Iowa Confirms Avian Flu in Poultry Flock

The Iowa Department of Agriculture and USDA’s Animal and Plant Health Inspection Service this week confirmed a positive case of highly pathogenic avian influenza. The virus was found in a non-commercial, backyard poultry flock in Southwest Iowa. The state’s Agriculture Secretary Mike Naig says, “We are working with USDA and other partners to implement our plans and protect the health of poultry flocks in Iowa." Whether commercial producers or backyard flock owners, all bird owners should practice good biosecurity, which USDA says is the best way to keep livestock healthy. HPAI is a highly contagious, viral disease affecting bird populations and can travel in wild birds without those birds appearing sick, but is often fatal to domestic bird populations. Signs of HPAI include a sudden increase in bird deaths, lack of energy or appetite, and decreased egg production. If producers suspect signs of HPAI in their flocks, they should contact their veterinarian immediately.

Purdue Professor Receives Grant for ASF Rapid Test

A grant from the National Animal Health Laboratory Network and the National Animal Disease Preparedness and Response Program will help develop rapid testing for African swine fever. Quick identification and containment are key to stopping its spread, and a team of Purdue University researchers is developing a rapid, pen-side test for the disease. Purdue University professor Mohit Verma (mo-heet Verm-uh) received the $1 million grant, funded by the 2018 Farm Bill. Verma says, "A rapid test that can be done in the field is needed for surveillance and diagnosis of African swine fever." Verma is collaborating with Purdue scientists to create a portable paper-strip test for the disease. The project follows in the footsteps of Verma's success developing similar tests for COVID-19 and Bovine Respiratory Disease. A saliva or blood sample will be used for the test. The sample is mixed with primers and reagents developed by the team within a cartridge and gently heated. The included paper strip then changes colors if ASF DNA is present.

Use of Irrigation Systems Vary by Crop

New data from USDA’s Economic Research Service shows irrigation methods vary by crop because of differences in production practices, crop value, water source, and soil characteristics. Irrigation application methods can be broadly categorized as either gravity or pressurized systems. Pressurized irrigation systems apply water under pressure through pipes or other tubing, while gravity irrigation systems use field slope to advance water across the field surface. Rice has the largest share of acres irrigated by gravity systems, which is related to the flooding requirements of most rice production systems in the United States. Peanuts have the largest proportion of acres irrigated by pressurized systems. Pressurized systems are also prevalent among high-value specialty crops, such as vegetables and orchards. Pressurized irrigation systems, particularly low-flow micro-irrigation systems, are generally more expensive than gravity irrigation systems, precluding their use among lower value crops. Pressurized systems are also more prominent among crops concentrated in regions more reliant on groundwater.

Thursday Watch List

Markets

USDA's weekly export sales report is out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, an update of fourth-quarter productivity and an update of the U.S. Drought Monitor. U.S. factory orders for January are set for 9 a.m., followed by the Energy Department's natural gas storage report at 9:30 a.m. Federal Reserve Chairman Powell also testifies before the U.S. Senate on Thursday, while traders keep a close eye on events in Ukraine and the latest weather forecasts.

Weather

Another day of mild and dry conditions continues across most of the country on Thursday. A frontal boundary across the north will keep temperatures cooler toward Canada and there may be some isolated showers on the northern side of this boundary today as well, but more areas than not will see above normal temperatures. Showers will still occur in the Pacific Northwest and a system moving into California with showers will have significant consequences to the rest of the country this weekend.

Biden Delivers State of the Union Address

President Joe Biden’s State of the Union transcript included two mentions of the word farm. Biden said, “When corporations don’t have to compete, their profits go up, your prices go up, and small businesses and family farmers and ranchers go under,” announcing a crackdown on companies overcharging American businesses and consumers. The second, Biden stated a goal to “provide a pathway to citizenship for Dreamers, those on temporary status, farm workers, and essential workers.” The speech included no mention of biofuel, ethanol or agriculture. Biofuel is a hot topic for agriculture as the price of gas and oil continue to increase and worries of Russia’s invasion of Ukraine are intensifying that. Iowa Governor Kim Reynolds delivered the Republican response to the speech. While Republicans are not in the White House, she said “We’re doing what we can,” including “fighting to restore America’s energy independence, including biofuels.”

Farmer Sentiment Rises During Commodity Price Rally

The Purdue University-CME Group Ag Economy Barometer rose six points in February to 125, matching the sentiment reading from December. A more optimistic view of future conditions pushed the sentiment measure higher as the Index of Future Expectations rose ten points in February to 122, the most positive reading regarding the future by farmers since last August. The Index of Current Conditions was virtually unchanged at 132, just one point below a month earlier. This month’s survey was conducted from February 14-18, before Russia invaded Ukraine. The survey found producers remain concerned about the spike in production costs leading them to expect weaker farm financial performance in 2022 than in 2021. Supply chain issues continue to hold back farmers’ plans for investments in farm machinery as well as buildings and grain bins. Also, one-third of corn producers in this month's survey said they plan to reduce their nitrogen application rate compared to the rate they used in 2021.

Prolonged Fertilizer Disruptions Possible

Nutrien, the world’s largest fertilizer producer, says Russia’s invasion of Ukraine could result in prolonged disruptions of fertilizer supplies. In a report from Reuters, Interim Chief Executive Ken Seitz said Nutrien will boost potash production if it sees sustained supply problems in Russia and Belarus, the world's second-and third-largest potash producing countries after Canada. The comments come as farmers are already dealing with high fertilizer costs stemming from supply chain disruptions and natural gas prices. However, state corn organizations allege the price of fertilizer closely follows the price of corn, not natural gas. Speaking at the BMO Capital Markets investor conference, Seitz said, “We're going to run our plants, run them flat out,” adding,” Could we see interruptions in exports out of Russia? Yes. Can we see plant closures? We could." Nutrien expects to sell up to 14.3 million metric tons of potash this year, its most ever, and is considering further expansion, according to Reuters.