December Rural Mainstreet Index Sank

Creighton University’s Rural Mainstreet Index sank below growth neutral for a fourth-straight month in December. Based on a survey of bank CEOs in a ten-state region, the index rose to 41.7 from November’s 40.4. That’s still lower than October’s 44.4. The index ranges from 0 to 100, with 50 being growth neutral. Creighton University Economics Professor Ernie Goss says much of the rural economy is still getting pinched by higher interest rates. “Farming in the region is doing reasonably well,” Goss says. “However, agriculture sales abroad for the region are 14 percent lower.” Despite the fact that the Federal Reserve predicted possible rate cuts next year, bankers throughout the region still had somewhat of a pessimistic outlook for their region’s economy. “A little over 50 percent of the ag bankers say their area is in a recession right now or would be in the first half of 2024,” he adds.

U.S., Brazil Competitive Balance in Soybeans

The U.S. and Brazil are major competitors when it comes to exporting soybeans around the world. USDA’s Economic Research Service did a comparison study to figure out how changes in factors underlying production, marketing costs, and infrastructure might affect export competitiveness. Among some of the key findings, the costs of production differed between the two, partially because Brazil relies on more custom services to provide equipment and labor in the field. U.S. farms tend to own their machinery. Average per-acre costs of producing soybeans per acre in Brazil were 19 percent below the U.S. in the marketing year 2021-2022 because of lower land and capital costs. Brazil’s producers had a higher national average return per bushel over total costs than the U.S. in 2021-2022 at $4.05 compared with $2.13. The U.S. Heartland was the lowest-cost exporter of soybeans. Parana in Brazil was the second-lowest shipper as it’s close to a port.

Minnesota Loses Almost 150 Dairies in 2023

Minnesota’s already-shrinking dairy sector lost another 58 dairy farm permits in November. That brings a total of 146 fewer dairy farmer permits at Christmas than the state had at the beginning of the year. While October, November, and December typically see dairy farms shut down, Minnesota Milk Producers Executive Director Lucas Sjostrom (SO-strom) says he hasn’t seen more than 50 in a single month for a long time. The numbers show just how razor-thin financial margins are under a crushing load of economic pressures. High input costs and low commodity values are squeezing margins only a year after the dairy industry was in the midst of higher prices for milk, cheese, and butter in the aftermath of COVID-19. Overall, Minnesota had a total of 1,825 permits as of December 1. The Minnesota Department of Agriculture says the state had more than 4,000 dairy farms as recently as ten years ago.

USDA Lists 2023 Successes

USDA looked back at 2023 and said it’s been able to help tens of thousands of farmers continue their operations and increase their revenue. The agency also connected rural communities with internet access, advanced efforts to mitigate climate change, made investments to help small businesses get a leg up, and lowered energy and other costs for consumers. As of December 1, USDA has helped more than 30,000 farmers and ranchers who were in financial distress stay on their farms and keep farming. Since the Inflation Reduction Act was signed into law, the Farm Service Agency has provided nearly $1.7 billion and counting in immediate assistance to farmers in financial distress. At the same time, USDA greatly improved its loan application process to better serve farmers. In 2023, the Risk Management Agency helped provide the largest farm safety net in history at a total of $207 billion in protection for American agriculture.

Mormon Church Buys 370,000 Acres of Ranch Land

The Mormon church has sparked some backlash from local farmers after snapping up about 370,000 acres of prime ranch land in Nebraska. The Utah-based religious organization now owns at least $2 billion worth of agricultural terrain across the country. It now owns an estimated $134 million worth of agricultural land in Nebraska and is on track to surpass CNN founder Ted Turner as the single largest landowner in the country. Nebraska Farmers Union President John Hansen told news outlets that the land grab was artificially driving up land prices and forcing out local farmers. “It’s not fair competition when folks bring in that much outside money and bid against local farmers and ranchers,” Hansen says. “They’ll become the number one landowner in the state if they continue this buying spree at the current rate.” The church is likely the largest landowner in Florida after buying almost 383,000 acres of timberland.  

Slower Moving Markets to End the Year

There hasn’t been much of a post-harvest rally to work with in the commodity markets. Successful Farming says fund traders are especially short in the corn market and slightly long in soybeans. December corn went off the board at nearly $4.60, and March is the new front month, which has been trading recently at the low end of its range at $4.70. There hasn’t been a lot of demand recently. On-again, off-again concerns over Brazil’s weather aren’t helping send the markets in a higher direction. Corn traders estimate a two-billion-bushel carryout, which should be more than enough supply. That’s kept any technical rallies in check. Soybean demand is improving, but traders remain more focused on Brazil’s weather, which looks to be improving early in 2024. While many forecasters have lowered Brazil’s harvest projections, they’re only down by 20 percent. The perception is that there will be enough soybeans to meet demand.

Friday Watch List

Markets

There is a dearth of reports on Friday, with only the Chicago Business Barometer to be released. Traders will be watching South American weather closely, along with the delayed U.S. grain export sales to be released at 7:30 central time.

Weather

An area of scattered rain and snow showers in the Eastern Midwest will move into the Tennessee Valley Friday. High pressure will keep conditions mostly dry across the Plains and Western Midwest.

Ag Economists’ 2024 Expectations

Geopolitical factors, elections, and many other surprises await the agricultural economy in 2024. Farm Journal and Purdue University’s December Economists’ Monthly Monitor shows views slightly more optimistic than they were a month ago. The economists talked about what unexpected news headlines they wouldn’t be surprised to see in 2024. The responses include China falling into a big recession. They wouldn’t be surprised to see a second farm bill extension, corn prices that test four dollars again, and inflation will support managed money returning to the commodities. Record beef imports wouldn’t be a surprise, as well as a national corn yield bigger than 190 bushels per acre. There are also reasons for optimism like demand opportunities through domestic soybean crushing, renewable fuel, and sustainable aviation fuel. They’re looking for robust domestic consumption and an opportunity for competitive pricing for U.S. commodities in overseas markets. Many producers should still have strong balance sheets.

Bayer Wins Roundup Lawsuit in California

Bayer was victorious in a California trial initiated by a man who claimed he had developed cancer from long-term exposure to the company’s Roundup weed killer. Reuters says that ended what had been a five-trial losing streak for the company in trials over similar claims. Bayer said the verdict was handed down by a jury in a California Superior Court late last week. In a statement, the company says the verdict was “consistent with the evidence in this case that Roundup does not cause cancer and is not responsible for the plaintiff’s illness.” Lawyers for plaintiff Bruce Jones didn’t immediately respond to requests for comment. Like most plaintiffs in other Roundup lawsuits, Jones claimed the product caused him to develop a form of cancer called Non-Hodgkin Lymphoma.  Around 165,000 claims have been made against the company for personal injuries allegedly caused by Roundup, which Bayer acquired by purchasing Monsanto in 2018.

New Year’s Ag Innovation Trends

As agriculture looks to 2024, AgriThority, a Kansas City company, put together its top ten trends for the new year. The company is seeing some consistency from prior years but some emerging trends as well. The first is a push for more biologicals and biostimulants, comparing them to what seed treatments were in the 1990s. The biostimulant market should reach $6.8 billion by 2028. They say climate-smart farming will get smarter as measurements behind the carbon market continue maturing. AgriThority says precision ag will continue evolving with the onset of AI. They do note that regulations are not evolving at the same rate as innovation in agriculture. The company’s top ten also says sustainability isn’t going away, plus soil health will continue evolving. Artificial intelligence will likely be more present in agriculture next year. They call 2024 a “shakeout year” as companies will make moves for the future as competition increases.

Food Spending Hit Record High in 2022

Whether real or inflation-adjusted, yearly food spending in the United States increased steadily from 1997 to 2022, except in 2008 and 2009 during the Great Recession and COVID in 2020. Food spending includes food at home, described as food intended for off-premises consumption from retailers like grocery stores. Spending also includes food away from home, described as food bought at outlets like restaurants or cafeterias. Total food spending increased 70 percent from 1997 to 2022. Food spending totaled $1.81 trillion during 2020. Between 1997 and 2022, food at home spending increased at a slower rate, 53 percent, than food away from home at 89 percent. Total food spending increased on a yearly basis by 7.2 percent in 2021 and 4.5 percent in 2022. Food away from home spending drove the overall increases in food spending. Food at home spending rose four percent in 2021 before falling two percent in 2022.

USDA Continues Strengthening U.S. Food Supply Chains

USDA’s Ag Marketing Service announced a cooperative agreement with Oklahoma under the Resilient Food Systems Infrastructure Program. Through the agreement, USDA and Oklahoma are working to offer over $6.3 million in competitive grant funding for projects designed to build resilience across the middle of the supply chain. In May 2023, USDA announced the availability of up to $420 million through the RFSI program to strengthen local and regional food systems. “This partnership between USDA and Oklahoma is allowing critical funding to reach areas of the supply chain that need it most,” says Jenny Moffitt, USDA Undersecretary for Marketing and Regulatory Programs. Funded projects in Oklahoma will increase cold storage, expand distribution channels for food producers, and increase the number of co-packing options. “These projects will create new opportunities for the region’s small and midsize producers to thrive, expand access to nutritious food options, and increase supply chain resiliency,” Moffitt adds.

Grain Inspections Rise

USDA data shows inspections of corn and wheat for offshore delivery increased week-to-week while soybean assessments dropped during the week ending on December 21. Corn inspections during those seven days rose to 1.98 million metric tons. That’s up from the previous week of almost 960,000 tons and the 922,000 inspected during the same week in 2022. Wheat assessments reached 428,700 tons, a sharp jump up from 285,000 tons the previous week. Soybean inspections fell to 1.07 million tons from 1.43 million during the prior week. That’s also down from the 1.79 million tons inspected during the same week last year. Since the start of the marketing year, USDA has inspected 11.2 million metric tons of corn, well ahead of last year. Soybean assessments are now at 22.3 million tons, down from 27.3 million last year. Wheat inspections now stand at 9.33 million tons, down from 11.8 million during last year.

Thursday Watch List

Markets

Thursday morning's reports start with weekly U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CST, followed by pending U.S. homes sales at 9 a.m. The Energy Department's report on natural gas storage is set for 9:30 a.m., followed by the Energy Department's weekly inventory report at 10 a.m., including ethanol production.

Weather

Dry conditions will return across the Central and Southern Plains throughout the day while widespread rain and snow showers will build across the eastern Midwest and are expected to continue through Thursday night. Up to two inches of snow is likely across southern Wisconsin, eastern Iowa, Illinois, Missouri, and eastern Indiana; however, isolated higher amounts up to 3-4 inches are possible. 

Ag Groups Pleased with Rail Re-Opening

The U.S. Customs and Border Protection has reopened the Eagle Pass and El Paso rail crossings into Mexico. Ag groups like the National Corn Growers Association were happy with the move but cautioned the agency against making similar decisions in the future. “This is certainly a welcome relief,” says NCGA President Harold Wolle. “We hope this serves as a cautionary tale against rail shutdowns in the future.” He also says rail is a key mode of transportation for U.S. ag exports into Mexico. U.S. Wheat Associates and the National Association of Wheat Growers were also relieved the shutdown ended. “These rail corridors are essential gateways to many loyal flour millers and food customers in Mexico who rely on the interconnected U.S. and Mexican rail system for a reliable source of high-quality U.S. wheat,” they said in a statement. “We trust CBP will take the steps needed to avoid future rail closures.”

U.S. Hog Inventory Slightly Higher

As of December 1, there were 75 million hogs and pigs on U.S. farms, up slightly from December 2022 and down slightly from September 1, 2023. That’s according to the Quarterly Hogs and Pigs Report from the National Agricultural Statistics Service. Of those 75 million hogs and pigs, 69 million were market hogs while six million were kept for breeding. Between September and November 2023, 34.6 million pigs were weaned on U.S. farms. From September through November 2023, U.S. hog and pig producers weaned an average of 11.66 pigs per litter. Hog producers intend to have 2.9 million sows farrow between December 2023 and February 2024, and 2.91 million sows farrow between March and May 2024. Iowa hog producers accounted for the largest inventory among the states with 24.9 million head. Minnesota had the second-largest inventory at 9.1 million head. North Carolina was third with a total of 7.8 million head.  

USDA Ranks the World’s Largest Meat Customers

China has been the world’s largest meat importer since 2019. Despite recent reductions in imported meat volumes, the country remains in the top spot. In 2022, China imported 43 percent more than Japan, the second-largest meat importer in the world. Mexico was third, followed by South Korea in fourth place. Issues such as disease, tougher laws addressing environmental issues, and an exodus of small-scale farmers have constrained China’s meat supply, boosting domestic prices and incentives to import. As China’s most consumed meat, pork tends to dominate Chinese meat supply and demand. China surpassed Japan to become the top meat importer after the African Swine Fever virus sharply reduced the country’s pork supply in 2019. China’s meat consumption appeared to peak in 2014, but statistical model projections say that meat consumption will continue to grow through 2031 based on trends like dietary change and moderate growth in Chinese income and prices.

USDA Accepting Applications for Climate Fellows

The U.S. Department of Agriculture announced it is hiring 40 Climate Change Fellows to help with the record number of applications seeking funding for clean energy projects. Farmers, ranchers, and rural small businesses are looking for the funds under the Rural Energy for America Program (REAP). These positions are part of the USDA Climate Change Fellows Program, which hires new staff with a range of skills to carry out USDA’s activities to address climate change and find solutions to agricultural challenges, enhance economic growth, and create new income streams for farmers, ranchers, and producers. The program brings expertise and fresh perspectives to the federal workforce and expands the climate consciousness of state offices across the country. The agency says the investments in future agricultural leaders will help USDA attract the best and brightest to face the growing challenges to the agricultural economy. For more information or to apply, go to usda.gov.

Italy Bans Sale of Lab-Grown Meat

Italy is the first country to ban cultivated meat, the kind grown in laboratory bioreactors from stem cells. Under a new law put into effect last month, lab-grown meat cannot be produced or marketed in Italy. The country’s agricultural minister says Italy was proud to impose a ban like this one. Which country might be second on the list isn’t set in stone. Many other countries are allowing and even encouraging the technology to be developed. Singapore is the only country where its people are currently eating cell-based meat. The U.S. Department of Agriculture and the Food and Drug Administration have approved two kinds of cell-based chicken for human consumption. For regulators in most countries, the BBC says the top issue is food safety. Italy's ban grows out of concerns that may be of more interest to America’s farmers. The country is unashamedly trying to protect its food traditions and farmers.

Nebraska Governor Condemns UN Food Strategy

Nebraska Governor Jim Pillen commended Nebraska Representative Mike Flood for introducing a resolution condemning the UN Food Strategy that was released at COP28. He says the strategy is bad for Nebraska and other agricultural states. “The UN’s radical attack on agriculture undermines the livelihoods of Nebraska farmers and ranchers as well as those in other states where agriculture is an economic driver,” Pillen says. “Anti-agriculture activism damages the world’s food system, and it hurts the hungry.” He also says farmers in and out of Nebraska raise their products using sustainable methods designed to protect the land and resources on which they rely. The COP28 report called for countries to revamp their farm subsidies to encourage healthier eating, prevent overgrazing of livestock, and eliminate food waste. The report also backed sugar taxes, which would apply to high-fructose corn syrup. It also calls for the promotion of plant-based alternatives to red meat.

Wednesday Watch List

Markets

Traders will continue to look for clues regarding the status of Brazil's soybean production, but trading is apt to be subdued this week, ahead of Monday's New Year holiday. There are no significant reports on Wednesday's docket and the Energy Department's weekly inventory report will be out at 10 a.m. CST Thursday.

Weather

A weakening low pressure system in the Central U.S. will continue to provide isolated to scattered rain and snow showers for the Northern and Central Plains as well as the Upper Midwest and Mid-Mississippi Valley Wednesday. Well-above normal temperatures will also persist in northern parts of the Midwest, with temperatures reaching up to 12-18 degrees Fahrenheit above normal.

Top 5 Things to Watch - Holiday Schedule Mixes Up Markets

1. Holiday market hours: Grain and livestock futures close normally on Dec. 22 and CFTC data is out that day as normal. There also are cattle on-feed, cold storage and hog inventory reports due at 2 p.m. on Dec. 22. Grain and livestock futures markets are closed Christmas Day. They open at 8:30 a.m. Dec. 26. The markets repeat that schedule for the New Year's holiday, open normally on Dec. 29, closed on New Year's Day and trading opens at 8:30 a.m. Jan. 2. In Canadian markets, there is no canola trade at the ICE on Dec. 26, Boxing Day.

2. Weather brings Christmas surprise: And the surprise is? Like any true present, it'll be unknown until the package is open, or in this case until the sun comes up. Weather models continue to be all over the board, some predicting snow and cold, some balmy sunshine.

3. Top 2023 ag stories: We'll continue our countdown of the 10 most critical stories in agriculture. As such things tend to be, many of them are still an issue as the year comes to a close.

4. Tax law updates: There are some new tweaks on depreciation and other tax-related rules for the 2024 season. Watch for our latest take on that.

5. Economic reports to watch: Monday markets are closed, so no USDA export inspections. Tuesday sees the U.S. consumer confidence report for December due out at 9 a.m., followed by USDA's weekly report of export inspections at 10 a.m. Then Thursday sees U.S. weekly jobless claims and U.S. Drought Monitor update at 7:30 a.m., followed by pending U.S. homes sales at 9 a.m. The Energy Department's report on natural gas storage is set for 9:30 a.m., followed by the Energy Department's weekly inventory report at 10 a.m. On Friday, the USDA weekly export sales report is out at 7:30 a.m.; that's the only significant report of the final trading day of 2023.

Tuesday Watch List

Markets

Back from the three-day Christmas weekend, traders will catch up on South American weather and any other pertinent news before trading in grains and livestock futures resume at 8:30 a.m. CST Tuesday. A report on U.S. consumer confidence in December will be out at 9 a.m., followed by USDA's weekly report of export inspections at 10 a.m. Canola futures on the ICE exchange are closed for Boxing Day.

Weather

A strong low pressure system in the central U.S. will continue to provide blizzard conditions across portions of the Northern and Central Plains today with freezing rain likely across the eastern Dakotas. Periods of rain will also continue across the Upper Midwest.

Ag Groups Respond to Rail Suspension at U.S.-Mexico Border

The U.S. Customs and Border Protection Agency was forced to suspend rail operations at key points into and out of Mexico. The move is to help alleviate the sharp increase in illegal immigration at the border. These actions affect U.S. corn and barley shipments, two commodities the U.S. Grains Council represents. The CBP is working with the Mexican government to remedy the situation as quickly as possible, but there’s no timeline for returning to normal operations. “The North American trading system relies on interconnectedness, and any disruption affects Mexican and U.S. Commodities,” says USGC Chair Ryan LeGrand. “It’s vital the situation gets resolved in a timely manner.” A letter from the NCGA says, “We are aware of trains sitting at origin in at least six states that are unable to move, and we expect that number to grow. Mexican customers are telling U.S. shippers that they’ll soon consider other suppliers.”

CattleCon24 Showcases Sustainability Efforts

Caring for animals, conserving natural resources, and maintaining a viable business are critical components of transitioning cattle operations to future generations. Two unique sessions during CattleCon24 in Orlando, Florida, provide opportunities to share ideas and continue conversations about the importance of continuous improvement. A half-day Grazing Management Workshop is scheduled for Tuesday, January 30. A long list of experts will talk about the benefits of pasture and grazing management, assessing pasture conditions, forage growth, and many other topics. “Proper grazing management and a written grazing management plan are essential to the success, longevity, and profitability of forage-based cattle operations,” says Josh White of NCBA. Dr. Myles Allen, a professor at Oxford University, will be the keynote speaker during the Sustainability Forum on Thursday, February 1. Allen will demystify climate impacts from cattle production and equip producers with the knowledge and resources to effectively speak about cattle’s role in the climate conversation.

Eleven Percent of Americans are Food Insecure

Food-insecure households have difficulty providing enough food for their members because they lack resources. USDA’s Economic Research Service monitors the extent of food insecurity in U.S. households at the national and state levels through an annual U.S. Census Bureau Survey. State-level estimates are obtained by averaging three years of data to generate a larger sample size in each state. This provides more precise estimates and more ability to detect differences across states. The national three-year average (2020-2022) was 11.2 percent of American households classified as food insecure. Of that 11.2 percent, findings ranged from 6.2 percent in New Hampshire to 16.6 percent in Alaska. Food insecurity was statistically significantly higher than the national average in six states, including Arkansas, Louisiana, Mississippi, Oklahoma, South Carolina, and Texas. The prevalence of food insecurity was statistically significantly lower in 17 states, including California, Colorado, Iowa, Minnesota, North and South Dakota, Wisconsin, and many others.

First Disability-Accessible Tractor Produced in Brazil

CNH Industrial launched the world’s first tractor that’s accessible for people with lower limb disabilities. The New Holland TL5 was produced in Brazil and developed in partnership with several inclusive mobility companies. CNH also enlisted farmer and customer Fernando Dalmolin, who uses a wheelchair following an incident that left him without the use of his legs, to help with developing the tractor under the New Holland brand. “This is what people with disabilities like mine need to work independently out in the field,” Dalmolin said in a statement. The tractor has a unique lifting platform and joystick controls allow users to enter and exit the tractor without help. Once they’re inside the tractor, users can operate the tractor with adapted functionality. In the U.S., at least 634,000 farmers and ranchers have a disability, with many reporting physical limitations. Brazil estimates that 7.8 million of its people have lower limb disabilities.  

USDA’s 2024 Ag Outlook Forum Packed with Information

The USDA’s 100th annual Ag Outlook Forum is on February 15-16 in Arlington, Virginia. The event’s theme is “Cultivating the Future,” and features a lot of information farmers and agricultural stakeholders will find useful. USDA’s opening program at the event includes a chance to get valuable insights as USDA’s Chief Economist unveils the agency’s outlook for the domestic agricultural economy in the new year. Ag Secretary Tom Vilsack will highlight the history and evolution of agriculture in the U.S. while painting a vision for the future. It’s a chance to find out more about initiatives aimed at preserving farmland, protecting farmers, and creating new revenue streams for small and mid-sized producers. State leaders will share their perspectives on the future of agriculture and the challenges faced by producers. It’s also a chance to discover emerging technologies that are reshaping farming and creating exciting new opportunities today and in the future.

NCGA Applauds Nutrient Runoff Reduction

The National Corn Growers Association applauds the sustained reductions in nutrient losses reaching the Gulf of Mexico. The reductions are shrinking the average size of the hypoxia zone, as recently documented in a task force report to Congress. NCGA commends all growers for the practical conservation steps and measures they have voluntarily adopted on their farms to reduce nutrient losses and protect water quality. “In the journey of water quality stewardship, we are encouraged by the strides made by growers,” says Bryan Biegler, NCGA Stewardship Action Team Chair. “The commitment to sustainable practices is clear, and despite challenging weather patterns impacting growers, we see definite progress taking form over the course of a five-year rolling average.”  According to the report, the 2025 interim target to reduce nitrogen loads by 20 percent has been met. More work is needed to reduce nitrogen and phosphorous by 28 percent to meet the 2035 goal.

Friday Watch List

Markets

Twas the last trading day before Christmas and all through the house…

Friday's trading hours will be normal for grain and livestock futures, but we can't promise traders won't stir up mischief on what is traditionally a light-volume session. November reports of U.S. durable goods orders, U.S. personal income, consumer spending and the personal consumption expenditures index will all be released at 7:30 a.m. CST, followed by November U.S. new home sales at 9 a.m. At 2 p.m. USDA will post the December 1 cattle on-feed, monthly cold storage and quarterly hogs and pigs reports.

Weather

A disturbance is moving out of the Plains and into the Midwest on Friday, bringing scattered rain showers. Two disturbances are moving into the West and will combine to create a big storm in the days surrounding Christmas. But temperatures will be quite warm, and records are likely to be broken in the Upper Midwest ahead of this storm.

Movement on Unrestricted E15 Sales

The National Corn Growers Association praised an EPA decision that advances the request of several governors to allow their states to sell E15 year-round to the Office of Management and Budget. The move now puts eight Midwestern states closer to year-round access to fuel with a 15 percent ethanol blend. “Allowing consumers to access higher blends of ethanol year-round will play a critical role in helping the country meet its ambitious climate goals,” says NCGA President Harold Wolle. Growth Energy CEO Emily Skor says it’s a welcome step forward for farmers and drivers across the Midwest. “We’re grateful to the governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin for pushing for uninterrupted access to E15,” she says. The request has been in limbo after the oil industry warned the administration that allowing E15 sales in select states would cause supply chain issues and higher gasoline prices.

Justice Department, FTC approve 2023 Merger Guidelines

Agribusiness mergers have been a concern for agriculture because they cut down on competition and lead to higher prices for things like inputs. The Justice Department and the Federal Trade Commission issued the 2023 Merger Guidelines describing the factors and frameworks the agencies utilize when reviewing mergers and acquisitions. The new guidelines were released after a two-year process of public engagement and reflect modern market realities and the experience of participants in the marketplace. “These finalized guidelines provide transparency into how the Justice Department is protecting the American people from ways in which unlawful, anticompetitive practices manifest themselves in the modern economy,” says Attorney General Merrick Garland. The department also says that competitive markets and economic opportunity for all Americans go hand in hand. Garland was grateful to hear from authors, nurses, farmers, and other concerned citizens from across the country. “Merger enforcement will be better as a result,” he said. 

Growers Appreciate Chlorpyrifos Restoration

The Environmental Protection Agency announced it will restore the uses of chlorpyrifos and commit to a science-based review of the pesticide. Alan Meadows, an American Soybean Association director, was happy to hear the news. “We appreciate this announcement brought about by an Eighth Circuit Appeals Court decision,” he says. “EPA’s own science has repeatedly found there are at least 11 high-benefit, safe uses of chlorpyrifos, including for soybeans, a fact we will continue to remind the agency of throughout the process.” The announcement is consistent with a November decision from the Eighth Circuit Court that found EPA disregarded its own scientists’ findings by ending numerous uses of chlorpyrifos they determined were safe. American Sugarbeet Growers Association President Nate Hultgren says growers welcome the return of chlorpyrifos for the upcoming season. “Growers need tools like this to reduce economic harm stemming from pests and diseases and are committed to responsible stewardship,” Hultgren says.

MOU on Establishing Climate Corps

Work is being done on the steps to advance the American Climate Corps, a landmark initiative announced by the President earlier this year. The initiative will train the next generation of clean energy, conservation, and climate resilience workers while putting them on a path to good-paying union jobs. As part of that commitment, seven federal agencies entered into a Memorandum of Understanding that will serve as a blueprint for the multi-agency program. The MOU lays out the mission, goals, priorities, and the next steps in implementing the American Climate Corps. Beginning in January, senior administration officials will also convene a series of virtual listening sessions to hear directly from prospective American Climate Corps applicants and implementing partners. Those partners can include labor unions, educational institutions, employer partners, and state, local, and tribal governments. Within the first three weeks of launching the Corps, over 40,000 people expressed an interest in joining it.

“Raised With Respect” Cattle Care Campaign Underway

Respect for animals, land, and for each other is the foundation of a new campaign launched by Sysco, a food service distribution company, and Certified Angus Beef. The campaign called “Raised with Respect” centers on common ground found between cattle producers and beef consumers and  focuses on animal welfare and beef sustainability. It was developed as part of a strategic cattle care partnership between Sysco and CAB. The collaboration will focus on supporting producers, equipping them with continuing education to stay current on best management practices, and helping to increase consumer confidence in U.S. beef production. Sysco and CAB are providing Beef Quality Assurance training and certification to farmers and ranchers in nine key beef-producing states. “BQA is a credible and effective way for producers to communicate animal welfare to people on the opposite end of the beef supply chain,” says Bruce Cobb, CAB executive vice president of production.  

Wolves Reintroduced in Colorado Over Ranching Objections

Hundreds of ranchers in Colorado are worried about several wolves that were airlifted into the state and released this week. Wolves were eradicated from Colorado in the 1940s. After three years and dozens of public hearing disagreements, the first handful of wolves were moved from Oregon into Colorado. “Just watching an animal leave the crate and run up the hillside is a majestic site,” says Eric Odell, Colorado Parks and Wildlife Species Conservation Manager. Many ranchers spent a lot of time in the Colorado statehouse fighting the wolf releases and in a federal courtroom last week. Several ranchers who spoke with public broadcasting in the state have gone shopping for the biggest guard dogs they can find. It’s not just farmers and ranchers objecting to the release, either. Tourism directors in several towns are worried and point out it’s another predator to watch out for with children and small animals.

Thursday Watch List

Markets

At 7:30 CST, Initial Jobless Claims will be released along with the third quarter GDP revision at the same time. Traders will be closely watching Brazilian weather for any changes, for U.S. export sales to be released at 7:30 CST, and any new sales reported by the USDA.

Weather

A cutoff low-pressure center continues to spin off the coast of California but has pushed a small disturbance into the Plains for Thursday, bringing some showers mostly from Kansas to Texas. Warmth continues to be the big story for the middle of the country until the storm in the Southwest moves eastward this weekend.

ARC and PLC 2024 Enrollment is Open

The USDA says agricultural producers can now enroll in the Farm Service Agency’s Agriculture Risk Coverage and Price Loss Coverage programs for the 2024 crop year. Producers can enroll and make election changes for the 2024 crop year beginning on December 18, and the deadline to complete enrollment and any election changes is March 15, 2024. The current farm bill was extended through September 30, 2024, allowing authorized programs like ARC and PLC to continue operating. “It’s business as usual for ARC and PLC implementation for the 2024 crop year,” says Zach Ducheneaux, Farm Service Agency Administrator. “These programs provide critical financial protections against commodity market volatilities for many American farmers so don’t delay enrollment.” He also advises producers to avoid the rush and contact their local FSA Office for an appointment because even with no changes in program elections for next year, farmers still need to sign a contract to enroll.

Lawmakers Want More Time on New Rule

The Congressional and Senate Chicken Caucuses sent letters to the USDA asking for a 180-day extension to the implementation period for the new Packers and Stockyards Act rule. The rule, titled “Transparency in Poultry Contracting and Tournaments,” included a 75-day compliance period when it was published in the Federal Register on November 28. That put the compliance date for broiler and processing companies on February 12, 2024. “The rule establishes numerous additional disclosure requirements, what provisions must be in contracts, introduces open-ended and novel definitions and terms, requires completely new oversight systems, and injects significant ambiguity regarding compliance,” the House letter says. The lawmakers requested USDA extend the implementation date by no less than 180 days to allow stakeholders and constituents time to thoroughly understand and comply with the rule’s many requirements. They say by providing only 75 days to implement the rule, USDA significantly underestimated the time required for implementation.

USDA Launches Risk Management Workshops

USDA announced it will host more than a dozen in-person and virtual workshops this winter for producers to learn more about new and expanded livestock risk management products. The “Livestock Roadshow” will be hosted by the Risk Management Agency. It will highlight policy improvements based on feedback from America’s livestock producers as part of the agency’s broader outreach and education efforts. “Listening to farmers and ranchers is a top priority for RMA,” says administrator Marcia Bunger. “The Livestock Roadshow is one of our many efforts to provide outreach and education to America’s agricultural producers.” The roadshow will cover many topics, including annual forage, dairy revenue protection, livestock gross margin, livestock risk protection, and many others. To ensure producers across the country can attend an event, two virtual livestock shows are scheduled for January. Livestock producers can learn more by going to usda.gov or contacting a Risk Management Agency Regional Office.

Tighter Margins Ahead in 2024

Despite a drop in key operating costs, Rabobank says contracted margins in 2023 will continue into the new year. Soybean farmers are likely to achieve good margins in the 2024 season, but corn farmers will feel their margins pressured by ample supply. Wheat margins are unlikely to see better margins despite declining costs. Trends are indicating that the markets are at a pivotal point. Rabobank says uncertainty rises from factors like record Brazilian crops, more “adequate” crops in the U.S. and Europe, and expectations of another record crop in Brazil in 2024. Global domestic demand for key crops declined, which points to building stocks and lower prices. Weather challenges and geopolitical instability coupled with economic uncertainty prompt consideration of a risk premium in the market. Rabobank says corn exhibits the least upside potential, with wheat presenting the highest upside potential. Soybeans likely fall somewhere in between. Volatility is likely in 2024.

Midwest Crops Conference in January

The annual Midwest Crops Conference is scheduled for January 2024 in St. Joseph, Missouri. Formerly the “Certified Crops Advisor Conference,” the two-day event targets people looking for Continuing Education Units, including crop advisors, ag industry professionals, and farmers. “This workshop will provide in-depth discussion on several topics to help agricultural professionals enhance their crop production recommendations to farmers,” says Denice Ferguson, a member of the conference committee. Researchers and experts in crop production from the University of Missouri, University of Nebraska, Kansas State University, and Iowa State University will present up-to-date information from their areas of expertise. “Anyone advising or managing an agricultural operation or serving the ag industry knows that research and technology is driving this sector,” Ferguson says. “Advancements in agronomy, pest management, and crop technologies bring improvements to farmers’ yields, efficiency, and risk management.” The conference will offer 15.5 hours of Continuing Education Units for Certified Crop ‘Advisors.

New Members Lead AFB National Committees

Farm Bureau farmer and rancher members play an important role in their communities and the organization by serving at the local, state, and national levels. Several newly appointed volunteers will provide leadership beginning in 2024 as members of the AFB’s Young Farmers and Ranchers and Promotion and Education Committees. These newly appointed national committee members will focus on advancing the mission of the American Farm Bureau and working to build trust with consumers and others while sharing agriculture’s story,” says American Farm Bureau President Zippy Duvall. “Farm Bureau members bring a big level of commitment and care to their communities, and as engaged grassroots leaders, they’ll have a big impact.” The YF and R Committee plans programming that includes coordinating the Young Farmer and Rancher competitive events at the national convention in January. The Promotion and Education Committee develops resources to inspire and equip the Farm Bureau to convey agriculture’s importance.

Tuesday Watch List

Markets

Trading may be quiet on the Tuesday before Christmas as the only significant report on the docket is November U.S. housing starts, set for 7:30 a.m. CST. Traders will keep close watch on the weather forecasts for Brazil.

Weather

With lake-effect showers moving into the Northeast and a trough situated off the West Coast, it will be quieter across most of the country for Tuesday. A brief burst of cooler air will be replaced by warmth from the west while showers will continue along the West Coast.

Good News for the Sustainable Aviation Fuel Industry

The U.S. Treasury Department will use a modified version of the GREET model as a measurement to determine reductions in greenhouse gas emissions. The agency will use the model as it allocates tax credits for sustainable aviation fuels under the Inflation Reduction Act. The National Corn Growers Association was pleased to hear the Treasury’s decision. “Given that GREET was created by the government and is widely respected for its ability to measure reductions in greenhouse gas emissions from the farm to the plane, we’re encouraged by this,” says NCGA President Harold Wolle. “We’re eager to help the aviation industry reduce its carbon footprint and look forward to helping ensure the final model helps achieve that goal.” GREET, which stands for the Greenhouse Gasses, Regulated Emissions, and Energy Use in Transportation, was developed by the U.S. Department of Energy to measure greenhouse emissions from the field to the car or plane.

Specialty Crop Growers Reminded to Apply for Assistance

The USDA reminds specialty crop growers that assistance is available for producers who incur eligible on-farm food safety program expenses. The expenses are part of the process for obtaining or renewing a food safety certification through the Food Safety Certification for Specialty Crops program. “The program is one of the many ways USDA helps support local and regional food systems and opportunities for small-scale producers,” says Farm Service Agency Administrator Zach Ducheneaux. “I’m encouraging all specialty crop growers to discover how this program can help mitigate the costs of on-farm food safety certification, meet regulatory requirements, and apply by the January deadline.” Eligible operations must grow specialty crops, meet the definition of a small business, and have paid eligible expenses related to the 2023 certification. The application for 2023 closes January 31, 2024, and FSA will issue payments after the application period closes. For more information, growers should visit farmers.gov.

CoBank Releases 2024 Year Ahead Report

Lingering high prices are expected to take a bigger toll on the economy in 2024. CoBank says the biggest problem for farm margins heading into 2024 is the elevated cost of production. While fertilizer prices have fallen, other production costs remain high. However, ag commodities will benefit from more upside price risk than down in 2024. Global grain and oilseed stock inventories are tight by historic measures, and the northern hemisphere will likely have a strong El Niño weather pattern during the growing season for the first time since 2015. The dollar will likely continue its recent decline, and global demand should return to a long-term growth trend. Also, the renewable diesel boom and the smaller U.S. soybean harvest of 2023 will drive an expansion of soybean acreage next year. Profitability for the livestock sector should modestly improve in 2024 as lower feed costs and domestic demand offset weak global exports.

State Ag Officials Oppose Beef Imports from Paraguay

Ag officials in several of America’s top beef-producing states say federal officials didn’t properly assess the risk of disease when deciding to allow beef imports from Paraguay to resume. USDA recently ended a 25-year prohibition on those imports. The prohibition was the result of Paraguay’s difficulty in ridding itself of foot and mouth disease. A severe outbreak in the U.S. has the potential to cost more than $200 billion. South Dakota Searchlight says beef industry groups and some lawmakers have opposed the move, saying the risk analysis was based on outdated information. Mike Naig, Iowa Secretary of Agriculture, and officials from seven other states wrote a letter to Ag Secretary Tom Vilsack to consider pausing the decision until a more reliable risk assessment can be completed based on modern visits to Paraguay. Ag officials from Missouri, Nebraska, Ohio, Oklahoma, South Dakota, Texas, and Wyoming all signed the letter to Vilsack.

FCA Board Receives Quarterly Report on Ag Economic Conditions

The Farm Credit Administration received a quarterly report on economic issues affecting agriculture and an update on the financial condition and performance of the Farm Credit System. Rising interest rates have negatively impacted many of the finance-heavy sectors, including commercial real estate, banking, and farming. While many agricultural inputs are considerably less costly than last year, profit margins for many farmers are tighter this year. Crop producers continue to see lower commodity prices, especially for corn and wheat, compared to a year ago. Further price risk stems from lower water levels in key waterways used to transport cash grains. Profit margins for some livestock and specialty crop producers are tighter due to weak commodity prices. The System reported solid financial results through the first nine months of 2023. System growth has slowed in 2023 against a backdrop of higher interest rates and tighter margins in a number of agricultural sectors.

December 2023 Livestock Outlook

The USDA’s December Livestock Outlook says higher cow slaughter and heavier-than-assumed carcass weights will offset lower fed cattle slaughter in the fourth quarter of 2023. That will leave the beef production forecast for 2023 unchanged. Expected heavier carcasses will carry over into early 2024 along with higher cow slaughter. Fourth-quarter pork production was raised 25 million pounds to 7.09 billion pounds, 2.4 percent higher than during the same period last year. Hog prices are expected to average $54 per hundredweight for the quarter, 15 percent lower than the fourth quarter of 2022. First-quarter hog prices are lowered by $1 per hundredweight to $56 as soft consumer pork demand is likely to persist, limiting hog price increases. Lamb and mutton import forecasts are lower in the December report compared to the previous month. In poultry, projected broiler production is adjusted higher for the fourth quarter of 2023 based on strong production in October.

Top 5 Things to Watch - Cattle Markets and South American Weather

1. Cattle prices and LRP: The conversation around what's going on in cattle markets continues and our analysts and journalists continue to follow the trail this week, with reports from cattle meetings and conversations with producers, traders and the insurance industry.

2. Big stories in 2023: We'll kick off our annual review of the 10 most influential ag stories in 2023 this week. We'll look at weather events, financial surprises and at the things that didn't happen, but should have. Look for our Top 10 story lines through the end of the year, leading up to the story we think was the most critical.

3. More from yield contests: The big news last week was Virginia farmer David Hula's record-breaking corn yield of 623.8439 bushels per acre. We'll have more tales from this year's yield contests both on the DTN platforms, and in the February issue of Progressive Farmer. I

4. Eyes remain on South America: While corn farmers got an early Christmas present with the guidance decision affecting sustainable aviation fuel (SAF) tax credits, which could be a pivotal moment for the ethanol industry, the markets are still watching crop growth in South America. Weather models continue to show favorable conditions through January for much of Brazil and Argentina. 

5. Economic reports to watch: On Monday, USDA's weekly grain export inspections report hits at 10 a.m., just after the latest government home builder confidence index at 8 a.m. Then Tuesday kicks off with the 7:30 a.m. release of housing starts and building permits. Wednesday, the latest EIA petroleum report hits 10 a.m., which includes ethanol production and inventory. The Energy Department's weekly inventory report is at 9:30 a.m. Existing home sales is scheduled to be released at 9 a.m. On Thursday, we see the USDA weekly export sales report at 7:30 a.m., the same time as weekly initial U.S. jobless claims. The third-quarter GDP report is released at 7:30 a.m., with latest leading economic indicators at 9 a.m. Finally, Friday is a busy report day, with durables-goods orders for November followed by personal income and spending data for November, all released at 7:30 a.m. New home sales will be released at 9 a.m. The latest Cattle-on-Feed and a Hogs and Pigs report are released after market close.

Monday Watch List

Markets

Back from the weekend, traders will continue to keep watch over South American weather with rain expected to return to central Brazil this week. USDA's weekly report of grain export inspections is set for 10 a.m. The bulk of this week's reports will fall on Thursday and Friday, ahead of the Christmas holiday.

Weather

A strong storm system built up across the East Coast over the weekend and is pushing through the Northeast on Monday. Behind it, a quick burst of cooler air is moving through the Midwest and down into the Southeast, where it will be cooler for a few days starting Tuesday. The cooler air will mean lake-effect snow around the Great Lakes for today. Another cutoff low-pressure center will bring showers to the West Coast as well.

Whole Milk on School Menus Gets Through House

The National Milk Producers Federation applauded the House of Representatives for passing the Whole Milk for Healthy Kids Act. The act expands the variety of healthy milk options schools can choose to serve. “Expanding the milk schools can choose to serve to include Two Percent and Whole Milk is a commonsense solution that will help ensure kids have access to the same healthy options they get at home,” says NMPF President and CEO Jim Mulhern. The American Farm Bureau was also happy with the news. In a letter to Congress, AFBF told members that nine out of 10 children aren’t consuming enough dairy to meet their nutritional needs. The act will allow kids to get access to protein, calcium, and vitamins at important times in their development. House Ag Chair GT Thompson introduced the bill and said he looks forward to restoring access to these nutritious beverages in schools across the country.

Iowa Land Value Study Shows a Four Percent Rise in Prices

Farmland values in Iowa rose again but at a slower pace than the two previous years. The annual Iowa State University Land Value Survey found that farmland values increased 3.7 percent, or $424, to $11,835 per acre. That increase follows a larger 17 percent increase in 2022 and a near-record 29 percent in 2021. The study showed several factors behind the surge last year contributed to the rising prices in 2023. The Federal Reserve has used interest rate hikes to help curb inflation rates, and future increases will continue to slow the growth in farmland values, but not immediately. The Iowa State study says it will take a couple of years for interest rates to be reflected in farmland values. The impact of the aggressive rate hikes in 2022 is expected to be felt more strongly in 2024 and beyond. That will mean more modest growth or lower land prices ahead.

Purdue Consumer Survey Deals with Food Concerns

The Purdue University Consumer Food Insights is a monthly survey conducted by the Center for Food Demand Analysis and Sustainability. The information is used to track trends and changes in consumer food demand and food sustainability behaviors. The November survey dealt with several food safety topics. Among the many findings, most consumers associate “Best if Used By” and “Use-By” food date labels with food safety rather than food quality. The perceived risk of foodborne illnesses is higher in restaurants than in food prepared at home. Consumers are also more likely to believe raw meats pose a higher risk of containing foodborne bacteria than other food times. Risk-averse consumers ate more food cooked at home than risk-loving consumers. Risk-loving consumers reported eating unwashed produce, rare or undercooked meats, and raw dough or batter more frequently than risk-averse or risk-neutral consumers. Food insecurity dropped slightly for the fifth straight month to 12.8 percent.

Groups File Action Against Glyphosate

New legal action would require the Environmental Protection Agency to immediately suspend and cancel glyphosate, the main ingredient in Monsanto’s Roundup. A petition filed by the Center for Food Safety, Beyond Pesticides, and four farmworker advocacy groups says glyphosate’s registration is illegal. A lawsuit filed by the same groups last year saw a federal appeals court strike down EPA’s human health assessment because the agency wrongfully calculated glyphosate’s cancer risk. The new petition calls for the cancellation and suspension of glyphosate’s registration, contains more than 70 pages and includes more than 200 scientific citations. Glyphosate is the most widely used pesticide in the world, with about 300 million pounds applied every year in the U.S. The groups say EPA has declined to act despite studies, including those sponsored by Monsanto, that show glyphosate has harmful effects on the liver, kidney, and reproductive system. They also say it’s a probable immune system carcinogen.

USDA Opens Applications for Discrimination Assistance

Farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs before January 2021 may be eligible for Discrimination Financial Assistance. It’s a new program and an important step in delivering on USDA’s commitment to providing financial assistance to those who have faced discrimination in USDA farm lending programs. The deadline to apply is January 13, 2024. Borrowers can apply online or with a paper form. The application process isn’t first come, first served. All applications received or postmarked before the January 13 deadline will be considered. Filing an application is free and doesn’t require a lawyer. On the website, applicants can get information on how to obtain technical assistance in person or virtually and additional resources and details about the program. If you have concerns about working with USDA based on past experiences, USDA partnered with community-based organizations to conduct outreach to underserved groups. For information, go to 22007apply.gov.

GHG Mitigation Strategies for the Sheep Industry

A new resource outlining best practices for the U.S. Sheep industry to reduce greenhouse gas emissions is now available. The resource summarizes findings in an Environmental Footprint Study from Michigan State University. Many of the practices align with the Lamb Crop Best Practices developed to improve on-farm productivity and profitability. Reducing lamb loss, breeding ewes earlier, and optimal nutrition practices are all areas where producers can maximize productivity while reducing GHG emissions. “It’s encouraging that producers can implement sound practices that have been proven to help with productivity while reducing our environmental footprint,” says American Lamb Board Chair Peter Camino. “Sheep producers have long stewarded their lands, but seeing strategies that make sense for both productivity and sustainability is encouraging.” Other strategies include proper fertilizer use, improved manure management, using renewable resources, and adopting new grazing opportunities. The full report or the summary of the findings can be downloaded at lamboard.com.

Friday Watch List

Markets

On Friday, the Federal Reserve releases its report on U.S industrial production at 8:15 a.m. CST. The National Oilseeds Processors Association releases its estimate of members' soybean crush in November at 11 a.m. and grain traders continue to keep watch over South American weather forecasts.

Weather

A storm system in the Plains will move east through the middle of the country on Friday with areas of showers. Much of this will be rain, though some snow will be possible across the north from North Dakota through northern Wisconsin. Even with the system moving through, temperatures continue to be warm by December standards.

Attempt to Overturn Beef Imports from Paraguay

Senators Jon Tester (D-MT) and Mike Rounds (R-SD) will file a Congressional Review Act resolution that would overturn the decision to lift a long-standing ban on beef imports from Paraguay. Both senators say the Biden administration made the wrong decision. “Resuming beef imports from a country with a recent history of foot and mouth disease is bad news for consumers and producers,” Tester says. Rounds says U.S. farmers produce the world’s safest, highest quality, and most affordable beef. USDA’s decision to resume imports relies on an analysis completed in 2018, and American inspectors haven’t been in the country since 2014. In addition to suspending beef imports from Paraguay, the bipartisan bill would also require establishing a working group to evaluate the threat to food safety and animal health posed by Paraguayan beef. The bipartisan legislation is supported by R-CALF USA, the United States Cattlemen’s Association, and the National Cattlemen’s Beef Association.

Ag Groups Concerned About PNTR Repeal

A coalition of agricultural organizations representing farmers sent a letter to the U.S. Select Committee on the Chinese Communist Party regarding Permanent Normal Trade Relations with China. The committee is considering recommending that Congress repeal China’s PNTR status, and the groups say the impact would have sharply negative consequences. “We respectfully urge the committee not to recommend revoking China’s PNTR status,” the groups say in the letter. “The negative consequences for American farmers, ranchers, and food producers would be profound, and the economic impact on American workers and rural communities would be felt for many years.” They also point out that China is now the largest buyer of U.S. food and agricultural products, purchasing 19 percent of U.S. exports. “These ag exports are critical to America’s farmers and rural communities,” they wrote. Additionally, they say retaliatory tariffs in 2018 and 2019 led to losing billions in states across the U.S.

USDA to Start Issuing Pandemic Assistance Payments

USDA will begin issuing more than $223 million in Pandemic Assistance Revenue Program payments. These payments will help producers who suffered a decrease in allowable gross revenue due to COVID-19 for the 2020 calendar year. Eligible applicants must have been in the farming business during at least part of the 2020 calendar year and had a 15 percent or greater decrease in allowable gross revenue for the 2020 calendar year as compared to a baseline year. PARP benefits help address gaps in previous assistance, which was targeted at price loss or lack of market access rather than overall revenue losses. “PARP payments mark the delivery of the final suite of assistance programs provided by the Farm Service Agency and are also one of the first times that the agency delivered a program focused on revenue decreases,” says FSA Administrator Zach Ducheneaux. For more information, contact your local USDA Service Center.

Collaboration, Momentum at Sustainable Agriculture Summit

Barbara O’Brien, president and CEO of Dairy Management Inc., spoke about challenges facing agriculture during the Sustainable Agriculture Summit in Charlotte, North Carolina. With challenges like a growing global population that needs more food, significant geopolitical challenges, and many others, she says, “We need to take a more thoughtful approach to building resilient food systems, and agriculture must be at the forefront.” The Summit was co-hosted by the Innovation Center for U.S. Dairy and several other national ag organizations to convene the collective food and agriculture value chain to learn, develop, and advance a shared vision for a sustainable and resilient U.S. food system. One highlight of the Sustainable Ag Summit included producers in different U.S. ag sectors sharing how they approach sustainability on their farms. They talked about the successes and challenges in making sustainability gains and the need to safeguard producer livelihood in the context of environmental stewardship.

Global Corn Production Rises

Global coarse grain production is projected as higher due to higher production forecasts for Ukraine, Russia, and the EU, which are partly offset by a reduction for Mexico. Barley production in Canada and Australia is also projected higher. Coarse grain exports for the October-September trade year increased by 2.3 million tons. The increased global exports are predominantly due to larger corn export forecasts for the U.S. and Ukraine, and larger forecasts for Australian and Canadian barley. Mexico is expected to take in more corn imports, and China will boost barley imports. The U.S. feed grain forecast is unchanged at 400 million metric tons. Total feed grain supply is 439.4 million metric tons. Strong corn exports and healthy outstanding sales, particularly to Mexico, contribute to a 25 million bushel increase in the 2023-2024 U.S. corn export forecast. The corn and sorghum season-average prices remain unchanged, but barley and oats prices will rise.

NCGA Announces Corn Yield Contest Winners

The National Corn Growers Association announced the winners of the 2023 National Corn Yield Contest. The group of farmers had impressive yields and proved the ingenuity and resilience of U.S. farmers. In its 59th year, the National Corn Yield Contest saw almost 7,000 entries from farmers in 46 states. Of the 10 production categories, Class J had verified yields averaging 269 bushels an acre. The yields included a national record of 623.8 bushels per acre from David Hula of Virginia, beating the previous record of 619.1 bushels per acre. “Year after year, the National Corn Yield Contest remains the most popular program for NCGA members,” says Harold Wolle, NCGA president. “It’s an opportunity for farmers across the country to put their skills to the test and show the true craftsmanship it takes to grow a successful crop.” A complete list of the 2023 National and State winners is available at ncga.com.

Thursday Watch List

Markets

One day after the Federal Reserve said it expects lower interest rates in 2024, USDA's weekly export sales report will be out at 7:30 a.m. CST Thursday, the same time as reports on weekly U.S. jobless claims, retail sales in November and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. USDA's Livestock, Dairy and Poultry outlook is set for 2 p.m.

Weather

A small cutoff low in the Four Corners area will continue to produce some waves of showers in the Southwestern Plains for Thursday, being heavy in some areas. That includes snow that could be quite heavy in some areas. The rest of the country will be warm and dry.

Grassley, Baldwin, Ernst Team Up to Bring Transparency to Fertilizer Market

Senators Chuck Grassley, Joni Ernst and Tammy Baldwin are leading a bipartisan push to shed light on market factors driving the cost of fertilizer. Iowa Republicans Grassley and Ernst, along with Wisconsin Democrat Baldwin, have introduced the Fertilizer Research Act. The legislation would require the Department of Agriculture to study competition and trends in the fertilizer market to determine their subsequent impacts on price. Grassley says, "With fertilizer being one of the ag industry's highest input costs, it's problematic farmers have such a limited window into market fluctuations." Within one year of the bill's passage, the Secretary of Agriculture, in consultation with the Economic Research Council, would be required to issue a report on USDA's website regarding the U.S. fertilizer industry. The report would include a description of impacts on the fertilizer market that influence price, market trends in the past 25 years, and impacts of anti-dumping and countervailing duties, among other research items.

USDA Releases December Oil Crops Outlook

USDA’s monthly Oil Crops Outlook for December reduced Brazil’s production forecast for marketing year 2023/24 by 2.0 million metric tons to 161.0 million metric tons on lower yield. Yield is forecast at 3.53 metric tons per hectare, down one percent from last month’s forecast and two percent below last year’s record yield. Harvested area is forecast at a record 45.6 million hectares, unchanged from last month and up 1.3 million hectares from last year. The shrinking prospects for Brazil’s soybean production have increased the value of U.S. soybeans. In November, soybean cash prices at country elevators in Central Illinois increased by $0.68 per bushel to $13.08 per bushel. Throughout the country, cash prices rallied above $13.00 per bushel by the middle of November and then prices declined to an average of $12.67 per bushel in the first week of December. Despite the gains, the forecast for average soybean price received by farmers for 2023/24 is unchanged this month at $12.90 per bushel as prices have begun to decline in December.

USDA’s Alexis Taylor to Lead Trade Mission to the Republic of Korea

Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs, Alexis Taylor, will lead an agribusiness trade mission to Seoul, South Korea, on March 25 - 28, 2024. USDA is inviting U.S. exporters wishing to participate in this trade mission to submit their applications. Taylor says, "We see tremendous potential for growth as the demand for health and fitness, ready-to-eat, and convenience products is growing, providing a great opportunity for U.S. exporters to expand their sales in the region." The trade mission will offer U.S. agribusinesses the potential to increase or expand their food and agricultural exports to the region. While in Seoul, participants will engage in two days of business-to-business meetings with potential importers, processors and distributors. Additionally, attendees will receive in-depth market briefings from USDA’s Foreign Agricultural Service and industry trade experts. U.S. exporters who wish to participate in this agribusiness trade mission must apply online by December 18, 2023.

Report: 2 million Participants Could be Turned Away From WIC

More than two months into fiscal year 2024, Congress has yet to provide additional funding for hunger programs. Additional funding is for the Supplemental Nutrition Program for Women, Infants, and Children program in 2024, according to the Center on Budget and Policy Priorities. WIC's funding needs have grown due to higher-than-expected participation and food costs. Congress has fully funded WIC for more than 25 years. If Congress fails to do so and continues WIC's current funding level for the rest of the fiscal year, WIC will face a roughly $1 billion shortfall. The Center estimates that as a result, states would need to reduce WIC participation by about two million participants nationwide by September. If Congress extends the current funding level rather than fully funding WIC, USDA could take measures to protect the program. But the authority is limited and could only close roughly half of a $1 billion shortfall. The Center adds, "Congress must fully fund WIC to avoid jeopardizing the health of about two million very young children and pregnant or postpartum adults."

Food Insecurity in U.S. Households with Older Adults Increased in 2022

In 2022, 9.1 percent of U.S. households with adults aged 65 and older were food insecure at some time during the year. The prevalence of food insecurity in households with adults aged 65 and older in 2022 was statistically significantly higher than the 7.1 percent in 2021 and the 6.9 percent in 2020. USDA’s Economic Research Service monitors the food security status of households in the United States through an annual nationwide survey. In 2022, 11.4 percent of households with an adult aged 65 and older living alone were food insecure, statistically significantly higher than the prevalence in 2021 of 9.5 percent and in 2020 of 8.3 percent. Very low food security is a more severe form of food insecurity in which the food intake of some household members was reduced. The 2022 prevalence of very low food security in households with adults aged 65 and older was 3.4 percent, compared to 2.8 percent in 2021. The data was released this month in USDA’s Household Food Security in the United States in 2022.

USDA Signs Agreement with AFA to Prepare Young People for Careers in Agriculture

Agriculture Secretary Tom Vilsack has signed a Memorandum of Understanding with Agriculture Future of America. The MOU formalizes a partnership to promote the common goals of strengthening the future competitiveness and sustainability of the U.S. agriculture industry by preparing more young people for careers in agriculture. Vilsack says, “This partnership will enhance USDA’s involvement with AFA and its leadership development and education mission.” USDA and AFA will continue to collaborate on leadership development efforts, and link young leaders with career opportunities in food, agricultural science, natural resources, and related fields. Under the MOU, USDA commits to advancing opportunities for AFA delegates to participate in USDA programs, including internships. AFA will provide occasions for USDA to meet with AFA delegates to share information about these opportunities. AFA President and CEO Mark Stewart adds, “This agreement reinforces our belief that connecting young leaders with USDA initiatives will enrich their careers and contribute to a more resilient and competitive agriculture industry.”

Wednesday Market Watch

Markets

The U.S. Labor Department's producer price index will be out at 7:30 a.m. CST Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. The Federal Reserve will make its announcement on interest rates at 1 p.m. with economic projections also expected. Attention on South American weather remains a given, this time of year.

Weather

A cutoff low-pressure system is building waves of showers into the southwestern Plains on Wednesday morning, which will spread through Colorado to West Texas. It will be just cold enough in some areas to produce snow, especially late this afternoon through midday Thursday. The system will be a slow-mover, creating some heavy precipitation in the region that should help out with the remaining drought.

USDA Projects Create Economic Opportunity in Underserved Rural and Native Communities

The Department of Agriculture Monday announced more than 200 projects to improve infrastructure, housing and economic conditions for underserved rural and Native American communities. These projects are funded by a Department of Agriculture's $81 million investment. USDA is investing in several programs designed to bring federal funding and resources to people and communities in underserved rural areas. The projects will benefit hundreds of thousands of people in 42 states, Puerto Rico and the Marshall Islands. USDA Rural Development also unveiled two new web resources that underscore the agency’s mission to ensure all people have equitable access to federal programs. A new history webpage traces USDA Rural Development’s evolution from the Great Depression and New Deal to the present. Meanwhile, the Rural Partners Network has brought together a coalition of 24 federal agencies that offer programs and funding designed specifically for rural communities. A new feature on Rural.gov makes it easier to find these federal resources in one place.

Despite Rising Wage Rate, Farmers Must Rely on H-2A Program

New data from the American Farm Bureau Federation shows H-2A usage reached new highs in fiscal year 2023. The Market Intel report says that comes despite an increase in the Adverse Effect Wage Rate, which outpaced the hourly wage growth rate of all private employees. This increase in both demand for workers and wage rate continues to put stress on the bottom lines of farmers and ranchers. The data shows the total number of certified H-2A positions at 378,513, an increase of two percent over fiscal year 2022. While this is a slower rate of increase than in years past, the number of positions certified is still up by more than 100,000 workers compared to fiscal year 2020. This is coupled with a nearly 19 percent increase in the required wage rate since fiscal year 2020, causing labor to be one of the costliest aspects of doing business for farmers and ranchers. AFBF President Zippy Duvall says, “This data shows how important and urgent it is that we get a workable fix for the H-2A program and the AEWR.”

Population and Income Drive World Food Production Projections

The global agriculture system will be expected to provide more food as the world's population increases. To better understand how the world agriculture system may grow in response by 2050, researchers at USDA’s Economic Research Service created a range of scenarios based on population growth. Under medium population growth, production worldwide would have to increase to 14,060 trillion crop calories to feed 9.75 billion people in 2050. This is a 47-percent increase in crop calories from a 2011 baseline. Crop calories, the total calories available from crops, are a measure of the size of global agriculture since crops can be either consumed directly as food or fed to animals to be consumed as meat, dairy products, and eggs. In a high population growth scenario, 15,410 trillion crop calories would be needed to feed 10.8 billion people, a 61-percent increase in calories from the 2011 baseline. With both the medium and high population growth scenarios, researchers assumed that as per capita incomes rise, people would increase their overall consumption of calories.

Changing Climate Means More Pests for Almonds, Peaches, Walnuts

Department of Agriculture research shows climate change may increase the insect population that poses a threat to the specialty crops industry. Led by the National Institute of Food and Agriculture and the University of California, the research shows populations of three major insect pests – codling moth, peach twig borer and oriental fruit moth — are projected to increase mainly due to rising temperatures. The three pests are "notorious for infesting most of the walnut, almond and peach orchards of California, causing extensive damages by reducing quality of fruits and nuts,” researchers say. Climate change can lead to shifts in the timing of seasons, including warmer winters, earlier springs and hotter summers, and these conditions can disrupt the natural life cycles of pests. The study revealed that due to temperature increases, these insects are expected to appear up to 28 days earlier in the spring, and the time between generations is expected to shorten by up to 19 days. The changes may be gradual, with major changes noticed within 20 years.

New Board Members Announced for National FFA Foundation Sponsors’ Board

The National FFA Foundation announced its new chair for the Sponsors’ Board during the 96th National FFA Convention & Expo in Indianapolis this fall. Mary Snapp, vice president of strategic initiatives for Microsoft, was named chair for the upcoming year. Snapp grew up in rural Kansas and joined Microsoft in 1988 as the company’s first female attorney.  The National FFA Sponsors’ Board is made up of top corporate executives who wish to support agricultural education and the National FFA Organization. Six other new board members were announced. Those include Jackie Bailey, senior vice president of transportation for CHS Inc.; John Barton, chief financial officer for Ardent Mills; Mel Halkyard, vice president, of global digital transformation for Elanco Animal Health; Jim Krombach, director of quality assurance for Culvers Franchising System, LLC; Clint Mefford, head of U.S. livestock communications and marketing operations for Zoetis; and Joe Michaels, senior director of product portfolio planning for Kubota North America. These members will serve on the board for three years.

Fuel Prices Post 12 Weeks of Decline

For the 12th consecutive week, the nation's average price of gasoline declined, falling 9.6 cents from a week ago to $3.12 per gallon. The national average is down 23.7 cents from a month ago and 10.1 cents per gallon lower than a year ago. The national average diesel price fell 8.4 cents in the last week and stands at $4.10 per gallon— 86 cents lower than one year ago. GasBuddy's Patrick De Haan says, "With nearly 80,000 gas stations in the U.S. now priced below $3 per gallon, and 23 states also seeing average prices of $2.99 or less, motorists are getting substantial relief at the pump in time for the holidays." The trend is likely to continue in most states this week, while the national average could soon fall below $3.05 per gallon, the lowest since 2021. Oil prices continue to struggle under the weight of a global economic slowdown, seeing consumption decrease, while oil production has risen in the United States, Canada, and other non-OPEC producers.

Tuesday Market Watch

Markets

The U.S. Labor Department issues the consumer price index for November at 7:30 a.m. CST Tuesday. The Federal Reserve starts its two-day meeting with many expecting the federal funds rate to stay unchanged at Wednesday's conclusion. Traders continue to keep close watch on South American weather with an interest in soybean crop estimates for Brazil.

Weather

Much of the country is quiet early on Tuesday, though there is a disturbance building across the Southwest. That system will move into the Southern Plains Tuesday night and start to spread showers through Texas. The main punch of the storm will be from Wednesday through Friday, which could culminate in heavy precipitation for areas still wrestling with drought.

December WASDE Lowers Corn Stocks, Increases Exports

The World Ag Supply and Demand Estimates from USDA show the 2023-2024 U.S. corn outlook calling for higher exports and lower ending stocks. Exports rose 25 million bushels to 2.1 billion, reflecting the pace of sales and shipments to date. Corn ending stocks dropped 25 million bushels to 2.1 billion. The season-average corn price is unchanged at $4.85 a bushel. Soybean supply and use projections are unchanged from November, and the season-average soybean price forecast remains $12.90 a bushel. USDA reduced Brazil’s soybean production by two million tons to 161 million because of dry weather. The U.S. wheat outlook is for unchanged supplies and domestic use, higher exports, and reduced ending stocks. Exports rose 25 million bushels to 725 million. All-wheat ending stocks dropped 25 million bushels to 659 million, 13 percent above 2022. The season-average farm price is up a dime per bushel at $7.30 on lower projected ending stocks.

Beef Exports Show Modest Rebound

U.S. pork exports posted another strong performance in October, led by record-breaking shipments to Mexico and broad-based growth elsewhere. October pork exports totaled 245,345 metric tons, up three percent year-over-year and the largest since June. The value reached $688.2 million, down two percent from 2022. Shipments to Mexico reached new highs in both volume and value. For the first 10 months of 2023, pork exports were up nine percent from last year at 2.38 million metric tons, with value up six percent to $6.66 billion. Beef exports totaled 104,446 metric tons in October, down 17 percent from last year but six percent above the low volume in September. Export value reached $636 million, down 11 percent from last year but five percent above September. January-October U.S. beef exports reached 1.08 million metric tons, down 13 percent from the record pace of 2022, while value dropped 17 percent to $8.32 billion.

Reforms in a New Farm Bill

Senator Chuck Grassley (R-IA) and Representative Chip Roy (R-TX) called on Senate and House leadership to address several important topics in writing a new farm bill. They’re asking leaders to address the impacts of inflation, waste in farm and nutrition programs, and foreign influence in U.S. agriculture. In a letter to leaders in both chambers, they say the administration and its reckless spending have led the U.S. to record inflation. “By making conservative reforms to key programs, we will be able to tame inflation while also keeping in place a responsible safety net for U.S. farm families,” they say. They also call for reforms to the SNAP program by citing its $1.2 trillion price tag and growing error rate. They’re also urging Congress to bring more accountability to the USDA’s Commodity Credit Corporation, which they say is a bureaucratic “slush fund,” and oversight would save $8 billion over 20 years.

Groups Applaud Renewable Fuels for Ocean Vessels Act

Groups like Clean Fuels Alliance and the American Soybean Association applauded representatives from California and Iowa for introducing the bipartisan Renewable Fuel for Ocean-Going Vessels Act. The act designates renewable fuel used in ocean-going vessels as an “additional renewable fuel” (similar to jet fuel) under the Renewable Fuel Standard. This enables companies to preserve Renewable Identification Number credits in the program. “International shipping companies and cruise lines are increasingly looking for low-carbon biodiesel to meet climate goals and consumer demand,” says Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “This will remove a regulatory roadblock and enable biodiesel and renewable diesel producers to meet the low-carbon fuel needs of shipping companies at a competitive price.” American Soybean Association President Daryl Cates applauds the effort to acknowledge marine vessels as a new and exciting market opportunity for agriculture. The RFS originally excluded fuels in ocean-going vessels from blending obligations

TFI Celebrates Good News on Hypoxia

The Fertilizer Institute celebrated the good news in the recently released Hypoxia Task Force’s report to Congress. It shows significant progress toward the goals of the Gulf Hypoxia Action Plan of 2008. TFI President and CEO Corey Rosenbusch says it is good news. While there is still work to do, he says the report shows significant progress. “TFI has long advocated for grower adoption of nutrient stewardship practices such as the 4Rs because they work,” Rosenbusch says. “These practices keep fertilizers on fields where they belong and out of the nation’s waterways where they do not.” He also says it proves that science-based conservation practices voluntarily adopted by farmers and ranchers are having a tremendous impact on the nation’s water quality. “They should be applauded for their continued efforts to grow more food with less environmental impact,” he adds. TFI will use the report for continued farmer and policymaker education.

Feed Industry Applauds FEED Act

The American Feed Industry Association appreciates the introduction of the innovative Feed Enhancement and Economic Development Act. Supporters say it will improve the regulatory environment for new animal feed ingredients. The FEED Act will amend the Federal Food, Drug, and Cosmetic Act to establish a regulatory pathway for a new category of animal food substances that act solely within animals’ gut microbiomes or in the feed they are digesting to provide a wide range of benefits. This will make sure the Food and Drug Administration has the power it needs to ensure regulations keep pace with scientific innovation in feed. “We are excited that the bill has been introduced in both chambers and already has the bipartisan and bicameral support we hoped for,” says Constance Cullman, president and CEO of the AFIA. “This will spark the drive to nutritional innovation that improves animal health and production while addressing public health challenges."

Top 5 Things to Watch - Yield Winners, Fertilizer Facts and Cattle Rumors

1. Yield winners announced: Both the National Corn Growers Association and the National Sorghum Producers are expected to announce their annual yield contest winners. Will we see familiar names, or will some new contestants pop in with top yields?

2. Global Fertilizer Outlook: DTN Staff Reporter Russ Quinn continues our deep dive into global fertilizer conditions on the supply and demand side along with what possible wild cards could affect price. 

3. Cattle market rumors: Late in the past week, rumors flew about reasons for the drop in cattle futures prices while herd size remains historically small. At this writing it appears to be the "X" (formerly known as Twitter) factor -- that is, a remark thrown out into social media that then fed on itself. Ah, social media, we get what we pay for. DTN editors and analysts will look under whatever rocks turn up at the bottom of that stream.

4. Weather cools down: The weekend band of snow near the U.S.-Canada border pushed a cold front south through the Plains and east through the Upper Midwest. Temperatures have dropped some 20 degrees Fahrenheit from the previous week, but still remain mild by December standards through this week, well-above normal across northern zones.

5. Economic reports to watch: On Monday, USDA's weekly grain export inspections report hits at 10 a.m. On Tuesday, the U.S. Labor Department issues its consumer price index for November at 7:30 a.m., and the Federal Reserve starts its two-day meeting. Wednesday the U.S. producer price index will be out at 7:30 a.m., followed by the Energy Department's weekly inventory report at 9:30 a.m. The Federal Reserve will make its announcement on interest rates at 1 p.m. Then, Thursday sees USDA's weekly export sales report at 7:30 a.m., the same time as weekly U.S. jobless claims, retail sales in November and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. USDA's Livestock, Dairy and Poultry outlook is set for 2 p.m. The week wraps up with Friday's release of the Fed's report on U.S industrial production at 8:15 a.m., while the National Oilseeds Processors Association releases its estimate of members' November soybean crush at 11 a.m.

Monday Watch List

Markets

Back from the weekend, traders will continue to keep watch over South American weather. USDA's weekly report of grain export inspections is set for 10 a.m. CST Monday. Traders will also be watching for this week's Fed announcement, due out Wednesday at 1 p.m. after a two-day meeting.

Weather

A storm system from the weekend continues to push off the East Coast Monday morning with significant precipitation in the Northeast. It's cooler and drier behind the system, but still warm for December across northern locations. Another little disturbance and front are moving into the Northern Plains and some light precipitation will move through Monday, mostly in the form of snow.

Farmers Meet Nitrogen Loss Goals Two Years Early

A new report from the EPA’s Hypoxia Task Force shows that the hard work of farmers and ranchers to reduce nutrient losses in the Mississippi River watershed is paying off. The report reveals the 12 participating states have met interim nitrogen reduction goals two years ahead of schedule and are also making considerable progress in bringing down phosphorous losses. The goals are part of a comprehensive strategy established by state and federal agencies across the Mississippi River watershed region. Farmers and ranchers were tasked with helping to reduce nutrient losses by 20 percent by 2025. “Farmers are problem-solvers by nature, and the work being done in the Mississippi River is proof of what happens when we come together,” says Farm Bureau President Zippy Duvall. “I commend the farmers in each of the states for their instrumental role in making these strides and encourage continued work to meet the 2035 goals.”

Ag Community Writes Trade Commission Regarding Tariffs

The National Corn Growers Association joined 57 organizations in urging the International Trade Commission to consider the impacts that tariffs on Moroccan fertilizer are having on farms. The concerns were expressed in a letter that comes after the ITC was ordered by the U.S. Court of International Trade to reconsider its determination of material injury in a decision issued earlier in September. “Rising prices for fertilizer inputs have strained America’s farmers and ranchers and have impacted availability for this critical component of nutrient and yield management,” the letter says. “Without predictable options to source this product, farmers struggle to plan for the future.” The groups noted that issues surrounding the international supply chain further complicate farmers’ ability to source phosphate. It also says the ITC originally made some inferences on the ability to re-ship products that are not grounded in reality. Efforts to reduce the duties will continue for months.

New York City Moving to Renewable Diesel

New York City has a plan in place to become the first city on the East Coast to transition all heavy-duty vehicles in the city’s fleet from fossil to renewable fuel. The fleet includes more than 12,600 on- and off-road trucks and specialized equipment that operates on diesel fuel. By the end of 2024, they’ll all operate on renewable diesel. Renewable diesel is proven to reduce carbon emissions and will replace up to 16 million gallons of fossil fuel used annually to power the city’s heavy-duty fleet, which includes garbage trucks and ambulances. After the full rollout of 16 million gallons of renewable diesel, the city will have cut 128 billion grams of carbon dioxide pollution each year. The transition already began in September with 2.5 million gallons of renewable diesel already used across heavy-duty vehicles. Renewable diesel fully replaces fossil diesel, protecting the environment and delivering the same quality fuel.

USB Elects New Leaders

Farmer-leaders of the United Soybean Board elected Steve Reinhard from Ohio as the 2024 chair and ten additional farmer-leaders to serve on the Executive Committee. “I’m honored and excited to take on the role of USB’s new board chair,” Reinhard says. “Together with the dedicated team and the support of our farmers, I look forward to continuing our commitment to sustainability and innovation in the soy industry.” He also says the organization will focus on “driving positive change, leveraging research and investments to meet consumer demands, and furthering the success of America’s soybean farmers.” The USB also announced that Lucas Lentsch will be the new CEO starting on January 1. Lentsch currently serves on the Dairy Management, Inc. leadership team, which manages the national dairy checkoff. “Lucas Lentsch is the right leader at the right time to continue the meaningful work of the soy checkoff,” says Meagan Kaiser, outgoing USB Chair.

New Land Transfer Program Helps with Farmland Access

Working in partnership with land protection leaders across the United States, American Farmland Trust announced a new “Land Transfer Navigators” program. It’s a partnership with the Natural Resource Conservation Service that will help existing farmers and landowners retire with confidence and help new, beginning, and underserved farmers gain secure, equitable land access. Nearly 300 million acres of American farmland are expected to change hands in the next 20 years. As aging farmers exit the field, the future is uncertain for about one-third of the country’s farm and ranch land. “Farmland is most at risk of conversion during generational transition,” says AFT President and CEO John Piotti (pee-OTT-tee). “With the wave of transfers coming, we risk losing far too much farmland to low-density housing, subdivisions, and strip malls.” Land Transfer Navigators will build bridges between incoming and outgoing farmers, leveraging land protection as a strategy to facilitate successful and affordable land transfer.

New VP of Science at the Sugarbeet Association

The American Sugarbeet Growers Association has hired Dr. Nicholas Storer as Vice President of Science and Innovation. He’ll begin those duties on January 1. Dr. Storer recently was the Stewardship and Regulatory Director for Corteva Agriscience. “There are tremendous challenges and opportunities for our industry in the years ahead,” says Nate Hultgren, President of the ASGA. “Dr. Storer’s deep knowledge and broad experience in both crop protection and seed genetics will provide the leadership and guidance needed for our industry to remain efficient and competitive for decades to come.” Dr. Storer says he’s excited to bring his science and regulatory policy experience to support the development and deployment of the most effective solutions that sugarbeet growers need. “I’m really looking forward to getting to know everyone involved in sugarbeet production and research,” Dr. Storer adds. Storer received a bachelor’s in Natural Sciences, a Master’s in Zoology, and a doctorate in entomology.

Friday Watch List

Markets

The U.S. Labor Department releases its unemployment report for November at 7:30 a.m. CST Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. At 11 a.m., USDA releases its WASDE and Crop Production reports for December.

Weather

A storm system moving along the Canadian border is bringing snow to the southeastern Canadian Prairies and North Dakota on Friday with some moderate accumulation and blustery winds. The system will develop some rain showers and thunderstorms for the South-Central U.S. and snow in the Colorado front-range by the afternoon as well. Temperatures ahead of the system are well 

USDA Announces Crop Insurance Improvements

The Department of Agriculture Wednesday announced updated to the Federal Crop Insurance Program. The updates affirm the use of USDA conservation practices as Good Farming Practices for crop insurance. Recently, USDA’s Risk Management Agency updated the Good Farming Practices Handbook, as part of the agency’s broader efforts to support conservation and climate-smart activities as well as to improve crop insurance for agricultural producers. RMA Administrator Marcia Bunger says, “This update affirms producers can have peace of mind that using conservation practices will not impact their crop insurance.” The updated handbook recognizes all conservation practices offered by USDA’s Natural Resources Conservation Service as Good Farming Practices for crop insurance. Essentially, appropriate use of NRCS conservation practices will have no impact on crop insurance coverage, which affirms how the rules have worked on the ground for years. The updated handbook builds on similar efforts, including RMA’s designation of planting cover crops as a Good Farming Practice in 2019.

USDA Now Accepting Applications for Farm Loans Online

The Department of Agriculture has launched an online application for Direct Loan customers. More than 26,000 customers who submit a Direct Loan application each year can now use an online, interactive, guided application that is paperless. The online application also provides helpful features, including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet and build a farm operating plan. This tool is part of a broader effort by USDA's Farm Service Agency to streamline its processes, improve customer service, and expand credit access. Deputy Secretary Xochitl Torres Small says, "With USDA Farm Service Agency's new online loan application feature, it is now easier for producers to get the financing they need to start, expand, or maintain their farming and ranching operations." Through a personalized dashboard, borrowers can track the progress of their loan application. It can be accessed on farmers.gov or by completing FSA's Loan Assistance Tool at farmers.gov/loan-assistance-tool.

Monthly Dairy Products Report: Mostly Higher Cheese Production

USDA’s Monthly Dairy Products Report released this week shows total cheese output, excluding cottage cheese, was 1.19 billion pounds, in October. That figure is 0.8 percent above October 2022 and 3.9 percent above September 2023. Italian-type cheese production totaled 506 million pounds, 1.4 percent above October 2022 and 5.6 percent above September 2023. American-type cheese production totaled 474 million pounds, 0.3 percent below October 2022's but 2.5 percent above September 2023's. Butter production was 161 million pounds, 0.9 percent below October 2022, but 12.5 percent above September 2023. Nonfat dry milk for human consumption came in at 127 million pounds, down 1.2 percent. Skim milk powder production was 42.5 million pounds, down 34.9 percent, from the same time last year. Dry whey total production was 75.6 million pounds, up 0.4 percent, compared to October, 2022. Finally, regular ice cream production was 57.9 million gallons, down 2.6 percent from the same time last year.

Foodservice Claims Largest Share of U.S. Food Dollars

In 2022, more than a third of U.S. dollars spent on domestically produced food went to foodservice establishments, which includes restaurants and other food-away-from-home outlets. At 34.1 cents per food dollar in 2022, the foodservice share increased 1.6 cents from 2021 to reach its highest value in the USDA, Economic Research Service's Food Dollar Series. Industry groups add value by transforming the inputs they purchase from other industry groups and selling their output at higher prices. For instance, foodservice establishments prepare meals using food bought from distributors, such as those in the wholesale trade industry group, and utilities, such as gas and electricity, bought from establishments in the energy industry group. Prices paid by customers include the value added by the restaurant and the cumulative value added by all establishments before the restaurant. Annual shifts in the food dollar shares among industry groups occur for various reasons, including changes in the balance of food at home and away from home.