Services Last week advanced a bill supported by the National Cattlemen’s Beef Association that strengthens oversight of foreign agricultural purchases. Introduced by Representative Frank Lucas, an Oklahoma Republican, the Agricultural Security Risk Review Act would add the Secretary of Agriculture as a member of the Committee on Foreign Investment in the United States. The committee reviews the national security impact of foreign investments in the United States. NCBA’s Kent Bacus says the effort “Would provide a critical voice for American farmers and ranchers, and ensure that the federal government does not overlook agriculture's role in national security." The Secretary of the Treasury chairs the committee with members from the Department of Justice, Department of Homeland Security, Department of Commerce, Department of Defense, Department of State, Department of Energy, Office of the U.S. Trade Representative and Office of Science and Technology Policy. The legislation passed in committee and now goes to the full House of Representatives for consideration.

Cattle Group Applauds Hawley’s Anti-Monopoly Bill

Senator Josh Hawley last week introduced the Strengthening Antitrust Enforcement for Meatpacking Act. The Missouri Republican’s bill would empower antitrust enforcers to break up giant meatpacking and poultry monopolies. R-CALF USA CEO Bill Bullard said his group “applauds Senator Hawley’s novel approach to addressing the untenable market concentrations faced by America’s cattle and sheep producers.” The bill would establish two thresholds for determining the market concentration in the meatpacking industry. Using the Herfindahl-Hirschman Index, or HHI, which is a measure of market concentration presently employed by the Department of Justice and the Federal Trade Commission, the bill would prohibit a merger or acquisition by a meatpacker if the HHI would exceed 1,800, or if a proposed merger or acquisition would increase the meatpacker’s current HHI Index by 100. The current guidelines consider an HHI below 1,500 to be unconcentrated, an HHI between 1,500 and 2,500 to be moderately concentrated, and an HHI above 2,500 to be a highly concentrated market. The Hawley bill would prohibit mergers currently considered moderately concentrated.

USDA Agribusiness Trade Mission Delegation Arrives in Chile

A U.S. agribusiness delegation arrived in Santiago, Chile, Monday, led by USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor. The delegation includes representatives from the U.S. food and agriculture sectors and state departments of agriculture. Taylor says, “Customers in Chile are especially interested in U.S. consumer-oriented products, such as dairy, beef, poultry, pork, condiments and distilled spirits, providing U.S. exporters with many new and exciting opportunities.” While in Santiago, the members of the delegation are looking to establish business relationships and explore opportunities for U.S. agricultural exports to the region. Buyers from Chile, as well as from neighboring Ecuador and Peru, have been invited to participate and meet with U.S. exporters. In addition, this trade mission will allow participants to learn about production and marketing practices throughout South America. Chile is among the top three markets in South America for U.S. agricultural and related products, and the second-largest market in South America for consumer-oriented agricultural products.

K-State Launches Next-Gen Institute for Digital Agriculture

Kansas State University is setting the stage as a national leader in digital agriculture with the launch of the interdisciplinary Institute for Digital Agriculture and Advanced Analytics. The institute is a people-centered interdisciplinary collective transforming learning, research and outreach around digital technologies and advanced analytical methods to enhance agriculture. Work done at the institute will include developing and integrating analytical methods and digital technologies -- like sensors, automation and robots -- that enhance food production and inform decision making for sustainable and resilient systems. K-State President Richard Linton says, “Kansas State University is working across disciplines to solve global agricultural problems and build the economic prosperity of Kansas and one of our state's key industries." The culmination of this collaborative effort will ensure that K-State is positioned as a leader in digital agriculture with an effective foundation to develop programs that sustain the long-term competitiveness of agriculture in Kansas.

Weekly Diesel and Gas Prices Decline

For the first time in two weeks, the nation's average price of gasoline declined, falling 3.1 cents from a week ago to $3.80 per. The national average is up 1.3 cents from a month ago and 13.6 cents per gallon higher than a year ago. The national average diesel price decreased 1.4 cents last week and stands at $4.53 per gallon, 38.0 cents lower than one year ago. GasBuddy's Patrick De Haan says, "It's been a mostly quiet week for the national average price of gasoline," but adds, "New and continued refinery issues in some regions have had an oversized effect on gas prices in some states, especially in Southern California, Arizona, and Nevada." With some worry over the Fed's statements last week hinting that more interest rate hikes could be coming, oil prices saw some profit-taking last week, falling after Jerome Powell's latest statements. Meanwhile, U.S. retail gasoline demand saw an increase of 2.4 percent last week, bouncing back after several poor readings.

Tuesday Watch List

Markets

A report on U.S. new home sales will be out at 7:30 a.m. CDT Tuesday, followed by a report on U.S. consumer confidence at 9 a.m. Traders will continue to keep close watch on the latest weather forecasts and scour contacts for harvest anecdotes.

Weather

An upper-level cutoff low continues to meander slowly through the Midwest Tuesday, producing scattered showers. Outside of some showers near the Gulf Coast and in the Mid-Atlantic, it should be dry east of the Rockies. A large trough continues to bring rainfall into the Pacific Northwest, which will slowly progress deeper into the country later in the week.

Farmers Take EATS Act Opposition to Capitol Hill

American farmers and ranchers were in Washington, D.C., September 17-22, to state their opposition to the EATS Act. The Ending Agriculture Trade Suppression Act was introduced by Representative Ashley Hinson (R-IA) and Senator Roger Marshall (R-KS). Groups like the Organization for Competitive Markets, Competitive Markets Action, and several others said the act would nullify more than a thousand state and local agriculture laws. Those laws are in place to protect communities from a number of issues like invasive pests and livestock diseases. The absence of local regulations would create an environment in which foreign conglomerates could rapidly expand across all 50 states. “If EATS is included in the upcoming farm bill, it will mark the end of American family farming as we know it,” says Deborah Mills, a director with the Organization for Competitive Markets. The organizations also advocated for the inclusion of the Opportunities for Fairness in Farming Act.

USDA Grants to Help Solve Workforce Challenges

Employers can begin applying for a pilot program designed to improve the resiliency of the food and agricultural supply chain by addressing workforce challenges faced by farmers and ranchers. The USDA and other federal agencies are announcing up to $65 million in grants available for the Farm Labor Stabilization and Protection Pilot Program. The program will help address workforce needs in agriculture, promote a safe and healthy working environment for farmworkers, and aims to support expanding lawful migration pathways for workers through expanding the H-2A Visa Program. “Our country is facing growing agriculture workforce challenges that jeopardize our farmers’ ability to be competitive, threaten the resiliency, abundance, and safety of our food system, and have repercussions for the overall economy,” says Ag Secretary Tom Vilsack. “The program will benefit producers and farmworkers.” Program applications must be received by November 28. More information about the application process is available at ams.usda.gov.

NCGA Pushes Back Against EPA Board

The National Corn Growers Association pushed back against commentary made by a science advisory board with the Environmental Protection Agency. The Board questioned the effectiveness of ethanol in lowering greenhouse gas emissions. “There is no shortage of studies on the environmental benefits of corn ethanol,” NCGA CEO Neil Caskey told the advisory board members. “The Department of Energy’s Argonne National Laboratory has conducted extensive research on the matter and concluded that corn ethanol has reduced greenhouse gas emissions in the U.S. by 544 million metric tons from 2005-2019.” He also says the feedstock’s carbon intensity is 44 percent lower than that of petroleum gasoline. The testimony comes after the board provided commentary to the EPA administrator raising doubts about the effectiveness of ethanol. Caskey also responded to assertions that ethanol production impacts land use, noting that data shows as corn production has risen, land used to grow corn has not.

AFT Announces Farmers’ Market Celebration Contest Winners

American Farmland Trust and the Farmers Market Coalition announced the winners of the 15th annual America’s Farmers Market Celebration. It’s an annual event honoring the role of farmers’ markets. More than 2,000 markets nationwide participated in the 2023 celebration with over ten million supporters engaged in voting. “America’s farmers markets serve communities across the nation, providing access to fresh, healthy food and building farmers’ opportunity,” says David Thayer, AFT’s director of marketing and digital outreach. “It’s a pleasure hosting the Celebration and witnessing the incredible national support for local food.” The first-place winner was the farmers’ market in North Tonawanda, New York, which was awarded $5,000. Since 2008, the celebration has highlighted the important role farmers’ markets play in American communities and the larger U.S. food system. Food markets are on the leading edge of educating consumers about where food comes from and reinforcing AFT’s message of No Farms, No Food.

Increasing Competition in Global Pork Trade

A recent Rabobank report says competition between major exporters has intensified in the global pork trade, meaning the competitive landscape will continue shifting in the years ahead. Low-cost producers like Brazil and the U.S. will likely have an advantage, while Europe’s position is expected to weaken following increasing market and regulatory requirements concerning animal welfare and sustainability. Countries adopting effective disease mitigation strategies may secure a competitive edge as disease pressure looms over the pig sector. Meanwhile, global pork consumption is poised for growth until 2030, creating ongoing opportunities for global pork trade. Rabobank says disease pressure will continue creating challenges in the pork industry, though the impact will be contingent on trade policies and the success of mitigation efforts. Pork trade will persist despite China’s pork production rebounding to pre-ASF levels in 2022, achieving 95 percent self-sufficiency. The report also says despite disruptions, global pork consumption will grow through 2030.

World Grain Conference Brings Buyers and Sellers Together

The U.S. Agricultural Cooperators Conference is a cornerstone buyers conference in Southeast Asia. The event is hosted by the U.S. Grains Council, the U.S. Soybean Export Council, and the U.S. Wheat Associates and has actively served the region for 20 years. This year’s event addressed the pressing global challenges of food security, sustainability, and innovation. “We continue to strive to keep this conference fresh and relevant,” says Caleb Wurth, USGC Southeast Asia and Oceania regional director. “We decided to bring an even more diverse group of customers to our member exporters than ever before, and broader Asian participation was well received by our customers.” ACC is an opportunity for the Council’s U.S. exporter members to market their products and engage with buyers from around the globe in one spot. Along with buyer delegations from the Southeast Asia region, the Council invited constituencies from China, South Korea, South Asia, and Taiwan.

Top 5 Things to Watch - Seed Selection, DC Dramas, Receding Rivers Lead News Coverage

OMAHA (DTN) -- Fall is officially here, and with that we turn attention to ending fiscal years, grain reports and harvest news. Here are the Top 5 things the DTN Newsroom is tracking for the week of Sept. 24. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com.

1. Grain Stocks Friday: Grain markets will focus on Friday when the USDA Grain Stocks and Small Grains Summary reports hit at 11 a.m. CDT. We'll have our normal immediate coverage, followed by commentary updates throughout the hour. DTN Lead Analyst Todd Hultman will head up a live webinar on the reports at 12:30 p.m. 

2. D.C. budget chaos: We continue to watch the fallout of the Congressional failure to put together a budget or a continuing resolution to keep government doors open. In addition to our news team's coverage, DTN subscribers can keep up with the latest news in their streaming AP News section and in our Ag News segments..

3. Harvest break and rivers drop: The weekend's waves of rainfall should diminish early in the week as the current system slowly fades away to the east or south. Rain is largely too late to benefit summer crops and will delay early wheat harvest plans in some areas. Midwest rains will give some farmers a brief break for some in-season combine and harvest equipment maintenance and to finish seed orders. Dry soils will quickly suck up that moisture, though, meaning the rains won't hold up harvest for long. The past week's Drought Monitor Map update showed increasing dry conditions across most of the country, including wetter areas of East and South. We're watching how lack of inflow will affect the Ohio, Missouri and Mississippi river systems as fall transportation picks up.

4. Speaking of seed buying: We'll continue to post stories from the September Progressive Farmer issue featuring the latest on seeds and related technology. Watch for those in our Top Stories segments and blogs. 

5.. Reports fill this week ... and then?: Government economic reports this week should flow as normal. Beyond Sept. 30, the chances are murkier as a government shutdown would cut the cord on such updates. Monday's market-influencing reports include USDA's weekly grain export inspections at 10 a.m. CDT, followed by USDA's monthly cold storage report at 2 p.m. and Crop Progress at 3 p.m. We'll watch for harvest progress of the past week and how much rains will slow that down. Tuesday sees U.S. new home sales report at 7:30 a.m. and a report on U.S. consumer confidence at 9 a.m. On Wednesday, we'll watch the U.S. durable goods orders, which hits at 7:30 a.m., and the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. CDT. Thursday morning is a busy one, with USDA's weekly export sales report, the weekly U.S. jobless claims, an update of second-quarter U.S. GDP and an update of the U.S. Drought Monitor all hitting at 7:30 a.m. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m. USDA's Hogs and Pigs report for Sept. 1 is due out at 2 p.m. Then, Friday is the reveal of the Federal Reserve's favorite inflation indicator, the PCE index, at 7:30 a.m. The U.S. personal income and consumer spending reports hit at the same time, followed by USDA's Sept. 1 Grain Stocks and Small Grains Summary, which as noted above, are out 11 a.m. CDT.

Monday Watch List

Markets

Back from the weekend, traders will be checking rainfall amounts and the latest weather forecasts. News from the Black Sea may also play a part as Ukraine appears to be getting bolder with its attacks. USDA's weekly grain export inspections will be out at 10 a.m. CDT, followed by USDA's monthly cold storage report at 2 p.m. and Crop Progress at 3 p.m.

Weather

A cutoff low from the weekend is stuck in the Midwest and will be producing some areas of showers Monday. Most places will see little or no rainfall, but a couple of lucky pockets could see some meaningful rain in and around Wisconsin.

NPPC Past President Testifies on Reforming GSP

National Pork Producers Council Past President Randy Spronk testified at a House subcommittee hearing on reforming the generalized system of preferences to safeguard American supply chains and combat China. The U.S. Generalized System of Preferences (GSP) provided duty-free treatment of goods exported to America from developing countries before expiring in 2020. “American pork producers support the renewal of GSP, a valuable program that will give U.S. trade negotiators another tool to persuade countries to eliminate trade restrictions on U.S. products,” Spronk said. In the past, the U.S. pork industry has utilized GSP to gain market access to countries like Argentina and India. “A renewal of GSP should include stronger enforcement mechanisms that provide U.S. trade negotiators with the tools to ensure countries are meeting their obligations,” Spronk adds. America’s pork industry shipped $7.68 billion worth of pork to more than 100 foreign countries in 2022, supporting approximately 155,000 U.S. jobs.

USDA Payments to Help Organic Dairy Producers

The USDA is announcing a second round of payments for dairy producers through the Organic Dairy Marketing Assistance Program. The agency is providing an additional $5 million to help dairy producers mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. The Farm Service Agency has already paid out $15 million in the first round of payments to eligible producers. “The program is critical to keeping small, organic dairies sustainable as they continue to weather a combination of challenges outside their control,” says FSA Administrator Zach Ducheneaux. “In total, the Farm Service Agency is providing $20 million to give organic dairy producers additional economic support to stay in operation until markets return to more favorable conditions.” FSA accepted applications for assistance from May 24 to August 11. Eligible operations produce milk from cows, goats, and sheep. 

NACD Applauds Establishment of the American Climate Corps

The National Association of Conservation Districts applauds the establishment of the American Climate Corps. Developing the next generation of conservationists has been a top priority and a major outcome of NACD’s Climate Action Task Force. The government-wide American Climate Corps will provide for a robust and diverse recruitment pipeline that’s critical for the future success of conservation and climate programs. With 3,000 conservation districts across the U.S. and its territories, NACD can also provide valuable learning opportunities for participants. Conservation districts work with landowners and operators across rural and urban communities. “Opportunities to get ‘boots on the ground’ with conservation districts provides the next generation meaningful development opportunities and leadership roles within local communities,” says Kim LaFleur, NACD President. “These emerging leaders can benefit greatly from the decades of expertise that exist within conservation districts, empowering them to tackle challenges and deploy numerous innovative solutions through the locally-led delivery system.”

ASI Investigates Trade Case Against Lamb Imports

The American Sheep Industry Association updated the status of a legal process initiated several months ago toward possibly filing a U.S. trade law violation by lamb importers. ASI Executive Director Peter Orwick offered an update as the association awaits the results of a preliminary investigation. “We are specifically looking for the estimate of trade case strength, which depends on two parts,” Orwick says. “One is injury to the industry – the entire industry, the sheep producers, the lamb feeders, and the lamb companies. The second piece is the estimate of any violation, including dumping and subsidy margins, so the board can project an impact on American lamb returns should a case filing result in tariffs on imported lamb meat.” Pursuing a trade case against lamb import countries would cost a minimum of $1.3 million in legal expenses alone and require almost a year to see the case through to the end.

Farmers Union Supports Right to Repair Bill

The Agricultural Right to Repair Act was introduced in both the House and Senate, and the legislation is strongly supported by the National Farmers Union. NFU President Rob Larew says the Right to Repair Act is an important step in the fight to ensure farmers across the country have fair and affordable access to the parts, tools, and information they need to fix farm equipment. “I want to thank the officials who introduced the bill to guarantee farmers the Right to Repair their equipment,” he says. “NFU stands ready to help push this bill forward.” Right to Repair is a pillar of NFU’s Fairness for Farmers campaign to address the monopoly crisis in agriculture. Just three manufacturers control the majority of farm equipment production, sales, and repairs, and use software locks to prevent farmers and independent mechanics from completing certain repairs. Right to Repair could save farmers $4.2 billion every year.

Wheat Groups Appreciate the American Farmers Feed the World Act

U.S. Wheat Associates and the National Association of Wheat Growers thanked several lawmakers for introducing the American Farmers Feed the World Act of 2023 in the Senate. The bipartisan legislation would restore the original intent of the Food for Peace program without spending additional farm bill resources. It also safeguards the interests of hard-working American farmers in providing food to those in need around the world. The wheat groups have joined the broader agriculture industry in backing the legislation. “The American Feed the World Act of 2023 offers an important rebalancing to ensure that Food for Peace remains focused on effectively delivering as much American-grown food to as many people in need as possible,” says USW Director of Trade Policy Peter Laudeman. “As Congress considers the new farm bill, this legislation provides an opportunity to revitalize the role of American agriculture in addressing global hunger,” says NAWG President Brent Cheyne.

Friday Watch List

Markets

USDA's cattle on-feed report for September 1 will be out at 2 p.m. CDT Friday. Dow Jones' survey expects the on-feed total to be down 2.2% from a year ago and placements to be down 5.2% from a year ago. Traders will keep an eye on rainfall totals over the weekend and any changes in the forecasts.

Weather

A storm system in the Pacific Northwest is sending plenty of energy into the Plains to produce areas of scattered showers and thunderstorms in the middle of the country early Friday. Shower coverage should expand with time today, with the more consistent and heavier rains across the Northern Plains. Some severe weather will be possible, as will localized flooding.

New Crop Insurance for Tropical Storms Benefits Producers Impacted by Idalia

USDA's recent hurricane crop insurance policy expansion to cover tropical storms this year has already provided farmers $85.4 million to help them recover from Hurricane Idalia. USDA's Risk Management Agency rolled out the new Tropical Storm Option for its Hurricane Insurance Protection-Wind Index Endorsement earlier this year after working with farmers to improve coverage. Additionally, producers have received $84.8 million in indemnities for hurricane-related losses for a total of over $170 million in crop insurance payments that will directly help farmers and rural communities recover from Hurricane Idalia. This coverage was unavailable this time last year. RMA Administrator Marcia Bunger says, "I commend farmers and their organizations for reaching out to RMA to discuss new coverage, and our staff for promptly working on creative solutions to make this coverage a reality." Farmers do not need to file a claim to receive payment. If a county is triggered, then the Approved Insurance Provider will issue a payment in the coming weeks.

Stratovation to Launch Collaborative Specialty Crop Biologicals Study

Stratovation Group is engineering a new study on how specialty-crop growers perceive agricultural biologicals for vegetable, leafy greens and fruit and nut crops. The new study, "Biologicals: Specialty Crop Growers' Perceptions, Values and Potential," will be conducted in collaboration with Western Growers, the Agricultural Retailers Association, DC Legislative and Regulatory Services, and The Fertilizer Institute. TFI President and CEO Corey Rosenbusch says, "This effort provides a unique opportunity to gather insights directly from growers, enabling our members to support their input needs effectively and drive sustainable innovation deeper into agriculture." The specialty crop effort will be a comprehensive market research effort focused on understanding farmer/grower opinions on the current use, issues and potential for biologicals, but specifically for vegetable, leafy greens and fruit and nut production at the farm level. The 2023 study will set benchmarks around the use of biologicals by specialty crop growers and provide a roadmap to companies seeking to grow and develop the market category.

Russian Wheat Exports Remain Biggest Risk to U.S. Elevators

A modest rebound in U.S. wheat production and supplies is improving the outlook for profitability among grain elevators that store wheat. Futures market carries have improved for all three major classes of wheat, and the buy basis is widening following a bigger harvest. The larger harvest follows two years of poor production and a historic run of inverted futures markets that sapped profitability for storing wheat. However, according to CoBank, the major risk to elevators in the year ahead is a sharp rally in wheat prices. Wheat stocks among major exporters are historically tight, and any disruption to the flow of Russian exports through the Black Sea could trigger a sharp price run-up. CoBank economist Tanne Ehmke says, “The flood of cheap Russian wheat into the global market may have created a false sense of security in the world wheat market.” Russia is currently harvesting a near-record wheat crop with substantial carryover inventories from last year's record-sized harvest.

Oilseed Groups Urge Use of GREET Model for SAF Tax Incentives

Oilseed groups delivered a letter this week to the Biden administration seeking support for investments made by U.S. companies and farmers who are ramping up production of sustainable aviation fuel. Using the GREET model will support investments by farmers, oilseed processors and domestic producers to meet the sustainable aviation fuel challenge, according to the groups. Clean Fuels Alliance America, the American Soybean Association, the National Oilseed Processors Association, and the U.S. Canola Association came together to make the request. The letter states, “Without this, our combined members and others in the industry may not be able to follow through on investments in sustainable aviation fuel production.” GREET is the Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation model. The letter asks the administration to consider the billions of dollars that members of the associations have made to build new or optimize existing production facilities and expand availability of sustainable, homegrown, low-carbon feedstocks like soybean oil and canola.

USDA Expands Efforts to Prevent and Reduce Food Waste

The Department of Agriculture Wednesday announced an additional $25 million investment to expand efforts to prevent and reduce food loss and waste. The investment, funded under the American Rescue Plan Act, is part of a joint agency initiative between USDA’s National Institute of Food and Agriculture and USDA’s Office of the Chief Economist. More than one-third of all available food goes uneaten through loss or waste. When food is tossed aside, so too are opportunities for improved food security, economic growth and environmental prosperity. The funding will support the Community Food Projects, Competitive Grants Program to reduce food loss and waste, get surplus wholesome food to individuals, and develop linkages between food producers, providers and food recovery organizations. Since 2017, NIFA has committed $123.5 million across 527 projects relating to food loss and waste. This latest investment will expand several of NIFA’s core programs by $25 million, and has awarded $4.3 million in fiscal year 2023.

Majority of U.S. Apples Used in Juices

Apples are a fall staple, showing up in lunch boxes, pies, cobblers, crisps, and cider. However, new data from USDA’s Economic Research Service shows a majority of apples are used in juices. In 2021, 45.9 pounds of apples per person were available for domestic consumption, according to USDA’s Food Availability data product. Fifty-two percent of the available apples for U.S. domestic use, 23.7 pounds per person, was in the form of juice or cider, or about two gallons per person. Fresh apples accounted for 34 percent, 15.8 pounds per person. Canned, frozen, dried, and other forms made up the remaining 14 percent of apple availability in 2021. Over the last ten years, per-person apple availability reached a high of 49.2 pounds per person in 2016. Much of the decrease since 2016 was because of declining availability of fresh apples. In 2016, fresh apple availability was 19.3 pounds per person.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m., the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing home sales and leading indicators are set for 8 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m.

Weather

A system entering the Plains will produce areas of scattered showers throughout the day, some of which could be severe. Another disturbance is bringing showers to Illinois as well. Rains will be heavy enough to stop harvest for the next few days but will help to reduce the impact of the ongoing drought

AFBF: Dairy Make Allowances Reform a Must

American Farm Bureau Federation economist Danny Munch presented testimony Tuesday at the ongoing Federal Milk Marketing Order Pricing Formula hearing. This is the third time an AFBF representative has testified at the hearing. The testimony focuses on adjusting make allowances, or the estimated costs that dairy processors incur to convert milk to consumable dairy products, like cheese and butter. This price directly impacts the price paid to farmers for their milk. AFBF is advocating for make allowances to be adjusted based on a mandatory, audited USDA survey, which USDA says it does not have the authority to conduct. AFBF is pursuing legislation that would direct USDA to conduct such a survey. AFBF opposes increasing make allowances based on potentially biased voluntary survey data that could reduce farmers’ prices unfairly. AFBF submitted nine proposals for consideration during the hearing, and four were accepted by USDA. Additionally, AFBF largely supports four of the five proposals submitted by the National Milk Producers Federation. Full AFBF testimony is available at fb.org.

USDA Announces 100th Annual Agricultural Outlook Forum

USDA's 100th Annual Agricultural Outlook Forum, "Cultivating the Future," will take place on February 15-16, 2024, at the Crystal City Gateway Marriott in Arlington, Virginia. The forum is USDA's longest-running and largest public event and aims to help stakeholders understand and plan for the opportunities and challenges facing the agricultural sector at home and abroad. Each year, it attracts more than 1,800 people in person, and nearly 5,000 virtual attendees from the U.S. and worldwide. The program will include remarks from the Secretary of Agriculture and other top Department officials, along with 30 breakout sessions featuring more than 120 leading experts on a wide range of timely food and agriculture-related topics. Whether you're a farmer, policymaker, industry leader, market analyst, or simply interested in the future of agriculture, the Agricultural Outlook Forum is the perfect place to connect, learn, and engage. Registration will open at the end of October.

AVMA Reignites Efforts to Address Rural Veterinary Shortages

Lawmakers have reintroduced the Association, the Rural Veterinary Workforce Act, formerly known as the Veterinary Medicine Loan Repayment Program Enhancement Act. Introduced in both the House and Senate, the legislation would expand the reach of the Medicine Loan Repayment Program. The program helps increase access to food animal veterinary services in rural areas by assisting with the significant obstacle of educational debt. The legislation would end the federal taxation on awards, enabling more veterinarians to participate in a program that offers up to $75,000 over three years for student loan repayment in exchange for service in USDA-designated shortage areas. In 2023, the USDA declared 237 rural veterinary shortage areas in 47 states, more than any year. American Veterinary Medical Association President Dr. Rena Carlson says, "we look forward to working with the congressional champions to enact this bill and help rural communities across the country access the many essential services veterinarians provide.”

McKalip to Travel to Oakland, California Port

The U.S. Chief Agricultural Negotiator Doug McKalip will visit Oakland, California, on Thursday. McKalip will visit the Port of Oakland to tour its facilities and engage with stakeholders during his trip. McKalip will be joined by local International Longshore and Warehouse Union leadership and local members of the Pacific Maritime Association. Ensuring the success of America's farmers and producers has been a topline priority for the U.S. Trade Representative's Office under Ambassador Katherine Tai's leadership. The trip follows the recent labor agreement between West Coast port workers and the International Longshore and Warehouse Union and the Pacific Maritime Association. Most recently, USTR secured an agreement with India on September 8, 2023, to resolve the last World Trade Organization dispute and lower tariffs on certain U.S. agricultural products. This built upon the agreement finalized with India in June, which terminated six other WTO disputes and removed retaliatory tariffs on other U.S. agricultural products.

Lely Robotic Milkers Class Action Suit Settled

Producers and their law firm reached a settlement agreement this month against a manufacturer of allegedly defective milking robots. On September 1, 2023, the Court granted final approval of the settlement for the Lely A4. The settlement allowed class members to replace their existing robot with Lely's newer A5 model or receive cash relief. Nearly all of the approximately 400 class members participated, and the relief selected is worth approximately $121 million. Based on the claims submitted and options chosen, the cash fund is approximately $51 million, and those opting for trade-ins will receive approximately $71 million in value for trading in their A4s for new A5s. In approving the settlement, the Court called it an "excellent result," noting that it provided "outstanding relief" and received "overwhelming, unprecedented" support from the class. The terms of the settlement were agreed upon after nearly three years of litigation.

USDA Study Underscores Importance of Food Safety Education Month

USDA Tuesday released results from the final year of a five-year study that observed how consumers prepared meals. The study observed food safety behaviors, including participants' thermometer use for ground pork sausage, handwashing, and cleaning and sanitizing food preparation surfaces. The most recent data shows that 87 percent of participants self-reported they washed their hands before starting to cook in the test kitchen. However, only 44 percent of participants were observed doing so before meal preparation. In the study, 50 percent of participants used a food thermometer to check the doneness of the sausage patties. However, 50 percent of those participants did not check all the food. The study used a harmless tracer bacteria, which was injected into the pork sausage, to simulate the spread of foodborne illness-causing bacteria. Among the surfaces tested, the kitchen sink was most often contaminated, with 34 percent of participants contaminating the sink during meal preparation.

Wednesday Watch List

Markets

The U.S. Energy Department's weekly report of energy inventories is at 9:30 a.m. CDT. Many expect the Fed to keep the federal funds rate unchanged at their 1 p.m. announcement, but a quarter-percent hike is possible. Traders will keep an eye on the latest weather forecasts with rain expected to start in the western Plains on Thursday.

Weather

A couple of disturbances in the middle of the country continue to produce showers on Wednesday, especially one moving through the Ozarks which may yield some areas of heavy rain. A front that has set up in the Northern Plains will also be active with periods of showers and thunderstorms as well. That is in advance of a system that will have a major influence on the middle of the country later this week and weekend.

USDA Seeking Beginning Farmer and Ranchers Committee Members

The Department of Agriculture Monday announced a call for nominations to the Advisory Committee on Beginning Farmers and Ranchers. First established in 1992, the committee advises the Agriculture Secretary to enhance USDA’s goals for new farming and ranching operations. Members of the public are invited to submit nominations for themselves or other qualified experts by October 10, 2023. Agriculture Secretary Tom Vilsack says, “USDA is committed to helping the beginning farmer, the young farmer, access and make use of USDA programs.” USDA is soliciting nominations from interested organizations and individuals from among ranching and farming producers, related state and tribal agricultural entities, academic institutions, commercial banking entities, trade associations, and related nonprofit enterprises. The Agriculture Secretary may appoint up to 20 members to the committee. An organization may nominate individuals from within or outside its membership. Interested candidates may also nominate themselves. Find the nomination requirements and information on the committee website.

USDA Data Shows Crop Improvement R&D Spending Expanding

Total research and development spending on crop improvement by the seven largest seed companies increased from less than $2 billion in 1990 to more than $6.5 billion by 2021. USDA’s Economic Research Service reports the spending closely tracks with increases in company revenues from seed and agrichemical sales. Intellectual property rights protections for new seed innovations—especially genetically modified seeds—allow seed companies to set product prices with a temporary legal monopoly. The profits earned are a return for research and development investments and costs to commercialize the inventions. The profits also allowed seed companies to spend more on crop research and development, accelerate the rate of new variety introductions with higher productivity potential, and charge higher prices reflecting the value of improved seeds, according to USDA. Collectively, the seven companies have invested about ten percent of their agricultural revenues in research and development. The top companies include Bayer, Corteva, Syngenta, BASF, Limagrain, KWS and Rijk Zwaan (rike-svan).

USTR to Deliver Speech on WTO Reform

Trade Representative Katherine Tai will deliver a speech on the World Trade Organization and participate in a fireside chat Friday at the Center for Strategic and International Studies in Washington, D.C. Tai will also participate in a fireside chat with the WTO Director-General. In her speech, Ambassador Tai will underscore the importance of reform at the World Trade Organization to make it a more effective, responsive, and inclusive forum for solving today's global challenges. She will also highlight areas of reform that are a priority to the United States, and how the United States is engaging with other WTO Members to advance these priorities. The Center for Strategic and International Studies is a bipartisan, nonprofit policy research organization dedicated to advancing practical ideas to address the world’s greatest challenges. The organization is self-described as one of the world’s preeminent public policy institutions on foreign policy and national security issues.

Cargill, Soil Health Institute Create Water Stewardship Partnership

The Soil Health Institute and Cargill recently partnered to implement regenerative agriculture practices through water stewardship within agricultural supply chains. The three-year, $3 million partnership will equip farmers, conservation planners, and sustainability experts across North America with tools to enhance drought resilience, improve soil health, and encourage sustainable water use. Soil Health Institute President and CEO Wayne Honeycutt says, "We're expediting adoption of regenerative systems by offering stakeholders practical insights to assess improvements in water storage and availability resulting from changes in on-farm practices." Research has demonstrated that increases in available water-holding capacity associated with soil organic carbon gains from soil health practice implementation can lead to twice as much water storage in the topsoil compared to previous estimates. The partnership will enable farmers, businesses, researchers, governments, and other sustainability experts to assess their progress toward water stewardship objectives and build industry convergence around the value of soil health in enhancing drought resilience and sustainable water management.

Rail Safety Week Raising Awareness to Save Lives

Operation Lifesaver this week is promoting Rail Safety Week. The annual week-long event concentrates public attention on the need for rail safety education and saves lives by educating and empowering the public to make safe decisions around tracks and trains. Operation Lifesaver’s national office and state Operation Lifesaver programs across the U.S. will connect with their communities through in-person and online events, sharing rail safety messages and urging the public to get involved. Every year, 2,100 North Americans are killed or seriously injured when they engage in unsafe behavior around tracks and trains. In the U.S. alone, a person or vehicle is hit by a train every 3 hours. Operation Lifesaver Executive Director Rachel Maleh (mall-lay) says, “Everyone can help make their communities safer. Know the facts, recognize the signs, make good decisions and join us.” The organization is partnering with  Operation Lifesaver Canada and the Association of Mexican Railroads to promote the week across North America.

Refinery Outages Increase Fuel Prices

For the second straight week, the nation's average price of gasoline increased, climbing 4.6 cents from a week ago to $3.83 per gallon. The national average is down one cent from a month ago but 19.9 cents per gallon higher than a year ago. The national average diesel price increased 9.9 cents last week and stands at $4.53 per gallon, 42.1 cents lower than one year ago. GasBuddy's Patrick De Haan says, "With the transition back to cheaper winter gasoline now upon us in nearly every state, we should see prices eventually cooling back off, but if refinery issues continue to develop or linger, especially now that we're entering maintenance season with less available capacity online, the expected decline could certainly be offset.” U.S. retail gasoline demand saw a decline of 1.5 percent last week, as demand continues to weaken seasonally while rising prices could also be playing a role.

Tuesday Watch List

Markets

A report on U.S. housing starts is set for 7:30 a.m. CDT Tuesday. The Federal Reserve begins its two-day meeting, discussing whether to increase the federal funds rate target another quarter-percent or to leave it alone for now. Traders will digest Monday's harvest progress data from USDA, the latest weather forecasts and keep an eye on Black Sea events.

Weather

A couple of disturbances in the middle of the country will be responsible for areas of showers from Texas to areas around Lake Michigan on Tuesday. Most areas will see light rain, but pockets of heavier rain will be possible, especially farther south across Oklahoma and Texas, where there is a greater risk of severe weather, especially hail.

Wheat Growers Complete Second Farm Bill Fly-In

The National Association of Wheat Growers completed the second part of its 2023 summer Farm Bill Fly-Ins. The first round of visits to Capitol Hill took place in July. During the visit, wheat growers from across the country reinforced the association’s core priorities and underscored the need for Congress to work together to ensure farmers can continue providing safe and affordable food for everyone. Last week, growers from 14 states met with their delegations, staff from each Ag Committee, and Congressional leadership to continue educating lawmakers and advocating for an effective farm safety net. The group’s priorities include working to strengthen Title 1 and crop insurance to better protect farmers. They want support for financial and technical assistance through voluntary conservation cost-share programs for producers in all climates and regions. They’re also encouraging additional investment in agricultural trade promotions and U.S. commodities as part of the farm bill’s trade title.  

Ethanol Industry Supports GREET Model for Scientific Emissions Accuracy

American ethanol organizations like the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association sent a letter to Treasury Secretary Janet Yellen on sustainable aviation fuel. When it comes to global actions to decarbonize the aviation transportation sector using Sustainable Aviation Fuel, the industry wants to encourage the use of updated carbon-intensity scoring in the GREET model. They don’t want scoring used in the CORSIA model for corn-based ethanol SAF. The letter says, “We strongly support adopting the DOE’s GREET Model as the standard for carbon intensity scoring of conventional aviation fuels and SAF. The latest GREET model relies on the most current information and highest-resolution data regarding the energy use, carbon emissions, and potential land use impacts associated with the corn ethanol-based SAF process.” The letter also says GREET allows the Treasury to unlock the full potential of agriculture to meet the growing global aviation industry SAF demand.

House Bill Targets California’s Electric Vehicle Mandate

The U.S. House of Representatives approved a bill prohibiting California’s attempt to eliminate all gas-powered vehicles. The bill passed the House 222-190. It would keep states from limiting the sale of gas-powered cars and revoke any federal approvals allowing states to do so issued since the beginning of 2022. The vote was along party lines, but eight Democrats did vote with Republicans in favor of the legislation. The legislation doesn’t specifically mention California in its language. States can implement tighter clean car rules stricter than those from the federal government under the Clean Air Act. But those states have to get permission from the Environmental Protection Agency first. The Hill says the EPA reinstated a waiver allowing a California rule aimed at limiting vehicle pollution to take effect. Since then, the state intends to completely phase out the new sales of gas-powered cars. The bill isn’t expected to become law.

U.S. HRW Exports Hit Record Low Levels

U.S. Hard Red Winter Wheat exports are forecast down 10 million bushels this month to 155 million bushels, the lowest since records began in 1973-1974. HRW supplies have seen a long-term downturn in U.S. acreage as corn and soybeans gained acres in many locations. International wheat competition has also surged, resulting in exports of this class being less competitive on the global market. U.S. HRW supplies have recently been affected by significant drought in consecutive years, which has dented crop prospects and contributed to exports of this class being uncompetitive with other suppliers like Russia and the European Union. Historically, HRW was the leading class of American exports, but this year it’s forecast to be the third-largest class of U.S. exports, surpassed by both Hard Red Spring and White Wheat. Production of HRS and White is down year-over-year with lower yields, but drought hasn’t hit those classes as hard as HRW.

Iowa Announces Grant Opportunity for New Livestock Vaccines

Iowa Secretary of Ag Mike Naig (NAYG) announced the new Livestock Protection Innovation Grant Program. The program will provide grant funding to assist Iowa-based companies in the development of safe and effective vaccines that may help protect livestock from foreign animal diseases. “Protecting Iowa’s nation-leading livestock industry from devastating foreign animal diseases is enormously important to the farm families and local communities that benefit from its 13-billion-dollar impact,” Naig says. “Vaccine development is one of the many steps we are taking to help safeguard our farm animals because it’s important to have tools available to effectively respond to disease and protect our food supply.” The Iowa Legislature, with support from Iowa Governor Kim Reynolds, appropriated $250,000 for livestock vaccine development within Iowa during the last legislative session. The Iowa Department of Agriculture and Land Stewardship is working in collaboration with many stakeholders and officials to swiftly respond to any threat.  

Purdue Survey Shows Consumer Attitudes on Higher Pork Prices

A new Purdue University survey indicates that consumers appear to be more willing to live with higher pork prices if they are the result of meeting animal welfare standards like California’s Prop 12. In the nationwide survey, consumers said they would scale back their purchases if pork prices went higher. But fewer of them would cut back on buying pork if Prop 12 was the reason for the increase. A small segment of survey respondents said they would buy even more pork in that case. “We saw responses that suggest animal welfare is more important to consumers than previously thought,” says Elijah Bryant, a research analyst at Purdue. “Even though the hypothetical price increase is the same size, fewer consumers would decrease their spending on pork knowing the price increase was caused by animal welfare regulations.” The Purdue survey results will get tested on January 1 when Prop 12 is fully implemented.

Top 5 Things to Watch - Harvest Picks up, Will Washington Lie Down

OMAHA (DTN)-- Here are the Top 5 things the DTN Newsroom is tracking for the week of September 17. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com.

1. Harvest reports roll in: You'll find continued harvest reports from the field in our View from the Cab feature as well as coming stories from select combine cabs.

2. Washington's failure to launch: DTN's Chris Clayton will be in D.C. next week covering potential Farm Bill conversations as well as watching for the potential shutdown of government operations at the end of the month. Watch for news stories as well as sharp commentary in his Ag Policy blog.

3. Cattle on Feed Friday: The latest USDA Cattle on Feed Report hits at 2 p.m. CDT Friday, with analysis by DTN's ShayLe Stewart soon after.

4. Harvest Weather Questions: Early harvest conditions continue to be mostly favorable, but more rain would be welcome for immature crops and winter wheat establishment. A system moves into the Plains in the middle of next week, bringing a chance of showers to at least the western half of the region later this week. Central and southern plains areas have the best chance for heavier rains. Rain chances increase for the northern Plains by the weekend, while the South stays dry.

5. Reports Fill the Week: USDA's weekly grain export inspections hit the wires at 10 a.m. CDT Monday, followed by USDA's Livestock, Poultry and Dairy Outlook at 2 p.m. and Crop Progress at 3 p.m. We'll have analysis of Crop Progress Report following the data release. Tuesday we'll see U.S. housing starts for August at 7:30 a.m., while the Fed begins its next two-day meeting. Wednesday the Energy Department releases its weekly energy inventories report at 9:30 a.m., while the Fed is expected to raise the federal funds rate by a quarter-percent at 1 p.m. Thursday we'll see USDA's weekly export sales report at 7:30 a.m., the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing home sales and leading indicators are set for 8 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m. Friday, as noted above, features the Cattle on Feed report. 

Monday Watch List

Markets

Back from the weekend, traders will check the latest weather forecasts, watch for harvest anecdotes and any news from the Black Sea region. USDA's weekly grain export inspections at 10 a.m. CDT, followed by USDA's Livestock, Poultry and Dairy Outlook at 2 p.m. and Crop Progress at 3 p.m.

Weather

A front will bring some rain, which may be intense, along the East Coast on Monday. High pressure over the middle of the country will keep most other areas dry. That shifts east tonight with showers being possible in isolated clusters overnight into Tuesday.

State Ag Departments Set Policy Priorities

The National Association of State Departments of Agriculture set policy priorities for the upcoming year during its annual meeting. NASDA will advocate to give the USDA more authority to be flexible in serving farmers and ranchers who often face challenges in seeking disaster assistance. NASDA members also want existing gaps in insurance coverage and federal disaster relief programs closed to protect farmers from an increasing number of natural disasters. Members will also advocate for standards that ensure clear and consistent labeling for cell-based meat products, also referred to as cultured meat. During the meeting, NASDA also adopted a new policy of supporting laws that protect farmers’ right to farm. The new policy advocates for protecting agricultural and forestry operations from nuisance lawsuits. NASDA members also amended the organization’s policy to support increased investment in apprenticeships and educational programming because of a tremendous need for workers with training specializing in agricultural fields.

NASDA Elects News Leadership at Annual Meeting

The National Association of State Departments of Agriculture finished its annual meeting by electing new leadership for 2023-2024. Blayne Arthur, Oklahoma Secretary of Agriculture, will serve as NASDA’s 2023-2024 President and host the 2024 NASDA Annual Meeting on September 22-25, 2024. “The opportunity to serve as NASDA President is incredibly humbling and certainly an honor, and I appreciate the support of my fellow Ag Commissioners in this new role,” Arthur says. “Agriculture looks different all across the U.S., but I look forward to working together to cultivate common ground as we help producers feed, fuel, and clothe the world.” She also says NASDA members will remain steadfast in their commitment to strengthen and promote agriculture in this country and she’s excited to continue this work. Arkansas Secretary of Agriculture Wes Ward is the new Vice President, Amanda Beal of Maine is Second VP, and Washington’s Derek Sandison is the Secretary-Treasurer.

September is National Chicken Month

September is National Chicken Month, celebrating the most-consumed meat in the U.S. Two-thirds of all chickens in America are raised in Alabama, Georgia, Arkansas, North Carolina, Mississippi, and Texas. Chicken is also one of the top agricultural exports for the U.S. Foreign markets are increasingly important, accounting for $4.4 billion and 16 percent of world production in 2022. The U.S. is the second-largest exporter in the world as more than 145 countries imported U.S. frozen chicken leg quarters, legs, and thighs last year. While American consumers prefer chicken breast meat, dark meat is more widely desired and consumed internationally. Most U.S. chicken meat exports are often destined for low and middle-income countries that value safe, affordable, and tasty high-protein options. In 2022, almost all of the U.S. broiler meat exports went to developing economies. Fourteen percent of shipments were exported to some of the least developed countries in the world.

EPA Resolves Long-Standing ESA Litigation

The U.S. Justice Department, on behalf of the Environmental Protection Agency, resolved long-standing litigation covering over 1,000 pesticide products. The resolution allows EPA to fulfill its obligations to protect endangered species while conducting reviews and approvals of pesticides in a safe and protective manner. In 2011, a lawsuit was filed against EPA alleging it violated the Endangered Species Act when it registered or reevaluated the registration of 382 pesticide active ingredients. A settlement entered in a federal court resolves all outstanding claims. “The agreement is a win-win to protect endangered species, ensure the availability of pesticides needed to grow food across America, and save considerable time and taxpayer expenses further required to litigate this case,” says Michael Freedhoff of the EPA. “This settlement allows EPA time to fulfill its obligations under the ESA and adopt key elements from the Agency’s 2022 ESA work plan, which has a wide range of stakeholders’ support.”  

USDA Invests $6.5 Million in Risk Management Education

The USDA is awarding approximately $6.5 million to 22 organizations to educate underserved, small-scale, and organic producers on-farm risk management and climate-smart farm practices. The funding from the Risk Management Agency provides assistance through its Risk Management Education partnerships for organizations like non-profits and land grant universities. “This funding and these partnerships are integral to our outreach efforts in communities that historically have not had access to training about risk management options,” says RMA Administrator Marcia Bunger. “As a farmer, I know first-hand that agriculture is a risky business.” She also says because of that risk, the agency is determined to work with growers and livestock producers to provide them with training and resources about risk management options and how to apply them to their farming businesses. RMA first advertised the available funds in January, and this year’s recipients include nonprofits, historically black colleges, and university extensions, among others.

Farmers Show High Interest in Harvest Autonomy

Farmers in the U.S. and Canada appear to be embracing autonomous technology to optimize their operations and boost productivity. A survey conducted by Forward Group revealed that 65 percent of the operators surveyed expressed enthusiasm for adopting autonomy solutions, while 29 percent showed high levels of enthusiasm. The survey findings emphasize the positive impact of autonomous solutions on farming efficiency, profitability, and sustainability. Sixty-seven percent of the farmers intend to adopt autonomy technology by 2027, with 47 percent planning integration into their operations by 2025, provided the technology proves effective for the tasks. The survey also shows that 59 percent of farmers believe the autonomy will bring significant value to their carting operations. A substantial 51 percent of respondents expressed trust in autonomy technology for their harvesting. The driving factors behind the growing interest include 42 percent of the farmers interested in the technology wanting the autonomy to increase their productivity.

Friday Watch List

Markets

U.S. industrial production in August is out at 8:15 a.m., followed by the University of Michigan's consumer sentiment index at 9 a.m. The National Oilseeds Processors Association will report on members' soybean crush for August later Friday morning.

Weather

A weak frontal boundary is moving through the Western Corn Belt on Friday with mostly light showers. Heavier showers and thunderstorms are forecast for parts of Texas. Some showers will also develop in the Southeast, otherwise the country will be dry.

Consumer Price Index: Food Prices Rise Again

The Consumer Price Index for All Urban Consumers rose 0.6 percent in August on a seasonally adjusted basis, after increasing 0.2 percent in July. Over the last 12 months, the all-items index increased 3.7 percent before seasonal adjustment. The index for gasoline was the largest contributor to the monthly all-items increase, accounting for over half of the increase. The food index increased 0.2 percent in August, as it did in July. The index for food at home increased 0.2 percent over the month, while the index for food away from home rose 0.3 percent in August. The six major grocery store food group indexes were split over the month, with three increases and three decreases. The index for meats, poultry, fish, and eggs rose 0.8 percent in August as the index for pork increased 2.2 percent. The index for other food at home increased 0.2 percent over the month, and the index for cereals and bakery products rose 0.5 percent.

Voters Want Congressional Support for Low-Carbon Ethanol

A new survey from Morning Consult found continued strong voter support for policies promoting the use of lower-cost, lower-carbon American-made ethanol. Registered voters also indicated robust support for specific legislation allowing the year-round sale of E15 and policy promoting the production of more flex-fuel vehicles capable of using the lower-cost E85 fuel blend. Renewable Fuels Association President and CEO Geoff Cooper says, "This nationwide poll of more than 2,000 voters shows strong support for important legislative proposals that are currently pending in the House and Senate." Among the results, 62 percent of those surveyed had a favorable opinion of ethanol, while only 17 percent had an unfavorable opinion. Further, 67 percent also support the United States increasing the availability of the E15 blend, and only 14 percent opposed the expansion of E15. Of those surveyed, 63 percent support the Flex Fuel Fairness Act, 61 percent support the Consumer and Fuel Retailer Choice Act, and 61 percent support the Next Generation Fuels Act.

Clean Fuels Releases Used Cooking Oil Outlook for Biodiesel

Clean Fuels Alliance America Wednesday released a new report assessing potential global supplies of used cooking oil. Specifically, the report looks at used cooking oil to meet the growing demand for biodiesel, renewable diesel and sustainable aviation fuel through 2030. In 2022, global used cooling oil trade reached 3.7 billion gallons. With anticipated demand and added value from biodiesel and renewable diesel production, the supply could grow to between five billion and ten billion gallons by 2030. With additional global used cooking oil collection, the potential supply could increase by an additional four billion to seven billion gallons. The report indicates that the United States has the most well-developed used cooking oil collection system, due to long-standing practices for its use and disposal. In 2022, the U.S. supply reached 850 million gallons. Increasing biodiesel and renewable diesel production incentivizes domestic use of that supply – curbing recent export trends. Global used cooking oil trade reached 1.3 billion gallons in 2022.

AEM: Overall Tractor Sales Lower

Heavy-duty row crop tractor unit sales continued to increase in the U.S., while overall farm tractor unit sales in the U.S. and Canada declined in August. The Association of Equipment Manufacturers reports 100-plus horsepower, two-wheel-drive tractors, and four-wheel-drive tractors, were the only segments to grow year over year. Both those segments, along with self-propelled combines, remain positive for the year. The biggest overall growth among tractors happened in four-wheel-drive units, growing more than 20 percent in August. AEM's Curt Blades says, "North American row-crop farmers continue to add and adopt new technology to their equipment fleets to help reduce costs and improve yields." Overall unit sales of U.S. tractors are down 4.6 percent compared to sales in August 2022, while combine sales declined slightly by 2.4 percent. Canadian tractor sales improved their pace versus the previous month, falling just over six percent, with combines declining more than 17 percent.

APHIS Finalizes Changes to Import Regulations for Horses

USDA's Animal and Plant Health Inspection Service Wednesday announced the finalized amendments to its import regulations for horses. The amendments will better align regulations with international standards and allow more flexibility for permitted imports while continuing to mitigate the risk of bringing equine diseases into the United States. The regulations also provide APHIS with more regulatory authority to enforce standards for transporting horses. The changes include increasing the amount of time allowed for horses to be in a contagious equine metritis-affected region without testing upon their return to the United States from 60 to 90 days. The amendments also update ports designated for the importation of horses, adding requirements for health certifications and requiring that horses transiting Central America or the West Indies comply with the same regulations that apply to horses directly imported from these regions, given the greater risk of equine diseases of concern from these areas. The final rule goes into effect on October 16, 2023.

Few US Adults Rate Their Diet Good or Excellent

New data from USDA’s Economic Research Service show Americans don’t have high ratings for their diets. In the period covering January 2017 to March 2020, just under three in ten adults, or 29 percent, reported the healthfulness of their diets was very good or excellent.” That is 3.5 percentage points lower than the corresponding share reported in 2005–06. The data can be found in the latest publicly available wave of the Flexible Consumer Behavior Survey, which collects information on U.S. consumers’ knowledge, attitudes, and beliefs about nutrition and food choices. For context, 41 percent of adults surveyed in the 1989–1991 Continuing Survey of Food Intakes of Individuals rated the healthfulness of their diets as “very good” or excellent, suggesting a continuing downward trend in the health quality individuals ascribe to their diets. FCBS is a module of the National Health and Nutrition Examination Survey, and its data reflect national trends about changing dietary behaviors of U.S. consumers.

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, the producer price index for August, U.S. retail sales and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage follows at 9:30 a.m.

Weather

A new front and an old one will make for showers in the Plains on Thursday, with any pockets of moderate to heavy rain likely to stay confined in parts of Texas. Mild temperatures continue to be the case for most areas.

USDA Releases September WASDE Report

USDA released the September World Agricultural Supply and Demand Estimates report Tuesday. This month’s corn outlook calls for slightly larger supplies and ending stocks. Projected beginning stocks for 2023/24 are five million bushels lower, and corn production is forecast at 15.1 billion bushels, up 23 million from last month. The national average yield is forecast at 173.8 bushels per acre, down 1.3 bushels. Ending stocks are up 19 million bushels to 2.2 billion. The season-average corn price is unchanged at $4.90 per bushel. Soybean supply and use changes for 2023/24 include lower beginning stocks, production, crush, exports, and ending stocks. The soybean yield of 50.1 bushels per acre is down 0.8 bushels from last month. Ending stocks are projected at 220 million bushels, down 25 million from last month. The season-average soybean price is forecast at $12.90 per bushel, up $0.20 from last month. The wheat outlook for supply and use is unchanged this month. The projected 2023/24 season-average farm price is also unchanged at $7.50 per bushel.

Crop Production Report Shows Higher Corn Production

Corn production is up, while soybean and cotton production is down from 2022, according to USDA’s Crop Production report issued Tuesday. Corn production is up ten percent from last year, forecast at 15.1 billion bushels. Soybean growers are expected to decrease their production three percent from 2022, forecast at 4.15 billion bushels. Finally, cotton production is down nine percent from 2022 at 13.1 million 480-pound bales. Planted and harvested acreage estimates for corn, cotton, and soybeans were reviewed based on all available data, including the latest certified acreage data from the Farm Service Agency. As a result, area planted to corn is estimated at 94.9 million acres, up one percent from the previous estimate, area planted to soybeans is estimated at 83.6 million acres, up slightly, and area planted to cotton is estimated at 10.2 million acres, down eight percent from the previous estimate. USDA surveyed more than 7,000 producers across the country and conducted objective yield surveys for the report.

Basil Gooden Nominated as USDA Rural Development Undersecretary

President Joe Biden this week nominated Dr. Basil Gooden to serve as USDA Undersecretary for Rural Development. If confirmed by the Senate, Gooden would fill the undersecretary position left vacant by Xochitl Torres Small, who was confirmed in July 2023 as Deputy Secretary of Agriculture. Agriculture Secretary Tom Vilsack responded, “Dr. Basil Gooden is a widely-respected, accomplished champion for affordable housing, community advancement, and economic development.” One of USDA’s seven mission areas, Rural Development helps to expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. Gooden recently served as a Visiting Scholar in the Sustainable Food Access Core of the Institute for Inclusion, Inquiry and Innovation at Virginia Commonwealth University. From 2016-2018, he served as the 3rd Secretary of Agriculture and Forestry for the Commonwealth of Virginia. Before that, Gooden served as the Virginia State Director for Rural Development at USDA.

USDA Announces Awards to Support One Health Initiatives

USDA's Animal and Plant Health Inspection Service is awarding 36 research awards totaling more than $56 million to support One Health surveillance and coordination. One Health is a collaborative, multisectoral, and transdisciplinary approach – working at the local, regional, national, and global levels – to achieve optimal health outcomes. It recognizes the interconnection between animals, people, plants and their shared environment. The announcement includes eight Agriculture and Food Research Initiative projects from USDA's National Institute of Food and Agriculture, one National Science Foundation Ecology and Evolution of Infectious Diseases program project, and 27 projects identified through the USDA APHIS SARS-CoV-2 in animals funding opportunities. The awards will help APHIS accomplish its goal of building an early warning system to potentially prevent or limit the next zoonotic disease outbreak. APHIS Acting Administrator Dr. Michael Watson says, "This important work will strengthen our foundation to protect humans and animals for years to come."

FFAR Renews ESMC Partnership to Grow Market Program

The Foundation for Food & Agriculture Research Tuesday announced the renewal of its partnership with Ecosystem Services Market Consortium, or ESMC. The foundation awarded $10.3 million in 2019 to ESMC to support its research arm, matched by ESMC for a total of $20.6 million. That research resulted in Eco-Harvest, launched in May 2022. Eco-Harvest is an ecosystem services market program that financially rewards participating producers for using regenerative agriculture practices that generate beneficial environmental outcomes. Eco-Harvest program regions include the corn and soy belt, Northern Great Plains, Southern Great Plains, Southeast and Great Lakes regions for corn, soy, wheat, oats and alfalfa cropping systems. FFAR announced an investment of $5.15 million for additional research, and ESMC is matching the award for a total $10.3 million. ESRC will conduct the research, development, demonstration and deployment activities that facilitate Eco-Harvest participating in all major U.S. agricultural regions. FFAR’s Dr. LaKisha Odom says, “These practices are critical in protecting farmers’ livelihoods and the environment, while increasing productivity.”

CHS Intends to Return $730 Million to Owners

CHS Inc., the nation's leading agribusiness cooperative, has announced it intends to return $730 million in cash patronage and equity redemptions to its owners in calendar year 2024. The CHS Board of Directors determines the total amount of cash to be returned to CHS owners at the close of each fiscal year. Based on business done with CHS in fiscal year 2023, which ended on August 31, 2023, the CHS Board has elected to return $365 million in cash patronage and $365 million through equity redemptions to CHS owners. CHS owners are member cooperatives and farmer-owners in hundreds of communities across rural America. The cash returns earmarked for distribution in 2024 will combine with the previous year's cash returns for more than $1.7 billion shared with owners over two years and more than $3.2 billion returned to owners over the past ten years. Final financial results for fiscal year 2023 are expected to be announced in November 2023.

Wednesday Watch List

Markets

The U.S. Labor Department's consumer price index for August will be out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. The U.S. Treasury reports on the federal budget for August at 1 p.m.

Weather

A front continues to work across the far south and east on Wednesday, with mostly quiet conditions throughout the Corn Belt. A few isolated showers remain possible in the Great Lakes. Temperatures remain mild for most areas, even in Texas as the front moves through.

Ag Labor Expenses Forecast to Increase in 2023

Total cash labor expenses for the U.S. agriculture sector are forecast to be $43.35 billion for 2023, based on new data from USDA’s Economic Research Service. This would be an increase of $0.78 billion, or 1.8 percent, over the 2022 level of $42.57 billion in inflation-adjusted 2023 dollars. The projected 2023 level would remain below the high set in 2017. Labor expenses are an important component of agricultural production costs. For every $100 spent on production expenses, almost $10 goes toward labor. Total labor expenses include contract and hired labor payments but exclude non-cash employee compensation. Generally, the animal production sector uses less hired and contract labor than the crop sector. In 2021, the animal production sector accounted for about one-third of total hired and contract labor expenses, with the remaining roughly two-thirds incurred by the crop production sector. This is because some large specialty crops are more labor-intensive than most industries in the animal sector.

NMPF Applauds Natural Disaster Assistance for Dairy Farmers

New funding announced Monday from the Department of Agriculture will help dairy producers affected by natural disasters. The Milk Loss Program administered by the Farm Service Agency will compensate eligible dairy farms and processors for milk dumped due to qualifying disaster events from 2020 to 2022. Eligible disasters include droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms and smoke exposure. The Milk Loss Program will help farmers and, in certain cases, cooperatives, recover losses previously overlooked by disaster assistance. The National Milk Producers Federation applauded the announcement. NMPF president and CEO Jim Mulhern says, “We’re very appreciative of USDA’s diligent work over several months to finalize the compensation plan that will address this backlog of disaster assistance.” Dairy farmers and cooperatives can sign up for the program through October 16, 2023. In other FSA dairy safety-net support, Dairy Margin Coverage program payments have triggered every month, January through July, for producers who obtained coverage for the 2023 program year.

Weekly Fuel Prices Rise Again

After falling for two straight weeks, the nation's average price of gasoline increased, rising 1.6 cents from a week ago to $3.79 per gallon. The national average is down 3.0 cents from a month ago but 11.4 cents per gallon higher than a year ago. The national average diesel price fell 0.9 cents last week to 4.42 per gallon, 58.6 cents lower than one year ago. The West Coast and the Corn Belt saw the brunt of last week's increases. More than ten states saw prices rise by more than ten cents per gallon compared to last week, while some, like Iowa and Minnesota, have seen average prices spike by over 30 cents per gallon. However, GasBuddy's Patrick De Haan says, "We should see more price decreases for most of the nation in the weeks ahead, barring further refinery disruptions and hurricane season." U.S. retail gasoline demand saw a hefty 3.9 percent decrease last week, as post-Labor Day travel appeared to drop significantly.