Veterinarian Shortage Reaching Crisis Level

Veterinarian shortages are not new. Anyone who ever needed a vet in the middle of the night will tell you that. And any rural vet called in the middle of the night will agree. What is new is the realization that it is about to get worse. “If our veterinary workforce is not adequately staffed and prepared, in the event of an animal health emergency, there could be catastrophic consequences for the United States and the global food system,” said Dr. Erin Luley, Pennsylvania Department of Agriculture. According to Jody Kull, professor from Penn State University, about 50% of rural veterinarians currently in practice are within five years of retirement. Only 5% of practicing veterinarians in the United States are food animal veterinarians working on food, fiber or /milk-producing animals. Nationally, only about 3% to 4% of graduating veterinarians enter livestock practice.

FDA Set to Launch Human Foods Project on October 1

The Food and Drug Administration reached a significant milestone when it approved its reorganization and created its new unified Human Foods Program (HFP). It is one of the most significant reorganizations in FDA’s history. The new model for field operations and other significant modernization efforts is only days away, with Oct. 1 set as the implementation date. According to FDA, the new Human Foods Program will “notably enhance the agency’s ability to oversee and protect the human food supply and other products the FDA regulates. The FDA says it is focused on transforming the agency to be more efficient, nimble, and ready for the future with the ever-changing and complex industries it regulates. That includes the emergence of new food technologies, the impacts of globalization, climate change, and other factors that require the FDA to adapt to an evolving world quickly. 

ASA & NOPA Welcome Bipartisan, Bicameral Bill to Boost Domestic Energy

The American Soybean Association and the National Oilseed Processors Association last week hailed the introduction of bipartisan, bicameral legislation to support renewable fuels produced from domestically sourced feedstocks. The Farmer First Fuel Incentives Act, would restrict eligibility for the Section 45Z Clean Fuel Production Tax Credit to fuels produced from domestic feedstocks and make 45Z a 10-year credit by extending it to 2034. ASA President Josh Gackle said that biofuel production paves a key path for the country to be a clean energy leader, and U.S. farmers who grow the crops going into those biofuels take pride in helping reduce greenhouse gas emissions while supporting the U.S. economy and energy independence. Imported waste feedstocks are assigned lower carbon intensity scores and benefit from minimal oversight and testing. Without this legislation, biofuel producers will have added incentive to buy imported feedstocks over U.S. soybean oil.

Codex Proposes Guidelines for Controlling Food Fraud

A Codex committee has made progress on guidelines for preventing and controlling food fraud. The draft guidance has been sent to the Codex Alimentarius Commission for adoption, which will meet in Switzerland in November. The United States chaired the electronic working group. Food safety regulators from 60 countries and international organizations met to discuss food standards. Four new work proposals have also been put forward. These include guidance on appeals mechanisms due to the rejection of imported food, harmonizing the use of food establishment listing for market access, guidelines for the presentation of sanitary attestations on export certificates to better enable the transition to paperless trade, and principles to guide the digitalization of national food control systems. These must be approved at Codex’s November meeting.

U.S. Pork Producers, Veterinarians Protected from Misguided Antimicrobial Reduction Mandate

In a victory for America’s pork producers and swine veterinarians, the National Pork Producers Council celebrated the United Nations’ decision to reject proposed on-farm target reductions of antimicrobials. Instead, the UN declaration on antimicrobial resistance invests in stewardship programs and strengthens veterinarians’ roles on the farm, which NPPC strongly supports. Without NPPC’s leadership and science-based voice in these discussions, by 2030 the UN could have implemented a 30% global on-farm reduction in antimicrobials, as well as limits on the use of certain antibiotics in animal agriculture. According to the U.S. Food and Drug Administration, domestic sales of all medically important antimicrobials intended for use in food-producing animals decreased by 33% between 2016 and 2017.

Kraft Heinz Brings Procurement Expertise to Rise Against Hunger

Food giant Kraft Heinz is leveraging its logistics partnerships to help the nonprofit bring food to communities in need across Europe. When Kraft Heinz was facing challenges in delivering food for nonprofit Rise Against Hunger, the company set out to leverage its existing procurement network through the Kraft Heinz Rise Together Procurement Program. The program, piloted in 2022, led to the formation of a cross-functional team of supply chain, operations, legal and environmental, social and governance experts, Sara Zeidan, head of agriculture and sustainability in the East at Kraft Heinz. The experts worked with the nonprofit to find ways to deliver food seamlessly, which helped create a blueprint for future logistics challenges. This year, the company has already committed $15 million to Rise Against Hunger and extended its partnership with the nonprofit for the next three years as the two continue to grow their work together.

Monday Watch List

Markets

USDA's report of weekly export inspections is set for 10 a.m. CDT Monday, followed by USDA's Quarterly Grain Stocks and Small Grains Summary at 11 a.m. The weekly Crop Progress report will be out at 3 p.m. Grain traders are staying close to the latest weather reports and are interested in damage assessments from Hurricane Helene.

Weather

The remnants of what was Hurricane Helene continue to produce some limited showers in the Mid-Atlantic region Monday, but rainfall amounts will be quite low. A front is sweeping through the Northern Plains Monday morning and will push south and east across the Plains and Upper Midwest throughout the day. The front will be dry but kick up some strong winds in the Northern Plains that could be a risk for spreading wildfires.

Groups Ask Administration to Intervene in East Coast Strike Threat

Ag groups are urging the White House to step in and help avert a potential strike that could occur at East Coast and Gulf Coast ports beginning on October 1. Groups like the American Farm Bureau, Renewable Fuels Association, and the American Chemistry Council said, “The time has come for the government to intervene and ensure port operations don’t stop.” They’re asking for help in preventing damage to U.S. agriculture and the overall economy. Country Wide says Republican Senator Ted Cruz cited a JP Morgan analysis that predicted a strike at that large number of ports could cost the economy $5 billion daily. Negotiations between the International Longshoremen’s Association union and the United States Maritime Alliance employer group appear to be deadlocked on pay as the current contract expires on September 30. The Biden administration says it doesn’t intend to invoke the Taft-Hartley Act to prevent a strike.

USDA Farm Loan Changes Now in Effect

USDA’s updates to the Farm Service Agency’s Farm Loan Programs are officially in effect. These changes are designed to increase financial flexibility for agricultural producers, allowing them to grow their operations, boost profitability, and build long-term savings. USDA says the new rules will mean a low-interest installment set-aside program. Financially distressed borrowers can defer up to one annual loan payment at a reduced interest rate. There are also flexible repayment terms. New repayment options give borrowers the ability to increase their cash flow and build working capital reserves, allowing for long-term financial planning. The new rules also mean reduced collateral requirements. FSA lowered the amount of additional loan security needed for direct farm loans, making it easier for borrowers to leverage their existing equity without putting their personal residence at risk. USDA says the new rules give farmers and ranchers better tools to manage their operations and get long-term financial stability.

USDA Encourages Producers to Prepare for Hurricane Helene

The USDA reminds communities, farmers, ranchers, families, and small businesses in the path of Hurricane Helene that the agency has programs to provide help in the wake of natural disasters. Rainfall with the storm could trigger severe flooding in many areas. USDA partnered with FEMA and other disaster-focused organizations and created the Disaster Resource Center. This information source includes a searchable database of disaster-related resources powered by agents with subject matter expertise. USDA also developed a disaster assistance recovery tool specifically targeted to rural and agricultural issues. The tool walks producers through five questions that generate personalized results identifying which USDA disaster assistance programs can help them recover from a natural disaster like Hurricane Helene. USDA also encourages residents and small businesses in impact zones to contact a local USDA office to determine which assistance programs might fit their individual needs. To learn more about getting recovery help, go to usda.gov.

CLA Elects New Board President

CropLife America, the national association representing the manufacturers, distributors, and formulators of organic and non-organic pesticides, elected Darren Dillenbeck as its new Board Chair. Dillenbeck, president of FMC North America, will hold the title for two years and use his skills to help guide the association. “We’re so pleased to welcome Darren as the new Chair of our Board,” says Alexandra Dunn, CropLife America president and CEO.  “His deep commitment to CLA members and the agricultural community will be invaluable as we continue important work on our most pressing issues.” Dillenbeck also says he’s honored to be elected to the new position and notes that their work as an industry has never been more critical. “We will ensure that our collective voice is heard on its own and alongside the voices of American farmers, whose livelihoods depend on having the necessary tools to succeed in an increasingly challenging global economy,” Dillenbeck says.

ALB Sponsors Young Leaders at Global Forum

Young leaders in the U.S. sheep industry participated in the 2024 Global Sheep Forum’s NexGen Program in Australia in August. The leaders were selected to take part through a competitive application process sponsored by the American Lamb Board. The NexGen Forum was held in conjunction with the annual LambEx educational conference. The program is designed to create a global forum of young producers and leaders to share their ideas and network and to broaden their understanding of new innovations and technology in sheep production practices around the world. ALB Chair Jeff Ebert says participation in the Global Forum was important because the U.S. sheep industry must stay innovative and progressive to increase our production efficiencies and improve American competitiveness. “Educating our producers about the newest technologies and global opportunities is critical,” Ebert says. The program included farm tours focused on genetics, sustainability, traceability, and innovation. For more information on this, go to lambboard.com.

Applications Open for World Ag Expo Innovation Contest

The World Ag Expo offers a look into the latest innovation and education through the return of the Top 10 New Products Contest and Seminar Series. The Top 10 New Products Competition at the World Ag Expo provides a glimpse into cutting-edge technology and innovation. Open to exhibitors, the innovation contest showcases the latest in a competitive field of new products ranging from groundbreaking technology to simple solutions. Previous award winners have pointed to the Top 10 New Products competition as a catalyst for future success. “Winning a Top 10 award at the 2024 World Ag Expo provided a significant opportunity for Farm-ng,” says Nathan Dorn, Director of Agriculture Business Development for Farm-ng.  Entrants must be exhibitors at the 2025 World Ag Expo, and products released anywhere between February 8, 2024, and February 13, 2025, are eligible. World Ag Expo is the largest annual outdoor ag tradeshow in the world. For more information, go to WorldAgExpo.com.

Friday Watch List

Markets

At 7:30 a.m. CDT Friday, the U.S. Commerce Department will release August reports of U.S. personal incomes, consumer spending and the PCE inflation index. The University of Michigan's final consumer sentiment index for September is due out at 9 a.m. Hurricane Helene is creating problems in the southeastern U.S. and grain traders are staying close to weather forecasts for several crop areas around the world.

Weather

Helene has degraded into a tropical storm overnight as it has pushed north through Georgia, but it is still producing strong winds and areas of heavy rain that will intensify across the Mid-South throughout the day Friday. Breezy winds will also develop over the Midwest.

Groups Respond to SAF Tax Credit Guidelines

Legislation introduced in the House and Senate would extend a new sustainable aviation fuel tax credit for biofuels for ten years and prevent foreign producers from accessing the credits. Groups like the National Corn Growers Association applauded the legislation that supports domestic producers. “Corn growers are making every effort to help the airline industry lower its greenhouse gas emissions through the use of corn ethanol,” says NCGA President Harold Wolle (WOOL-lee). The 45Z tax credit provides incentives to refineries that produce biofuels that can be used in commercial aircraft. The National Oilseed Processors Association and the American Soybean Association also hailed the legislation. “NOPA commends this bipartisan, bicameral legislative effort that puts U.S. fuel producers, crushers, and farmers first,” says NOPA President Kailee Buller. “While we support free trade and open markets, we don’t believe foreign feedstocks should benefit on the backs of U.S. taxpayers and to the detriment of U.S. farmers.”

Coalition Commends Senate SAF Caucus

The Sustainable Aviation Fuel Coalition’s Executive Director, Allison Graab, issued a statement applauding the establishment of the bipartisan Senate Sustainable Aviation Fuel Caucus. The Caucus is led by Senators Jerry Moran (R-KS), Tammy Duckworth (D-IL), John Boozman (R-AR), and Amy Klobuchar (D-MN). “The SAF Coalition is grateful to Senator Jerry Moran and his colleagues, Senators Duckworth, Boozman, and Klobuchar for their leadership in launching the bipartisan Senate Sustainable Aviation Fuel Caucus,” Graab says. “The formation of the SAF Caucus is a positive step towards strengthening national energy security, driving economic growth, and generating quality jobs across the country through the development and deployment of SAF.” Graab also says her group is looking forward to working with the Caucus and other SAF supporters and advocates to enhance incentives to expand SAF production and support the nation’s energy needs. The SAF Coalition represents the entirety of the SAF value chain.

Farm Bill, Ag Economy Top Concerns at Tenth Ag Outlook Forum

Navigating a softer ag economy and no new farm bill were the chief topics at the Tenth Annual Ag Outlook Forum on September 16 in Kansas City. Hosted by Agri-Pulse and the Agricultural Business Council of Kansas City, the Forum is a critical information exchange between national leaders in ag policy, economics, and business during harvest season. In an overview of the economy, USDA Chief Economist Seth Meyer said most crop prices will likely continue their downward trend through the end of 2024, but so will total production expenses, alleviating some of the losses. “Crop receipts are expected to lower net farm income for 2024,” he said to those in attendance. He’s hopeful that farmers have several good years of farm income stashed away to help carry them through the leaner time. Jackson Takach of Farmer Mac says the major difference between now and the last down-cycle is the interest rate.

Port Strike Could Hinder U.S. Ag Shipments

A potential strike at three dozen U.S. ports could upend supply chains and raise prices weeks before election day. Farm Policy News says the International Longshoremen’s Association says it will have 25,000 members walk off the job if the union doesn’t come to a new agreement with the U.S. Maritime Alliance, which represents carriers and marine terminal operators, before their contract ends on September 30. The contract covers all ports between Maine and Texas, including New York, Savannah (Georgia), Houston, Miami, and New Orleans. A coalition of 177 trade groups says those ports handle 41 percent of the country’s containerized port volume, and their closure would have a devastating impact on the U.S. economy. While bulk grain exports would largely be unaffected, the strike would impact containerized agricultural exports like soybeans, soybean meal, and other agricultural products exported via containers would be affected, forcing farmers to move shipments to new ports.

Columbia Lifts Ban on U.S. Beef Imports

Colombia lifted a ban on American beef imports from the states where bird flu was detected in dairy cows. According to USDA’s export library, beef exporters in 14 states will get restored access to Colombian markets. Colombia was the only country to ban U.S. beef imports over the H5N1 outbreak in dairy cattle. Agriculture Dive says Colombia’s ban hurt U.S. beef export purchases and reduced Colombia’s spending by as much as 70 percent during the summer. The U.S. Meat Export Federation says the U.S. is Colombia’s largest supplier of imported beef. Before the restrictions went into effect, Colombia averaged about three million dollars per month in U.S. beef purchases. In July, exports fell to less than $850,000. While Colombia is considered an active market for the U.S. beef trade, it still makes up a small percentage of total exports. The U.S. sent over $40 million in beef to Colombia in 2023.

Mexico to Import Less U.S. Corn

USDA’s Foreign Agricultural Service says Mexico will import less corn as its domestic production increases in the 2024-2025 marketing year. A report from the FAS Mexico City Office says corn exports to Mexico will fall two percent to 23 million metric tons. Production is forecast to jump six percent to 25 million metric tons during the 2024-2025 marketing year. “The forecast is based on higher-than-average precipitation and gradual recovery of their reservoirs during the summer of 2024 following severe and exceptional drought conditions in the previous market year,” the department said. Mexico bought $5.39 billion worth of U.S. corn in 2023, making it by far the largest importer. Japan was second at $2.07 billion, and China was third at $1.63 billion. Harvested area in the current marketing year is expected to rise five percent to 15.8 million acres. From January 1 through August 11, precipitation was three percent higher than the 30-year average.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, U.S. second-quarter GDP, U.S. durable goods orders and the weekly U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is at 9:30 a.m. USDA's monthly cold storage report and quarterly hogs and pigs report will be out at 2 p.m.

Weather

Hurricane Helene has strengthened since Wednesday and should continue to do so throughout the day Thursday as it heads north through the Gulf of Mexico. It may become a Category 3 storm, or major hurricane, before landfall in the Big Bend area of Florida by Thursday evening. Rain bands from Helene have already been moving through Florida and the storm will be interacting with a front and upper-level low in the region to produce heavy rain for the Southeast throughout the day.

Rural Mainstreet Index Stays Below Growth Neutral

For the 13th consecutive month, the Rural Mainstreet Index sank below growth neutral. That’s according to a September survey of bank CEO’s in rural areas of a ten-state region dependent on agriculture and-or energy. The region’s reading in September sank from 40.9 in August to 37.5. It was the lowest level since COVID began in spring 2020. The index ranges from 0 to 100, with 50.0 representing growth neutral. “Weak agriculture commodity prices, sinking agriculture equipment sales, and elevated input costs pushed the Index below growth neutral for the 13th straight month,” says Ernie Goss (Gahs) of Creighton University. For the fourth time in five months, farmland prices sank. The region’s farmland index fell to 43.8 from 45.5 in August. “Only 4.2 percent of bank CEOs reported that farmland prices expanded from August levels,” Goss adds. “One-fourth of the bankers anticipate a 10 to 20 percent downturn in prices next year.”

USDA Invests $466 Million in Food and Agriculture Projects Worldwide

The USDA will provide $466.5 million to strengthen global food security through its two premiere international development programs. Ag Secretary Tom Vilsack says the agency will provide $248 million to the McGovern-Dole International Food for Education and Child Nutrition Program, and USDA will provide $218.5 million to help seven countries through the Food for Progress program. Under both programs, USDA purchases U.S.-grown commodities and provides them to implementing organizations, including the United Nations World Food Program. Food for Progress implementing partners sell the commodities locally and use the proceeds to support local development projects. This year, USDA will provide more than 37,000 metric tons of U.S. commodities to support projects in many countries, including El Salvador, Ethiopia, and Guatemala. That will benefit 1.2 million children and their family members in 2,800 pre-primary and primary schools. Food for Progress will utilize 315,000 metric tons of American commodities to benefit almost 200,000 farmers.

Mandating Milk for Military Installations

Two Navy veterans, Congressmen Derrick Van Orden of Wisconsin and Guy Reschenthaler of Pennsylvania introduced the Strengthening Our Servicemembers with Milk Act. The bill directs the U.S. Secretary of Defense to provide fluid or powdered milk to members of the Armed Forces at dining facilities on military installations. “The milk produced by our hardworking dairy farmers is a vital source of nutrients, playing a critical role in supporting the health and strength of our servicemembers,” says Van Orden. “By mandating milk on military installations, we are ensuring our men and women in uniform have access to healthy food options while serving our country.” Reschenthaler also says milk plays an important role in America’s success. “It provides vital nutrients to the American people with the help of our dairy farmers in Pennsylvania, Wisconsin, and across the nation,” Reschenthaler says. “I’m proud to introduce this legislation with my fellow Navy veteran.”

Egg Production Down Three Percent in August

U.S. egg production totaled 9.08 billion during August 2024, down three percent from last year. Production included 7.77 billion table eggs and 1.3 billion hatching eggs, of which 1.21 billion were broiler-type and 95.8 million were egg-type. The average number of layers during August totaled 370 million, down three percent from last year. August egg production per 100 layers was 2,451, up slightly from August 2023. Total layers in the U.S. on September 1, 2024, were 372 million, down three percent from last year. The 372 million layers consisted of 307 million layers producing table or market-type eggs, 61.6 million layers producing broiler-type hatching eggs, and 3.66 million layers producing egg-type hatching eggs. The rate of laying per day on September 1 averaged 79.3 eggs per 100 layers, up one percent from September 1 of last year. Egg-type chicks hatched during August totaled 57.4 million, up nine percent from August 2023.

CFTC Issues First Carbon Credit Market Guidelines

The Commodity Futures Trading Commission approved the first guidelines for the trading of voluntary carbon credit derivative contracts in the country. Carbon credit derivative contracts are financial instruments that derive their value from carbon credits, which represent the right to emit one metric ton of carbon dioxide or an equivalent amount of greenhouse gasses. AgriMarketing Dot Com says the contracts allow traders and market participants to hedge against or speculate on the future price of carbon credits, similar to how traditional derivative contracts function in commodities or financial markets. Regulators pushed for heightened scrutiny of voluntary carbon markets, which have developed outside government oversight due to concerns over quality and double counting. “The CFTC’s mission focused on risk mitigation and price discovery puts us on the front lines of the global nexus between financial markets and decarbonization efforts,” says CFTC Chair Rostin Benham. “We’ve outlined guidance to crack down on manipulation.”

NASDA Hosts 2024 Next Generation Cohort

The National Association of State Departments of Agriculture Foundation hosted the 2024 NASDA Next Generation Program at the NASDA Annual Meeting in Indianapolis. The program is designed to engage college students with leaders in agricultural policy and industry, fostering professional connections and promoting exposure to state and federal policy discussions. Launched in 2015, NASDA’s Next Generation Program provides an opportunity for college students to interact directly with leaders who represent state departments of agriculture from around the country. “The unique and innovative perspectives of these students are an essential part of the conversation as we look to support more robust and resilient agricultural food systems,” says NASDA Foundation Senior Director Chris Jones. “With support from our program sponsors, we are proud of the connections and opportunities that this initiative continues to create for the next generation of agricultural leaders.” The students engaged with industry leaders and attended policy meetings.

Wednesday Watch List

Markets

A report on U.S. new home sales in August is set for 9:00 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly energy inventory report at 9:30 a.m., a report that includes weekly ethanol production.

Weather

A front has pushed to the Gulf and East Coasts, where scattered showers and thunderstorms will continue for Wednesday. Eyes remain on the Gulf of Mexico as Tropical Storm Helene becomes a hurricane and quickly strengthens throughout the day as it moves northward toward the Florida Panhandle.

NCGA Applauds House Vote on Tailpipe Emissions

The National Corn Growers Association applauded the House of Representatives for passing a bill last week that would overturn tailpipe emissions standards from the Environmental Protection Agency. Those standards focus solely on using electric vehicles to lower greenhouse gas emissions. “The members of Congress who passed this legislation understand there are many different tools that we can use to reduce greenhouse gas emissions,” says NCGA President Harold Wolle (WOOL-lee). “While it could take years to realize the potential that EVs offer, ethanol is an effective part of a portfolio of options for addressing climate concerns and is fully available for use today.” A decision of this magnitude will have long-lasting negative impacts on the rural economy because it ignores the benefits of ethanol. It’s uncertain whether the Senate will consider the legislation before the end of 2024. The Corn Growers are currently litigating in federal court against the rule.

USDA Releases Cattle on Feed and Milk Production Reports

Cattle and calves on feed for the slaughter market in the United States in feedlots with a capacity of 1,000 or more animals totaled 11.2 million head on September 1. That inventory was one percent above September 1, 2023. Placements in feedlots totaled 1.98 million head, one percent below last year. Net placements were 1.92 million head. Fed cattle marketings in August totaled 1.82 million head, four percent below last year. Meantime, milk production in the 24 major dairy states during August reached 18.1 billion pounds, up 0.1 percent from August 2023. Production per cow in the 24 states averaged 2,036 pounds for August, eight pounds higher than August 2023. The number of milk cows on farms totaled 8.8 million head, 28,000 head less than August 2023, but unchanged from July 2024. Overall United States milk production in August reached 18.8 billion pounds, down 0.1 percent from August 2023.

Recent Soy Sales Won’t Lift Export Prospects

The U.S. is coming off one of its worst soybean export seasons in recent memory. Shipments during the season rivaled those from a few years ago when the U.S. and China were locked in a trade war. Export sales for 2024-2025 began on September 1 and have been stronger than average over the past months as China stepped into the market to make purchases. XM Dot Com says two weeks into the marketing year, overall soy sales were at five-year lows and five percent below this time last year. Brazil, one of the top competitors of the U.S. in the world soy market, doesn’t have as many soybeans to export this year, and America’s soybeans have recently been more price-competitive. However, for the third straight year, logistics are getting disrupted by low water levels on the Mississippi River, restricting the movement of grain to the busiest export hub in the U.S.

Partnership on Sustainable and Regenerative Agriculture

Purdue University and Bayer announced the creation of the Coalition for Sustainable and Regenerative Agriculture, a public-private partnership designed to help improve the soil health of farmland while also increasing food production for a growing population. The coalition’s mission is to generate robust, real-world data in support of regenerative agriculture practices to help farmers restore soil health and biomass, increase biodiversity, and improve the resiliency of ecosystems over time. The coalition’s new frameworks will also support education and outreach programs to enhance sustainable and regenerative agriculture. “America’s farmers are already global leaders in providing food worldwide, supplying a substantial amount of grain, meat, and other agricultural products,” says Karen Plaut, executive vice president for research at Purdue. “But with population projections of nine billion people in the years ahead, it’s critical to provide the tools that support those farmers who are called upon to produce even more while stewarding their lands.”  

USDA Launches Support Network for Financially Stressed Producers

The USDA launched the Distressed Borrowers Assistance Network, an initiative designed to provide support to financially distressed farmers and ranchers across the nation. Through a series of Cooperative Agreements, this national network will connect distressed borrowers with individualized assistance to help them stabilize and regain financial footing. Network partners include Farm Aid, the University of Arkansas, the University of Minnesota, and others. “Having someone with experience in ag finance who helps producers work through financial difficulties can be the difference between losing the farm or prospering,” says FSA Administrator Zach Ducheneaux. “The Distressed Borrowers Assistance Network underscores our dedication to farmers and ranchers receiving the tailored support they need.” He also says the initiative will address the immediate needs of distressed borrowers and provide comprehensive, wraparound services aimed at addressing the unique challenges faced by financially distressed producers. Investments will build a support network for agriculture in the years ahead.

Dairy Consumption Good News and Bad News

One of the more well-known consumer trends is a decline in per capita milk consumption. Americans drank 250 pounds per person in 1975, but consumption has steadily dropped over the decades, reaching only 130 pounds in 2022. However, Agricultural Economic Insights says the news isn’t all bad for dairy. Per capita consumption of yogurt and cheese has increased over the last few decades. Compared to 2000, per capita yogurt consumption has more than doubled, and cheese has also posted big gains, including American cheese up 28 percent since 2000, and mozzarella is up 40 percent. Yogurt and cheese have been the clear winners, while milk and ice cream have struggled. But AEI economists point out that different activity measures could lead to different conclusions about the magnitude of consumer shifts. While per capita consumption data is important, consumer prices and a larger population could also affect the dairy market. 

Tuesday Watch List

Markets

A report on U.S. consumer confidence for September is due out at 9 a.m. CDT and is the only significant report on Tuesday's docket. Grain traders are staying attentive to the latest weather forecasts with several active threats to crop areas this week.

Weather

A small system continues to trek through the Midwest Tuesday, producing areas of showers and thunderstorms and limited areas of heavy rain. An upper-level low is drifting south behind it, getting cut off from the jet stream that will produce showers for the South-Central states the next couple of days and guide a developing tropical system northward through the Gulf of Mexico later this week.

USDA Finds Antibiotics in Sample of Animals Raised Antibiotic Free

USDA's Food Safety and Inspection Service released new guidelines last week aimed at strengthening documentation in support of environmental or animal-raising labeling claims on meat and poultry products after a recent study found antibiotics in livestock raised for the no-antibiotics market. USDA called for meat and poultry companies to do more to verify claims that the products are raised antibiotic-free. "The action FSIS is taking through the publishing of this guidance today addresses these concerning findings and makes clear that FSIS will take enforcement action against any establishments found to be making false or misleading negative antibiotic claims," the agency said. FSIS said animal-raising claims such as "raised without antibiotics," "grass-fed" and "free-range," and environment-related claims such as "raised using regenerative agriculture practices" and "climate-friendly" are voluntary marketing claims.

Threatened Port Strike a Concern for Shippers

Shippers have less than two weeks to prepare contingency plans if workers strike at East Coast and Gulf Coast ports in the U.S. Composed of 85,000 members, the International Longshoremen’s Association is approaching the expiration of its master contract with the United States Maritime Alliance, or USMX, on September 30. The union’s chances of averting an Oct. 1 strike are dwindling as automation concerns and wage disagreements stall negotiations. ILA President Harold Daggett has been clear about the union’s intentions to strike and shared a strike mobilization plan earlier this month. A strike would have a major impact on operations and the flow of goods at several ports. The contract between the ILA and USMX covers ports in states such as Texas, Maine, New York, New Jersey and Florida, but a strike could spur disruptions for other regions and industries. West Coast, Canada and Mexico ports are seen as viable alternatives if a strike becomes reality.

General Mills, Grocery Giant Partnering on Regenerative Ag Project

The owner of East Coast grocery chains Food Lion, Giant Food and Stop & Shop is investing alongside General Mills to expand regenerative agriculture for key ingredients such as wheat and oats in an effort to reduce emissions across their shared value chain. Agriculture Dive reports Ahold Delhaize USA and the Minneapolis-based maker of Cheerios and Betty Crocker products plan to co-invest in farms adopting regenerative agriculture practices, such as cover cropping and nutrient management techniques. No financial specifics were disclosed. The collaboration is focused on geographic growing regions where key ingredients like wheat and oats are sourced. The partnership is set to advance regenerative practices on more than 70,000 acres of farmland in Kansas and Canada’s Saskatchewan province by the end of 2025. This is Ahold Delhaize USA’s second foray into regenerative agriculture this year, following a pilot with Kellanova over the summer that supported the adoption of sustainable practices on North Carolina farms that grow wheat used to make Cheez-It crackers.

Salt Forcing Mid-Atlantic Farmers to Seek Alternative Crops

More and more mid-Atlantic farmland is becoming inundated with salt, making crops like corn and soybeans ungrowable. Visible salt patches almost doubled across land along the Delmarva Peninsula, and over 20,000 acres of farmland were converted to marsh. The range of economic losses has been estimated between $39.4 million and $107.5 million annually under circumstances where farmers abandoned corn and soybeans altogether. Salt Meadow Cordgrass could be one answer. It often yields a bumper crop and can stop coastal erosion. According to the Good News Network, this crop from colonial times may be a future harvest in places like Delaware and New Jersey. The native species has been used for building insulation, as packing material, and as an additive to concrete, for paper, textiles, fodder for animals. The cordgrass is naturally free of seeds and weeds because of its strangulating root system, which makes it useful as a premium mulch for flower beds.

Society of St. Andrew Gleaning Unused Food for the Hungry

The Society of St. Andrew announced last week that it has shared its billionth pound of food with people in need. Gleaners have shared one billion pounds of food that would have otherwise been wasted. Countless families have had food on their tables because of the hard work of gleaners, volunteers, and staff and the unwavering generosity of donors, farmers, and supporters. Each pound of food rescued speaks to the power we can have when we work together. SoSA’s mission is to build caring communities through sharing food, and each pound of produce tells a story of that connection. The Society of St. Andrew is a 45-year-old national nonprofit hunger-relief ministry that improves the environment by keeping good food out of landfills and feeds hungry people by sharing rescued fruits and vegetables with front-line feeding agencies, soup kitchens, shelters, food banks and food pantries. Across the country. More information is available online at EndHunger.org.

Drought Threatening Brazilian Coffee Crop

As harvest wraps up for this year’s Brazilian coffee crop, drought is already threatening the 2025 harvest. The market is watching how the dry conditions, the worst drought in more than seventy years there, will affect the coffee plants. Prices are already at a 13-year high when adjusted for inflation, according to the International Coffee Organization. In August, the organization’s Composite Indicator Price, which combines the price of several types of green coffee beans, averaged $2.38 per pound, up nearly 55% from the same month a year ago. In part, prices are rising because of higher demand, particularly in Asia. But weather is also driving increases. Drought, frost and fire have damaged as much as one-fifth of arabica coffee producers’ growing areas in Brazil, according to CoBank. AP reports Vietnam, the world’s second largest coffee producer, is also experiencing heat and drought which could impact the crop there. 

Monday Watch List

Markets

Back from the weekend, traders will check the latest weather forecasts. USDA's report of weekly export inspections is set for 10 a.m. CDT Monday, followed by the weekly Crop Progress report at 3 p.m.

Weather

A front that draped itself across the Corn Belt over the weekend developed a low-pressure center along it that will move through Missouri on Monday and into Illinois overnight. The front will produce areas of showers and thunderstorms and potentially some severe weather and areas of heavy rain. We will also be watching the northwest Caribbean for tropical storm development.

Fed Cuts Interest Rates, Some Relief for Agriculture

Kicking off an expected loosening of U.S. monetary policy, the Federal Reserve cut interest rates by half a percentage point on Wednesday. The move brings a larger-than-normal reduction in the cost of borrowing, which followed growing concern about the health of America’s job market. Farm Policy News says higher interest rates have hit the agricultural sector much harder than the rest of the U.S. economy. Interest rates during the last two years have been at a high point not seen in decades, not only increasing farmers operating costs but also helping to fuel fund managers’ record short positions in corn, soybeans, and wheat. Industry experts say the half-percent rate cut is a good start for easing the price pressures on agriculture. Policymakers see the Fed’s benchmark rate falling another half a percentage point at the end of 2024, another full point in 2025, and by a half-percentage point in 2026.

EWG Sues Tyson Over “Deceptive” Marketing

The Environmental Working Groups filed a lawsuit against Tyson Foods, the second-largest meat company in the world. The suit accuses the company of making “false or misleading” marketing claims targeting D.C. consumers concerned about climate change. It targets Tyson’s claims that its industrial meat production operations will reach net-zero greenhouse gas emissions by 2050 and that it produces “climate-smart” beef. The plaintiffs want to stop Tyson from continuing to make what they say is unsubstantiated environmental claims. The groups are calling for Tyson to retract its misleading statements and be held accountable. Despite 2022 annual revenues of over $53 billion, the groups say Tyson spent $50 million on GHG reduction practices, less than 0.1 percent of its revenue. “Consumers are increasingly making purchasing decisions with their climate footprint in mind,” the groups said in a statement. “Tyson is trying to exploit this trend by making unsubstantiated claims about its sustainability practices.”  

Ethanol Production Falls to Near Three-Month Low

The Energy Information Administration says ethanol output fell to its lowest level in three months while inventories rose slightly during the week that ended on September 13. The agency said production sank to an average of 1.049 million barrels a day, down from 1.09 million barrels a day the previous week. It’s also the lowest output since June 21. The Midwest, which produces the most ethanol of any region in the country, saw production drop to an average of 986,000 barrels a day from 1.019 million the week prior. That’s the lowest point in the region since June 7. That was the entirety of the losses as Gulf Coast production rose to an average of 28,000 barrels a day, East Coast output was unchanged at 12,000 barrels a day, and Rocky Mountain production was steady at 14,000 barrels. West Coast production remained at an average of 9,000 barrels per day.

Grants for Climate-Smart Sheep Producers

The American Lamb Board is looking for 150 sheep producers to participate in its Climate Smart Sheep Program. Producers enrolled in the program will be paid up to $7,000 to develop and implement Climate Smart Sheep management practices and measure and report emissions and life cycle analysis. Possible practices include prescribed grazing, cover crop planting, range planting, tree or shrub enhancement, cross-fencing, and others. “Adding on-farm research and data collection in the form of Climate Smart grants not only extends the value of this research project, but it also provides sheep producers with resources and information they need to improve their livestock operations,” says ALB Chair Jeff Ebert. “Sustainability is a top priority for the American Lamb Board.” The producer application can be found online at LambBoard.com. The application period ends on December 1, and producers will be notified by December 15. The program will begin on January 1, 2025.

BLM Announces Rangeland Stewardship and Innovation Award Winners

At the Public Lands Council’s annual meeting, the Bureau of Land Management announced the winners of the 2024 Rangeland Stewardship and Rangeland Innovation awards. The two organizations have partnered for 19 years to honor BLM livestock grazing permittees and lessees who demonstrate exceptional management, collaboration, and communication that restores, conserves, or enhances public lands. The Rangeland Stewardship Award winner is Fitzgerald Ranch, Inc., of Plush, Oregon. The Rangeland Stewardship Award winner in the collaborative team category is the Ranchers Stewardship Alliance of Montana. The Rangeland Innovation Award winner in the Permittee Category is the Hansen family of PH Livestock in Wyoming. “Federal lands ranchers represent the most efficient and cost-effective way to maintain western rangeland, while still producing a wholesome product for consumers,” says PLC President Mark Roeber. “Grazing permittees partner with BLM to protect and build vital wildlife habitat and improve native plant life while reducing invasive grasses and preventing catastrophic wildfires.”  

Stocks of Hams, Turkeys, and Butter are Higher Than 2023

The Fall and Winter holidays are still a few months out, but USDA says the essentials for holiday cooking have been accumulating in cold storage. Stocks of bone-in and boneless hams at the end of July totaled 139.2 million pounds, 1.2 percent above last year. Whole-hen turkey stocks totaled 109.4 million pounds at the end of July, an increase of 12.5 percent from the same time last year. That’s even though the 2024 turkey production is projected to be lower than last year. Butter in cold storage at the end of July was seven percent above 2023. The 2024 beef production forecast is adjusted slightly higher on reported slaughter data through early September. The third quarter of 2024 lamb and mutton import forecast was raised from 80 to 90 million pounds. The 2024 dairy forecasts for the average number of milk cows, milk per cow, and total milk production were lowered to 9.33 million head, 24,200 pounds, and 225.9 billion pounds, respectively.

Friday Watch List

Markets

After a week in which the Federal Reserve lowered interest rates by a half-percent, the only report on Friday's docket is USDA's Cattle on Feed report for September 1, due out at 2 p.m. CDT.

Weather

A front has moved into the Midwest on Friday with the southern portion of the front still stuck in the Southern Plains. Some areas of isolated showers will form near the front, especially late in the day. Another front will move through the Canadian Prairies and into the Northern Plains today with some showers as well.

AM Radio Bill Moves to House Floor

Efforts to keep AM radio in the dashboards of U.S. vehicles have taken a step forward in the House. The House Energy and Commerce Committee voted 45-2 to send the proposed AM Radio for Every Vehicle Act to the full House for a vote. “It’s been a stalwart of American prosperity and information sharing,” says Representative Jeff Duncan (R-SC). “Having AM radio available is important to my constituents, especially during emergencies.” If passed by the full House, the proposed Act would require the Secretary of Transportation to issue a rule requiring access to AM broadcast stations in motor vehicles. If they don’t, automakers would get fined. The role of AM during natural disasters was cited by several lawmakers as they spoke during the bill’s markup, noting that the Federal Emergency Management Agency spent millions solidifying the Emergency Alert System with AM radio as the backbone of the EAS.

U.S. Dairy Calls for Swift Action Against Colombia

The U.S. Dairy Export Council and National Milk Producers Federation expressed their strong disappointment with a preliminary ruling by Colombia’s government that unfairly targets U.S. dairy exporters. The move advances baseless claims that U.S. milk powder was unduly subsidized. The groups called on U.S. trade officials to take immediate action to challenge Colombia’s unjust decision and defend American dairy farmers and exporters. Based on the Colombian announcement, the preliminary findings call for an additional 4.86 percent tariff to be implemented on U.S. milk powder imports. That’s despite the fact that the Colombian government admitted that there are “many factors negatively affecting Colombia’s dairy sector.” Gregg Doud, president and CEO of NMPF, says these findings show that Colombia does not respect its trade commitments. “Instead of working with us to resolve this issue in a mutually beneficial way, Colombia chose instead to move forward with a meritless investigation,” Doud says.

Public Lands Council Begins 56th Annual Meeting

The Public Lands Council opened its 56th annual meeting in Grand Junction, Colorado on Tuesday. Ranchers, policymakers, administration officials, and industry stakeholders from across the country are meeting to discuss the most urgent issues facing the public lands ranching industry. Over the two days, federal grazing permittees will shape PLC policies for the next year and hear from influential decision-makers. This year’s meeting is taking place as grazing permittees are facing deadly wildfires and a host of other extreme weather conditions across the West. They’re also facing several federal rulemakings that seriously threaten ranchers’ abilities to reliably access public lands. “This is our best opportunity to address the issues that affect access and management of federal lands,” says Kaitlynn Glover, PLC Executive Director. “This year is a perfect example: grazing permittees are dealing with wildfires, increased regulatory burdens, and uncertainty from new uses of federal lands that are pressuring permittees.”

Potential World Wheat Supply Challenges Ahead

Farm Policy News says dried-out soils in Russia and Ukraine are threatening wheat planting for harvest next year. It’s yet another challenge for farmers hit by the ongoing war and weather events. The two nations account for a quarter of the world’s wheat exports, but large chunks of land are too dry to plant crops. There’s still time for conditions to get better, but the challenges bring a risk of shortening the planting window for the winter crops that make up the bulk of their annual production. Industry experts say it’s an early reminder of the possibility of risks to the wheat supply next year. World wheat prices have begun creeping upward in recent weeks, due in part to concerns about the Black Sea supply of wheat. The output in Ukraine is about a third below the pre-war levels, and Russia’s latest crop shrank 10 percent because of unfavorable weather.

Judge Dismisses Price-Fixing Suit

A judge in Missouri dismissed a lawsuit accusing agricultural giants like Bayer, Corteva, Syngenta, and others of price fixing. The suit accused the companies of conspiring with wholesalers and retail outlets to fix prices for seeds and crop protection chemicals, forcing farmers to pay higher prices. A St. Louis-based judge says that the farmers and other plaintiffs failed to present sufficient allegations that the companies had violated U.S. antitrust laws. The plaintiffs said the companies schemed to collectively boycott electronic “crop inputs” platforms, depriving farmers and other purchasers of the ability to make effective cost comparisons for key agricultural materials. The judge said the plaintiffs’ accusations did not rebut the companies’ claims that their practices served legitimate business purposes. She faulted the plaintiffs for advancing “mere generalizations” in their lawsuit. Bayer, Corteva, Syngenta, and BASF all welcomed the court’s ruling in separate statements. All of the defendants denied any wrongdoing.

Ethanol Depends on Reliable Rail Service

Growth Energy highlighted many issues currently plaguing the nation’s rail service that has resulted in delayed shipments, longer wait times, and higher costs for American ethanol producers. The group’s Senior Vice President of Regulatory Affairs, Chris Bliley, testified to the scale of the problem before the Surface Transportation Board. “With drivers facing high fuel prices and ethanol is consistently trading significantly less than unfinished gasoline, at no other time has the need for timely and efficient ethanol rail service been more important,” he said. Data posted by the STB shows that in 2022, the average dwell time for ethanol train units increased, average rail speed decreased, and the average number of ethanol-loaded cars not moved increased, all negative trends that contribute to added costs and other negative consequences through the entire biofuel supply chain. “The ethanol industry ships almost 70 percent of what it produces via rail,” he added.

Thursday Watch List

Markets

Early Thursday, markets are fresh off Wednesday's half-percent rate cut from the Federal Reserve. USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and the weekly U.S. Drought Monitor. U.S. existing home sales in August and the U.S. index of leading indicators are both out at 9 a.m., followed by the Energy Department's weekly report of natural gas storage at 9:30 a.m.

Weather

A storm system moving through the Canadian Prairies continues showers there and is pushing a front into Minnesota on Thursday. The northern half of the front will be the most active today, with scattered showers and thunderstorms down through northern Missouri. The southern half of the front will be stuck across the Central and Southern Plains, but it may also produce some showers and storms. Severe weather will be possible in the storms, especially north.

Trade Policy Shifts Impact on U.S. Agriculture

Agricultural economists from North Dakota State University have examined the proposed trade policies of the two presidential candidates and one proposal being floated in Congress. The NDSU experts laid out the potential losses to soybean, corn, wheat, and beef exports under different scenarios. Under the three proposed trade policy scenarios, North Dakota State estimates substantial export losses for U.S. soybeans, corn, beef, and wheat. Each scenario assumes the U.S. government imposes tariffs on goods from China and other countries, which would provoke retaliatory measures against American exports. Under a worst-case scenario, projected U.S. ag exports could decrease by $15.8 billion for soybeans, $4.4 billion for corn, $2.5 billion for wheat, and $2.3 billion for beef. These projected trade losses pose significant challenges, especially in the Midwest, which relies heavily on exporting these critical commodities to foreign markets. Beef states like Kansas, Texas, and Nebraska would also be hit hard financially.

Fertilizer Institute Wants More from Rail Industry

The Fertilizer Institute testified before the Surface Transportation Board and emphasized the ongoing need for the freight rail industry to shift its focus toward customer service and growth. The fertilizer industry has long relied on rail service for the efficient and safe transport of its products but has struggled with declining service quality, increasing rates, and a lack of attention to customer needs. “The fertilizer industry is heavily reliant on rail and cannot afford to see continued stagnation in freight rail service,” says TFI vice president of government affairs Ryan Bowley. He also pointed to data showing that while rail employment has dropped and carloads have declined, rail rates have surged. Between 2005 and 2017, rates for transporting critical farm inputs like anhydrous ammonia increased by more than 200 percent. These price hikes and inconsistent service make it difficult for fertilizer companies to meet the delivery demands of U.S. farmers.

Growth Energy Challenges EPA Emissions Standards

Growth Energy filed a brief in the D.C. Court of Appeals in a case challenging the Environmental Protection Agency’s Multi-Pollutant Emissions Standards for Model Years 2027 and Later vehicles. It’s also known as the tailpipe emissions rule and applies to Light Duty and Medium Duty vehicles. In the brief, Growth Energy noted that EPA’s rule was a missed opportunity to recognize the positive impact biofuels can have on reducing tailpipe emissions. “As Congress recognized when enacting the Renewable Fuel Standard, biofuels offer numerous climate and other benefits,” Growth Energy said in the brief. “When compared with petroleum, corn ethanol emits only half the greenhouse gasses and cellulosic ethanol emits even less.” The group also says ethanol and other biofuels emit less particulate matter and other pollutants harmful to human health. “All these benefits are available right now, all while enhancing U.S. energy security and supporting U.S. jobs,” the group added.

USDA Releases September Feed and Wheat Outlooks

This month’s 2024-2025 U.S. coarse grains outlook is for marginally higher supplies and slightly tighter stocks. A slight increase in corn yields isn’t enough to offset a reduction in beginning stocks driven by strengthening fourth-quarter demand in 2023-2024. For sorghum, higher yields lift the supply forecast and are expected to spur export volumes. Corn and sorghum prices are at parity, with both reduced a dime to $4.10 a bushel. Barley supplies are slightly lower on smaller imports, and there are no changes to the oats supply. In wheat, the European Union yield is forecast at a six-year low, estimated at 124 million metric tons, down to its lowest level since 2018-2019. U.S. wheat production for 2024-2025 is unchanged this month and remains at 1.982 billion bushels, up nine percent from last year. U.S. wheat exports for the current marketing year are unchanged at 825 million bushels with no adjustments in any classes.

As Farm Bill Stays in Limbo, Lawmakers Considering Farm Aid

Kansas Senator Jerry Moran, a critic of Senate Ag Chair Debbie Stabenow, told more than 250 people that he had an optimistic moment after speaking with her on the Senate floor. He points out that Stabenow and other Committee leaders are recognizing just how dire the economic situation is for U.S. farmers and that they can’t wait for Congress to reach an agreement on a five-year farm bill. Along with potentially boosting commodity programs, Moran says Stabenow is trying to find ways to accelerate payments. Currently, payments in the ARC and PLC programs are always a year after harvest. Moran said his agricultural staff suggests that there is growing sentiment on the House side to get something done. House Ag Committee Ranking Member David Scott says farmers he met with asked Congress to consider a two-year ad hoc package that would bolster the safety net for the 2024 and 2025 crop years.

Certified Angus Beef Awards 26 Scholarships

Certified Angus Beef’s Colvin Scholarship Fund achieved a milestone by awarding a record-breaking $100,000 in scholarships to 26 students. With increased scholarships presented, more students than ever are being empowered to pursue careers that advance the beef industry. Scholarship recipients are each actively pursuing a career in production agriculture, industry research, or other agricultural endeavors. Since its inception 25 years ago, the Colvin Scholarship Fund has provided 176 scholarships totaling $633,500 to deserving students. ”It’s inspiring to see students who truly embody what the Colvin Scholarship Fund stands for,” says Danielle Matter, CAB director of brand experience and education. “They’re passionate, articulate, and hardworking, and we’re humbled to support them and can’t wait to see the impact they’ll make.” The top recipients in each category were awarded $7,500 scholarships. CAB also says the future leaders exemplify a strong commitment and passion for the beef industry, making them worthy brand ambassadors.

Wednesday Watch List

Markets

The U.S. Energy Department's weekly energy inventory report will be out at 9:30 a.m. CDT Wednesday, including ethanol production. The Federal Reserve's announcement on interest rates follows at 1 p.m. and USDA's Livestock, Dairy and Poultry outlook is set for 2 p.m.

Weather

A strong storm system has developed in the Northern Plains, bringing heavy rain and some strong winds to Montana with waves of scattered showers moving north into the Canadian Prairies for Wednesday. The front to the storm may remain active with showers and thunderstorms down the Plains as well while it remains hot east of the front.

Mississippi River Levels Falling Again

For the third consecutive year, Mississippi River water levels are falling again, making shipping goods difficult. Farm Policy News says the low levels are forcing barge companies to put limits on how much cargo they can carry and cutting into farm profits. It was only two months ago that much of the river was above flood stage north of St. Louis. As river levels fell steadily since then, barge companies had to limit the soybeans, grains, and other cargo they carry to prevent barges from getting stuck, which means less profits for farmers. Approximately 60 percent of all U.S. grain exports are taken by barge down the Mississippi to New Orleans, where the corn, soybeans, and wheat get stored and then transferred for shipment to other countries. It’s an efficient way to move crops. A group of 15 barges lashed together carries as much cargo as about 1,000 trucks.

Cracks Showing in the Farm Bill Logjam

While the 2024 Farm Bill has been stalled for multiple months, the legislative logjam is showing a few signs of breaking after key ag groups took to Capitol Hill last week to share the economic reality facing farmers and ranchers. In a letter last week to House Ag Committee Democrats, Ranking Member David Scott (D-GA)  said, “We all know that Congress needs pressure to act. That’s why Chairman Thompson, Chairwoman Stabenow, Ranking Member Boozman, and I agree that we are better off without another extension at this point.” After he met with farmers, Scott said if it looks like Congress won’t be able to pass a farm bill, they asked him if Congress would consider doing a two-year ad hoc package that would bolster the safety net for the 2024 and 2025 crop years. “Farmers need the certainty and support, and we need to step up to this challenge,” Scott added.

Poultry Group Wants More Time on Salmonella Changes

After recent unsatisfactory public meetings and a growing series of unanswered questions, the National Chicken Council requested a 90-day extension to the comment period for FSIS’ proposed Salmonella Framework. The Council wants more time to properly analyze the proposal and provide more meaningful comments. “Unfortunately, the two webinars that the Food Safety and Inspection Service provided for constituents to ask questions failed to provide meaningful insights or clarification on most of the questions asked by participants,” says Dr. Ashley Peterson, senior vice president of science and regulatory affairs for the NCC. “Most clarifying and technical questions went unanswered during the presentations.” In sum, Peterson says there are more questions than answers at this point. “The lack of clarity around many aspects of the proposal directly impedes NCC’s and our members’ ability to meaningfully comment on the proposal,” she added. “The webinars showed us FSIS has limited guidance to offer the industry.”

Moms Flood Capitol Hill to Oppose EATS Act

Moms for America, a Missouri-based national conservative advocacy group that focuses on pro-family issues, went to Capitol Hill last week to discuss their opposition to the EATS Act. They say House Bill 4417 and Senate Bill 209 would “hand American pork and other production over to the Chinese multi-national conglomerates like Smithfield and the global meat cartel.” The Moms pointed out that the  Ending Agriculture Trade Suppressions Act is supported by the National Pork Producers Council and their largest member, Smithfield, who owns one of every six sows in America, and whose purchase was financed by the Chinese Communist Party. The group opposes the EATS Act because it would “upend” state’s rights and cede greater control of America’s agriculture over to China. “Smithfield’s EATS Act is the greatest threat to food safety and security that Moms for America has seen in the last half a century,” says Moms’ President Kimberly Fletcher.

ALB Accepting Cooperative Funding Program Applications

The American Lamb Board allocates funds through the Cooperative Funding Program for local sheep producer groups, lamb suppliers, and direct marketers. The program helps cost-share marketing efforts that align with ALB’s mission to grow awareness and demand for American Lamb. Applications can be submitted now through September 30. “The Cooperative Funding Program is a fantastic opportunity to help producers, suppliers, and direct marketers share information and resources about the advantages of American lamb with consumers, retailers, and the food service industry,” says ALB Chairman Jeff Ebert. “The program was designed to help cost-share marketing and promotion campaigns that reach consumers at the local level.” Producers can apply for funding to reach consumers, chefs, or retailers through marketing and promotional projects designed to build awareness and grow demand for American lamb. Additionally, suppliers like direct marketers can also apply to promote American Lamb products in the retail or food service sector.

NPPC Taking Neil Dierks Scholarship Applications

The National Pork Industry Foundation is accepting applications for the Neil Dierks Scholarship, which honors Neil Dierks, the former longtime CEO of the National Pork Producers Council, and his contributions to the industry. The $5,000 scholarship is awarded annually to a graduate student enrolled in a land-grant university and pursuing a field of study that directly supports the pork industry. “We are honored to continue this scholarship in recognition of Neil’s exceptional legacy,” says Iowa producer Dwight Mogler, a member of the Foundation’s Board. “Neil’s unwavering commitment to mentoring the next generation of pork industry leaders was truly inspiring.” The Foundation is committed to carrying his vision forward by empowering students who are passionate about the future of the industry. Applications are due by December 31, 2024. The winner will be announced at the National Pork Industry Forum March 12-14, 2025. For more information or the application requirements, go to nppc.org.

Tuesday Watch List

Markets

A report on U.S. retail sales for August is due out at 7:30 a.m. CDT Tuesday, followed by U.S. industrial production in August at 8:15 a.m. The Federal Reserve begins its two-day meeting and, according to CNBC.com, traders are expecting either a quarter-percent or half-percent reduction in the current federal funds rate range of 5.00% to 5.50%.

Weather

A small tropical low that was never named continues in the Mid-Atlantic with some showers for Tuesday. A bigger storm system is developing in the Northern Plains, and is likely to produce widespread areas of showers and thunderstorms across the Plains and into the Canadian Prairies, some of which may be severe Tuesday afternoon and evening.

Pork Producers Talk Farm Bill, Prop 12 During Fly-In

Ag Secretary Tom Vilsack and Senator John Boozman (R-AR) met with 120 pork farmers at the National Pork Producers Council’s Fall Legislative Action Conference. They discussed prospects for a 2024 Farm Bill and a federal solution to California’s Prop 12. NPPC said that the Prop 12 initiative imposes serious financial burdens on pork producers, raising food prices for consumers, and sets a dangerous precedent by enabling each state to develop differing regulations on out-of-state producers. Californians are experiencing less pork and higher costs. Vilsack emphasized those higher prices make it harder to include pork products in nutrition programs for the hungry. Boozman, the ranking member of the Senate Ag Committee, said he remains optimistic that a farm bill will get passed this year. To help with the education, NPPC hosted a pop-up food truck on Capitol Hill offering maple bacon donuts and information on the threat of Prop 12 and similar laws.

FCA Board Gets Quarterly Update on the Ag Economy

The latest consumer price index data indicates a slowdown in inflation, which has dropped below three percent for the first time since 2021. The Federal Reserve is expected to begin cutting interest rates this month, while longer-term interest rates have been falling for weeks. Crop yields are expected to be high this fall, putting downward pressure on prices. Corn and soybean futures have fallen over 30 percent in the past 18 months. While the pressure is on crop producers, livestock producers are benefiting from lower feed prices and higher product prices, improving their 2024 profitability. Strong financial positions from high incomes in 2021 and 2022 have provided a cushion for farmers heading into a more challenging business environment. However, weak crop margins are set to further erode farm sector income this year. Portfolio growth in the System showed solid financial results with modest growth in the first half of 2024.

Eastern Ports Face Strike Prospects

The bulk exports of soybeans and other agricultural products from the East Coast would not be directly impacted by any potential strike or lockout if an agreement is not achieved between the International Longshoremen’s Association and the U.S. Maritime Alliance. However, containerized exports of soybeans and other agricultural products would be impacted. There are several ports along the East Coast. Norfolk, Virginia, was the busiest in 2023, exporting over 1.6 million metric tons of soybeans. To provide some perspective, the Mississippi Gulf Region near New Orleans is the number one export region for soybeans, exporting 27 million metric tons from the region in 2023. “We are starting to see agricultural exporters explore other routes like the West Coast, which will most likely mean at a higher cost and longer transit times,” says Mike Steenhoek (STEEN-hook) of the Soy Transportation Council. “This will be one more cost intrusion into the supply chain.”

NCC Urges AMS to Withdraw “Fair and Competitive Markets” Proposed Rule

The National Chicken Council strongly urged USDA’s Agricultural Marketing Service to withdraw its proposed rule, “Fair and Competitive Livestock and Poultry Markets. The group says the rule represents an impermissible attempt to make an end-run around established judicial precedent for requiring a showing of injury to competition to sue and win under Section 202 of the Packers and Stockyards Act. “Worse than a solution in search of a problem, the proposed rule would cause widespread confusion and inflict staggering costs on the meat and poultry industries, ultimately to the detriment of American consumers,” says NCC Interim President Gary Kushner. NCC highlighted the many flaws associated with this rule in detailed comments to the ASF, including the fact that it would try to fundamentally alter the nature of PSA Section 202 violations in a manner that exceeds the authority of AMS. “This proposed rule is ill-advised and unconstitutionally vague,” Kushner added.

Leases Expected to Remain Steady or Modestly Decrease

As farmers wrap up the current crop year and begin planning for 2025, one of the more crucial first steps in preparing for a successful crop season is securing farm leasing arrangements. In the Midwest, farm lease negotiations typically begin in August and ramp up as fall sets in. Tenants often prefer to finalize lease terms early to facilitate timely purchases of inputs and to start field operations promptly after harvest. While cash rental rates have gradually risen in recent years, Farmers National Company says the current market environment suggests uncertainty is on the horizon. As commodity prices and farm income are expected to al, FNC anticipates that most leases for 2025 will either remain steady or see a modest decrease. That’s assuming they were set at market rates in 2024. When a tenant seeks a rent reduction, FNC says incorporation of flex or bonus provisions can be a strategic compromise.

Wheat Sales Climb Higher

The USDA says wheat sales through the week ending on September 5 came in at 4745,000 metric tons, up 40 percent from the previous week and 11 percent over the prior four-week average. Taiwan was the top buyer at 105,400 tons. Wheat exports for the week totaled 542,000 tons, up 15 percent week over week. Corn sales to overseas buyers, as the marketing year ended, were reported at 665,000 metric tons. Mexico was the biggest buyer, purchasing 180,300 tons. Accumulated exports for the 2023-2024 marketing year ended at 54.3 million metric tons, up 38 percent year over year. Soybean sales in the new marketing year totaled 1.47 million metric tons. China was the top buyer at 962,6000 tons. Soybean exports ended the marketing year at 44.5 million metric tons, 15 percent below the prior year. The 2024-2025 marketing year for both corn and soybeans started on September 1.

Monday Watch List

Markets

Back from the weekend, traders will monitor the latest weather forecasts from around the world. USDA's report of weekly export inspections is set for 10 a.m. CDT Monday, followed by the weekly Crop Progress report at 3 p.m.

Weather

The remnants of Francine in the Delta and a new tropical low off the coast of the Carolinas are producing showers in the Southeast for Monday. A non-tropical low moving through the West is producing additional showers in the Plains early Monday as well. Both areas will see showers continuing throughout the day while temperatures remain well above normal for this time of year.

Corn Production Down, Soybeans and Cotton Higher

Corn production is down, while soybean and cotton production will be higher than in 2023. The USDA Crop Production Report says corn production is one percent below last year, forecast at 15.2 billion bushels. The average corn yield is predicted to be 183.6 bushels an acre, up 0.5 percent from last month and 6.3 bushels over last year. Soybean production will be 10 percent above 2023 with a forecast of 4.59 billion bushels. Soybean yields are expected to be 53.2 bushels an acre, unchanged from last month, and 2.6 bushels above 2023. Cotton Production is up 20 percent from 2023 at 14.5 million 480-pound bales. Yield is expected to reach 807 pounds per harvested acre, 33 pounds below last month’s forecast and 92 pounds below 2023. The total planted area for corn is estimated at 90.7 million acres, soybeans are estimated at 87.1 million acres, and cotton is at 11.2 million acres.

Banks Urged to Stop Financing Livestock Production

Over 100 climate groups are pressuring JPMorgan Chase, Citigroup, and other private banks to stop financing global meat and dairy companies. Agriculture Dive Dot Com says the institutions’ lending activities undermine their environmental commitments. An open letter from groups led by Friends of the Earth to some of the world’s biggest banks calls for a halt on any new financing that expands industrial livestock production and to add requirements that meat, dairy, and feed clients disclose their climate action plans. The letter calls out the banks by name for supporting the world’s biggest meat, dairy, and animal feed producers like JBS, Tyson Foods, and others. While food companies are a small part of the banks’ overall lending portfolios, the groups say they have a much bigger impact on the institutions’ environmental footprints. The letter says Increased lending has let the world’s biggest emitters grow their operations and emissions.

Growers Critical of Tariff Announcements

The National Corn Growers Association and the American Soybean Association expressed frustration with a recently released recommendation from the Department of Commerce. The Department is recommending an imposition of preliminary countervailing duty rates on imports of the herbicide 2-4D. The decision comes at the behest of domestic herbicide producer Corteva, who filed a petition earlier this year calling for antidumping and countervailing duties on imports of the herbicide from certain foreign suppliers. Farmers have said that their demand exceeds the domestic supply of the product, and foreign sources help to fill the gap. “Access to this herbicide is critical for corn growers,” says NCGA President Harold Wolle (WOOL-lee). “We would welcome all ideas from Corteva on how to ensure that this herbicide is available and affordable for American growers.” Josh Gackle, president of the ASA, says the decision to raise duties on imports is disappointing to soybean growers nationwide.

Bipartisan Group Want Dairy Industry Protection

Senator Tammy Baldwin (D-WI) led a bipartisan group of colleagues in calling on the administration to protect America’s dairy industry. They want to ensure that plant-based imitation products are not equated in upcoming dietary guideline changes. The officials are asking the Department of Health and Human Services and USDA to carefully consider any changes to the upcoming Dietary Guidelines for Americans that could add plant-based imitation products into the dairy category despite their nutritional differences. In a letter, the senators say existing research has shown that plant-based alternatives are indeed not nutritionally equivalent to dairy. Their concerns are that adding imitation products to the dairy category equates the products nutritionally, despite imitations often containing lower protein and added sugars. “As you consider potential DGA updates that may pertain to dairy, please ensure sound scientific evidence to support any statements which nutritionally equate plant-based alternatives with real dairy,” the letter also says.

USDA Releases September WASDE Report

The USDA released its September World Agricultural Supply and Demand Estimates Report that says this month’s 2024-2025 corn outlook is for smaller supplies and a modest decline in ending stocks. Projected beginning stocks are 55 million bushels lower based on increases in exports and corn used for ethanol for 2023-2024. The season-average corn price received by producers was lowered ten cents to $4.10 per bushel. U.S. soybean supply and use changes for 2024-2025 include lower beginning stocks, production, and ending stocks. Lower beginning stocks reflect a slight increase in crush during the prior marketing year. Ending stocks are predicted to be at 550 million bushels, down 10 million from last month. The U.S. season-average price for soybeans is unchanged from the previous forecast at $10.80 per bushel. The 2024-2025 U.S. wheat outlook is quiet relative to last month. The projected season-average farm price for wheat remains steady at $5.70 a bushel.

Clean Fuels Tax Credit Coming by January

Ag Secretary Tom Vilsack says he’s confident that a clean fuels tax credit program set to take effect in 2025 will be finalized by the end of the Biden administration in January. Farm Policy News says an April guidance for the SAF tax credit disappointed ethanol producers by requiring corn farmers to bundle a set of climate-friendly farming practices that meant little to no ethanol would qualify. Vilsack says his agency is hoping to make more feedstocks and individual farming practices eligible for the credit and is working with the energy and transportation departments on how to do so. The Treasury Department is coming under pressure from some lawmakers to limit the eligibility for the new clean fuels tax credit to fuels made from feedstocks sourced in the United States. Vilsack says the right answer in writing the regulations was to ensure feedstocks meet expectations through inspections and certifications.

Friday Watch List

Markets

The University of Michigan's consumer sentiment index for early September is due out at 9 a.m. CDT Friday. Grain traders will continue to watch the latest forecasts, especially for South America and the Black Sea region.

Weather

The remnants to what was Hurricane Francine continue to spin up near the Bootheel of Missouri Friday morning, producing scattered showers through the Ohio and Tennessee Valleys. Some heavier rainfall will be possible across the Southeast due to enhanced, slow-moving thunderstorms. A system continues to produce scattered showers in the Canadian Prairies, particularly in Alberta. Its cold front will produce more showers in the Dakotas into Nebraska as well.

U.S. Tractor Sales Increase Slightly in August

Sales of four-wheel-drive tractors increased 4.8 percent in August 2024 compared to the same month last year. New data from the Association of Equipment Manufacturers says U.S. sales also increased 5.2 percent year-to-date. Total U.S. ag tractor sales decreased 19.4 percent compared to 2023, while combine sales dipped 19.6 percent. “While the increase in four-wheel-drive tractors is modest, it’s indicative of the industry’s resilience and the ongoing need for agricultural equipment,” says AEM Senior Vice President Curt Blades. “The decline in the overall tractor market highlights the urgent need for Congress to pass a robust farm bill to support rural America and our agricultural community.” Canadian sales of four-wheel-drive tractors increased 29.4 percent in August compared to last year and are up 18.1 percent year-to-date. Total Canadian ag tractor sales fell 26 percent compared to last year, while total combine sales dropped 36.5 percent.

House Passes Bill to Protect U.S. Farmland

The House of Representatives passed the “Protecting U.S. Farmland from Foreign Adversaries Act” on Wednesday. Senators Chuck Grassley (R-IA) and Mike Braun (R-IN) introduced a companion bill in the Senate. The legislation would increase scrutiny of foreign bids to purchase U.S. farmland, particularly from adversaries like China, North Korea, Russia, and Iran. It would add the Secretary of Agriculture to the Committee on Foreign Investment in the United States and include the secretary on future transactions involving agricultural land, biotech, product transportation, storage, and processing. It would authorize the Secretary to report agricultural land transactions involving foreign persons from China, North Korea, Russia, and Iran. “Chinese ownership of American farmland increased more than 20-fold in the past decade,” Braun says. The amount of American soil in the hands of adversaries will only rise if we don’t implement these restrictions and oversight.” Fourteen other senators also signed on to the legislation.

Registration Open for 2025 Clean Fuels Conference

Registration is now open for the 2025 Clean Fuels Conference, the must-attend event for the biodiesel, renewable diesel, and sustainable aviation fuel industries. Hosted by Clean Fuels Alliance America, it takes place January 20-23, 2025, in San Diego, California. This year’s theme is “Accelerate,” which captures the rapid growth and transformative progress of the clean fuels industry. In addition to exhibitors and multiple networking events, the conference agenda offers educational sessions designed to enhance industry knowledge and equip participants for success in an ever-evolving landscape. “With the clean fuels industry accelerating at an unprecedented pace, this conference is crucial for anyone involved in shaping the future of heavy-duty transportation,” says Donnell Rehagen, CEO of Clean Fuels Alliance America. The conference will feature keynote presentations by Lucas Lentsch, CEO of the United Soybean Board, Beth Whited, president of Union Pacific, and Dr. Steven Cliff of the California Air Resources Board, among others.

Groups Support ESA Amendments Act

The National Cattlemen’s Beef Association and Public Lands Council announced strong support for the ESA Amendments Act of 2024. This legislation would reform the Endangered Species Act to provide more timely conservation efforts on America’s rangeland. “For too long, the Endangered Species Act has been weaponized to list species under non-science-based criteria to the detriment of real conservation,” says NCBA President Mark Eisele (EYES-lee). “Farmers and ranchers have witnessed the harm that comes from politically-motivated species listings and the dangers that come from recovered predators that become a direct threat to producers’ personal safety and economic success.” Drovers also says this bill will make the ESA a real tool for conservation, foster transparency and accountability, and ensure that the environmental contributions from farmers and ranchers are properly recognized. As the ESA has had its scope widened over the years, it is now coming in direct conflict with established science on wildlife conservation.

Low South American River Levels Hindering Crop Shipments

While it’s not catastrophic in terms of South American export levels, rivers have reached low enough levels to hinder shipments of grain and oilseeds. The University of Illinois Farm Policy News says South America is not in its peak trading season. Record drought in the Amazon and lower-than-usual rainfall have sent water levels dropping rapidly and hindered barges carrying grains for export. Even South America’s Paraguay River, a key shipping lane for grains, has hit a record low near Paraguay’s capital. In fact, the Paraguay River has dropped so low it’s broken the previous record low level set in October 2021. The northern section of the Paraguay waterway is so low that navigation has practically come to a standstill. Brazil has also been hit by a drought that’s begun to threaten the country’s coffee and soybean crops. That’s after wildfires in Brazil scarred the sugar cane fields.

Amp America’s Dairy Projects Reduce Two Million Tons of CO2

Amp Americas, a leading dairy methane capture and renewable gas company, announced that its projects have reduced more than two million metric tons of carbon dioxide equivalent emissions since 2012. That’s equal to the emissions of more than five natural gas-fired power plants in one year. Amp Americas partners with dairy farmers throughout the United States on projects that reduce methane emissions from dairy waste. Amp provides an immediate, measurable, and at-scale solution to methane emissions by capturing methane on dairy farms that would otherwise get released into the atmosphere. Dairy Renewable Natural Gas also reduces the cost of managing dairy waste and produces digestate that can be used as a fertilizer. “After 12 years, two million metric tons is a milestone we’re proud of, especially since there are no other near-term solutions that can tackle methane emissions like our RNG projects can,” says Grant Zimmerman, CEO of Amp Americas.

Two Parties Present Contrasting Ag Policy Views

In a lead-up to Tuesday night’s presidential debate between Vice President Kamala Harris and former President Donald Trump, the agricultural positions of the two leading political parties were displayed in contrast during a forum at the National Press Club. Speaking for the Democrats, former Biden Administration EPA Senior Advisor Tom Snyder says farmers lost $29 billion in exports during the trade war in 2018 and 2019. “The four years of the Trump presidency was defined by chaos and uncertainty for the farm economy, and a second term would be even more severe,” Snyder added. The Trump campaign was represented by Kip Tom, a farmer and U.S. ambassador to the United Nations Agencies for Food and Agriculture under President Trump. Tom said the Biden-Harris administration has imposed $1.6 trillion in new regulations that are costing the American economy and costing farmers.  Hosted by the Farm Foundation, the event touched on a wide range of issues, including trade, the farm bill, tax policy, China, climate-smart programs and nutrition.

USDA Launches Interactive Census of Ag Maps

The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) launched a collection of interactive maps to allow data users to access key Census of Agriculture information. The newly redesigned Ag Census Web Maps application offers the public access to maps and accompanying data to help visualize, download and analyze Census of Agriculture data down to the county level. The app parses maps and statistics from the 2022 census across a number of categories including crops, producers and economics. NASS Administrator Joseph Parsons says it allows customizable ways to access the Census of Agriculture data in a way no other product can. He says for example, a user can show average value of agricultural products sold per farm, or view a county’s data for a given category. In preparation for the 2027 Census of Ag, NASS is already asking for content change suggestions and for new producers who did not receive a 2022 Census of Agriculture questionnaire last year to sign up to be counted. Both forms can be found at nass.usda.gov.

Washington Sees Coordinated Push for Farm Bill Passage

In an unusual move, commodity groups are coordinating efforts in bringing producers and other ag stakeholders to Washington, DC in an effort to get a new Farm Bill passed before the end of 2024. Agri-Pulse reports that such a cross-commodity initiative has not been put into practice since farmers pushed for what became the 2002 Farm Bill. Iowa banker Caleb Hopkins, vice chairman of the Ag and Rural Bankers Committee with the American Bankers Association, was reported by Politico as saying, “If the farm bill is not passed this year, agricultural producers will struggle to obtain credit during the 2025 production year. That will come as a blow to farmers who have experienced low commodity prices and high input costs.” Lawmakers, who have just returned from recess, are working on must-pass legislation to keep the government open past September 30. That is also the day the one-year extension of the 2018 Farm Bill is set to expire. 

Congressional Leaders Working to Pass Farm Bill in this Congress

With Congress now back from its August recess, leaders in both parties are saying they will resume talks to get a Farm Bill passed before the end of the year, even if it happens during a lame duck session. Senate Agriculture chairwoman Debbie Stabenow told Successful Farming she would do “everything in my power to pass a farm bill” this year. Farm-state lawmakers have been deadlocked for weeks over SNAP funding, higher crop subsidy spending, and climate mitigation. Stabenow has proposed an increase of at least 5% in reference prices, no cut in SNAP funding, and keeping the guardrails on climate funding, but has yet to release a full bill text. Meanwhile, House Majority Whip Tom Emmer of Minnesota told Brownfield Ag News he is confident a new Farm Bill will get across the finish line after the November election. Emmer said House Ag Committee chair GT Thompson is ready to bring his version to the House floor.

USDA and National Farmers Union to Collaborate on Strengthening Local FSA Operations

The National Farmers Union (NFU) and the USDA signed a Memorandum of Understanding (MOU) to address staffing levels and improve customer service at USDA Farm Service Agency (FSA) county-level offices. NFU and USDA say they will work together to gather feedback on the experiences of family farmers and ranchers when interacting with FSA staff and the programs they deliver. By hosting listening sessions in local communities, NFU says it will provide a platform for farmers to share their concerns and ideas for improvement. “As an agency, our employees are our greatest resource, and the agricultural producers we serve are our top priority,” says FSA Administrator Zach Ducheneaux. “I’m extremely pleased to enter into this MOU with NFU. Our hope is that the information gathered through this MOU can be used to guide better investment in the capacity of our local offices.”

Ag Student Donates Steer Proceeds to Farm Fire Victims

The future of farming appears to be in good hands after a recent auction in Wisconsin. During the 2024 Clark County Fair in Neillsville, Anna Kayhart, an agricultural education student at the University of Wisconsin-River Falls, exhibited her Grand Champion Dairy Market Steer. On Saturday August 10th, the morning of the animal market sale, a fire destroyed the milking barn of Clark County dairy farmers Jeremy and Bethany Oberholtzer. Later that day at the sale, the auctioneer announced that selfless Anna had decided all proceeds from her Grand Champion Dairy Steer would be donated to the Oberholtzers to help with rebuilding their dairy facility. Anna’s 1408-pound steer was purchased by Lynn Dairy in Granton, Wisconsin for a bid of $15.75 per pound, raising over $22,000.00 for the Oberholtzer’s farm recovery. Kayhart is also the recipient of a Wisconsin Rural Opportunities Foundation Premier Scholarship Award.

Wednesday Watch List

Markets

The U.S. Labor Department's consumer price index for August is set for 7:30 a.m. CDT Wednesday. The U.S. Energy Department's weekly energy inventory report will be out at 9:30 a.m. and includes ethanol production.

Weather

Hurricane Francine is expected to make landfall as a Category 2 hurricane in southern Louisiana later today and provide significant, heavy rainfall to southern areas of the Southern Delta. After making landfall, the storm will quickly lose strength but still provide areas of heavy rainfall as it heads north, following the Mississippi River.

Food Price Index Slightly Lower in August

The United Nations’ Food and Agriculture Organization says its Food Price Index stood at 120.7 points in August, down marginally from July. Decreases in the price indexes for sugar, meat, and cereals outweighed increases for those in vegetable oils and dairy products. The Food Price Index was 1.1 percent lower than August 2023 and 25 percent below the 160.3 points reached in March 2022. The Cereal Price Index averaged 110.1 points in August, down 0.6 points from July and 15 points below last year. The Sugar Price Index had the biggest drop, down almost six points from July to 113.9 points, 34 points lower than August 2023. The Dairy Price Index had the biggest jump, rising 2.8 points from July to 130.6 points, 16 points above last year. The Vegetable Oil Price Index hit 136 points, one point higher than in July, while the Meat Index was up 0.9 points to 119.5.

Over 300 Groups Call on Congress for a Robust Farm Bill

Drawing attention to the worsening economic conditions impacting the nation’s food growers, over 300 national and state groups, like the National Corn Growers Association, sent a letter to congressional leaders about the need for a new farm bill. Signatories stressed the significant need for a new bill before the end of 2024. “It’s critical that Congress pass a new farm bill that strengthens the safety net as many producers are facing multiple years of not being profitable, and this is causing their overall financial situation to deteriorate,” the letter says. “Some will have challenges as they seek operating credit for the 2025 crop year.” As the farm bill delays continued, producers across the country have faced headwinds ranging from extreme weather to high input costs and uncertain global demand to supply chain disruptions. Farmers and their allies say these challenges exposed areas of the farm bill that need to be strengthened.

Vietnam Trade Mission Underway

Alexis Taylor, USDA Undersecretary for Trade and Foreign Agricultural Affairs, arrived in Ho Chi Minh City to launch a USDA-sponsored agribusiness trade mission. Taylor’s delegation includes officials from 60 U.S. agribusinesses and farm organizations and nine state departments of agriculture seeking to develop and expand business opportunities with importers in Vietnam and other Southeast Asian Countries. “I’m honored to lead this delegation as we celebrate the first anniversary of the U.S.-Vietnam Comprehensive Strategic Partnership,” Taylor says. “Agriculture plays a huge role in our relationship with Vietnam, which is now our tenth-largest export market for agricultural and food products.” In addition to Vietnamese customers, members will meet with businesses from Burma, Cambodia, and Thailand. U.S. agricultural and related product exports to Vietnam totaled almost $3.5 billion in 2023 and are recognized by Vietnamese consumers, importers, and retailers for their reliability, quality, and sustainability. Fresh fruit, beef, and pork are in high demand.

2024 Cash Rents Hit Some Record High Levels

Illinois farmers are paying record-high cash rents this year, and they aren’t the only ones. USDA’s annual cash rent survey puts Illinois’ average at $269 per acre for non-irrigated cropland. It’s the third consecutive record-breaking year. A new record high was established in 2022 after a seven-year slump. Last year, the 2022 statewide average cash rent was topped by $16 an acre, and this year, despite some ideas that it might stay steady or decline, the price rose another ten bucks. Illinois does have some of the highest county-wide cash rent averages in the Midwest, but not the highest. On average, the USDA Cash Rent Survey says Iowa farmers pay $276 an acre. However, ten Illinois counties have average cash rents above Iowa’s highest county-wide rate of $323 in Sioux County, located in Northwest Iowa. At least ten Illinois counties spreading eastward from the state capitol in Springfield have higher published rates.

Nominations Open for Environmental Stewardship Program Awards

Nominations are being accepted for the National Cattlemen’s Beef Association Environmental Stewardship Award. Established in 1991, the Environmental Stewardship Award (ESAP) annually recognizes outstanding stewardship practices and conservation achievements of cattle producers across the nation. “Every day, cattle producers across the country are implementing stewardship practices that improve wildlife habitat and protect the environment for generations to come,” says NCBA President Mark Eisele (EYES-lee). “This distinguished award is our opportunity to celebrate their hard work and share those efforts with fellow producers.” Any individual, group, or organization is eligible to nominate one individual or business raising or feeding cattle. Individuals and families may not nominate themselves, although nominees should be involved in preparing the application. Along with the application, one nomination letter and three recommendation letters are required. Also, note there’s an earlier deadline of February 17, 2025. For more information or to download the nomination packet, visit environmentalstewardship.com.

Human Bird Flu Case Not Linked to Animal Exposure

Over the weekend, Missouri officials identified a person sick with bird flu despite having no known contact with animals. Farm Policy News from the University of Illinois says this is the first case of the virus this year not linked to farm work. The Centers for Disease Control and Prevention said last week that the Missouri patient was hospitalized and treated with antiviral medications. The patient has since recovered and has been discharged from the hospital. This is the 14th case of bird flu infection in humans this year. Ten cases were reported in Colorado, two in Michigan, and one in Texas, all amid an outbreak in animals. Before this year, there was only one reported case of bird flu in the U.S. in a poultry worker from Colorado, who was infected in 2022. Possible signs of human infection include fever, chills, cough, sore throat, conjunctivitis or pink eye, and runny nose.

Tuesday Watch List

Markets

DTN Meteorologist John Baranick and Lead Analyst Todd Hultman are giving presentations on what lies ahead for weather and corn and soybean price outlooks at Husker Harvest Days in Grand Island, Nebraska, lot 802 on Tuesday and Wednesday at 10 a.m. and 2 p.m. Come say hi.

Weather

A few isolated showers are possible across the Western Corn Belt Tuesday while the rest of the Corn Belt remains dry. Outer rain bands from Tropical Storm Francine will move into the Southern Delta throughout the day which could lead to some areas of locally heavy rainfall across so

Beef Export Momentum Continues in July

U.S. beef exports continued building momentum in July. USDA data says July beef exports totaled 110,419 metric tons, up seven percent from a year ago and the second largest of 2024. Export value rose 12 percent to $910.0 million, also the second-highest this year. July growth was fueled by higher demand in Japan, Taiwan, Mexico, and the Middle East and ASEAN regions. From January through July, value increased six percent from last year despite a two percent drop in volume. Pork exports were well above a year-ago levels in July, led by a record value for shipments to Mexico. Pork exports reached 24,210 metric tons in July, ten percent higher than last year. Export value rose 13 percent to $710.5 million, fueled by a record $244.5 million for leading market Mexico. Through the first seven months of 2024, exports were four percent above 2023 and export value rose six percent.