Combine harvester sales finished 2022 with healthy gains in unit sales while ag tractors finished below 2021 levels in both the U.S. and Canada. The Association of Equipment Manufacturers says total U.S. ag tractor unit sales fell during December and the whole year when compared with 2021. The sub-40 horsepower segment led losses in both time frames, losing 26 percent for the month and 19 percent for the calendar year. U.S. combine sales grew 16 percent in December and finished 2022 almost 16 percent higher than the previous year. Only one other segment was higher for the year, which was the 100-plus horsepower units, finishing the year up 11 percent despite dropping two percent in December. In Canada, combine harvesters led the yearly sales by finishing almost 11 percent higher than in 2021 and were assisted by a 27 percent sales bump in December. Tractor sales dropped seven percent in 2022.
Welcome
Thursday, January 12, 2023
AFBF Establishes 2023 Policy Priorities
Delegates at the American Farm Bureau Federation’s 104th annual convention adopted policies that will guide the organization’s work in 2023. Some of the key topics ranged from expanding risk management programs and improving dairy pricing transparency to battling hunger. “There’s a lot of work to do in 2023 as Congress drafts the next farm bill, and the policies set forth will guide AFBF as we work to ensure farmers and ranchers can continue to meet the growing needs of families in America and around the world,” says President Zippy Duvall. Delegates voted to modernize the farm bill by expanding baseline funding, developing more flexible disaster relief programs, and extending protection to more specialty crops. They also voted to bring more transparency to the federal milk pricing system. Voting delegates also formalized the organization’s opposition to the new Waters of the U.S. rule and a potential Mexican ban on GMO corn.
NACD Application Period for Conservation Grants
The National Association of Conservation Districts announced the open application period for the 2023 Urban and Community Conservation Grant Initiative. The grants are open to any conservation district or tribe within the U.S. and in the territories. Through a partnership with the Natural Resources Conservation Service, NACD has awarded over $6.5 million to 131 conservation districts and tribes in 37 states and Puerto Rico. As part of an ongoing effort to build capacity in the community-oriented agricultural space, NACD started offering UAC planning grants worth up to $10,000 each in 2022. The planning grants allow organizations that are new to urban or community agriculture to begin early-stage development of a program to provide conservation technical assistance. NACD will continue to offer the planning grants as well as the traditional implementation grants which are more focused on the provision of technical assistance. More information and the application are available at nacdnet.org.
USDA Expands Eligibility, Improves Benefits for Disaster Programs
USDA has made several updates to different conservation, livestock, and crop disaster assistance programs to give more farmers, ranchers, and tribes the opportunity to access them. Ease of access is especially important after natural disasters. The Farm Service Agency expanded eligibility and enhanced available benefits for a suite of its programs. The updates will provide critical assistance to producers who need to rebuild and recover after suffering catastrophic losses of production and infrastructure due to natural disasters. USDA updated the Emergency Conservation Program, the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish, the Livestock Forage Disaster Program, the Livestock Indemnity Program, and the Noninsured Crop Disaster Assistance Program. “As I meet with producers across the country, I’ve gained a better understanding of the ways in which our programs work and how they can be improved to better support all producers,” says Zach Ducheneaux, FSA Administrator. “Especially those who are rebuilding.”
CHS Reports First-Quarter Earnings
CHS released results for its first quarter which ended on November 30, 2022. The company reported a quarterly income of $782.6 million compared to $452 million in the first quarter of fiscal year 2022. First-quarter highlights from this year include revenues of $12.8 billion compared to $10.9 billion in the first quarter of fiscal year 2022, a year-over-year increase of 17 percent. Continued robust demand for commodities, coupled with market volatility, resulted in strong earnings across all of the company’s business segments. The company’s soybean and canola processing businesses in the Ag segment benefited from strong demand for meal and oil. “The U.S. agricultural industry has benefitted from ongoing strong global demand for grain and oilseed commodities,” says Jay Debertin, president and CEO of CHS. “Our continued strong earnings are attributable to market dynamics and supported by our investments on behalf of our owners that will drive efficiency and operational improvements.”
Pro Athletes Buying Iowa Farmland
Cincinnati Bengals quarterback Joe Burrow and longtime NBA player Blake Griffin are among some of the big-name athletes who are investing in Iowa farmland. They’ve joined up with more than 20 other pro athletes from the NFL, NHL, the NBA, and Major League Baseball to form an investment fund of about $5 million, which was used to buy farmland in Iowa. Other athletes in the group include Kemba Walker, formerly of the Dallas Mavericks of the NBA, and Khris Middleton of the defending NBA champion Milwaukee Bucks. The group is buying the land and will lease it to farmers who will work it and give the athletes a single-digit percentage annual return on their investment. It’s believed that the group will be looking to buy at least four more properties. They’ve already looked into several watermelon farms in Oregon that offer a higher per-acre rent than other larger farms.
Thursday Watch List
Markets
USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, the December consumer price index and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is set for 9:30 a.m., followed by USDA's Crop Production, WASDE, Grain Stocks and Winter Wheat Seedings reports -- all at 11 a.m. DTN's WASDE webinar follows at 12:30 p.m.
Weather
A system moving along or just north of the Ohio River on Thursday is producing thunderstorms along the river, some of which may be severe this morning. A larger threat for severe weather comes with thunderstorms developing over Mississippi that will move eastward through the rest of the day. Tornadoes and strong wind gusts are the main threats to the storms. Winds will be elevated around the system as well. More rain is moving through the West Coast, but most of California is getting a break from the recent heavy precipitation.