Rabobank’s 2024 July 4th Barbecue Index reached an unprecedented level this year. Hosting a ten-person barbecue on the Fourth of July will cost $99, the highest total on record. This year, beef, beer, soda, and lettuce comprise 64 percent of the total cost. With food prices unlikely to reverse course, Rabobank says this may be the last time we’ll see a summer cookout for ten cost less than $100. Food inflation jumped 25 percent from 2019 to the end of 2023. The additional inflation in the first half of 2024 has been the tipping point. “The consumer is waving the white flag on food inflation,” says Tom Bailey, senior consumer foods analyst at Rabobank. “With an added two percent in price hikes in 2024, coupled with the disparity between the cost of eating out and cooking at home at the widest point in history, we’re seeing heightened fatigue and frugality.”
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Friday, June 28, 2024
CLA Stresses a Balanced Herbicide Strategy
CropLife America sent a letter to the Environmental Protection Agency addressing the Office of Pesticide Program’s April update on the agency’s Draft Herbicide Strategy. It’s part of the EPA’s framework to meet its obligations under the Endangered Species Act. CLA’s letter lauds the agency’s issuance of the Draft Herbicide Strategy and the extent to which it reflects significant input from interested stakeholders. The letter also offers recommendations on how the Draft Herbicide Strategy can be successfully finalized and implemented. CLA emphasizes the necessity of pesticide use with the importance of protecting endangered species and their habitats, urging EPA to take realistic farming practices into consideration. “Understanding the needs of our nation’s growers is imperative to the success of the ESA, and any mitigation put in place will only work if real-world implications of how we farm are considered,” says Alexandra Dunn, CLA President and CEO. “We want a practical and scientifically sound plan.”
USDA to Accept Expanded ELA Program Applications
The USDA will begin accepting applications on Monday, July 1, for its updated Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP). The goal is to provide financial assistance to eligible dairy producers who incur milk losses due to Highly Pathogenic Avian Influenza infection in their dairy herds. The Farm Service Agency expanded ELAP through the rule-making process to assist with a portion of financial losses resulting from reduced milk production when cattle are removed from commercial milking in dairy herds having a confirmed positive H5N1 test. Positive tests must be confirmed through the National Veterinary Service Laboratories. “USDA remains committed to working with producers, state veterinarians, animal health professionals, and federal partners as we continue to detect the presence of H5N1 in dairy herds and take additional measures to contain the disease spread,” says Ag Secretary Tom Vilsack. “We’re committed to providing the support needed to help producers recover.”
Clean Fuels Welcomes USDA Request for Information
Clean Fuels Alliance America welcomed Ag Secretary Tom Vilsack to the June Member Meeting this week. He announced a Request for Information regarding climate-smart ag practices for biofuel feedstocks. These practices can further lower the lifecycle carbon scores of advanced biofuels like biodiesel, renewable diesel, and sustainable aviation fuel. Vilsack says the agency is looking for information on crops, crop practices, and how they can be documented, certified, and traced. “We greatly appreciate acknowledging our industry’s need for both timely and accurate rules on climate-smart ag practices,” says Kurt Kovarik, Clean Fuels Vice President of Federal Affairs. “We also appreciate that the secretary understands the importance of having guidance for 45Z well in advance of January 1, 2025, so farmers, producers, and fuel customers have the certainty they need to continue to produce and use low-carbon biomass-based diesel.” Clean Fuels Alliance hosted 100 industry representatives this week.
Getting Consumers Cooking American Lamb
The American Lamb Board remains focused on educating consumers about cooking lamb at home. Many lamb purchasers cite the lack of confidence in cooking lamb as a significant barrier when cooking lamb at home. Plus, consumers who purchase lamb to cook at home are more likely to reserve lamb for special occasions and holidays. ALB is helping make American Lamb a more mainstream at-home dinner choice through partnerships with two virtual cooking class programs. Kittch and Homemade are innovative new ways to reach and inspire consumers to cook American Lamb at home for weeknight dinners. “We know lamb purchasers are motivated to buy lamb when they have access to easy-to-follow recipes,” says ALB Chairman Jeff Ebert. “These new partnerships take that to a new level by providing both recipes and interactive online classes to let consumers prepare lamb dishes at home alongside chefs across the country.” For information, go to lambboard.com.
Gavins Point Releases Continue to Decline on the Missouri River
Inflows into the Gavins Point Dam on the Missouri River near Omaha, Nebraska, have dropped to nearly 10,000 cubic feet per second. Current releases from Gavins Point are 20,000 CFS and are lowering to 16,000 CFS on Thursday. “We will reevaluate the conditions on Friday, June 28, and if inflows into the Gavins Point Dam from unregulated tributaries continue declining, we may have an option to lower the releases to 13,000 cubic feet per second to reduce the impacts downstream from Gavins Point,” says John Remus, chief of the Missouri River Basin Water Management Division. Average daily inflows to Gavins Point in June are 32,000 CFS, with average daily releases from the Fort Randall Dam upstream making up 28,900 CFS of the inflows, leaving 3,100 coming in from tributaries and rainfall. The current pool elevation at Gavins Point is 1,207.8 feet and slowly declining. The average elevation for June is 1,206.1 feet.
Friday Watch List
Markets
The PCE inflation index for May will be out at 7:30 a.m. CDT Friday, the same time as May reports on U.S. personal income and consumer spending. At 11 a.m., USDA releases its Acreage and June 1 Grain Stocks reports followed by DTN's webinar at 12:30 p.m.
Weather
A system is moving through the Canadian Prairies and has wrapped up in the region, causing a band of heavy rain from Alberta through Manitoba and down through the northwestern Corn Belt since Thursday. That has caused some areas of heavier rainfall in portions of the northwestern Corn Belt that have been dealing with flooding. A wave of morning showers continues eastward, but the front to the system should produce more showers and thunderstorms there and into the southwestern Corn Belt later today and tonight, the latter of which could see some significant severe weather. A burst of colder air is moving in behind the front. Highs: 50s/60s Canadian Prairies; 60s/70s Northern Plains; 70s/80s Pacific Northwest, Midwest; 80s/90s Central Plains, Southeast; 90s/100s Southern Plains, Delta.
Thursday, June 27, 2024
Iowa Approves Carbon Pipeline Project
The Iowa Utilities Board granted approval for a proposed carbon pipeline project to begin in the state. That clears the way for Summit Carbon to build that segment of the pipeline that covers 688 miles in 29 Iowa counties. The board hasn’t yet granted a permit that would allow construction to begin. However, Summit can now use eminent domain to acquire the land they need to complete the project. The board issued a final 507-page decision and order. “After weighing a number of factors for and against Summit’s petition, the board found that the service provided by Summit Carbon will promote the public convenience and necessity,” the board wrote in the decision. Summit will be required to submit “numerous revised exhibits” before the board issues a permit and before construction begins. “The momentum will continue when we file our South Dakota permit application in early July,” says Summit CEO Lee Blank.
States to Begin Voluntary HPAI Testing on Dairy Farms
The USDA says four states will begin voluntary pilot programs to test bulk milk tanks on dairy farms for bird flu. Louisiana Illuminator says the move is intended to help dairy farmers ship herds across state lines and make it simpler for public health officials to track any spread of the virus. Kansas, Nebraska, New Mexico, and Texas will be in the first round of voluntary participation, and other states are likely to follow. Eric Deeble, acting senior advisor for H5N1 response, says, “This list of participating states is just the beginning. It’s important for us to get these four states going so the other states could watch how the program works and gain additional confidence in the idea.” He also says the agency is in close conversations with about a dozen other states who are very interested in participating. Launching the pilot program is “an important step forward.”
Groups React to Latest Packers and Stockyards Rule
U.S. agriculture groups reacted to the USDA’s latest proposed Packers and Stockyards rule titled “Fair and Competitive Livestock and Poultry Markets.” National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane calls the proposed rule a “direct attack” on cattle producer profitability. “By creating criteria that effectively deems any innovation or differentiation in the marketplace improper, USDA is sending a clear message that cattle producers should not derive any free market benefit but be paid one low price, regardless of quality, in the same of so-called fairness,” he says. National Chicken Council Interim President Gary Kushner says the latest rulemaking retreads a failed proposal from more than a decade ago, which was written by a plaintiff’s lawyer who made money suing poultry companies. “The current facelift to the ‘Harm to Competition’ rule would open the floodgates to frivolous and costly litigation,” Kushner says. “The proposal would inflict billions in economic harm.”
National Wheat Foundation Hosts Officials in a Farm Tour
The National Wheat Foundation hosted a wheat farm tour this week for congressional staff and USDA employees. Wheat grower Eric Spates of Maryland gave visitors the chance to explore the farm, witness the wheat harvesting process, and listen to speakers who specialize in the ag industry. The discussion centered around crucial topics like risk management, conservation, pesticide programs, environmental issues, and what happens to wheat when it leaves the farm. “One of the Foundation’s main goals is educating people about wheat and farming,” says Bernard Peterson, Chairman of the National Wheat Foundation and a Kentucky farmer. “Wheat accounts for 20 percent of the calories consumed worldwide, so it’s a vital food crop and essential that everyone understands the complex issues that farmers face every day.” The objectives of the tour focused on strengthening participants’ appreciation for the intricacies of farming. Eric Spates is a dedicated board member of various farm organizations.
Flooding Will Impact the Agricultural Supply Chain
Flooding in several northern states is a reminder that weather events impact crop growth and the ability to transport that crop. Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition, says the closure of roads and bridges will result in farmers and elevators having to incur expensive detours to access delivery locations. “One of the biggest examples of the impact of flooding on rail infrastructure is the destruction of the BNSF Railway bridge across the Big Sioux River near Sioux City, Iowa,” Steenhoek says. “This will require considerable time to replace.” Considerable soybeans and grain continue to move at this time of year. The flooding is occurring in regions with a number of soybean processing facilities, which operate year-round. The damage will clearly impact those facilities. Even if a farmer isn’t directly impacted by the damaged infrastructure, it will cost more to ship commodities to operating sections of the transportation network.
Groundbreaking for New Grape Improvement Center
The USDA’s Agricultural Research Service and Cornell University’s College of Agriculture and Life Sciences hosted a groundbreaking for a new state-of-the-art grape research facility on the Cornell AgriTech campus. The over 70,000-square-foot facility will be named the National Grape Improvement Center and will house the ARS Grape Genetics Research Unit and ARS Plant Genetic Resources Unit. In addition, four Cornell grapevine research projects will move into the research facility. “Ag research conducted by USDA and Cornell University will both enhance U.S. grape production and ensure farmers are better able to fight the impacts of climate change,” says USDA Deputy Secretary Xochitl (so-CHEEL) Torres Small. “Investing in the National Grape Improvement Center helps to maintain our national food security while also building a stronger and more resilient food system.” ARS and university employees will work to enhance grape production efficiency, profitability, and sustainability for the United States grape industry.
Thursday Watch List
Markets
USDA's weekly export sales report will be out at 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims, an update of first-quarter U.S. GDP, U.S. durable goods orders for May and an update of the U.S. Drought Monitor. Stats Canada reports new planting estimates Thursday morning. The U.S. Energy Department's report of natural gas storage follows at 9:30 a.m. USDA's hog and pigs inventory report will be out at 2 p.m.
Weather
A front continues in the Southeast for Thursday, where some showers will be possible today. But the next big storm is moving into the Northern Plains and Canadian Prairies where it is already producing areas of showers and thunderstorms down to the Texas Panhandle. Showers and thunderstorms will become more widespread in these areas later this afternoon and especially this evening, with a significant risk of severe weather and heavy rainfall. Highs: 60s/70s Pacific Northwest, Canadian Prairies; 70s/80s Midwest; 70s/90s Northern Plains; 80s/90s Central Plains, Delta, Southeast; 90s/100s Southern Plains.
Wednesday, June 26, 2024
Clean Fuels Petitions EPA on RFS Volumes
Clean Fuels Alliance America filed a formal petition asking the Environmental Protection Agency to reconsider Renewable Fuel Standard volumes for 2024 and 2025. The agency set biomass-based diesel and overall advanced volumes significantly below the actual production of the fuels, ignoring available data on the rapid build-out of production capacity. The low volumes are discouraging production, sacrificing greenhouse gas emissions reductions, and undercutting the economic benefits intended under the program. “We warned the EPA that the no-growth rule they set would undercut investments, economic opportunities for the industry, and environmental benefits,” says Kurt Kovarik, Vice President of Federal Affairs at Clean Fuels. “We’re now asking the EPA to use the industry’s demonstrated production in 2023 as a baseline and allow additional growth in 2024 and 2025.” Clean Fuels is also asking the agency to set 2024 and 2025 biomass-based diesel volumes to 5.1 billion and 5.6 billion gallons, respectively.
Growmark Testing Biodiesel in Semi-Tractor Fleet
Growmark has partnered with Optimus Technologies to test biodiesel in five of its semi-tractors. The move may be a potential pathway to transitioning its entire fleet to low-carbon fuels. The engine upgrades from Optimus ensure heavy-duty diesel engines operate dependably in all weather conditions on either biodiesel or traditional diesel. The Growmark fleet drives five million miles annually. The pilot with only five heavy-duty trucks is going to be significantly lower in carbon dioxide emissions and the other pollutants found in traditional diesel, plus it will help improve air quality in communities near busy trucking routes. The U.S. Department of Energy cites a life cycle analysis by the Argonne National Laboratory Study concluded that biodiesel emissions for 100 percent biodiesel are 74 percent lower than emissions from petroleum-based diesel. Optimus says it’s happy to partner with Growmark and show that decarbonization is financially and environmentally sustainable for heavy-duty fleets today.
USDA Rule Clarifies Unfair Practices
The USDA announced new action to support a fairer, more competitive, and more resilient meat and poultry supply chain. USDA’s “Fair and Competitive Livestock and Poultry Markets” proposed rule would tackle longstanding challenges around interpretations of unfairness and competitive injury for the livestock, meat, and poultry sectors. The rule is designed to support farmers and growers and reduce food costs for consumers. Ag Secretary Tom Vilsack made the announcement during an event at the Center for American Progress showcasing the push to create more affordable and competitive agricultural markets. The event highlighted USDA’s wide-ranging progress to enhance the Department’s ability to enforce the Packers and Stockyards Act, including previous rulemaking and an enforcement partnership with the Department of Justice. “The proposed rule stands for clear and transparent standards so that markets function fairly and competitively for consumers and producers alike,” Vilsack says. “It’s designed to give farmers a fairer shake.”
Stabenow: Stop the Politics Around SNAP
Senate Ag Committee Chair Debbie Stabenow says the only path to passing a bipartisan farm bill is holding together the farm and food coalition that’s formed the foundation of past farm bills. “However, recent attempts to fracture that coalition through misleading statistics and an inaccurate portrayal of how the farm bill works have stalled progress on negotiations and risks forcing another 2018 extension,” Stabenow says. She also points out that the Supplemental Nutrition Assistance Program is designed to respond to fluctuations in the economy. Recent figures show that nutrition spending decreased by 13 percent since fiscal year 2022. “Year-to-year changes in SNAP spending do not take away from funding for other farm bill programs,” she says. “Similarly, year-to-year changes in spending for crop insurance and commodity programs during disasters or economic downturns don’t take away funding from SNAP.” Stabenow also says it’s time to get real and pass a farm bill.
May Egg Production Drops Two Percent
U.S. egg production totaled 9.1 billion during May 2024, down two percent from May 2023. Production included 7.81 billion table eggs and 1.3 billion hatching eggs, of which 1.2 billion were broiler-type and 99.7 million were egg-type. The average number of layers during May totaled 372 million, down three percent from last year. May egg production per 100 layers was 2,450 eggs, up one percent from May 2023. Total layers in the U.S. on June 1 reached 371 million, down three percent from 2023. The 371 million layers consisted of 306 million layers producing table or market-type eggs, 61.7 million producing broiler-type hatching eggs, and 3.83 million layers producing egg-type hatching eggs. The rate of lay on June 1 was 78.9 eggs per 100 layers. Egg-type chicks hatched during May totaled 58.2 million, one percent below May 2023. Broiler-type chicks hatched during May totaled 860 million, up one percent from May 2023.
State Disasters Declared Due To Flooding
The governors of Iowa, South Dakota, and Minnesota have all issued emergency declarations as heavy rains that began late last week flooded several rivers in the Upper Midwest. A large number of counties in southeastern South Dakota, southwestern Minnesota, and northwest Iowa saw rainfall amounts from Thursday through Saturday between five to eight inches. The National Weather Service says there are spots in the region that received as much as 15 inches. Iowa Governor Kim Reynolds requested an expedited presidential disaster declaration. “We’re still in a very early response stage, but the projected damage is staggering,” Reynolds said. Two major railroads in the region were seeing bridge closures and track damage in the Iowa-Minnesota-South Dakota region. BNSF lost a bridge over the Big Sioux River between Iowa and South Dakota. It’s too early to determine crop damage, but most Missouri River bottom fields were already in standing water before the past deluge.
Wednesday Watch List
Markets
Weather remains a likely focus of grain traders, although we can't guarantee they're comprehending what they see. A report on U.S. new home sales in May at 9 a.m. CDT Wednesday will be followed by U.S. Energy Department's weekly energy inventory report at 9:30 a.m. Keep in mind, the report's finding of ethanol production is for last week, before widespread flooding erupted in the northwestern Corn Belt.
Weather
Clusters of showers and thunderstorms that developed on Tuesday continue across the Ozarks into the northern Delta early Wednesday. The storms developed on a cold front that continues to sag southward and will be located from Oklahoma up through the Northeast by Wednesday afternoon, when additional showers and thunderstorms should fire up, some of which may be severe again. The next system moving into the Pacific Northwest should fire up some showers and thunderstorms in the High Plains Wednesday afternoon as well.
Tuesday, June 25, 2024
$25 Million to Help Expand Rural Internet Access
USDA’s Rural Development Undersecretary, Dr. Basil Gooden, says the agency is making $25 million available through the Broadband Technical Assistance Program. The funding is intended to help local organizations, cooperatives, and Tribes expand affordable, high-speed internet projects in rural communities. The department is now accepting applications. “USDA is committed to making sure that people, no matter where they live, have high-speed internet,” says Undersecretary Gooden. “USDA is partnering with small towns, Tribes, local utilities, rural cooperatives, and private companies to increase access to this critical service, which will boost opportunities and build bright futures.” He also says that’s how you grow the economy not just in rural communities, but around the nation. The BTA program provides funding to help communities and organizations receive or deliver broadband technical assistance and training that will expand high-speed internet into rural and Tribal communities. Applicants must apply in one of two categories found at Grants.gov.
Rain Causing Concerns for U.S. Crops
Rains in parts of the Midwest and intense heat in the East are causing significant concern for U.S. crops. The University of Illinois’ Farm Policy News says more wet weather continues to raise the fear of more flooding. In the Midwest, the focus is on too much rain that could result in flooded corn and soybean fields, especially in the upper Midwest. Floodwaters have risen in northwest Iowa, where 13 rivers overflowed their banks. Entire neighborhoods and whole towns have been evacuated, and Spencer, Iowa, imposed a curfew Sunday for the second straight night after flooding that surpassed the 1953 record. Reports says that northern Nebraska, southeastern South Dakota, southern Minnesota, and northwest Iowa received eight times the typical average rainfall. And the forecast says more rain is on the way this week. Fields around Mankato, Minnesota, were planted, drowned out, drained, got replanted, and have now drowned out again.
Bird Flu Infects Two More Iowa Dairies
Iowa officials have detected avian flu in cattle on two more Sioux County, Iowa, dairy farms. Successful Farming says that brings the total to eight in the last two weeks. The Iowa Department of Agriculture says one of the affected herds has about 500 cattle, and the other is much smaller, with just 45 animals. Sioux County has the largest number of dairy cattle in any Iowa county, with 40 licensed dairies. That means approximately one-fifth of those herds in the county have been infected by HPAI. Cows almost always recover from the virus within two weeks. The virus is often fatal for domestic birds and infected three Iowa poultry flocks this year, including a Sac County flock with 4.2 million egg-laying chickens in late May, as well as two turkey farms, one of which was affected last week. Entire flocks get culled to help keep the virus from spreading.
Purdue Studies Starting Salary for Ag Grads
Between 2020 and 2025, there will be an estimated total of 59,400 annual job openings in the agricultural job sector. Purdue University doctoral student Joshua Strine authored a study on the average starting salary for agricultural graduates. The average posted starting salary in those five years reached a high of $63,945 in January 2023. The lowest was $42,247 in February 2023. More recently in the study, the average salary was $53,594 in January 2024. Multiple trends show up in the data. First, there was an increase in posted salaries from 2022 to 2023. The average salary of job openings in 2022 and 2023 were $49,373 and $56,147, respectively. Salaries were also higher in 2021 at $52,051. One possible explanation is the increased demand for employees as companies transitioned back to full operation after COVID-19. Companies may have had to increase the wages they were offering to recruit more at-home workers back into the office.
Cattle on Feed and Milk Production Down Slightly
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 11.6 million head on June 1. That number was slightly below June 1, 2023. Placements in feedlots during May totaled 2.05 million head, four percent above 2023. Feedlot placements were 1.98 million head. Fed cattle marketings in May reached 1.96 million head, slightly higher than in 2023. In another USDA report, milk production in the 24 major dairy-producing states during May totaled 18.9 billion pounds, down 0.7 percent from May 2023. April’s revised production reached 18.3 billion pounds. Production per cow averaged 2,122 pounds for May, three pounds below May 2023. The number of milk cows on farms reached 8.89 million head, 52,000 less than in May 2023, but 5,000 more than April 2024. Total United States May milk production reached 19.7 billion pounds, down 0.9 percent from May 2023.
Army Corps Monitoring Minnesota Flooding
The U.S. Army Corps of Engineers is actively working to monitor flood conditions throughout the Upper Midwest, including in Minnesota, after heavy rains. The Engineers’ water managers currently have all the dam gates above the water from Lock and Dam 2 in Hastings, Minnesota, to Lock and Dam 10 in Guttenberg, Iowa. The gates are not needed to maintain the minimum nine feet of depth with the current conditions. “Because the recent rain events fell with the Minnesota River basin, the rain adds more water to the Mississippi River and will take several weeks to drain,” says Dan Fasching, St. Paul Corps of Engineers water manager. “Any additional rains during the next few weeks have the possibility to increase the flood risk.” Further south near La Crosse, Wisconsin, Corp officials closed Blackhawk Park on June 21 due to recent heavy rains and high river levels. For flooding info, visit usace.army.mil.
Tuesday Watch List
Markets
Grain traders that acted surprised to hear of weekend flooding Monday may want to check the news and weather a little closer Tuesday. Stats Canada reports on Canada's consumer prices Tuesday morning. An index of U.S. consumer confidence in May will be out at 9 a.m. CDT. USDA's monthly cold storage report is set for 2 p.m.
Weather
A cold front is drifting south through the Corn Belt for Tuesday. Early severe thunderstorms from northern Illinois into Michigan will be watched to see if they can be maintained throughout the day. But additional showers and thunderstorms will develop along the front later Tuesday afternoon and evening from Nebraska to Michigan, which may continue south overnight into Wednesday. South of the front, it continues to be hot.
Monday, June 24, 2024
Senators Want Answers on Cooking Oil Imports
Senators Chuck Grassley (R-IA) and Roger Marshall (R-KS) are pressing the Biden administration on the steps it’s taking to address the recent surge of used cooking oil imports. Last year, the U.S. imported three billion pounds of used cooking oil, half of which came from China. That’s up from a total of 200 million pounds imported in 2020. The senators sent a letter to the EPA, USDA, the USTR’s Office, and Customs and Border Protection. They point out concerns by some in the renewable fuels industry that large amounts of imported UCO may be a blend of UCO with virgin vegetable oils such as palm oil, which is directly linked to deforestation in Southeast Asia. That would constitute fraudulent value distortion of the commodity designed to take advantage of tax incentives in addition to Renewable Identification Number (RIN) fraud under the RFS. They want to ensure the integrity of clean fuel policies
USDA Releases Climate Adaptation and Resilience Plan
The USDA joined 20 agencies in releasing an updated Climate Adaptation Plan to ensure federal operations are increasingly resilient to climate change impacts. The updated adaptation plans advance the National Climate Resilience Framework, which helps to align climate resilience investments across the public and private sectors through common principles and opportunities for action to build a climate-resilient nation. Communities from coast to coast are experiencing the impacts of climate change through crop yields depleted by drought and other impacts like flooding and wildfires that have washed away roads, businesses, and homes in many areas. “USDA has taken a department-wide approach to consider the impacts of climate change on our mission delivery and those we serve,” says Ag Secretary Tom Vilsack. “From USDA headquarters to field offices nationwide, these efforts enable USDA to support the agriculture and forestry sectors and diverse communities across the country as they face climate change.”
SAF Coalition Continues to Grow
The Sustainable Aviation Fuel Coalition welcomed ten new companies and organizations involved in the development and deployment of sustainable aviation fuel into its membership. The new companies bring the membership count to more than 50. The new members include leaders in energy, aviation, aerospace, and SAF production. “We are excited to welcome this additional group of leading companies and organizations into our coalition,” says Allison Graab (Grahb), Executive director of the SAF Coalition. “The expansion of our membership shows the deep and growing support that SAF enjoys from many stakeholders, and together, we will continue advocating for federal policies that will support and increase SAF production.” The new companies include Honeywell, Shell, Southwest Airlines, and others. Since its founding in April, the nonprofit coalition has leveraged the collective strength of the SAF value chain to advocate for the incentives and policies necessary to promote U.S. competitiveness in the emerging SAF marketplace.
Animal Ag Leaders Explore New Facets of the Industry
The third cohort of the National Institute for Animal Agriculture’s Advanced Training for Animal Agriculture Leaders met for in-person training in Topeka, Kansas. The leadership training included ten educational sessions featuring ranchers, butchers, cooks, and leadership experts. “The most recent meeting in Topeka was eye-opening for me and again drove home what many of us are fighting for. The preservation of agriculture with the injection of new technology for sustainability,” says Sarah Coleman, executive director of the Kentucky Horse Council. “Listening to the team at NextGen Cattle Company was an incredible reminder that the food animal industry is constantly honing their skills to create animals that can feed the world, as fiscally and ethically responsible as possible.” The leadership training course is sponsored by the United Soybean Board and Farm Credit. It was created by the NIAA to empower animal agriculture professionals to strengthen leadership development and industry collaboration.
Lamb Industry Group Releases Summer SWAG
As the summertime cranks up, American Lamb producers want you to know it’s the perfect time to share American Lamb at fairs, festivals, and farmer’s markets. They’re thrilled to introduce new summertime SWAG items in the Shop on the Lamb Board website. These items are not just for display but a way for people to proudly promote American Lamb at all the hot summer events on the calendar. For example, the brand new “Ewe are my Sunshine” t-shirts are on sale at two for $30. The design is great for everyday events. “As direct marketers, we are always looking for cost-effective ways to promote our product at events, and utilizing the professionally curated marketing pieces on the Lamb Board site is a great way to amplify local marketing efforts,” says ALB Chairman Jeff Ebert. The new apron and recipe books are also a must-have for any grilling and cook-off competitions.
Ethanol Production and Inventories Increase
The Energy Information Administration says ethanol output and stockpiles both rose in the seven days ending on June 14. Ethanol production increased to an average of 1.057 million barrels a day. The EIA report says that was up from 1.023 million barrels from the prior week. Output in the Midwest was reported at 998,000 barrels a day, up from 967,000 barrels a week earlier. Gulf Coast production increased to an average of 26,000 barrels per day from 25,000 the previous week. West Coast output jumped to 12,000 barrels daily from 10,000 the week before. East Coast output was steady at 12,000 barrels per day. The EIA says the Rocky Mountain region was the lone decliner, dropping to 10,000 barrels a day, on average, from 11,000 barrels the week before. Ethanol stockpiles in the week ending on June 14 increased to 23.617 million barrels, up from 23.22 million a week earlier.
Monday Watch List
Markets
Back from the weekend, traders will keep close watch over the latest weather forecasts, especially looking at rain possibilities for the Eastern Corn Belt and reports of flooding in the northern Corn Belt. USDA's report of weekly export inspections is at 10 a.m. CDT Monday, followed by the weekly Crop Progress report at 3 p.m.
Weather
A system is moving through Canada, but its cold front is moving through the Northern Plains early Monday morning. The front will continue to push southeast into the Central Plains and Upper Midwest throughout the day. Lots of heat and humidity south of the front will be fuel for thunderstorms across the Upper Midwest especially Monday afternoon and evening. Severe weather will be possible with hail and strong wind gusts being likely in thunderstorms that do occur.
Friday, June 21, 2024
Stabenow: Republican Farm Bill Framework Uses “Magic Math”
Senator Debbie Stabenow (D-MI), Chair of the Senate Ag Committee, released a statement after the Congressional Budget Office published its revised 10-year budget projections. “Today’s updated projections from the CBO prove what we’ve been saying all along. The House Republican bill is unpaid for, relying on magic math and wishful thinking,” she says. “In exchange for blocking USDA’s ability to provide real-time assistance to farmers through the CCC to address emergency challenges, House Republicans received only a small fraction of the $50 billion hole they need to fill to pay for the bill.” She also says her Rural Prosperity and Food Security Act is meaningful and responsible. “More importantly, it doesn’t fracture the farm and food coalition that is the foundation of every successful farm bill,” she adds. “I did the hard work of securing new resources outside the farm bill,” she says. “Now is the time to start negotiating.”
Dairy Co-op Wants Accurate Payment Provisions in the Farm Bill
Edge Dairy Farmer Cooperative announced efforts in partnering with several other dairy industry supporters to codify the protection of timely payments and accurate testing as legislative text in the next farm bill. The request to move these specific FMMO provisions into legislation was prompted by the uncertainty created when volumes of milk are de-pooled, leaving farmers outside of the FMMO and outside of the USDA’s Agricultural Marketing Service. This action aims to extend those protections, currently granted when a processor is pooled, to all farmers and processors regardless of their participation in the FMMO. “Only 70 percent of U.S. milk is covered by the FMMO today, which leaves farmers that produce those 68 billion pounds of milk outside the order and its protections,” says Tim Trotter, Edge CEO. “It’s time to ensure that all U.S. dairy farmers are granted the same confidence and assurance as those within the FMMO system.”
Clean Fuels Alliance Files Lawsuit Against EPA
Clean Fuels Alliance America asked the D.C. Circuit Court of Appeals to review the EPA’s final Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3. In the final rule, the Environmental Protection Agency evaluated a range of alternative fuel and engine configurations for 2027-2032 heavy-duty vehicles. However, the agency specifically declined to consider biodiesel and renewable diesel in combination with existing engines that are already widely available. “EPA put its thumb on the scale to favor electric and hybrid vehicles that are not guaranteed to be widely available in the timeframe addressed by the rule,” says Kurt Kovarik, vice president of federal affairs for Clean Fuels Alliance America. “The agency refused to consider the increasing availability of biodiesel and renewable diesel as an achievable, affordable technology for meeting the goals of heavy-duty truck rules by 2032.” The Alliance represents the entire biodiesel, renewable diesel, and sustainable aviation fuel industry supply chains.
Farmers Holding Large Corn and Soybean Stocks
After stockpiling crops for much of this season due to low commodity prices, many U.S. farmers continue to turn away buyers despite few signs that prices will improve. Farm Policy News says grain supplies are ample, and early ratings of summer crops are good. While USDA will update on-farm corn and bean stocks numbers at the end of June, a recent report showed corn stocks at the farm level were just over five billion bushels on March 1, the second-highest on-farm stocks on record for that date. In states like Iowa, Nebraska, and Illinois, corn stocks on-farm were 105 to 160 million bushels higher than last year. Farmers are also holding on to soybeans on-farm at a much higher level in 2024 than last year. The March Grains Stocks Report said that soybean stocks stored on farms are estimated at 933 million bushels, up 24 percent from a year ago.
USDA Releases Livestock, Dairy, and Poultry Outlook
USDA released its June 2024 Livestock, Dairy, and Poultry Outlook that shows the 2024 beef production forecast is virtually unchanged. Heavier cattle weights are expected to partially offset tight cattle supplies. The 2025 beef production forecast is raised with expectations of continued high cattle weights and a shift in marketings from late 2024 into early 2025. Minor changes to cattle price projections from last month’s forecast reflect changes in recent price data. The beef trade forecasts are unchanged from last month. Milk production forecasts for 2024 and 2025 remain unchanged from the last projection at 227.3 and 229.3 billion pounds, respectively. The all-milk price for 2024 is projected at $21.60 per hundredweight. Second-quarter pork production was adjusted upward by 40 million pounds to 6.73 billion pounds on expectations of higher average dressed weights and higher-than-expected ready-to-slaughter hogs from the December-February pig crop. Also, projected poultry broiler production in 2024 was increased.
USDA Wants Better Understanding of Forest and Grazing Practices
The “Conservation Practice Adoption Motivations Survey” is a joint project between the National Agricultural Statistics Service and the Natural Resources Conservation Service. The survey will be mailed to 43,000 forest and grazing landowners and managers across the country. The survey is designed to gather information on why people choose to use different conservation practices and whether they use those practices over time. The data will help improve voluntary conservation programs. NASS will mail an invitation to respond early online at agcounts.usda.gov starting on June 24. Four different conservation categories are researched through CPAMS overall: crop practices, confined livestock practices, grazing practices, and forestry practices. This year, NASS will survey grazing practices and forestry practices. Crop practices and confined livestock practices were surveyed in 2022. “By responding, you can help shape the future of conservation, agriculture, and forestry,” says NASS Administrator Joseph Parson. Responses are confidential and used for statistical purposes only.
Friday Watch List
Markets
USDA's weekly export sales will be out at 7:30 a.m. CDT Friday, followed by U.S. existing home sales in May and the index of U.S. leading indicators, both at 9 a.m. USDA's cattle on-feed report for June 1 is set for 2 p.m.
Weather
A front that has been waffling around the Plains and Upper Midwest all week continues to produce heavy rain in the Upper Midwest for Friday, likely in a couple of rounds of repeated and training showers and thunderstorms, some of which may be severe. South of the front it continues to be hot and humid and with less of a connection to the Gulf of Mexico, it will be very dry as well.
Thursday, June 20, 2024
Thursday Watch List
Markets
Back from the Juneteenth holiday on Wednesday, traders will catch up with the latest weather forecasts. Weekly U.S. jobless claims, May U.S. housing starts and an update of the U.S. Drought Monitor will all be out at 7:30 a.m. CDT Thursday. The U.S. Energy Department's report of natural gas storage is set for 9:30 a.m., followed by the weekly energy inventory report at 10 a.m.
Weather
A front, which has waffled around the northwestern Corn Belt all week long, will continue to be active for Thursday. The eastern end of the front is being pushed into the Northeast though, and so areas of showers and thunderstorms will be spread out from Nebraska and South Dakota to New England. Due to the recent rainfall and forecast rainfall in the northwest, some flooding will be possible in South Dakota. South of the front, it continues to be hot, with excessive heat watches and warnings across the Eastern Corn Belt into the Northeast.
Wednesday, June 19, 2024
Emissions Lawsuit Against EPA Filed on Tuesday
The National Corn Growers Association, American Farm Bureau Federation, and the Owner-Operator Independent Drivers Association joined the American Petroleum Institute in filing a lawsuit against the EPA. The suit, filed in the D.C. Circuit Court of Appeals, challenges the Environmental Protection Agency’s heavy-duty vehicle emissions standards for model years 2027-2032. The groups say the EPA exceeded its congressional authority with regulation targets that rely too heavily on electrification and don’t fully appreciate the role of low-carbon fuels like ethanol. NCGA President Harold Wolle (WOOL-lee) says the EPA tried imposing a one-size-fits-all approach to addressing the climate by prioritizing electric vehicles over other climate remedies like corn ethanol. “Farmers rely on heavy-duty trucks to transport livestock long distances, and they choose the shortest route to keep animals in vehicles for as little time as possible,” says Farm Bureau President Zippy Duvall. “Battery-powered vehicles extend the time that animals and drivers are on the road.”
Brazil Upholds Tariff on U.S. Ethanol
The Foreign Trade Chamber at Brazil’s Ministry of the Economy upheld an 18 percent tariff on U.S. ethanol. With support from the Brazil Association of Fuel Importers, the U.S. ethanol industry and the U.S. government previously submitted comments advocating for permanent tariff removal during a public consulting period that ended on April 11. Together, the U.S. ethanol industry – including the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association – reacted to the decision. “We remain extremely disappointed with this result and urge the Brazilian government to remove tariff barriers on U.S. ethanol and use this as an opportunity to strengthen the bilateral agenda and stimulate trade cooperation between Brazil and the U.S.,” they said in a statement. “The tariff has placed a heavy financial burden on Brazilian consumers in a misdirected effort to protect the domestic Brazilian industry, which continues enjoying free and increasing access to the U.S. market.”
HPAI Research Proposals are Welcome
Highly Pathogenic Avian Influenza continues to infect a wide range of animals from birds to sea mammals to cattle. The virus has spread to dairy cattle and farm workers, and more HPAI research is needed to enhance surveillance and response capabilities. The Foundation for Food and Agriculture Research has a program called Rapid Outcomes from Agricultural Research, or ROAR. The program awards research grants in response to emerging and unanticipated food and agriculture threats. The ROAR Program welcomes research proposals related to HPAI response, prevention, or mitigation. The agriculture industry urgently needs research to understand the recent transmission of HPAI into dairy cattle and to develop effective solutions to protect livestock, producer bottom lines, and America’s food supply. FFAR is interested in research to inform HPAI response, prevention, or mitigation, including work on HPAI pathogenesis, transmission, and biosecurity enhancements on dairies. The ROAR webpage includes more information on program requirements.
Minnesota Students Win Dairy Checkoff Competition
A University of Minnesota team took first place in the Dairy Management Inc.’s New Product Competition with a new cheese spread. The winning product met the contest’s guidelines of creating innovative dairy-based products for consumers’ health and wellness needs. The students created Yay-tost, a creamy Norwegian-style brown, whey-based cheese spread that offers health-conscious consumers a good source of protein, contains three grams of dietary fiber, and is an excellent source of calcium. The product comes in an aluminum squeeze tube that is recyclable. The four winning students are studying food science and earned a first-place prize of $10,000. They were recognized during the American Dairy Science Association’s annual meeting in Florida. They first got the idea by noticing there’s a “niche missing for high-protein spread.” The consistency of the product is somewhere between cream cheese and peanut butter and has almost no fat. To learn more, go to usdairy.com.
Brown Retires From the National Chicken Council
After serving for more than 13 years, Mike Brown has retired from his role as President of the National Chicken Council. “We thank Mike for his hard work in building a strong foundation at NCC and for his years of work to promote the chicken industry in Washington, D.C.,” says NCC Chairman Ryan Day. “We are now turning our attention to conducting a nationwide search to choose the right person to lead this organization and this great industry into the next decade and beyond.” Day also announced that the NCC Executive Committee has appointed Gary Kushner to serve as the interim president. Kushner recently retired after serving as NCC’s outside general counsel for more than 40 years. Prior to that, Kushner served as in-house legal counsel to what was then the American Meat Institute. “NCC has a fantastic team that is laser-focused on advocating for America’s chicken producers,” Kushner says.
Nominations Open for FSA Local County Committees
Nominations are now being accepted for farmers and ranchers to serve on local USDA Farm Service Agency county committees. The committees make important decisions about how federal farm programs are administered locally. All nomination forms for the 2024 election must be postmarked or received in the local FSA office by August 1. “Serving on a county committee is your chance to ensure that other producers who share your interests, your production practices, and your perspective are represented,” says FSA Administrator Zach Ducheneaux. “Nominations are now open, and elections begin in November, so don’t miss this chance to help FSA serve all producers.” Elections for committee members will occur in certain Local Administrative Areas. Producers may be nominated for candidacy if they participate or cooperate in a USDA program and reside in the LAA that is up for election this year. Nationwide, over 7,700 ag community members serve on their county committees.
Tuesday, June 18, 2024
Judge Blocks Disaster Program Special Funding to Minority Farmers
A Texas federal judge has temporarily blocked a USDA disaster relief program from giving preferential funding to women and minority farmers. The judge sided with a group of plaintiffs who claimed the program illegally discriminates against white male farmers. The judge’s order ruled the program likely violated the plaintiffs’ constitutional rights to equal protection under the law. Agriculture Dive says he halted the USDA from making payments or providing additional relief to people based on its “socially disadvantaged farmer or rancher” designation until a resolution has been reached. The ruling follows a lawsuit from Texas farmers who claimed they would have received more funding under disaster and pandemic relief programs had they been another race or gender. Critics say the ruling is a step backward following decades of systemic racism and policies that largely benefited white farmers. USDA says the program reflects the Farm Service Agency’s interest in remedying past discrimination.
Despite Progress, Farm Bill Passage Still Unlikely
There’s been recent progress toward a 2024 Farm Bill, but is it fast enough? Farm Policy News from the University of Illinois says lawmakers have hinted that passage of a full farm bill this year is growing more unlikely. Another extension of the 2018 Farm Bill remains the most likely outcome before the end of the current extension in September. Farm Policy News says Senate Ag Chair Debbie Stabenow is pessimistic that the House Ag Committee-passed bill will make it through the House, and she fears a Senate bill may face the same fate. Stabenow rejected Republican proposals because of cuts to nutrition spending and removing “climate guardrails” in the Inflation Reduction Act funding. Several industry experts point out that the bill is unlikely to pass because lawmakers have only completed a small portion of the necessary steps to pass a bill and eight steps are left to go.
USDA Recognizes National Pollinator Week
This week is National Pollinator Week. The USDA is recognizing and celebrating the event as pollinator species like bees and other insects, birds, and bats all play a critical role in producing more than 100 U.S. crops. Ag Secretary Tom Vilsack says the nation’s farmers depend on a vibrant ecosystem to feed and fuel communities, and pollinators are a big part of that. “This week and every week, it’s critically important that we protect pollinators and their habitats,” he says. “Healthy pollinator populations are essential to the continued success and well-being of agricultural producers, rural America, and the entire U.S. economy because, without them, many of our nation’s crops wouldn’t be able to produce as many fruits, nuts, or vegetables.” USDA supports the critical role pollinators play in the food system through research, data collection, diagnostic services, pollinator health monitoring, pollinator habitat enhancement programs, pollinator health grants, and financial assistance programs.
American Soybean Association Seeking Nominations for Recognition Awards
The American Soybean Association would like to recognize exceptional soy volunteers and leaders and requests the public’s help with candidate nominations. During the 2025 Commodity Classic, individuals will be honored for state association volunteerism, distinguished leadership achievements, and long-term, significant contributions to the soybean industry. The nomination period is open through October 25. The ASA Recognition Awards categories include the Outstanding State Volunteer Award, which recognizes individuals who’ve given at least three years of service to their state soybean associations. The Distinguished Leadership Award is given for visionary leadership within ASA or a state soybean association with at least five years of leadership service. The ASA Pinnacle Award is an industry-wide recognition of individuals who’ve demonstrated the highest level of contribution and lifetime leadership within the soybean industry. All nominations must be received online no later than Friday, October 25. Nominations by telephone, email, and other means will not be accepted.
Registration Open for PLC Annual Meeting
Registration is open for the Public Lands Council’s 56th Annual Meeting in Grand Junction, Colorado, from September 17-19. PLC President Mark Roeber says at a time when federal lands ranchers are facing tremendous government overreach, he can’t think of a better time to come together to coordinate the Council’s policy and advocacy efforts. ”In the last year, federal rulemakings finalizing regressive changes to the Endangered Species Act and NEPA, along with the Bureau of Land Management’s Public Lands rule, have posed threats to the foundation of our livelihoods,” Roeber says. “I’m honored to host the annual meeting in my home state, near the grazing allotments my family has worked on since 1889, and hope that all federal permittees attend as we work to safeguard our industry for the next 100 years.” In Washington, D.C., PLC defends the rights and interests of cattle and sheep producers who utilize federal lands and grazing permits.
First USDA Trade Mission Dedicated to Indigenous Products
Alexis Taylor, USDA Undersecretary for Trade and Foreign Agricultural Affairs, is in Vancouver, Canada, for a first-of-its-kind trade mission. The mission is intended to develop export markets for Tribal and Native Hawaiian businesses and products. “This historic trade mission showcasing products from Tribal and Native Hawaiian producers is long overdue, and Canada couldn’t be a better host country,” Taylor says. “Indigenous nations on both sides of the border share strong historical connections to their lands, trading networks, and agricultural practices.” Taylor is also proud to represent USDA with the unique opportunity to be the change that stakeholders want to see in the industry. “USDA continues seeking opportunities to support Tribal and Native Hawaiian priorities, including the restoration of vital trading networks for their agricultural resources,” she adds. “International relationships are an excellent tool for strengthening agricultural communities and businesses at home.” Taylor is leading a delegation of officials from 15 Tribal agribusinesses.
Tuesday Watch List
Markets
A report on U.S. retail sales in May is due out at 7:30 a.m. CDT, followed by the Federal Reserve's report on May industrial production at 8:15 a.m. Traders remain attentive to the latest weather forecasts in several parts of the world.
Weather
A frontal boundary has shifted a bit, but still remains in the Western Corn Belt for Tuesday. Morning thunderstorms across northern Minnesota may become severe, with additional thunderstorms expected to develop from Kansas through Minnesota Tuesday afternoon and evening, which may also be severe and drop some heavy rainfall. South and east of the front, it continues to be very hot and humid. Some isolated showers and thunderstorms will develop in the heat, which would keep a lid on high temperatures where they occur.
Monday, June 17, 2024
4WD Tractor Sales Up in May Compared to 2023
U.S. sales of four-wheel-drive tractors rose 9.4 percent in May compared to 2023. Data from the Association of Equipment Manufacturers says this increase follows April 2024’s uptick of 24 percent compared to the year before. The data also indicates U.S. year-to-date sales of four-wheel-drive tractors are up 3.2 percent. Total U.S. agriculture tractor sales dropped 11.5 percent compared to May 2023, while combine sales fell 17 percent compared to last year. “After the resilience of the last five years, we’re starting to see softness in pockets of the market,” says AEM vice president Curt Blades. “Although the total year over year numbers show declines, subcategories of the market remain strong, particularly larger equipment.” Canadian sales of four-wheel-drive tractors also increased in May, with an uptick of 5.7 percent, but fell 7.5 percent compared to May 2023. Total combine sales jumped 58 percent and tractor sales dropped 10.7 percent compared to 2023.
USDA Funds to Support Farmworkers
Ag Secretary Tom Vilsack says the USDA is awarding $50 million to 141 awardees in 40 states and Puerto Rico. The funds come through the Farm Labor Stabilization and Protection Pilot Program and will reach 177 unique agricultural operations and more than 11,000 workers. The awards are intended to improve the resiliency of the U.S. food supply chain by addressing agriculture labor challenges and instability, strengthening protections for farmworkers, and expanding legal pathways for labor migration. “These awards will largely support small and mid-sized farms to ensure they can hire and retain the workers they need to be competitive in the market, while also lifting rural communities across the country,” Vilsack says. “Farmworkers make an incredibly important contribution to food and agriculture and ensure we have food on our tables every day.” FLSP was put together with significant input from immigration, labor, and agricultural stakeholders like farmers and farmworkers.
Cautious Optimism at the World Pork Expo
The 36th World Pork Expo hosted more than 12,000 producers and industry professionals from 37 countries at the Iowa State Fairgrounds in Des Moines. “World Pork Expo brings out the best in the swine industry,” says Lori Stevermer, NPPC President and Minnesota pork producer. “There are so many educational and networking opportunities.” Exhibitors look forward to talking with producers from all over the country and around the world. Several exhibitors noted that after a long period of losses, producers are beginning to re-invest in their facilities, adopting new technologies and asking questions so they can continue to raise pork as efficiently and effectively as possible. Producers discussed several priorities with exhibitors, including precision feeding to reduce feed costs and improve the sustainability of their operations. In other words, producers want to produce more with less. A Novus International account manager noted producers are taking action to improve productivity and maximize profitability.
BLM Director Grilled by Senate Republicans
Bureau of Land Management Director Tracy Stone-Manning testified at a Senate Energy and Natural Resources hearing. She was pressed by Republicans on the committee on topics like renewable energy, conservation, and mining. The committee Republicans accused Stone-Manning of advancing President Biden’s agenda without listening to people directly impacted by the agency’s work. It was the first appearance by the BLM director since she was confirmed to her post on a party-line vote in 2021. Stone-Manning said she was committed to helping the nation achieve the president’s goals of eliminating carbon emissions from the power sector by 2035. Senator John Barrasso (R-WY) said the director’s decisions have a significant effect on people’s jobs, on their family budgets, on the quality of public education, and on Wyoming’s entire state economy. “Ms. Stone-Manning has been busy making decisions that will crush Wyoming’s economy and lay waste to local communities in the years ahead,” he added.
NCGA Elects New First Vice President
The National Corn Growers Association’s Corn Board has elected Jed Bower of Washington Court House, Ohio, as the organization’s next first vice president for the new fiscal year, which begins on October 1. Bower says it’s a great honor to be elected to this role by his fellow board members. “With a new strategic plan in place, this is an exciting time to serve in a leadership role on the board,” he says. “I look forward to working with my fellow board members, in partnership with grower leaders and staff from across our national and state partner organizations, to lead NCGA toward a future that I am confident will best serve U.S. corn growers.” Bower raises corn and soybeans with his wife, Emily, and children, Ethan and Emma, on their fifth-generation family farm. On October 1, Kenny Hartman of Illinois becomes NCGA President, and Bower takes over in October 2025.
Flags Over Harvest Campaign for Farm Rescue
Titan International is continuing its fourth annual Flags Over Harvest campaign. The company will give away free American flags for farmers to proudly display on their equipment during the harvest season. For every flag requested, Titan will donate $5 to Farm Rescue, a nonprofit organization dedicated to assisting farmers who have faced major illnesses, injuries, or natural disasters. Through the 2023 growing season, Farm Rescue provided essential assistance to 64 farm families across its eight-state service territory. Whether it was planting, haying, harvesting, or livestock feeding, Farm Rescue’s dedicated volunteers were there to lend a helping hand. Farm Rescue has been the beneficiary of Titan’s Flags Over Harvest campaign since 2021, and the partnership is on track to raise $20,000 in support of the organization’s vital assistance operations. “We are immensely grateful for the generous support we have received from Titan International,” says Tim Sullivan, Senior Development Officer at Farm Rescue.
Monday Watch List
Markets
Back from the weekend, traders continue to keep close watch over the latest weather forecasts. USDA's report of weekly export inspections is at 10 a.m. CDT Monday, followed by the weekly Crop Progress report at 3 p.m.
Weather
A stalled front from Nebraska to Wisconsin is producing areas of heavy rain and thunderstorms already Monday morning. While this activity should wind down, additional showers and thunderstorms will develop later Monday, potentially becoming severe both along that line and northwest into the Dakotas and western Minnesota. Heavy rain and flooding is also a potential hazard. South and east, temperatures will soar well above normal and be excessive, with limited showers to cool things off.
Friday, June 14, 2024
China Bans Meat Exports from U.S. West Coast Facility
China has banned meat exports from a West Coast cold storage facility near the Port of Oakland after traces of the feed additive ractopamine were found in beef shipments. The Food Safety and Inspection Service said that Chinese customs workers detected the feed additive that’s banned by more than 150 countries. Agriculture Dive says the move is creating significant obstacles at an important trade gateway to Asia. China suspended those exports out of Cool Port Oakland on May 27. The ban on Cool Port Oakland has disrupted operations for meat exporters as far away as the Midwest. Those export companies rely on the facility to transfer their freight from rail to ocean before it ships out of the Oakland port. “China’s suspension of this facility has caused disruption for beef, pork, and poultry exports,” says Joe Schuele (SHEE-lee) of the U.S. Meat Export Federation. “Exporters must use other Bay Area facilities.”
Groups Sue EPA Over Emissions Rule
The American Petroleum Institute teamed up with ag groups to sue the Environmental Protection Agency over its light-duty and medium-duty vehicle emissions standards for model years 2027-2032. While API is the lead petitioner, The Fence Post says the National Corn Growers Association and the American Farm Bureau Federation are co-petitioners. “By approving tailpipe standards that focus exclusively on electric vehicles, EPA ignored the benefits corn ethanol plays in reducing greenhouse gas emissions,” says NCGA President Harold (WOOL-lee). “It may take decades to get enough electric vehicles on the road to significantly lower emissions.” AFB President Zippy Duvall says, “Impractical standards for light-duty and medium-duty trucks will drive up the cost of farm vehicles and force farmers to rely on a charging network that doesn’t exist in rural areas.” The new rule requires 68 percent of new passenger vehicles and 43 percent of new medium-duty trucks and vans to be electric by 2032.
SAF Coalition Applauds Launch of Congressional SAF Caucus
The Sustainable Aviation Fuel Coalition’s Executive Director, Allison Graab (Grahb), applauded the formal establishment of the bipartisan Congressional Sustainable Aviation Caucus in the U.S. House. “The SAF Coalition thanks Representatives Sharice Davids (D-KS) and Dusty Johnson (R-SD) for their leadership in establishing the bipartisan Congressional Sustainable Aviation Caucus and highlighting the significant opportunity to ensure a sustainable future for the aviation industry,” Graab says. “The SAF Coalition looks forward to working with this caucus and other allied efforts within both the House and the Senate to accelerate the development and deployment of sustainable aviation fuels in the U.S..” She also says SAF and other emerging aviation technologies will increase U.S. economic competitiveness, enhance American energy security, and spur job creation here at home in the United States. The Sustainable Aviation Fuel Coalition represents the entirety of the SAF value chain and is working together to rapidly invest in the SAF sector.
USDA Announces Innovation Challenge
The USDA and the Foundation for Food and Agriculture Research (FFAR) launched a global challenge to advance scientific research that will produce breakthroughs for nutrition security. The “Nourishing Next Generation Agrifood Breakthroughs” innovation challenge will fund teams led by early-career scientists, those who have received a Ph.D. within the past ten years. The goal is to help catalyze new discoveries and mobilize transformative research that simultaneously tackles America’s most important societal challenges. The competitive Innovation Challenge will spark high-risk, high-reward research through innovations at the intersection of nutrition security and climate-smart agriculture. USDA and FFAR will provide up to $2 million to successful applicants across multiple teams who propose a compelling vision about how their research can support sustainable food production, promote human health, and enhance real-world nutrition security. “Through the challenge, we are investing in researchers who are sources of disruptive ideas and breakthrough solutions in agricultural science,” Vilsack says.
CFA Applauds Letter Urging Higher RFS Volumes
A bipartisan group of 18 Senators sent a letter to Environmental Protection Agency Administrator Michael Regan encouraging the agency to complete 2026 RFS rules and raise RFS volumes. They want higher volumes for biomass-based diesel and advanced biofuels to levels that are consistent with production and availability. The letter points to the discouraging market signal EPA sent with the 2023-2025 volumes and the negative impact on local economies and jobs in the clean fuels industry. “Biofuels play a critical role in emissions reduction for heavy-duty transportation, including aviation, shipping, rail, and trucking, while opening up economic opportunities for American farmers,” the letter says. “A strong RFS and availability of homegrown agricultural feedstocks bolster the domestic fuel supply and are critical for keeping up the progress we’ve made in decarbonizing our roads, seas, railways, and skies.” Kurt Kovarik of Clean Fuels Alliance America says the EPA must act in a timely manner.
America’s Farmers Support America’s Pastime
The American Sugar Alliance joined the National Cotton Council, U.S. Rice Producers Association, Farm Credit Council, Ducks Unlimited, and Purina to help support the upcoming Congressional Baseball Game. Founded in 1909, the Congressional Baseball Game brings together members of Congress and fans for a bipartisan game that raises money for local charities. Baseball is one of America’s favorite pastimes with help from American agriculture. For example, sugar crop farmers produce the sugar used to make lemonade and cotton candy. Peanut growers produce the crunch and salty peanuts. Corn growers produce the kernels popped into the delicious popcorn. Wheat growers produce the wheat needed to make tasty hot dog buns, pretzels, and beer. That’s just the start. The grass in the outfield likely came from a turf farmer, the wood for bats came from a forester, and the leather for the baseball gloves and baseballs likely came from a rancher.
Friday Watch List
Markets
The University of Michigan's early consumer sentiment index for June will be out at 9 a.m. CDT. Traders continue to keep a close watch on the latest weather forecasts with above-normal temperatures prevalent for at least the next 10 days. Soybean crush estimates from the National Oilseeds Processors Association are scheduled for Monday, June 17.
Weather
A front has stalled out around Kansas and will lift northward a bit on Friday, bringing areas of showers and thunderstorms to the Central Plains, with some eastward extension of showers through the Ohio Valley. It will be quieter elsewhere for most of the day with hot temperatures south of the front.
Thursday, June 13, 2024
USDA Release June WASDE Report
The June World Ag Supply and Demand Estimates Report says the 2024-2025 U.S. corn outlook is unchanged relative to last month. The season-average price received by producers remains at $4.40 a bushel. USDA will release its Acreage Report on June 28, which will provide survey-based indications of planted and harvested areas. The soybean outlook includes higher beginning and ending stocks. With increased supplies and no use changes, soybean ending stocks are predicted at 455 million bushels, up by 10 million. The soybean price is forecast at $11.20 per bushel, unchanged from last month. The June wheat outlook is for larger supplies, unchanged domestic use, increased exports, and lower stocks. Supplies are raised as wheat production is forecast at 1.875 billion bushels, up by 17 million from last month. Ending stocks are lowered slightly from last month but still significantly higher than last year at 758 million bushels. The season-average price is $6.50.
More Mixed Reaction to Senate Republican Farm Bill Framework
Reaction continues to be mixed to the farm bill framework released by Senate Ag Committee Ranking Member John Boozman (R-AR). Farm Credit Council applauded Senate Ag leaders for putting out ideas to move the farm bill forward. “Economic conditions in agriculture are tightening, and America’s farmers and ranchers need the certainty of a five-year farm bill,” says FCC President and CEO Todd Van Hoose. “We need that certainty this year.” The National Association of Conservation Districts applauded Boozman’s framework, noting that it supports the NACD’s top farm bill request by calling for the incorporation of all remaining Inflation Reduction Act conservation investments into the conservation title of the bill. Response from Ag Committee Chair Debbie Stabenow (D-MI) was more mixed, saying that she and Boozman have had many conversations about getting ideas on paper and that this is a welcome development. “Now it’s time to do the hard work,” she says.
Damage Estimates in Brazil Top $600 Million
Rio Grande (GRAN-day) do Sul, a major crop producer and agribusiness zone in Brazil, has been hard hit by unprecedented flooding. Record rainfall has affected more than 90 percent of the state, an area comparable to the United Kingdom. The University of Illinois’ Farmdoc Daily says floods and landslides have destroyed food-storage facilities, disrupted harvests, and damaged soils. The National Confederation of Municipalities estimates losses exceeding $600 million in the agricultural and livestock sectors of Rio Grande do Sul. The State Ag Department reports at least 48,000 producers and approximately eight million acres were affected by the May flooding, which began as the summer crop season was ending. Another report says 144 storage facilities were directly affected in Rio Grande do Sul, impacting more than 1.1 million tons of grain. Flooding has led to an estimated loss of 2.71 million tons of soybeans, an equivalent to 100 million bushels.
Agency Investing in Wildfire Risk Reduction and Forest Quality
Deputy Secretary of Agriculture Xochitl (so-CHEEL) Torres Small spoke during a meeting of the Western Governors Association and covered a number of topics. Small says USDA is investing almost $66 million in projects to reduce wildfire risk, protect water quality, and improve forest health across the nation. She also signed a Memorandum of Understanding with the Western Governors’ Association that reestablished the framework for cooperatively responding to the many challenges faced across the Western landscapes. The memorandum also fosters better integration of forest and rangeland health and wildfire risk reduction projects across different land ownerships. “People across rural America face growing wildfire threats to their homes, business, infrastructure, and resources,” says Torres Small. “Through the investments we are announcing, we are investing in state and local governments, Tribal partners, and private landowners to ensure our landscapes are healthy, our infrastructure is strong, and our communities stay safe from the risk of wildfires.”
Former Oregon Rep Calls for Expanded Support for SAF
Former Oregon Representative Greg Walden is calling on Congress to increase federal support for sustainable aviation fuel production. The former House Energy and Commerce Committee Chair says the U.S. is within reach of realizing truly transformative innovations in energy like SAF that will increase domestic production, further U.S. energy security, and create new markets for industries like aviation that are essential to our economy. “The next few years are critically important for the future of SAF, yet significant economic barriers are preventing the immediate expansion of SAF,” Walden says. “Demand for SAF already far exceeds supply, and the relatively limited amount of SAF currently available is much more expensive than conventional jet fuel.” Despite tax credits and other government support, more longer-term federal assistance is needed. “Seeing market opportunities, other nations are boosting production, imposing SAF mandates, and procuring supply in their attempts to corner the SAF market,” he adds.
FFA Members Will Attend the Summer Next Gen Conference
The National FFA Organization is hosting its summer Next Gen Conference in Minneapolis, Minnesota, from June 25-28. The conference topic is “Food Products and Processing Systems, and high school attendees will learn through informational sessions, panels, and tours. “We’re looking forward to the students learning more about the value of food products and processing systems during the upcoming Next Gen Conference,” says Joe Martin, Program Specialist for Advocacy, Literacy, and Ag-Based Experiences with National FFA. “One of the key goals of FFA is to equip our future workforce pipeline with talent that will feed, fuel, and clothe the world.” The conference is a big educational opportunity for high school sophomores, juniors, and seniors that meets this goal. Tour locations in Minneapolis during the conference include Second Harvest Heartland, Cargill, Food Building, and Ardent Mills. With FFA membership at 945,000, those interested in attending are selected through a competitive application process.
Thursday Watch List
Markets USDA's weekly export sales will be out at 7:30 a.m. CDT Thursday, the same time as reports on weekly U.S. jobless claims, the producer price index for May and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly natural gas storage report will be out at 9:30 a.m. Weather A small storm system is moving out of southern Canada and dragging a cold front through the Corn Belt where showers and thunderstorms are and will continue to develop for Thursday. Areas of heavy rain and some severe weather are expected, with the greatest risk from the Missouri-Iowa border into northern Illinois.
Wednesday, June 12, 2024
Boozman Unveils Senate Ag Republicans Framework
Senator John Boozman (R-AR), ranking member of the Senate Ag Committee, unveiled the Senate Republican-drafted framework answering the call for a “farmer-focused” farm bill. “From the onset of this process, we have sought to draft a farm bill that reflects the needs of stakeholders,” Boozman says. “The world has changed dramatically since the 2018 bill became law, and the unprecedented challenges and economic uncertainty that farmers now face are only projected to get worse in the coming years.” He also says that’s why farmers have been calling on senators to put more farm in the farm bill. The Senate Republican Committee members say the framework modernizes the safety net, facilitating the expansion of access to overseas markets, fosters breakthroughs in agricultural research, and grows the rural communities that farmers, ranchers, and foresters call home. They also say it does all that while making historic investments in conservation and protecting nutrition programs.
Ag Stakeholders React to Republican Farm Bill Framework
Several key agricultural groups and stakeholders issued responses to the Senate Ag Committee Republicans’ farm bill framework. Gregg Doud, President and CEO of the National Milk Producers Federation, calls it a strong framework that marks another important step in enacting a farm bill. The National Cattlemen’s Beef Association also reacted positively to the framework, noting that it’s a farm bill framework that cattle producers can proudly support. National Sorghum Producers Chair Craig Meeker says his group calls it a forward-thinking farm bill, and it’s put together to meet the ever-evolving needs of America’s hardworking farmers and ranchers. Democratic reaction to the Republican framework was less supportive. “By copying the approach taken by House Ag Committee Republicans, the Senate Ag minority has chosen to ignore Democratic warnings by putting forth policies, especially on nutrition, that the Democrats cannot and will not accept,” says House Ag Committee Ranking Member David Scott (D-GA).
USDA: File Crop Acreage Reports After Planting is Complete
Agricultural producers should make an appointment with their local Farm Service Agency office to complete crop acreage reports before their application deadline after planting is complete. July 15 is a major deadline for most crops, but acreage reporting deadlines vary by county and crop. “By filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planting acreage, producers can avoid the loss of important safety net, disaster assistance, conservation, and crop insurance benefits,” says FSA Administrator Zach Ducheneaux. “Call your local office to make an appointment to report your acres once planting is complete.” An acreage report documents a crop grown on a farm or ranch, its intended use, and it’s location. Producers should contact their FSA county office for acreage reporting deadlines that are specific to their county. “While you’re there, check on any other FSA business that might need attention,” Ducheneaux adds.
Border Agents Strike Deadline is Friday
More than 9,000 Canadian border agents are set to strike on Friday. The union representing them says if a deal isn’t reached with the federal government by Thursday at midnight, the strike begins Friday at 12:01 a.m. CTV News says the Public Service Alliance of Canada moved the deadline after extending negotiations with the Treasury Board last week. Border workers were set to strike last Friday at 4 p.m. While the government notes that nine of every ten border officials are essential and can’t strike, supply chain slowdowns are still likely. The union has said it would “work to rule.” That means they won’t do anything over what’s required by their contract. Canada gets 37 percent of its fruit and 75 percent of its vegetables by refrigerated truck freight from the United States. If there’s a slowdown, that could put the perishable objects in danger if they can’t be delivered on time.
Crop Insurance Coverage Exceeds 500 Million Acres in 2023
For the first time, farmers and ranchers bought crop insurance policies on more than 500 million acres of land last year. The buying push was driven by the surging popularity of forage policies. Enrollment in crop insurance was up 85 percent between 2016 and 2023. USDA data says in 2021, insured acreage had grown to 444.5 million acres, and 40 percent of it was covered by a forage policy. Enrollment rose to 493.8 million acres in 2022 and to 539.5 million acres in 2023. To put that in perspective, there are almost 880 million acres in U.S. farms. “A decade ago, crop insurance covered around 290-295 million acres annually and field crops accounted for more than 75 percent of insured acres,” wrote economist Dylan Turner in USDA’s Amber Waves magazine. “Forage crops now make up an increasing portion of those acres.” Forage crops reached 40 percent of insured acres in 2021.
NASCAR Race in Iowa Powered by Ethanol
Iowa Corn is the entitlement partner of the first-ever NASCAR Cup Series race in the state, happening this weekend in Newton, Iowa. The Iowa Corn 350, powered by ethanol, will showcase the performance of ethanol at the fastest short track on the planet, which is surrounded by corn fields. “As a farmer, seeing NASCAR run on ethanol is a proud moment,” says Iowa farmer Stan Nelson, also the President of the Iowa Corn Promotion Board. “Gearing up for the weekend ahead, I am pleased to share with the NASCAR family how we utilize higher blends of ethanol to make a sustainable difference every day with a cleaner-burning, more affordable fuel option at the pump.” The Iowa Corn 350, Powered by Ethanol, is at 6 p.m. Central Time on Sunday, June 16, and be shown live on the USA Network. It’s the inaugural NASCAR Cup Series race at the Iowa Speedway.
Wednesday Watch List
Markets
The U.S. Labor Department's consumer price index for May will be out at 7:30 a.m. CDT Wednesday. The U.S. Energy Department's weekly energy inventory report is at 10 a.m., followed by USDA's WASDE and Crop Production reports at 11 a.m. The Federal Reserve's interest rate announcement is set for 1 p.m., followed by the Fed Chairman's press conference and the Treasury Department's report on the federal budget for May.
Weather
A small system and front will move across the Upper Midwest for Wednesday. Some isolated showers are there already Wednesday morning, but increasing temperatures will lead to potential for severe storms in the region later in the day and Wednesday night. The rest of the country is largely dry outside of the Florida Peninsula, where heavy rain is falling.
Tuesday, June 11, 2024
Wyoming Joins List of States With HPAI Infection in Dairy Cattle
The Wyoming Livestock Board and the Wyoming Department of Agriculture received confirmation last week that Highly Pathogenic Avian Influenza has been found in a dairy cattle herd. The National Veterinary Services Laboratory confirmed the infection, the first case of HPAI in a Wyoming dairy farm. “The Livestock Board encourages all dairy producers to closely monitor their herd and contact their veterinarians immediately if their cattle are symptomatic,” says Hallie Hasel, Wyoming State Veterinarian. “The primary concern with this diagnosis is on-dairy production losses, as the disease has been associated with decreased milk production.” Hasel also reiterated that the risk to cattle is minimal and the human health risk remains very low. Symptoms of cattle infection include a drop in milk production, loss of appetite, changes in manure consistency, thickened or colostrum-like milk, and low-grade fever. Dairies are required to ensure that only milk from healthy animals enters the food chain.
Fairness to Farmers Makes June Dairy Month Work
June is National Dairy Month. It’s hard to have a national dairy month without dairy, and it’s hard to have dairy without dairy farmers. What hasn’t worked out well for milk producers since 2019 is the current Class One mover, the formula that helps set the price of fluid milk under the Federal Milk Marketing Orders. That formula was changed in the 2018 Farm Bill. Under current rules, which were adjusted so that milk processors could better manage pricing risk, dairy producers have lost an estimated $1.2 billion compared to the previous formula. The losses are occurring because farmers now bear a disproportionate part of the burden when prices turn volatile. That wasn’t foreseen when the change to the formula first went into effect. The National Milk Producer’s Federation proposal during the FMMO hearing restores the old formula, as does the farm bill recently passed by the House Agriculture Committee.
Feeding U.S. Military Members Lab-Grown Meat
The National Cattlemen’s Beef Association condemned a recently announced U.S. Department of Defense-sponsored research grant that will fund the development of lab-grown meat products by a biotechnology manufacturing company called BioMADE. NCBA says it’s outraged that the Department of Defense is spending millions of taxpayer dollars to feed America’s heroes like lab rats. “U.S. cattle producers raise the highest quality of beef in the world, with the lowest carbon footprint, and American troops in all branches deserve to get that same wholesome, natural meat and not the ultra-processed, lab-grown protein that is cooked up in a chemical-filled bioreactor,” says National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane. “This misguided research project is a giant slap in the face to everyone who has served the country.” The NCBA, which has represented cattle producers since 1898, says American veterans and active-duty troops deserve so much better than this.
Food Spending Varies by State
The Economic Research Service recently analyzed food sales trends at the state level and found a wide variation in the results. U.S. per capita food sales reached $7,102 in 2023. The biggest variation took place between Food at Home and Food Away From Home. Nationally, about 45 percent, or $3,179, of food purchases went toward food at home. Per capita food at home ranged from a low of $2,503 in West Virginia to a high of $4,157 in Alaska. Higher per capita food-at-home sales were typically concentrated in the Northwestern and Mountain West States, as Washington, Colorado, Oregon, and Utah rounded out the top five. Illinois, Minnesota, Indiana, and Oklahoma followed West Virginia with the lowest per capita FAH sales in 2023. Per capita, food away from home purchases in 2023 were higher nationally than any year on record at $3,923. Washington, D.C., had the highest total FAFH at $10,644.
Brazil Tax Changes May Make U.S. Soybeans More Attractive
Reports are showing a surprising tax change in Brazil has the potential to make soy grown in the world’s largest soybean exporter less competitive with supplies from the U.S. A provisional measure signed by Brazil’s president limits the ability of Brazil’s commodity exporters and processors to monetize tax credits. To compensate, merchants will likely have to raise soy prices, making beans grown in Brazil less competitive with American soybeans, at least in the short term. Amius Ltd., a risk management firm, says in this scenario, there would be a shift in soybean demand to the U.S., removing Brazil as a competitive source between August and September, accelerating the U.S. export program. Arlan Suderman (SOO-der-man), chief economist with StoneX, says Brazilian soybean processors and biofuel producers will essentially have higher tax costs and lower margins. “The revenue drop will shift some crush and biofuel activity to Argentina and the U.S.,” Suderman told Reuters.
Farm Loan Delinquencies Reach New Low
Despite falling net farm incomes, rising interest expenses, and generally low producer sentiment, Agricultural Economic Insights says farm loan delinquencies improved in 2023. Across all commercial banks, the share of farm loans classified as delinquent fell to only 0.91 percent in the fourth quarter of last year. The previous low points in farm real estate delinquency rates were from 2005 to 2007 and 2014 to 2015. It’s worth noting that loan delinquencies at those times dipped to 1.5 percent. The current dip featuring delinquency rates below one percent is uncommon. The average fourth-quarter delinquency rate has been 2.2 percent since 1991. However, farm real estate deficiencies haven’t been meaningfully above the long-run average since 2012. Delinquency rates for farm non-real estate loans also fell in 2023, reaching 0.71 percent. While also historically low and below the long-run average of two percent, the lowest non-real estate delinquency rate was 0.59 percent in 2014.
Tuesday Watch List
Markets
Traders continue to keep close watch over the weather in various parts of the world. The Federal Reserve begins its two-day meeting and will be able to include Wednesday's consumer price index in its interest rate decision at 1 p.m. CDT Wednesday.
Weather
A small system is moving through Manitoba Tuesday morning with showers across the Upper Midwest that should become more isolated. Showers and thunderstorms are found across west Texas and the Florida Panhandle as well, but most of the country is mild and dry for the day.
Monday, June 10, 2024
Support AM Radio in Every Vehicle
AM radio is a lifeline for many individuals, particularly those living in rural areas with limited access to reliable internet or cell phone coverage. In 2023, several automakers announced they had removed or planned to remove broadcast AM radio receivers from electric vehicles due to electromagnetic interference generated by electric batteries. AM radio helps keep rural residents apprised of news that may impact their businesses, health care, education, and family. It’s also available when the power goes out and cell towers go offline. The AM Radio for Every Vehicle Act ensures this essential service is accessible to all Americans. The American Farm Bureau, the National Association of Broadcasters, and the National Association of Farm Broadcasting are asking you to let lawmakers know how important AM radio is and ask them to support the act. Go to the Farm Bureau website and participate in the action alert by sending a message at fb.org/action-alert.
Minnesota Reports First Case of H5N1 in Dairy Cattle
Highly Pathogenic Avian Influenza has been confirmed in a dairy herd in Benton County, Minnesota, the state’s first confirmed case of H5N1. A producer noticed clinical signs in a handful of cows, and the next day more than 40 cows had signs of a fever. Samples from the sick cows were tested at the University of Minnesota and USDA, and both confirmed the virus. “We knew it was only a matter of time before this detection would reach our doorstep,” says Minnesota State Veterinarian, Dr. Brian Hoefs (Huffs). “It’s important for dairy farmers to follow the example of this herd and test sick cows.” HPAI symptoms in dairy animals mostly affect late-stage lactating cows, and include a fever, a drop in milk production, loss of appetite, and changes in manure consistency. No matter the status of each herd, biosecurity can reduce the risk of disease spreading onto or off farms.
Food Prices Slightly Higher in May
The U.N. Food and Agricultural Organization’s Food Price Index stood at 120.4 points in May, up 0.9 percent from its revised April level. Increases in the price index for cereal and dairy products slightly more than offset decreases in those for sugar and vegetable oils. The meat index was unchanged. It was the third consecutive monthly rise in the index but still remained down 3.4 percent from the same time in 2023 and 25 percent below the peak in March 2022. The Cereal Price Index took the biggest jump in May, rising 7.3 points, or 6.3 percent, from April to average 118.7 points in May. The Sugar Index saw the biggest drop, coming in at 117.1 points, down 9.5 points or 7.5 percent. The Meat Price index averaged 116.6 points in May, down 0.2 points. The Dairy Price Index reached 126 points, up 2.3 points, or 1.8 percent, from April.
Grains Council Travels to Mexico to Talk Trade
U.S. Grains Council Chair Brent Boydston and Past Chair Josh Miller went south of the border for meetings with major stakeholders in the U.S. and Mexico corn trade market. The goal was to maintain positive communications and relationships with one of U.S. agriculture’s most valuable customers. “With the recent political obstacles and challenges to rail transport logistics affecting grain imports from Mexico, it’s vital for the Council to work in tandem with the USDA’s Foreign Agricultural Service in Mexico to keep shipments moving,” Boydston says. “U.S. producers and Mexican importers and end-users alike need reassurance that trade will continue operating smoothly, and it’s our duty to facilitate that goal.” The delegation also met with staff from a leading global food production company that offers products in 112 countries to discuss how U.S. producers can meet the company’s demand. USGC is trying to keep U.S. ag as the premier option for Mexican importers.
Ag Retailers Report Their 2024 Outlook
The nation’s top ag retailers responded to a CropLife Survey on their 2024 outlook. The survey asked retailers about their overall outlook on the 2024 growing season based on market performance through spring fieldwork and planting time. On a scale of one to 10, with 10 being “better than expected,” the retailers seem pleased with 2024. A little more than eight out of 10 survey respondents rated the year so far between a five and a ten. To break it down further, 53 percent of the nation’s top ag retailers said the 2024 growing season rates between a five and seven on their 10-point scale. Another 33 percent indicated that so far, the year rates as an eight to 10 in their regions of the country. Compared to last year, that was a six percent improvement over 2023. Only 14 percent rated the season between a one and four.
NC State Gets $30 Million from Jeff Bezos
North Carolina State University was awarded a $30 million grant over five years from the Bezos Earth Fund. The funds are intended to lead to a center of excellence to create a biomanufacturing hub for plant and cell-based dietary proteins that are environmentally friendly, healthy, accessible, and affordable. The center will include numerous partners from academia and industry to research, create, and commercialize new technologies for manufacturing various protein products. Efforts will focus on multiple areas, including improving the palette of materials used to extract proteins or to use as raw materials for fermentation and cell cultivation. NC State will also reach out to community stakeholders to understand their perceptions, preferences, and expectations of sustainable protein foods and use the results to inform outreach strategies. The funds will also help to set standards for educating and training students and personnel in advanced food technologies and form a curriculum that covers all age groups.
Monday Watch List
Markets
Traders return from the weekend and will catch up on the latest weather forecasts as well as any market-related news. USDA's report of weekly export inspections is at 10 a.m. CDT, followed by the weekly Crop Progress report at 3 p.m.
Weather
A front that brought heavy rain to some areas of the middle of the country this weekend is pushing into the South, bringing some showers and relieving temperatures. Another system is moving into the Canadian Prairies and Northern Plains, where showers and thunderstorms will develop as well.
Friday, June 7, 2024
Concerns About Farm Finances
The Federal Reserve reports that farm finances remain a concern. The Fed’s Beige Book noted that 10 of the 12 districts reported slight or moderate growth in May, while the other two had no change in activity. Agricultural reports were mixed. “While drought conditions have eased in some districts, there’s still a concern about farm finances and incomes,” the Beige Book says. “Overall outlooks grew more pessimistic due to reports of rising uncertainty and greater downside risks.” In Atlanta’s Sixth District, agricultural conditions weakened slightly. Chicago’s Seventh District showed a slight increase in farm income during the reporting period. Some contacts in the Ninth District of Minneapolis reported some moderation in input costs was expected to benefit producer margins. Agricultural economic conditions in the Tenth District around Kansas City were softer through early May, and farm finances tightened slightly. Conditions were mixed in the Eleventh (Dallas) and Twelfth (San Francisco) Districts.
First H5N1 Case Confirmed in Iowa
The Iowa Department of Agriculture and USDA’s Animal and Plant Health Inspection Service have detected a case of Highly Pathogenic Avian Influenza in an O’Brien County dairy herd. It’s Iowa’s first reported case of HPAI in dairy cattle. To date, APHIS has confirmed over 80 dairy cases on farms in South Dakota, Texas, Ohio, North Carolina, Michigan, Kansas, Idaho, New Mexico, and Colorado. Iowa’s Ag Department will announce additional response measures soon. “Given the spread of HPAI within dairy cattle in many other states, it’s not surprising that we would have a case given the size of Iowa’s dairy industry,” says Iowa Secretary of Agriculture Mike Naig. “Poultry producers and dairy farmers should immediately harden their biosecurity measures, limit unnecessary visitors, and report symptomatic birds or cattle.” Naig also says the situation is evolving and officials will continue to be in close communication with stakeholders, USDA, and other states
Food Insecurity Increases in the American Midwest
American food insecurity is increasing the most drastically in the Midwest, and the number of food-insecure people increased by over 40 percent in several states from 2021 to 2022. The data comes from the annual “Map the Meal Gap” report issued by Feeding America, a nationwide network of food banks. The national rate of food insecurity is about 13 percent across all counties, but some areas are struggling with hunger at a much higher rate. North Dakota, up 57 percent, South Dakota up 45 percent, and Iowa, up 45 percent, saw the biggest increases in the number of food-insecure people from 2021-2022. Washington, D.C., Hawaii, and Nevada saw the lowest rates of increase. Child food insecurity also exists in every U.S. county, with the highest rate at 48 percent in East Carroll Parish, Louisiana. The report also says eight out of 10 highest food-insecure counties are located in the southern states.
Milk Producers Call for Milk Pricing Fairness
The National Milk Producers Federation leadership expressed confidence that farmers would soon see a fairer system for milk pricing. During the recent Board of Directors’ meeting, NMPF also highlighted dairy farmers’ robust response to the challenge of H5N1 influenza in dairy cattle. “Even with all the stress on the farm, there’s still not a better industry,” says Randy Mooney, a dairy farmer and member of the Dairy Farmers of America Cooperative. USDA is expected to release its plan for Federal Milk Marketing Order modernization at the beginning of July. NMPF has helped lead the push for updated rules that better reflect the current industry, a three-year effort that culminated in a 49-day FMMO hearing last year. The meeting was held in conjunction with the Young Cooperators Fly-In, during which young dairy farmers met with lawmakers to advocate for the industry. During the meeting, the board also voted to elect three new members.
The World’s First Seedless Blackberry
Pairwise, a company specializing in genetics-based innovations for food and agriculture, has developed the world’s first seedless blackberry. Interested Engineering Dot Com says blackberries are helpful with regards to boosting bodily functions and improving digestion and sugar levels. They also significantly reduce inflammation, improve brain function, and help prevent cardiovascular diseases. Despite the benefits, studies show more than 30 percent of berry buyers don’t purchase them because of the seeds. The seedless blackberry was created using the company’s proprietary Fulcrum Platform. They offer a complete suite of novel tools used for CRISPR (crisper) application in plants. CRISPR is short for Clustered Regularly Interspaced Short Palindrome Repeats. The CRISPR technology is the one scientists use to selectively modify the DNA of living organisms. “With the precision of CRISPR, we are able to develop these thornless and compact traits without sacrificing consistency in flavor and quality for consumers,” says Pairwise co-founder Haven Baker.