The Francis Scott Key Bridge at Baltimore collapsed this week. Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition, says the Port of Baltimore exported over 142,000 metric tons of soybeans in 2020, the most recent data available. “There are no reported soybean exports via bulk vessel,” he says. “The port imported 172,228 metric tons of soybeans via container and 34,000 tons of soybeans in bulk vessels.” In contrast, the Mississippi Gulf Region, the top export region for soybeans, accounted for 35.4 million metric tons of soybeans by bulk. The top five ag products handled at the Port of Baltimore include sugar, soybeans, grain products, coffee, and grocery items. “While it’s not a significant port region for soybeans and grain, it’s a significant resource for the broader economy,” Steenhoek adds. “It underscores the reality that the ports serving as the origins and destinations for global commerce can be vulnerable.”
Welcome
Thursday, March 28, 2024
Letter Asks for E15 Emergency Waiver
Groups like the Renewable Fuels Association, Growth Energy, the National Corn Growers Association, and others sent a letter on E15 to the Environmental Protection Agency. The groups are asking Administrator Michael Regan to swiftly issue an emergency waiver for E15 sales. “New and ongoing world conflicts continue to pose risks for the U.S. energy supply,” the letter says. “In addition to the Ukraine conflict, the recent conflict in the Middle East presents additional challenges to America’s energy security.” To remedy the disruptions in the global energy markets, stabilize gasoline prices for American consumers, and support domestic energy security, the groups urged the EPA to quickly authorize the summer sale of gasoline blended with up to 15 percent ethanol. ‘The consumer cost savings that result from allowing the year-round sale of E15, even temporarily, are well-established,” the groups add. “Consumers have saved 10 to 30 cents a gallon during recent waivers.”
AccuWeather Predicts a Risky Hurricane Season
The meteorologists at AccuWeather are warning people and businesses to start preparing now for what could be a busy tropical storm season that may have major impacts on the United States. The 2024 Atlantic Hurricane Season Forecast is calling for 20 to 25 named storms. Eight to 12 of those storms are forecast to strengthen into hurricanes. Four to six storms could directly impact the U.S. “The 2024 Atlantic hurricane season is forecast to feature well above the historical average number of tropical storms, hurricanes, major hurricanes, and direct U.S. impacts,” says AccuWeather Lead Hurricane Forecaster Alex DaSilva. “All indications are pointing toward a very active and potentially explosive Atlantic hurricane season this year.” Warmer ocean temperatures are one of the factors that can provide fuel for tropical systems to rapidly intensify into powerful hurricanes. “Sea-surface temps are well above historical averages across much of the Atlantic basin,” DaSilva explained.
USDA Seeks More Grazing Land Conservation
The USDA is investing up to $22 million in partnerships that expand access to conservation technical assistance for livestock producers and increase the use of conservation practices on grazing land. The Natural Resources Conservation Service is accepting proposals through its Grazing Lands Conservation Initiative until May 26, 2024. “Privately owned grazing lands cover nearly 30 percent of the national landscape, which means we have a tremendous opportunity to conserve natural resources through voluntary, private lands conservation,” says NRCS Chief Terry Cosby. “NRCS enlists a wide variety of conservation practices to help livestock producers.” He also says the partnerships will help expand the footprint of conservation on grazing lands. Project proposals for GLCI Cooperative Agreements will identify and address barriers to accessing grazing assistance for producers. Projects must address one or more of several priorities, including local natural resource concerns, climate-smart ag and forestry practices, and others. For information, go to grants.gov.
Feed Industry Supports EMIT LESS Act
The American Feed Industry Association applauded several senators for introducing the “Enteric Methane Innovation Tools for Lower Emissions and Sustainable Stock (EMIT LESS) Act.” By expanding USDA’s research and incentivizing the adoption of emissions-reducing practices on farms, the bill aims to mitigate the significant environmental impact of enteric methane emissions from American dairy and beef cattle operations. “We thank the senators for introducing a bill that strengthens our country’s research and conservation programs while recognizing the unique role that animal nutrition and feed ingredients play in reducing on-farm enteric methane emissions,” says Constance Cullman, president and CEO of the American Feed Industry Association. “The EMIT LESS Act shows that right alongside animal food innovators, our country is willing to invest in a more sustainable future.” AFIA also says the bill’s key provisions include integrating emissions-reduction practices into USDA’s conservation programs and providing financial incentives to farmers that voluntarily adopt them.
American Agri-Women Expanding its D.C. Fly-In
American Agri-Women is excited to announce the expansion of its annual Washington D.C. fly-in event. The group is opening up the event to all women involved in the agricultural and natural resource industries. The 2024 Fly-In will be a historical gathering, uniting women from across the country to make their voices heard on behalf of the agriculture industry in the nation’s capital. The fly-in is scheduled from June 2-4, 2024, in Washington D.C. The event promises a unique opportunity for women across the agricultural and natural resources sectors to come together, share insights, and advocate for critical issues affecting their industries. Among the many key highlights of the event, several presentations will show attendees how to make an impact at the local, state, and federal levels of government, as well as discussions on regulations and how they impact producers. It’s a chance to network with elected officials and other stakeholders.
Thursday Watch List
Markets
USDA's weekly export sales will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, an update of first-quarter U.S. GDP and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report is at 9:30 a.m. USDA's Prospective Plantings survey and report of March 1 Grain Stocks will be out at 11 a.m., followed by USDA's quarterly Hogs and Pigs report at 2 p.m.
Weather
A system that is moving through the Pacific Northwest will be moving into the Northern Plains and Canadian Prairies on Thursday, producing areas of scattered showers, mostly as snow. Quieter conditions are expected elsewhere as temperatures start to rise ahead of the inbound system. Snow cover will limit some of the warming in the Upper Midwest and surrounding areas.
Wednesday, March 27, 2024
Properly Prepared Beef is Safe to Eat
After HPAI was found in dairy cattle, the Meat Institute says that properly prepared beef is safe to eat and not a safety risk to humans. “The Centers for Disease Control and Prevention and USDA food safety experts say properly prepared beef is safe to eat,” says Meat Institute President and CEO Julie Anna Potts. “HPAI cannot be transmitted to humans by eating meat or poultry products.” She also says the Meat Institute and its member companies will continue to be vigilant to aid in the efforts to stop the spread of the disease among animals in food production. “We will support the nation’s producers working to protect their herds,” Potts adds. The meat and poultry industries are among the most intensely regulated in the nation. Inspectors from the Food Safety and Inspection Service are present every day in meat packing plants and are trained to detect disease before and after slaughter.
EPA Accepts Atrazine Recommendations
The Environmental Protection Agency agreed with recommendations from its Scientific Advisory Panel on atrazine. The recommendations remove several poor-quality studies that played a role in the agency’s recommendation for an ultra-low aquatic level of concern for atrazine. The SAP was held in 2023 at the request of agriculture groups active in the Triazine Network. The panel considered EPA’s white paper and stakeholder comments to exclude or rescore several questionable studies used to set the aquatic concentration equivalent level of concern. The panel’s scientists appreciated the farmers and agriculture representatives who testified on the real-world benefits and necessities of atrazine as well as the real-world consequences of EPA’s proposed decisions. One of the Triazine Networks’ co-chairs says hearing directly from the people using the product was a key component of the SAP. The Triazine Network is a coalition of agriculture organizations and producers advocating for science-based decisions on Triazine herbicides like atrazine.
USDA Authorizes Emergency CRP Grazing
The USDA has authorized the release of emergency haying and grazing of Conservation Reserve Program acres nationwide to livestock producers affected by the wildfires in Nebraska, Oklahoma, and Texas. “Many ranchers in those states impacted by the recent wildfires are in need of grazing acres and hay resources to sustain their herds while they work during the months ahead to restore their operations,” says Kelly Adkins, Texas Farm Service Agency Director. “If you have CRP acres and want to help wildfire-impacted ranchers, please contact your local FSA office. They’ll determine available emergency and non-emergency use options.” Although the Primary Nesting Season has already started in Texas, CRP participants can continue to donate emergency grazing authority to livestock producers in need during this period in counties eligible for the Livestock Forage Program due to drought. FSA also offers non-emergency use provisions for CRP acres as an option during the PNS in Texas.
BASF Launches a New SCN Awareness Website
Soybean Cyst Nematode is present in most areas where soybeans are grown. Because nematodes feed on the roots of each plant, the damage is often difficult to detect with no above-ground symptoms. To help farmers do their jobs more efficiently, BASF launched SCNFields.com, a website that will provide farmers with SCN sampling results from more than 4,000 collected samples across the U.S. “SCN is the leading cause of soybean yield loss in the U.S., costing growers over 100 million bushels of yield and an estimated $1.5 billion annually,” says Troy Bauer, BASF Senior Technical Field Representative. “Farmers need to test their fields to ensure SCN isn’t becoming a problem without them realizing it.” With SCNFields.com, a farmer can see samples with high counts locally and know they need to take steps now to manage the threat of SCN. Additionally, SCN populations can change in season. For more information, go to SCNFields.com.
Iowa Farm Goes for Almost $4 Million
A 230-acre farm in Grundy County, Iowa, owned continually by the same family since plows first turned ground in the prairies in the 1870s, sold at a recent auction for almost four million dollars. Successful Farming says the Iowa century farm is historically significant in the state and has some of Iowa’s highest quality cropland. More than 91 acres, or 40 percent of the land, have a perfect 100 Corn Suitability Rating (CSR2). The overall weighted average for the land is a still-high 95.2. According to Iowa State University, the average rating for the state is 68.4. Grundy County has the second-highest average of Iowa’s 99 counties at 86.9. Before the auction, tenant Paul Koch spoke to the crowd. The third-generation farmer said the family moved onto the farm in 1929 and has farmed the land for about 94 years. “This is some of the state’s best ground,” he said.
Wednesday Watch List
Markets
The Energy Department's weekly inventory report is due out at 9:30 a.m. CDT Wednesday, the only significant report of the day. Traders will keep watch over South American weather forecasts and trading may be quiet Wednesday, ahead of three USDA reports on Thursday.
Weather
A big storm system is leaving the U.S. as it heads toward Hudson Bay. The cold front to the storm will bring showers to the East Coast, however. A few showers will go through the Southern Plains Wednesday as well. Cold air has built into the Plains which may be harming wheat in the southwest. The next system is moving into the Pacific Northwest as the pattern remains active.
Tuesday, March 26, 2024
Farmers Planting Less Corn, More Soybeans in 2024
American farmers might plant less corn than last year, but it will still likely be larger than what USDA previously anticipated. That’s according to data from the March 2024 Farm Futures grower survey. Total corn and soybean acreage will likely vary minimally from last year. Growers expect to plant 92.4 million acres of corn this year, down 2.3 million acres or 2.4 percent from last year. Soybean acreage is forecast to be 2.4 million acres or 2.9 percent higher than last year’s 86 million acres. This is almost a one-for-one tradeoff between corn and soybean acres from last year. If realized, that would bring the total corn and soybean acreage planted this year to 178.6 million acres or the third-largest combined corn-soybean acreage on record. Last year, farmers planted 178.2 million acres of corn and soybeans. Growers still anticipate USDA finding more winter wheat acres compared to last year.
California Pork Prices Higher After Prop 12 Implementation
Prop 12 is already raising the price of pork in California. In effect for just over six months, pork sales have dropped across the state. That’s from data compiled by the USDA’s Office of the Chief Economist. The OCE found prices for pork products affected by Prop 12, including loins, ribs, and bellies, have averaged 20 percent higher in California since before July 1, 2023, when the initiative was partially implemented. Loin prices average 41 percent higher than before Prop 12 implementation. Pork not covered by the initiative hasn’t significantly increased. The data also shows that California’s share of fresh pork consumption has “significantly declined.” The economists found the price premium end-users paid for Prop 12-compliant pork compared with non-compliant products at the wholesale level was 22 percent higher on average, with compliant loins and bellies 30 percent higher. Prop 12-compliant pork must meet specific space standards to be legal.
Legislation Sets Fairer Prices for Livestock Assistance
Senators Mike Rounds (R-SD) and Amy Klobuchar (D-MN) introduced legislation to offer producers fairer market prices for livestock disaster assistance programs. The Livestock Indemnity Program Improvement Act would require the Farm Service Agency to make quarterly updates to the Livestock Indemnity Program payment rates that reflect livestock market prices. The LIP provides payments to eligible livestock owners and contract growers for abnormal livestock deaths caused by an eligible loss of condition, such as severe weather, disease, or animal attack. The FSA is currently required to update the payment rates annually. The bipartisan bill would make these updates more frequent to reflect a quickly-changing market. “Ranchers often make large financial investments in their livestock and sometimes face heavy losses due to natural disasters and other circumstances out of their control,” Klobuchar says. “This will help ensure ranchers have a safety net that more accurately reflects the market value of any lost livestock.”
New Grant Program for Beef Producers
The Southwestern Cattle Raisers Association’s Leadership Development Foundation announced a new Working Grant Program. The announcement came during the recently completed Cattle Raisers Convention and Expo. The new TSCRA Leadership Development Foundation’s grant program will help support those starting or growing a business in ranching, beef production, or a related area supporting the beef value chain. The program will provide financial assistance and access to mentorship, educational resources, or related areas supporting the beef value chain. “Whether it’s helping a young producer purchase their first parcel of land, enabling a veterinarian to open a large animal clinic in a rural community, or giving a generational producer the opportunity to grow their operation, these grants have the power to transform lives and revitalize our rural economies,” says TSCRA President Carl Ray Polk, Jr. The application period for individuals in Texas and Oklahoma will open on May 1. For information, go to tscra.org.
U.S. Cattle on Feed Up One Percent
The USDA says the total number of cattle and calves on feed for the slaughter market in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.8 million head on March 1. The inventory was one percent above March 1, 2023. Placements in feedlots during February totaled 1.89 million head, ten percent above 2023. Placements were the highest for February since the series began in 1996. Net placements were 1.83 million head. During February, placements of cattle and calves weighing less than 600 pounds totaled 360,000 head, and between 600-699 pounds, placements reached 330,000 head, 700-799 pounds were 515,000 head, 800-899 pounds were 485,000 head, 900-999 pounds totaled 150,000 head, and 1,000 pounds or greater totaled 50,000 head. February fed cattle marketings reached 1.79 million head, which was three percent above February 2023. Other disappearances totaled 56,000 head during February, down three percent from February 2023.
FAA Clears “Drone Swarms” for Agriculture
The Federal Aviation Administration issued an exemption for “drone-swarm” agriculture, a method of seeding and spraying crops at a fraction of the traditional cost. Hylio (HEE-lee-oh), a Texas-based drone manufacturer, successfully applied for an FFA exemption to allow fleets of drones weighing 55 pounds or more to fly together. It’s the first exception of its kind for machines that carry what the company calls a “meaningful payload” and makes the process competitive with traditional tractors and seeding rigs. “On average, you’re spending a quarter upfront on the capital cost to buy the machinery, and the operating cost is about a quarter or maybe a third of what you’d spend for the more traditional stuff,” says Arthur Erickson, Hylio CEO. Under previous rules, a single drone required a pilot and another person acting as a spotter. Because of weight limits in flight, it took a long time to cover large fields.
Tuesday Watch List
Markets
Durable Goods Orders will be released at 7:30 a.m. CDT, at 8 a.m. we'll see the Case-Shiller Home Price Index and at 9 a.m. the latest Consumer Confidence numbers are out. The USDA report preview is also available. Traders continue to keep an eye on South American weather and recent events in Ukraine.
Weather
A strong storm system in the Midwest will send the main low-pressure center northeast into Ontario on Tuesday while the cold front slowly pushes eastward into the Appalachians. Widespread showers continue from the Midwest to the Gulf Coast and some stronger thunderstorms will still be possible in the eastern Midwest this afternoon. At the same time, snow continues to be heavy on the backside of the storm across Minnesota. Cold air has built in behind the storm across the Plains
Monday, March 25, 2024
Farm Bank Lending Increased in 2023
Agricultural loan demand increased in 2023, and agricultural lending by U.S. farm banks grew 6.7 percent to $110 billion. The American Bankers Association’s annual Farm Bank Performance Report credits elevated production costs, commodity price volatility, and a return to pre-COVID levels of direct government payments. The ABA says farm banks continued to enjoy solid performance in 2023, with robust loan growth and historically low delinquency rates. “Moving forward, the agricultural sector will continue to face challenges due to monetary policy actions targeting persistent inflation in the U.S. and reduced federal support,” the ABA says in a news release. Despite the challenges, farm banks maintained strong asset quality and consistent growth in high-quality capital and remain well-positioned to continue serving the needs of their customers and communities. The report also showed that farm banks are a major source of credit for small farmers. Last year, 98.1 percent of farm banks were profitable.
Senate Votes to Block Paraguayan Beef Imports
The National Cattlemen’s Beef Association thanked the Senate for passing a resolution to block beef imports from Paraguay. The resolution comes after the USDA lifted the longstanding ban on Paraguayan beef imports despite the country’s concerning animal health track record. “Our animal health standards are second to none, and we must be vigilant in protecting the U.S. cattle herd from harmful foreign animal diseases that could have a devastating impact on U.S. agriculture,” says Mark Eisele, a Wyoming rancher and NCBA President. “Paraguay’s history of foot-and-mouth disease is a great concern, and anyone who wants to trade with the U.S. must meet our high safety standards.” NCBA specifically called out the outdated animal health data used to make USDA’s decision. “The U.S. government relied on nine-year-old data and site visits from 2008 to 2014 to justify access for Paraguayan beef imports,” says Kent Bacus, NCBA Executive Director of Government Affairs.
Bill Would Ease Farmland Ownership Transitions
Senators Tammy Baldwin (D-WI) and Mike Braun (R-IN) introduced new legislation designed to break down barriers to farming and agricultural land ownership. The goal would be to help more Americans pursue farming careers. The bipartisan Farm Transition Act of 2024 would, for the first time, create a Commission on Farm Transitions to study the issues impacting the transition of agricultural operations to the next generation of farmers and ranchers and make recommendations to address those barriers. “Farmland is one of our most valuable assets, contributing to local economies, safeguarding our national food security, and putting us on the map with world-class products,” Baldwin says. “Many people interested in a career in agriculture are getting locked out and having to compete with Wall Street investment firms buying up farmland.” As of 2021, American Farmland Trust says seniors 65 and older owned more than 40 percent of the agricultural land in the U.S.
Risking Soybean Processing Industry’s “Overbuild”
Demand for soybean oil as a feedstock in the production of renewable diesel is rising as the U.S. aims to increase the adoption of cleaner-burning fuels. Renewable diesel is the preferred replacement for traditional diesel, and U.S. production is predicted to increase sharply in the years ahead. To meet the growing demand for soybean oil, U.S. processors are ramping up their production capacity, expected to increase by 23 percent over the next three years. While processors have benefited from record-high profit margins in recent years, margins will likely moderate. A new report from CoBank says multiple years of record margins have left processors prepared to weather the inevitable margin downturn. However, overbuilding U.S. crush capacity, combined with sustained levels of low processing margins, could threaten the viability of new, high-cost plants. The CoBank report says new crush plants built at higher costs and interest rates will have much higher breakeven costs.
Washington State Farmers Concerned About Grizzlies
The National Park Service and U.S. Fish and Wildlife Service released an environmental impact statement on options to restore grizzlies in the North Cascades area of Washington state. The two agencies say the last grizzly bear sighting in the North Cascade Mountains was in 1996. The bear idea has Washington farmers very concerned. At a House Ag Subcommittee hearing, Rep Dan Newhouse of Washington asked Ag Secretary Tom Vilsack if USDA had been consulted on the proposal. Vilsack thought USDA had but preferred to leave the final decision to the Interior Department. Newhouse says farmers are worried that bears will move out of the zone they’re released in. “The Interior Department that oversees the two agencies is shutting out the voices of my constituents who had expressed serious concerns about the proposals,” Newhouse said. The NCBA and Public Lands Council say they “condemn” the plan to release the bears.
The Newest Use for U.S. Soy Involves Chainsaws
The newest use for American soy is a biobased oil for chainsaws. Through the Soy Checkoff Research and Development Investment, U.S. soybean farmers are partnering with DEWALT and Dynamic Green Products to announce a groundbreaking sustainable solution. DEWALT’s soy-based Bar & Chain Biodegradable Oil is now available at Home Depot Stores nationwide and on various online platforms. “It’s exciting to see the checkoff investment in this bar and chain oil pay dividends as It becomes widely available to more farmers and the professionals who care for parks, forests, and more,” says Steve Reinhard, USB Chair and Ohio soybean farmer. “This oil is yet another example of U.S. Soy delivering performance and sustainability benefits.” Fifth-generation farmer Bret Davis of Ohio was eager to be an early adopter of the product. “It’s pretty simple: if you grow it, then you should use it,” Davis says. “It works great in my battery-powered chainsaw.”
Top 5 Things to Watch March - Grain Stocks and a Good Friday Break
1. March USDA reports: The March USDA Grain Stocks and Prospective Planting reports will be released at 11 a.m. on March 28. We'll post those numbers shortly after 11, with updates and analysis throughout the morning.
2. Spring storm cometh: Cold air from Canada bumping into warmer air to the south is leading to a major storm system this weekend that should last well into next week. Much of the country could see high snowfall totals, blizzard conditions in some areas, some freezing rain, and strong winds.
3. EU responds to Russian grain dumps: European media have been reporting on European Union efforts to slow grain exports from Russia and Belarus in response to the Russia-Ukraine war. EU leaders are attempting to balance excess exports onto world markets from Putin's grain dump while still allowing food supplies into African nations that need it. EU countries are also trying to respond to their own farmers crying foul as Ukraine exports -- needed by that country to shore up its war effort -- have depressed produce and other food prices in bordering countries.
4. Good Friday break: The DTN newsroom will be closed for the Good Friday market holiday, but we'll have breaking news updates throughout the day and weekend.
5. Economic reports to come: Monday at 8 a.m. the Food Price Outlook is released followed by New Home Sales at 9 a.m. and Grain Inspections at 10 a.m. At 2 p.m. we'll watch for the Oil Crop Yearbook and Poultry Slaughter numbers. Tuesday starts with 7:30 a.m. release of Durable Goods Orders, at 8 a.m. we'll see the Case-Shiller Home Price Index and at 9 a.m. the latest Consumer Confidence numbers are out. Wednesday the latest EIA numbers, including ethanol production and inventory, are out at 10 a.m., followed by 2 p.m. Broiler Hatchery report. Thursday we'll watch for the 7:30 a.m. release of Initial Jobless Claims, GDP Revised Q1 reports and Grain Export Sales. At 9 a.m., Pending Home Sales and Consumer Sentiment is out. Then at 11 a.m. is the USDA Grain Stocks and Prospective Planting reports, followed by a 2 pm. release of the Hogs and Pigs report. Friday grain markets are closed for Good Friday; however, some USDA reports are still released that day. At 7:30 a.m. the U.S. Trade Balance, Retail and Wholesale Inventories, Personal Income and the PCE Index reports are released.
Monday Watch List
Markets
A report on U.S. new home sales for February will be out at 9 a.m. CDT Monday, followed by USDA's weekly export inspections at 10 a.m. USDA's monthly cold storage report is set for 2 p.m. Thursday will be the busy day this week with Grain Stocks, Prospective Plantings and Hogs and Pigs reports set for release before the Good Friday holiday.
Weather
A storm system that moved into the Plains and Upper Midwest on Sunday continues in these same areas for Monday, though some areas that were rain switched to snow and some areas that saw snow have switched to rain. Strong winds are leading to blizzard conditions in portions of the Plains. The main cold front will move into the Mississippi Valley Monday with scattered showers and thunderstorms, some of which are likely to become severe across the Delta. Cold air funneling into the Plains could be damaging for wheat.
Friday, March 22, 2024
Friday Watch List
Markets
USDA's monthly cattle on feed report for March 1 is due out at 2 p.m. CDT Friday. Dow Jones' survey is expecting USDA will find 11.75 million head on feed, almost 1% more than a year ago at this time. Traders continue to keep an eye on South American weather.
Weather
A pair of systems, one north and one south, will move through the eastern portions of the country Friday and Saturday with scattered showers, including some moderate snow across the north. Western states will see showers along the coast as a major system is set to move into the region this weekend.
Colombia Restores Market Access for U.S. Poultry
After months of hard work by the Office of the U.S. Trade Representative and the USDA, Columbia reopened its market to U.S. poultry and egg producers. “Ensuring our producers can compete on a level playing field across the globe is a top priority for the U.S. Trade Representative’s Office,” says USTR Chief Agricultural Negotiator Doug McKalip. “We are pleased that American poultry and egg producers have renewed access to higher income for them, their families, and our rural communities because of efforts to remove this market access barrier.” The Colombian government had stopped issuing import permits for U.S. poultry on August 7, 2023. The government cited concerns over the spread of Highly Pathogenic Avian Influenza. The restored market access is another major win for American agriculture. “We’re pleased that Colombia is living up to the U.S.-Colombia Trade Promotion Agreement,” says Alexis Taylor, USDA Undersecretary for Trade and Foreign Agricultural Affairs.
Ag Leaders Want Certainty on Sustainable Aviation Fuel
A multi-state coalition of biofuel and farm advocates asked the Treasury Department to swiftly resolve any questions standing in the way of scaling up U.S. production of Sustainable Aviation Fuel. More specifically, they urged the administration to quickly adopt the U.S. Department of Energy’s GREET model for calculating SAF tax credits under the Inflation Reduction Act. That would complete a process that was supposed to conclude by March 1. “We are disappointed the administration didn’t fulfill its commitment to release a modified GREET model by March 1, but we appreciate the importance of getting the modeling right,” wrote 26 organizations. “At the same time, we caution against contradictory changes to GREET that would stack unwarranted penalties on agricultural feedstocks, cut rural America out of a promising green energy market, and undermine any path to achieving SAF goals.” Groups in the coalition include Clean Fuels Alliance America, Growth Energy, and many others.
Ethanol Production and Inventories Rise
The Energy Information Administration says ethanol output in the U.S. rose week to week, and inventories increased during the seven days ending on March 15. EIS data shows that production rose to an average of 1.04 million barrels a day, up from 1.024 million a week earlier. In the Midwest, which produces the most ethanol in the U.S., total output rose to 995,000 barrels from 973,000 during the previous week. That was the entirety of the weekly gains as the EIS said the remaining regions were unchanged. Gulf Coast production was steady at 21,000 barrels a day, and West Coast output stayed at 8,000 barrels daily. Rocky Mountain and East Coast production were both unchanged at 11,000 barrels a day. Turning to the supply on hand, the EIS said ethanol inventories at the end of the week totaled just over 26 million barrels, up from 25.7 million a week earlier.
Food and Ag Industries Have $9.63 Trillion Impact
Over thirty agriculture groups released the eighth annual “Feeding the Economy” report. The study helps estimate the direct and indirect economic contributions of the food and agriculture industries on jobs, wages, economic output, and business taxes. The 2024 report’s findings show the total economic impact for the food and agriculturally-related industries grew almost 12 percent over the past year and reached $9.63 trillion. That’s 20 percent of the total U.S. output. Total jobs in the industry reached more than 48 million. Total wages were $2.7 trillion, up 34 percent since the 2020 report. Total taxes were $1.25 trillion, up 37 percent since the 2020 report. Total exports of $181.6 billion were down three percent since 2020. From the 2020 report till now, food and agriculture manufacturing jobs grew at a faster rate than any other job category in America. Agricultural production now accounts for 20 percent of all U.S. manufacturing jobs.
More Reaction to the New Tailpipe Emissions Standards
Growth Energy joined a number of U.S. agriculture groups expressing disappointment in the Environmental Protection Agency’s final rule on vehicle emissions standards. Growth Energy CEO Emily Skor says since the rule was proposed in April 2023, the administration has heard loud and clear that it would be a mistake to ignore biofuels. “They are a proven, abundant, and American-made solution to reduce emissions,” Skor says. “The final rule offers automakers some limited flexibility, but it fails to include any meaningful changes to ensure we’re not leaving biofuels on the sidelines.” She also points out that experts worldwide agree that EVs alone won’t get the U.S. to a net-zero future. “We need carbon savings within liquid fuels, and that requires a bigger role for American bioethanol,” she says. “It’s baffling to see EPA accept a false choice between only two paths forward – fossil fuel only vehicles or mass adoption of EVS.”
Consumers Think Food Prices Still Too High
While inflation has eased somewhat, food prices are still high. A study conducted by the University of Illinois and Purdue University asked consumers what type of companies they believe are behind high food prices. “Consumers are frustrated with many downstream actors, like food manufacturers, grocery stores, and restaurants, feeling these groups are overcharging them,” says Brenna Ellison, a Purdue economist and co-author of the study. Two-thirds of consumers consider food manufacturers too big, and over half believe grocery stores have too much control or market share. The survey showed consumers felt farmers were the least to blame. More than 70 percent of consumers believe that restaurants, grocery stores, and food manufacturers are overcharging them. Despite political differences, a significant number of consumers across party lines share concerns about the size of food manufacturers and grocery stores, indicating a bipartisan worry regarding market power despite often significant political differences in the respondents.
Thursday, March 21, 2024
Ag Groups React to New EPA Tailpipe Standards
The National Corn Growers Association expressed grave concern and disappointment with the Environmental Protection Agency’s final 2027-2032 tailpipe emissions standards. NCGA says the plan still relies almost exclusively on using electric vehicles, a decision that will have long-lasting impacts on the rural economy because it ignores the benefits of ethanol. Economists at the University of Nebraska say the resulting large drop in corn demand will lead to a permanent 50 percent decrease in the price of corn. That could cost the top five corn-producing states well over $100 billion in farmland value. The Renewable Fuels Association says today’s ruling is not the best way to accomplish the administration’s climate goals. “Today’s final rule forces automakers to produce more electric battery vehicles based on the premise that they’re ‘zero-emission’ vehicles,” says RFA President and CEO Geoff Cooper. “The regulation would strongly discourage manufacturers from pursuing other technologies like flex fuel vehicles.”
House Ag Committee Dealing with Chinese Influence on U.S. Ag
The House Agriculture Committee held a hearing Wednesday regarding concerns over foreign influence on American agriculture. Ranking Member David Scott (D-GA) said the more specific purpose of the hearing was to discuss the influence that China has on U.S. agriculture. “I want us to keep in mind that China is an important trading partner to the U.S.,” Scott said in his opening statement. “We need a thorough and policy-heavy conversation so we can help American farmers and our agricultural system navigate this issue.” He also pointed out that China is America’s largest trading partner, accounting for $33.7 billion in U.S. agricultural exports last fiscal year. American farmers produce way more than the country can use domestically, so trade is vital. “My colleagues will often note that we are in an agricultural trade deficit,” he added. “I’m here to tell you that alienating our trade partners will only deepen the deficit.”
EV Push Will Drive U.S. Deficit $200 Billion Higher
Senate Budget Committee Ranking Member Chuck Grassley is increasing his opposition to the Environmental Protection Agency’s tailpipe emissions proposal. He cites a new cost estimate by the Congressional Budget Office. “The CBO released a ten-year budget and economic outlook projecting a $224 billion increase in the cumulative deficit caused by higher electric vehicle tax credit claims and reduced gas tax revenues,” he says. “CBO noted the EV Rule is the largest factor to contributing to these revisions.” In a letter to EPA Administrator Michael Regan, Grassley said, “The American taxpayers have not voted for and can’t afford the EPA’s tailpipe standards.” Grassley also noted the challenges the standards pose for auto dealers and wants the agency to clarify its legal authority for promoting the EV Rule. He’d also like the EPA to outline its plans to compensate for the hundreds of billions of dollars in lost tax revenue and extra spending.
El Niño’s impact on U.S. Farmers
The 2024 growing season is expected to bring a unique combination of El Niño this spring through early summer before switching to La Niña in late summer through early fall. Farmers Business Network says the opposing climate patterns have the potential to trigger significant weather events that could have problematic impacts on crop production. 2023 ended with a strong El Niño, which is weakening now and will end around April. However, the long-term impacts will be felt throughout the growing season. The U.S weather patterns will likely shift back to normal between April and July, followed by a probable La Niña through September. The report also says 2024 planting dates will likely be slightly earlier for wheat and rice while remaining typical for corn and soybeans. Corn, wheat, and soybean yields are expected to increase this year because of El Niño, while rice yields will slightly decline from last year.
Mexico to Boost Corn Imports
Mexican corn imports are expected to rise during the 2024-2025 marketing year amid increased demand. USDA’s Foreign Agricultural Service says corn imports are forecast to increase five percent year-over-year to 22 million tons to meet the Mexican government’s forecast of an increasing demand for starch and animal food production. Mexico is the world’s second-largest grain importer behind only China. Successful Farming says relatively lower forecast corn prices compared to the previous year and growing demand from livestock producers and processors will drive up corn imports. The U.S. accounted for more than 85 percent of Mexico’s corn imports. Mexican corn production in the 2024-2025 marketing year starting on October 1 is forecast to jump seven percent to 25 million metric tons due to increased planted area and less abandonment. “Optimism about returning to average rainfall and moisture levels after exceptional drought is expected to incentivize farmers to increase their planted area,” USDA says.
USGC Releases the Corn Export Cargo Quality Report
The U.S. Grains Council released its 2023-2024 Corn Export Cargo Quality Report which contained some good news. The average aggregate quality of U.S. corn samples tested for the report was better than or equal to U.S. No. 2 on all grade factors and represented an improvement on the five-year average of previous crops on several fronts. “The Council is committed to furthering global food security and mutual economic benefit through trade,” says USGC Chair Brent Boydston. “This report will assist buyers in making well-informed decisions by providing reliable and timely information about U.S. corn destined for export.” The average test weight came in at 58.1 pounds per bushel, which was higher than the previous marketing year and the five-year average. Chemical analysis showed an 8.9 percent protein concentration, up from 8.7 percent last year and the five-year average. All samples tested below the Food and Drug Administration’s action level for aflatoxins.
Thursday Watch List
Markets
USDA's weekly export sales will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. Reports on U.S. existing home sales in February and U.S. leading indicators are due out at 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m.
Weather
A clipper-like system is moving into the Northern Plains and will produce a band of snow into the Upper Midwest by Thursday night. At the same time, an upper-level low-pressure system is moving through South-Central states with scattered showers and some thunderstorms of its own, some of which may be severe in eastern Texas.
Wednesday, March 20, 2024
Ag Import Values Outpaced Export Values in 2023
USDA’s Economic Research Service reports U.S. agricultural imports exceeded exports by $16.6 billion in fiscal year 2023. For nearly 60 years, U.S. agricultural trade maintained a surplus, but in fiscal year 2019, the balance shifted to a deficit, where it has stayed three out of the last five fiscal years. Imports have largely followed a stable upward trend, while exports have had relatively wide swings. From 2013 to 2023, import values increased at a compound annual growth rate of 5.8 percent, and exports grew at a rate of 2.1 percent. Although the U.S. agricultural trade balance is closely watched, it reflects changing consumer tastes, a robust economy, and a strong dollar, and is not an indicator of export competitiveness or import dependence. USDA says the U.S. consumer’s growing appetite for high-valued imported goods—such as fruits and vegetables, alcoholic beverages, and processed grain products—has contributed to the expanding trade deficit.
MU Releases New Baseline Food and Agricultural Outlook
Farm commodity prices have tumbled from the peak levels they rose to during spring 2022 — and new projections suggest that downward pressure on prices could continue throughout 2024 and beyond. The Food and Agricultural Policy Research Institute at the University of Missouri recently released its annual agricultural market baseline outlook. The outlook provides projections for agricultural and biofuel markets and serves as a point of reference for evaluating alternative scenarios for food and agricultural policy. Another key finding from the report is that net farm income is projected to fall to its lowest level since 2020. For consumers, food price inflation slowed in 2023, and FAPRI's report suggests that this trend could continue in 2024. The consumer price index for food is anticipated to increase 2.1 percent in 2024, with the lion's share of the increase coming from food away from home. The annual report summarizes ten-year "baseline" projections for several economic indicators, and can be found on the FAPRI website.
USDA Announces Grants for Urban Agriculture
The Department of Agriculture is accepting grant applications to support urban agriculture and innovative production. Chief of USDA's Natural Resources Conservation Service, Terry Cosby, says, "These projects will add to the important work communities are doing to build food security in underserved areas." Since 2020, the grants have invested more than $46.8 million in 186 projects across the country, and they're part of USDA's broad support for urban and innovative producers. UAIP grants are available to a wide range of individuals and entities, including local and Tribal governments, nonprofits, and schools. The program provides grants for two types of projects: Planning Projects and Implementation Projects. The program was established through the 2018 Farm Bill. It is led by NRCS and works in partnership with numerous USDA agencies that support urban agriculture and innovative production. Applications for USDA’s Urban Agriculture and Innovative Production grants are due April 9, 2024, via grants.gov.
Noble Research Institute Partners with Ranch Management Consultants
Noble Research Institute Ranch Management Consultants Tuesday announced a collaboration with an exclusive licensing agreement granting Noble use of RMC's Ranching for Profit program content. Noble will design and develop a suite of educational, skill-building products incorporating both Noble-developed and Ranching for Profit content. The first Noble product benefiting from this relationship, Noble Business Essentials, is scheduled to be launched in June 2024. Noble's purpose is to save U.S. grazing lands by promoting land stewardship through regenerative management, building soil health and keeping ranchers on the land. RMC has been recognized in agriculture business training for more than four decades. Noble's Business Essentials will provide easy-to-understand financial strategies for farmers and ranchers. The program is the third of Noble's Essentials series, including Noble Land Essentials and Noble Grazing Essentials. RMC's Ranching for Profit schools, a 7-day learning program, are designed to help ranchers and farmers find the breakthroughs needed to improve the health of their land, the profitability of their business and the quality of their life.
Researchers: Blue-Green Algae Can Protect Honey Bees
Scientists at USDA’s Agricultural Research developed an edible antiviral treatment that can be used to protect honey bees against Deformed Wing Virus and other viruses. Honeybees are important agricultural pollinators. However, viruses, including DWV, are linked to the deaths of millions of colonies worldwide. These colony losses devastate beekeeping industries and pose a major risk to agriculture and the global food supply. While there are medicines for other bee diseases and parasites, there is currently no treatment available to help beekeepers reduce viruses in their colonies. Researchers found that engineered algae diets suppressed DWV infection and improved survival in honeybees. When mixed into bee food, the engineered algae boost the bee’s immune system to fight off the targeted virus. The researchers filed a patent application for the technology and plan to use variations of it to target additional bee viruses and other pathogens in future studies.
Cargill Awards More Than $3 Million Grant to National FFA Organization
Cargill awarded a three-year grant of $3.15 million to the National FFA Organization in support of its commitment to shape future agriculture leaders. The grant supports various National FFA Organization programs and events during the three-year period, including the organization's sustainability platform, the equity, diversity and inclusion pathway, and the Living to Serve program. During the National FFA Convention & Expo, the grant supports a booth, the rodeo and travel grants for career development event participants. In addition, the funding supports the American FFA Degree and the American Star Awards. Cargill's grant also supports programs that encourage the exploration of career pathways in agriculture. National FFA and Cargill look forward to continued partnership to ensure an even greater impact in the remaining two years of the grant. FFA’s Molly Ball says, “This grant allows us to reach more members and continue providing new opportunities that help feed the talent pipeline."
Wednesday Watch List
Markets
The Energy Department's weekly inventory report is at 9:30 a.m. CDT Wednesday, followed by a Fed rate announcement at 1 p.m. Most expect the Fed to keep the federal funds rate target unchanged at 5.25% to 5.50%. Traders continue to keep close watch on South American weather.
Weather
A cold front that moved through the north on Tuesday continues farther south on Wednesday with colder temperatures settling across northern areas. That will continue some lake-effect snows in the Great Lakes and snow will start to develop in the Northern Plains as a system starts to move into the Pacific Northwest. An upper-level low in the Southwest will finally start to move eastward into the Southern Plains where some showers will be possible as well.
Tuesday, March 19, 2024
Senators Demand Increase in Ag Exports
A group of Senate Republicans are demanding the Biden administration take action to increase agricultural exports. The group of 19 Senators penned a letter to U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack urging them to increase U.S. agricultural exports and improve the competitiveness of U.S. products abroad. The letter says, “The current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that is failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade.” The lawmakers say diminishing access to foreign agricultural markets for U.S. industries creates significant economic headwinds and jeopardizes the livelihoods of more than one million American workers, farmers, and ranchers. For the 2023 marketing year, nearly 70 million acres of major crops like corn, soybeans, and wheat were planted to meet the demands of foreign customers.
Lawmakers Seek USDA Telework Policy Investigation
Two Senate Agriculture Committee members are questioning the Department of Agriculture's telework policy. Republicans John Boozman of Arkansas and Joni Ernst of Iowa request USDA's Inspector General build upon its oversight of the federal agency's telework abuse and expand its investigation into the department's footprint and workforce. In a letter, Boozman and Ernst called for an enhanced investigation after USDA Secretary Tom Vilsack was questioned during a Senate Agriculture Committee hearing last month. The committee focused on a department supervisor's revelation to the committee that the agency's headquarters resemble a "ghost town," to which the secretary claimed that his employees and managers are in the D.C. office "a majority of the week." The letter states, "Secretary Vilsack's apparent misapprehension regarding the telework posture of his workforce underlines the importance of comprehensive reviews, audits, and evaluations of the USDA's telework, locality pay, and space utilization policies." The letter requests a response by March 27, 2024.
FAS Expands Presence in Mexico with New Guadalajara Office
The Department of Agriculture is expanding its footprint in Mexico by opening the Foreign Agricultural Service's newest foreign office in Guadalajara last week. FAS Administrator Daniel Whitley says, "The decision to establish this new office reflects the importance of our agriculture and trade relationship with Mexico." Whitley presided over a ribbon-cutting ceremony on March 11 with Consul General Amy Scanlon from the U.S. Consulate in Guadalajara. U.S.-Mexico bilateral trade in agricultural and related products reached a record of more than $76 billion in 2023, benefiting the entire supply chain, from producers to processors to shippers to consumers, making high-quality farm and food products more readily available on both sides of the border. Guadalajara is Mexico's second-largest city and is the capital of the of the of Jalisco in west-central Mexico. The region is considered Mexico's breadbasket, home to large agricultural production and processing industries, and an important economic, cultural, and commercial center.
NPPC Applauds USDA Purchase of More Pork for Nutrition Programs
Using funds from its Commodity Credit Corporation, the Department of Agriculture is purchasing an additional 33.5 million pounds of pork — worth more than $78.6 million — for distribution to various food nutrition and assistance programs. Earlier this year, USDA bought $25 million of pork under Section 32 of the Agricultural Adjustment Act of 1935, which authorizes the Secretary of Agriculture to make commodity purchases, entitlement purchases, and disaster assistance using funds appropriated annually from U.S. customs receipts. The National Pork Producers Council applauded USDA’s purchase and says the organization will continue working with the agency to identify additional opportunities to find support for U.S. pork producers during challenging market conditions. The U.S. pork industry has faced a challenging economic market over the past 18 months, with producers losing an average of $30 — sometimes $40 to $60 — on each hog marketed in 2023. NPPC says these pork purchases provide much-needed support to the hog and wholesale pork markets and secure affordable, nutritious pork products for USDA recipient programs.
USDA: Infant Formula Rebates Reduce WIC Spending
Rebates for infant formula help reduce costs of the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC. USDA’s Economic Research Service reports that from 1989 to 2022, savings to WIC from the rebates totaled $71.9 billion in inflation-adjusted 2022 dollars, or 23 percent. Without the rebates, the Federal Government would have spent about $307.5 billion on the WIC program over that period. With the rebates, the Government spent $235.6 billion. The greatest savings come from strategies used to contain the costs of providing infant formula through the program. Since 1989, most WIC state agencies have used competitive bidding to award contracts to a single manufacturer to serve as the formula of first choice for infant participants in their state. In return, manufacturers offer WIC State agencies rebates for each unit of formula sold through the program. State agencies responsible for implementing WIC use cost-containment strategies to reduce program costs.
Gas Higher Again, Diesel Lower
The national average gas price increased for the third consecutive week, climbing 4.4 cents from a week ago to $3.44 per gallon, according to GasBuddy. The national average is up 18.7 cents from a month ago and 1.6 cents per gallon higher than a year ago. U.S. retail gasoline demand saw a rise of 3.1 percent for the week. The national average diesel price declined 2.2 cents last week and is $4.00 per gallon—28 cents lower than one year ago. GasBuddy's Patrick De Haan says, "For now, gas prices will likely continue to trend higher, but the fever may break soon." Refinery output is starting to increase as the maintenance season comes to an end. When it comes to diesel, above-average temperatures have lowered heating oil demand, and average diesel prices are on the cusp of falling back below $4 per gallon. The most common U.S. diesel price stood at $3.89 per gallon.
Tuesday Watch List
Markets
A report on U.S. housing starts in February will be out at 7:30 a.m. CST Tuesday. The Federal Reserve starts its two-day meeting and is expected to keep the federal funds rate unchanged on Wednesday. Traders continue to keep an eye on South American weather and recent events in Ukraine.
Weather
A clipper system is moving through the Great Lakes Tuesday. A cold front following behind it will be bringing in a fresh round of colder air to the northern tier of the country, setting the stage for an active and snowier pattern for the rest of the week.
Monday, March 18, 2024
Justice Department, FTC Statements on Right to Repair
The Justice Department’s Antitrust Division and Federal Trade Commission submitted comments to the U.S. Copyright Office advocating for regulations that would facilitate the right to repair. The agencies are in favor of consumers and businesses getting to repair their own equipment. The Copyright Office is considering whether to recommend that the Library of Congress renew and expand temporary exemptions to the Digital Millennium Copyright Act’s prohibition against the circumvention of technology protection measures that control access to copyrighted content. In their comments, the agencies said that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair and maintenance services, and facilitate competition in markets for repairable products. “Promoting competition in repair markets benefits consumers and businesses by making it easier and cheaper to fix the things they own,” the comments say. “Expanding repair exemptions can also remove barriers limiting independent service providers from doing their work.”
Bill Solidifies Critical Fertilizer Minerals
The Fertilizer Institute thanks the U.S. Senate for introducing bipartisan legislation to include phosphate and potash on the final list of critical minerals of the Department of the Interior. TFI says the legislation will recognize the importance of ensuring a strong and sustainable domestic fertilizer supply for American farmers. ‘The majority of the world’s phosphate and potash resources are concentrated in only a few countries, leaving them open to supply chain vulnerabilities and geopolitical instability,” says TFI President and CEO Corey Rosenbusch. “The events of the last few years have shown us that food security is national security, and now is the time to change how we talk about these vital resources.” The U.S. imports about 95 percent of its potash needs, the bulk of which comes from Canada. Only 14 countries in the world produce potash. “This will help us take significant strides toward securing our food supply,” he adds.
U.S. Wheat Farms Dropped 40 Percent in 20 Years
The Economic Research Service says the number of U.S. wheat farms has dropped substantially over time. Since 2002, the total number of wheat farms fell by over 40 percent, from 169,528 in 2002 to 97,014 in 2022. In addition to the decline in wheat farms, wheat production is down slightly but has been variable year to year. The ERS says annual wheat production ranged from about 1.6 billion bushels in marketing year 2002-2003 to as much as 2.5 billion bushels in 2008-2009. However, wheat production didn’t exceed two billion bushels from 2017 through 2023. The ERS says the reduction in the number of farms reporting wheat harvested area occurred across all wheat classes. The number of farms producing durum wheat saw the largest percentage drop, down nearly 60 percent from the 2002 Census and 30 percent from the 2017 Census. Only five states saw increases in the number of wheat farms.
USDA Issues March Livestock Outlook
In 2024, U.S. beef exports are expected to be about 83 percent lower than those in 2023. The drop is due to lower beef production this year brought on by tightening cattle supplies and tougher global competition from beef exporting countries like Australia. Pork exports are forecast to increase by almost 4.6 percent from 2023 due to higher domestic production and less global competition from the European Union. Broiler exports this year are expected to decline about 1.4 percent compared to last year due to higher domestic prices and weak demand from China. Turkey is expected to be competitively priced in 2024, with exports forecast to be up 6.4 percent compared to last year. Compared with 2023, dairy exports on a skim-solids milk-equivalent basis should increase slightly this year by 0.2 percent. Relatively strong domestic demand for dairy products and limited growth in milk production will likely limit export growth.
USDA Invests in Organic Promotion
The USDA’s Agricultural Marketing Service awarded about $40.5 million for 60 grant projects through the Organic Market Development Grant Program. These projects will support the development of new and existing organic markets, support the infrastructure to improve processing capacity, explore emerging technologies to promote organic products, and purchase equipment to help meet the increasing demand for organic commodities. USDA anticipates the projects funded through this program will benefit more than 27,000 producers and over 31.8 million consumers by increasing organic market opportunities. “Farmers who choose to grow organic often access new, more, and better markets,” says USDA Deputy Secretary Xochitl (so-CHEEL) Torres Small. “At USDA, we are committed to making it easier for farmers who make that choice through programs like the Organic Market Development Grant Program, which supports farmers and increases access to fresh, healthy foods.” This round of awards will address critical needs within the nation’s growing organic industry.
Lamb Lovers Month a Success
February was Lamb Lovers month. The 2024 ad campaign called “Show Us Your Chops” reached over 125,000 culinary enthusiasts across three targeted demographics. The campaign helped drive more than 10,000 unique visitors to the American Lamb Board’s consumer website. Once on the site, visitors learned more about American Lamb, had access to recipes, and had the option to enter a campaign contest to win a Dutch oven and two racks of American Lamb. “This campaign proved to be a cost-effective advertising campaign for reaching culinary enthusiasts and provided some key insights into various demographics targeted by the campaign,” says ALB chairman Jeff Ebert. The campaign ran ads on Facebook and Instagram targeting consumers interested in dining and cooking. The audience was then subdivided into three categories by age and stage of life. They include “Culinary Curious” at 28-34 years old, “Culinary Hustlers” at 35-44 years old, and “Culinary Connoisseurs” at 48-67.
Top 5 Things to Watch - National Ag Day, Cold Clipper Coming
1. National Ag Day, March 19: Sunday is St. Patrick's Day, and with the warm winter things are beginning to green up around the country. That also means it's time for National Ag Day, March 19. There will be celebrations around the U.S., and a number of observances and festivities in Washington, D.C. on Tuesday. DTN, which is a sponsor of the Agriculture Council of American that organizes National Ag Day, will be on hand in the nation's capital
2. Podcasts hit hot topics: In addition to timely news coverage, we explore the background of many of our top stories via the Progressive Farmer Field Posts podcasts. The latest, a wrap-up of the 2024 Commodity Classic, is up in our podcast area, and next week we'll have a summation of Ag Day events. Podcast host Sarah Mock will be interviewing DTN Editor-in-Chief Greg Horstmeier on those topics.
3. Cattle on Feed Report Friday: As noted below, Friday is the latest Cattle on Feed Report numbers; we'll have a preview by DTN Livestock Analyst ShayLe Stewart earlier in the week and analysis of the latest numbers Friday afternoon.
4. Cool clipper coming: The previous week ended like a lion, with storms, hail and tornado damage around the Midwest. That will be followed by a clipper system will quickly move through the Midwest this weekend and will send a stronger cold front and burst of below-normal temperatures through the country going into early next week. The storm will also produce lake-effect snow in the Great Lakes.
5. Economic reports to watch: Monday, 9 a.m. has the Grain Inspections and the Home Builder Confidence Index. Tuesday, we'll see the 7:30 a.m. release of February Housing Starts and Building Permits. Wednesday, at 1 p.m. we expect the latest Federal Reserve interest-rate decision, followed by Federal Reserve Chair Jerome Powell's press conference at 1:30. At 2 p.m. we'll see the Broiler Hatchery report. Thursday starts early with 7:30 a.m. release of Grain Export Sales and Initial Jobless Claims. At 8:45 a.m. there is the S&P Services and Manufacturing PMIs. At 9 a.m. the U.S. Leading Economic Indicators and Existing Home Sales reports hit, followed by Livestock Slaughter numbers at 2 p.m. On Friday, at 2 p.m. is the U.S. Cattle on Feed and Chicken and Eggs reports.
Monday Watch List
Markets
Traders will return from the weekend and quickly catch up on the latest weather forecasts for South America. USDA's weekly export inspections report will be out at 10 a.m. CDT with more shipments needed for wheat as the season ticks down. On Wednesday, the Federal Reserve probably won't change the federal funds rate target, but traders will be listening for clues from Chairman Jerome Powell.
Weather
A cold front that moved through most of the country over the weekend is building some cold air into most areas east of the Rockies on Monday. The colder air is producing some lake-effect snow in the Great Lakes and late frosts across the Deep South for Monday night.
Friday, March 15, 2024
Advocating Amid Decline in Ag Exports
Senators Chuck Grassley (R-IA) and John Thune (R-SD) joined colleagues in urging U.S. Trade Representative Katherine Tai and Ag Secretary Tom Vilsack to improve ag export opportunities. They joined Senators John Boozman (R-Ark.) and Mike Crapo (CRAY-po) (R-Idaho) in writing a letter to Vilsack and Tai acknowledging that trade fluctuates because of macroeconomic factors and market conditions. “However, the current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that’s failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade,” the senators wrote in a letter. “While the administration refuses to pursue trade agreements, China, Canada, the EU, the United Kingdom, and others continue to ink trade pacts that diminish American export opportunities and global economic influence.” Grassley, Thune, and Boozman serve on the Senate Agriculture Committee while Crapo is the top Republican on the Senate Finance Committee.
Risk Management Tool for Specialty and Smaller Producers
World Pork Expo is in June
The National Pork Producers Council announces the World Pork Expo returns on June 5-6 at the Iowa State Fairgrounds in Des Moines. Though pork producers have faced their share of challenges, the annual Expo showcases the best the industry offers in the form of educational and networking opportunities not found anywhere else. The world’s largest pork-specific trade show returns with more than 700 booths showcasing the latest and greatest in pork production technology and services. Just some of the things attendees can expect include a new schedule with two days filled with seminars, networking, and innovation from 9 a.m. to 5 p.m. each day. It’s also a chance to connect with over 10,000 industry professionals in the ultimate meeting place for pork producers. It’s a festival atmosphere, including a celebration of pork with new entertainment, blending professional insights with a lot of fun. For more information, attendees should go to worldpork.org.
Strengthening the U.S. Bioeconomy
The USDA released a plan to boost biomass supply chain resiliency for domestic biobased product manufacturing. The plan will also advance environmental sustainability and market opportunities for small and mid-sized producers. The plan is called “Building a Resilient Biomass Supply.” “The increasing demand for biomass is a golden opportunity to expand markets and create new revenue for American farmers, ranchers, and forest landowners, particularly in rural areas,” says Ag Secretary Tom Vilsack. “This comprehensive roadmap will strengthen our production and pre-processing systems to provide incentives for producers and manufacturers so that biomass can be used to fuel the American economy.” Biomass is organic material that comes from crop residues, agricultural and food wastes, forest residuals, livestock, as well as biomass crops that are grown specifically as feedstocks to produce biobased products. Biobased products contributed $489 billion to the U.S. economy in 2021, a more than five percent increase from 2020.
Purina Offering $20,000 in Scholarships
Purina Animal Health, along with the Land O’ Lakes Foundation, has opened its scholarship program designed to assist students with experience in agriculture and livestock production to pursue their education. Now, along with undergraduate students, current high school seniors who have experience in raising and caring for small or large livestock, equine, or poultry, are eligible to apply for one of four $5,000 scholarships. Along with the impact animal agriculture has had on their lives, desired applicants will be able to demonstrate academic excellence, leadership skills, community involvement, and have a clear vision for their future. Scholarship applications will be accepted March 18 through April 17. Applicants will receive their scholarship funds for the Fall 2024 semester at their current or anticipated education institution. The scholarship is open for high school seniors enrolling in full-time undergraduate studies and undergraduate students enrolled in a two or four-year college or vocational-technical school.
Australian Farmers More Confident After Rainfall
Widespread rainfall and improving livestock prices are giving Australian farmers more confidence than they’ve had in a couple of years. A survey published this week shows Australian farmers’ confidence levels at their highest point in two years. Australia is one of the world’s biggest agricultural exporters and a top competitor of the United States. An El Nino weather pattern last year sank farmers’ confidence as the weather brought dry conditions that hammered crop yields hard and pushed livestock markets lower. Unexpected rain across the southern and eastern parts of the country during the southern hemisphere’s summer season has turned pastures green, pushed sheep and cattle prices higher, and raised the prospect of bigger harvests. Reuters says some forecasters expect El Nino to flip to La Nina later this year. That typically brings wetter weather to eastern Australia. More farmers are positive than negative in expectations for the first time since June 2023.
Friday Watch List
Markets
The Federal Reserve's report of U.S. industrial production for February will be out at 8:15 a.m. CST Friday. The University of Michigan's consumer sentiment index for March will follow at 9 a.m. Traders remain interested in South American weather and will keep an eye on April crude oil prices that closed at a new four-month high on Thursday.
Weather
A system that has brought heavy thunderstorms and severe weather to parts of the Plains and Midwest the past couple of days continues in the Southeast for Friday. Storms are not expected to be as strong as the past couple of days but could still be severe across the southern tier. An upper-level low-pressure center in the Southwest will keep the Four Corners and front range areas active with showers and snow.
Thursday, March 14, 2024
Trade Mission Offers New Opportunities in South Korea
Representatives from 49 U.S. companies and organizations will join the Department of Agriculture agribusiness trade mission to Seoul, South Korea. Led by Undersecretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor, the mission takes place March 25-28. Undersecretary Taylor says, "I'm confident that this trade mission will produce great results for America's farmers, ranchers, agribusinesses, and exporters, as we work to strengthen trade with our existing partners and expand and diversify the products we offer." South Korea ranks as the United States' fifth-largest single-export market. Also, as one of the fastest-growing economies in the developed world during the past several decades, and with relatively small amounts of arable land, South Korea relies heavily on imported agricultural goods, especially meat and bulk commodities, to satisfy food and feed demand. While on the trade mission, participants will engage in targeted business-to-business meetings and site visits to build new trade linkages, strengthen existing partnerships, observe U.S. products in the marketplace, and discover the latest Korean consumer food trends.
Overall Tractor Sales Lower Compared to February 2023
Unit sales of 100+ horsepower ag tractors increased slightly in February 2024 in the U.S., according to new data from the Association of Equipment Manufacturers. The month recorded an increase of 2.8 percent compared to February 2023. However, year-to-date data reflects sales below 2023 in total units of ag tractors and combines. Ag tractor sales dipped 14.2 percent, while combines finished under 18.9 percent. In Canada, combine sales jumped 27.2 percent in February 2024 compared to 2023, and are up a total of 6.3 percent year-to-date compared to last year. A total of 131 combines were sold in February, adding to the overall year-to-date sales of 255 units. AEM's Curt Blades says, "The combine sales in Canada are a bright spot when we take a deeper look at February's performance," adding, "The uptick in sales of 100+ horsepower ag tractors in the U.S. also bodes well for the long-term strength of our industry moving forward." Total ag tractor sales fell in Canada by 28.2% year-to-date compared to 2023.
USDA: Iowa leads States in Hog Production
New data confirms Iowa is the top producer of hogs in the United States, with about $10.9 billion in cash receipts in 2022, according to USDA’s Economic Research Service. Cash receipts represent the value of sales of hogs by farmers to processors or final users. Following Iowa are Minnesota, North Carolina, and Illinois, with cash receipts of $3.6 billion, $3.1 billion, and $2.1 billion, respectively. Iowa accounted for about 35.5 percent of the $30.6 billion in total U.S. cash receipts for hogs in 2022. The top ten hog-producing states cumulatively accounted for 87.6 percent of hog receipts. In the latest Hogs and Pigs report from USDA, the National Agricultural Statistics Service indicated there were nearly 75 million hogs in the United States as of December 1, 2023. USDA’s Economic Research Service estimates farm sector cash receipts—the cash income received from agricultural commodity sales—three times each year.
Farm Bureau Fights Hunger Through Harvest for All Program
Farm families from across the nation donated 31 million pounds of food and raised $425,879 to help fight hunger in 2023 through Farm Bureau’s “Harvest for All” program. Combined, the monetary and food donations totaled the equivalent of 26 million meals. Now in its 22nd year, Harvest for All is spearheaded by members of Farm Bureau’s Young Farmers & Ranchers program, but members of all ages from across the nation contribute to the effort. AFBF’s YF&R Committee Chair Kevin Lussier says, “Farm Bureau’s commitment to helping put food on the tables of those in need through Harvest for All remains strong.” Florida Farm Bureau took top honors for donating the most food in 2023, 22 million pounds, while Michigan Farm Bureau took top honors for raising the most money in 2023, $222,000. In addition to raising food and funds, farmers and ranchers tallied 21,571 hours for local food insecurity efforts and other community service.
Walmart Announces New Milk Processing Facility in Texas
Walmart recently announced an investment in a new milk processing facility in Robinson, Texas, that will open in 2026. The facility will support nearly 400 jobs in the community and allow Walmart to meet the growing demand from customers. Walmart's Bruce Heckman says, "This new facility continues our commitment to building a more resilient and transparent supply chain and ensuring our customers' needs are met for this everyday staple." Walmart has been working across its food offerings to deliver increased transparency about where products come from and ensure supply for grocery essentials. It opened its first milk processing facility in Fort Wayne, Indiana, in 2018, and its second facility in Valdosta, Georgia, is expected to open in 2025. Additional investments include opening its first case-ready beef facility in Thomasville, Georgia, building a second case-ready beef facility in Olathe, Kansas, and making equity investments and long-term commercial agreements with Sustainable Beef LLC and vertical farming company Plenty.
Texas Reports More than $800,000 in Wildfire Donations
Texas Agriculture Commissioner Sid Miller announced Wednesday the state has received more than $800,000 in donations for wildfire relief. The donations are through the State of Texas Agriculture Relief, or STAR Fund. Miller says, “The overwhelming response demonstrates the strength of our Texas spirit and our commitment to standing together in times of crisis." To date, more than 1,600 individuals have donated to the fund that will provide financial assistance, helping farmers rebuild and recover from the unprecedented damage. The STAR Fund, administered by the Texas Department of Agriculture, provides financial assistance to agricultural producers who have suffered losses due to natural disasters, including wildfires, floods, hurricanes, and droughts. The funds collected will be distributed directly to those in need to help cover expenses such as livestock feed, fencing repairs, and other essential recovery efforts. Those who wish to contribute to the STAR Fund can visit the Texas Department of Agriculture website for more information.
Thursday Watch List
Markets
USDA's weekly export sales will be out at 7:30 a.m., the same time as weekly U.S. jobless claims, U.S. producer prices and retail sales for February and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report will be out at 9:30 a.m., followed by USDA's Livestock, Dairy and Poultry Outlook for March at 2 p.m.
Weather
A system is moving through the middle of the country Thursday with scattered showers and thunderstorms. It has already produced large hail in Kansas and northern Missouri and will spread that threat out from northeast Texas to Ohio today. Large hail is again the biggest threat, but tornadoes and strong winds are also possible. Heavy snow continues in the Four Corners and front range areas as well.
Wednesday, March 13, 2024
February Grocery Prices Unchanged
Grocery prices held steady in the latest Consumer Price Index by the Department of Labor. While food prices stayed flat, the overall index increased .4 percent, following a .3 percent increase in January. Three of the six major grocery store food group indexes decreased over the month. The index for dairy and related products decreased 0.6 percent in February, led by a 1.1 percent decline in the index for cheese and related products. The fruits and vegetables index decreased 0.2 percent over the month, as did the nonalcoholic beverages index. The cereals and bakery products index rose 0.5 percent in February, following a 0.2 percent decrease in January. The meats, poultry, fish, and eggs index also increased over the month, rising 0.1 percent. The index for other food at home was unchanged over the month. The food away from home index rose 0.1 percent in February after rising 0.5 percent in January.
Vilsack Announces Broadband, Drinking Water Investments
Agriculture Secretary Tom Vilsack Tuesday announced funding for high speed internet and drinking water systems for tribal communities. The Department of Agriculture is investing $58 million in Tribal communities in Nevada, Oklahoma and South Dakota. The funding will support economic development, high-speed internet deployment and modern infrastructure. The projects are being financed through the ReConnect Program and the Water and Waste Facility Loans and Grants to Alleviate Health Risks on Tribal Lands Program. Vilsack says, “USDA is committed to building our economy from the middle out and bottom-up by bringing high-speed internet, clean water and critical infrastructure to people in small towns and communities everywhere." Vilsack made the announcement at one of the nation's largest Tribal economic development conferences, the National Center for American Indian Enterprise Development's Reservation Economic Summit in Las Vegas, Nevada. Investments in the announcement were made possible by various USDA Rural Development programs.
Farms Received Nearly a Quarter of Each Food-at-home Dollar in 2022
In 2022, farm establishments received 24.1 cents for each dollar spent on food at home and 3.6 cents for each dollar spent on food away from home. These amounts, called farm shares, highlight the different paths that food takes from farms to consumers' points of purchase, according to USDA’s Economic Research Service. Food-at-home dollars include food purchases from outlets such as grocery stores, supermarkets, and wholesale clubs that are meant to be prepared at home. Food-away-from-home dollars include food purchases at restaurants, including delivery and carry-out, and other venues where the food is eaten on the premises. The remainder of each food dollar makes up the marketing share, which is the total value of processing, transportation, retailing, and other activities that get food from farm operations to points of purchase for consumers. In 2022, the marketing share was 75.9 cents per food-at-home dollar and 96.4 cents per food-away-from-home dollar.
USCA Calls Product of USA Rule a Victory
The United States Cattlemen's Association calls USDA's final voluntary 'Product of USA' rule a victory. Agriculture Secretary Tom Vilsack announced the rule Monday at the National Farmers Union annual convention. USCA has worked tirelessly to clarify years of confusion at the consumer level regarding the labeling of U.S. beef products. Starting in 2017, USCA's Director Emeritus Leo McDonnell led a nationwide fundraising effort of cattle producers nationwide that initiated federal rulemaking to close the loophole created by the 2015 repeal of mandatory country-of-origin labeling. The final rule announced yesterday follows a request made by the USCA in a petition for rulemaking submitted to USDA's Food Safety and Inspection Service in 2019. McDonnel stated, "This announcement takes the necessary steps to bring back truth in labeling." USCA President Justin Tupper added, "USCA is thrilled that the final rule finally closes this loophole by accurately defining what these voluntary origin claims mean.
USDA Identifies 2024 Food for Progress Priority Countries
The Department of Agriculture Tuesday announced the 2024 Food for Progress Priority Countries. USDA, through its administration of the Food for Progress Program, helps developing countries and emerging democracies modernize and strengthen their agricultural sectors. U.S. agricultural commodities donated to recipient countries are sold on the local market, and the proceeds are used to support agricultural, economic, or infrastructure development programs. Food for Progress has two principal objectives: to improve agricultural productivity and to expand the trade of agricultural products. For Fiscal Year 2024, Food for Progress anticipates awarding seven new cooperative agreements for projects of three- to five years in duration. Priority countries include Benin, Cambodia, Madagascar, Rwanda, Sri Lanka, Tanzania, and Tunisia. When available, the FY 2024 Notice of Funding Opportunity and information on how to apply will be published on Grants.gov. Past Food for Progress projects have trained farmers in animal and plant health, helped improve farming methods, and developed road and utility systems.
California Sets E85 Sales Record in 2023
California, in 2023, set a new E85 sales record. Growth Energy welcomed the new California Air Resources Board data this week. Growth Energy CEO Emily Skor says, "Californians used more E85 than ever last year, a fact that demonstrates how enthusiastic consumers are about higher biofuel blends." Skor encouraged policymakers to take note of the rise of E85 in California and to find ways to lower consumer costs by increasing biofuels' share of the American fuel tank. However, Skor also called on California to fast-track approval of E15. California is the only state in the U.S. where E15--a blend made with 15 percent bioethanol that the U.S. Environmental Protection Agency approves for use in all vehicles made in model year 2001 and newer--is not approved for sale. Still, fuel retailers in the state have taken steps to sell more E85 to California drivers.
Wednesday Watch List
Markets
The Energy Department's weekly inventory report at 9:30 a.m. CDT Wednesday, including ethanol production. Traders remain attentive to South American weather and we are getting closer to USDA's report of Prospective Plantings survey, due out at the end of March.
Weather
A large storm system will be developing in the Central and Southern Plains on Wednesday, bringing widespread showers and thunderstorms there and to the western Midwest. Some thunderstorms could be strong to severe across northeast Kansas and northern Missouri Wednesday evening.
Tuesday, March 12, 2024
USDA Finalizes “Product of USA” Label Claim
Agriculture Secretary Tom Vilsack Monday announced the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means. Vilsack made the announcement during a speech to attendees of the National Farmers Union Annual Convention in Scottdale, Arizona. Vilsack says, “This final rule will ensure that when consumers see ‘Product of USA’ they can trust the authenticity of that label and know that every step involved.” USDA’s final rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market, and help ensure that the information consumers receive about where their food comes from is truthful. Establishments voluntarily using a claim subject to the final rule must comply with the new regulatory requirements by January 1, 2026.
Crop Insurance Deadline Nears
Farmers not yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for the 2024 crop year have until March 15, 2024, to revise elections and sign contracts. Both safety net programs, delivered by USDA’s Farm Service Agency, support to farmers who experience substantial declines in crop prices or revenues for the 2024 crop year. Producers can elect coverage and enroll in ARC-County or PLC, which provide crop-by-crop protection, or ARC-Individual, which protects the entire farm. Although election changes for 2024 are optional, producers must enroll, with a signed contract, each year. If a producer has a multi-year contract on the farm, the contract will continue for 2024 unless an election change is made. If producers do not submit their election revision by the March 15, 2024, deadline, the election remains the same as their 2023 election for eligible commodities on the farm. For more information on ARC and PLC, contact your local USDA Service Center.
Drought Conditions Influence Fluctuations in Beef Cattle Herd
New data from USDA Economic Research Service shows that changes in drought conditions impact the size of the U.S. beef cattle herd. Specifically, when the percentage of land area of drought increases for an extended period as noted in the U.S. Drought Monitor, the U.S. beef cattle herd often declines. In 2023, with more than 65 percent of U.S. land area in drought, the U.S. beef cattle herd declined roughly 2.5 percent. When drought conditions diminish forage production and availability, beef cattle producers often must buy supplemental feed and forage or reduce their herd size. Periods of more intense drought are associated with decreases in the U.S. beef cattle herd size, such as when the national beef cattle herd shrank about one to two percent a year during drought between 2011 and 2015. Other factors outside of drought conditions also influence changes in the beef cattle herd size, including feed and forage prices, extreme precipitation events, supply chain issues, and the natural life cycles of livestock.
World to Rebuild Rural Ukraine Released February Export Data
World to Rebuild Rural Ukraine reports Ukraine managed to export eight million metric tons of agricultural products in February, 3.4 percent more than the previous month. Of that, 5.2 million metric tons were exported through the sea corridor, a record volume since the beginning of Russia’s large-scale invasion of Ukraine. Since August 2023, 19 million metric tons of agricultural products have been shipped to foreign markets, which is 68 percent of the total volume of cargo. Ukraine has shipped 2.5 million metric tons of grain and oil through the Danube ports during the first months of 2024. Meanwhile, exports of sunflower oil in February exceeded last year's figure by 50 percent as 603,000 metric tons were exported. And Ukraine exported 8,500 metric tons of dairy products in February, and increase of 22 percent from last year. With planting season underway, WRRU reports costs for the four main expense components—fertilizers, chemicals, seed and fuel are down five percent this year for grains and four percent for oilseeds.
Gas Prices Inch Higher, Diesel Lower
The nation’s average gas price is inching towards its year-ago level while diesel fell in the last week. GasBuddy reports the nation’s average price of gasoline increased 6.2 cents from a week ago to $3.40 per gallon. The national average is up 23.0 cents from a month ago and 4.5 cents per gallon lower than a year ago. The national average price fell 1.3 cents in the last week and stands at $4.02 per gallon—30 cents lower than one year ago. GasBuddy’s Patrick De Haan says, “Much of the seasonal rise that happens this time of year is a culmination of refinery maintenance, the switch to summer gasoline, and rising demand.” However, if refineries continue to boost output of products like gasoline, diesel, and jet fuel, it could mean earlier-than-expected relief. De Haan says the changeover is still in process, so the nation will likely see the continuation of upward pressure on prices, for now.
Farm Bureau Recognizes Graduates of Partners in Advocacy Leadership Class
The American Farm Bureau Federation recently honored ten leaders in agriculture as graduates of the organization’s 11th Partners in Advocacy Leadership class. PAL was designed to help agricultural leaders accelerate their engagement abilities and solidify their roles as advocates for agriculture. AFBF President Zippy Duvall says, “We look forward to seeing how their dedication to advocating on agricultural issues will continue to benefit rural communities at the local, state and national level.” The training involves four learning modules designed to develop specific advocacy skills, including storytelling, policy development and stakeholder engagement. The modules build on one another over the two years of the program and include intense, in-person, hands-on training. Applications for PAL Class 12 will be accepted through March 25 and must be approved by the applicant’s state Farm Bureau president. To be eligible for the program, candidates must be between the ages of 30 and 45, with demonstrated leadership skills.
Tuesday Watch List
Markets
The U.S. Labor Department will have the consumer price index for February out at 7:30 a.m., followed by a Treasury report on the U.S. budget for February at 1 p.m. Brazil's crop agency, Conab, will also release its latest production estimates for Brazil Tuesday morning.
Weather
A weak disturbance will move through the middle of the country on Tuesday and some isolated showers and thunderstorms should pop up in and around Missouri. Otherwise, it will be a quiet day for those east of the Rockies. A system will be moving through the West, however, and will be an important storm system for the rest of the week
Monday, March 11, 2024
House Ag Committee Offers Farm Labor Solution
The House Agriculture Committee laid out a roadmap to relieve labor shortages that have seriously impacted America’s farmers and ranchers. The Agriculture Labor Working Group released its final report on how to improve the H-2A guest worker program. It includes more than 20 recommendations to streamline the program and make labor more affordable for farmers. “We’re losing American farms rapidly, and there’s no question the broken workforce system is partly to blame,” says Farm Bureau President Zippy Duvall. While the working group recommendations don’t address all the labor challenges facing farmers, they do offer needed solutions, such as streamlining the recruiting and hiring of H-2A employees. They also want to expand the H-2A program to meet year-round needs, recommend paying employees based on duties performed during the majority of the day, and reform wage calculation standards to provide stability in farmworker pay rates. The full committee report is available at agriculture.house.gov.
Pork Exports Start Quickly in 2024
U.S. pork exports raced to a great start in the new year. January USDA data shows exports during the month were led by another strong performance in Mexico, the number one market for American pork. However, pork also made gains in other Western Hemisphere and Asia-Pacific destinations. Pork exports reached 241,424 metric tons in January, six percent higher than a year ago. Export value rose six percent to $682.1 million. “Mexico’s demand for U.S. pork is so spectacular that it can overshadow some of the other great success stories,” says U.S. Meat Export Federation President and CEO Dan Halstrom. U.S. beef exports were slightly behind last year’s volume, but export value trended significantly higher. Beef exports totaled 99,764 metric tons, one percent lower than last year. Beef export value rose nine percent to $763.8 million. January exports of U.S. lamb totaled 303 metric tons, up 28 percent from a year ago.
March WASDE Shows Few Major Changes
Missouri River Runoff Forecast Below Average
A warm February led to increased snowmelt and runoff in the Missouri River Basin above Sioux City Iowa. February runoff was 1.8 million acre-feet, 161 percent of average with above-average runoff in every reach except Sioux City, which was near average. However, the updated 2024 calendar year runoff forecast for the basin continues to be below average. “Despite the increased runoff in February and improved soil moisture conditions, we expect 2024 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Water Management Division. The much warmer-than-normal temps led to an early melt of the lower-than-average plains snow. Soil moisture conditions are near or above normal across most of the basin with below-normal soil moisture conditions in the eastern basin. The 2024 calendar year runoff forecast above Sioux City is 17-million-acre feet, 66 percent of average. Current system storage is 53.9 MAF.
Applications Open for Angus Foundation Scholarship
Applications are open for the Angus Foundation’s Commercial Cattlemen Scholarship, which awards four $1,500 scholarships to outstanding young people in the beef industry. This scholarship is unique from others offered by the Foundation as it aims to support students specifically from the commercial sector of the industry. “We’re proud to offer this scholarship opportunity to students from commercial cattle backgrounds,” says Jaclyn Boester, Angus Foundation executive director. “We recognize the importance of supporting young people using Angus genetics and want to help them succeed in our industry.” Students should be pursuing an undergraduate or vocational degree at an accredited higher education institution, and selection emphasis is placed on the applicant’s knowledge of the cattle industry and their perspective on the Angus breed. Young men and women are eligible to receive the scholarship if they’ve transferred a registered Angus animal in or out of their herd in the last three years.
NPPC Elects News Officers
The National Pork Producers Council announced the induction of new officers and newly elected members to its board of directors. “We’re thrilled to welcome these accomplished individuals to NPPC’s board of directors,” says NPPC CEO Bryan Humphreys. “The diverse backgrounds and proven track records will provide valuable perspectives and strategic insights as the pork industry navigates the challenges and opportunities ahead.” Lori Stevermer of Easton, Minnesota, was elected NPPC President. She’s a co-owner of Trail’s End Farm and has a rich history of advocating for the pork industry at local, state, and national levels. She previously served on the executive board of the Minnesota Pork Producers Association. During her year as president-elect, she exemplified her leadership and unwavering commitment to the industry by testifying before Congress and representing the industry at international trade conferences. Duane Statler of Ohio was elected as president-elect. Rob Brenneman of Washington, Iowa, is the new vice president.
Monday Watch List
Markets
Don't forget we're now on daylight savings time. Traders will return from the weekend, looking at the latest weather forecasts and any news that might interest the market. USDA's weekly export inspections is set for 10 a.m. CDT Monday, followed by a report on the consumer price index on Tuesday morning.
Weather
A system is well off the East Coast while another is over the West, making for a generally quiet day for most of the country. It is breezy though on the East Coast and even the quiet conditions in the middle of the country will be a little breezy, as is typical for spring. That could heighten the wildfire risk in the Plains in areas that did not receive much precipitation from last week's storm system.