| Rural Advocate News | Tuesday June 6, 2023 |
USDA Kicks Off Agribusiness Trade Mission to Japan USDA Trade and Foreign Agricultural Affairs Undersecretary Alexis Taylor Monday launched an agribusiness trade mission to Japan. The U.S. delegation includes representatives from 11 state departments of agriculture, numerous farm organizations, and 40 agribusinesses looking to connect with future business partners in Japan. Taylor says, "As one of the largest world economies, Japan is one of the top and most reliable trading partners for the United States." Japan is one of the top and most reliable trading partners for the United States. Every year over the past two decades, Japan has imported at least $10 billion worth of U.S. food and agriculture products, reaching a record-high $14.6 billion in 2022. Throughout the week, USDA will help facilitate business-to-business meetings between participating small and medium-sized U.S. agribusinesses and Japanese buyers seeking to import American food and farm products. The trade mission itinerary also includes meetings with Japanese and local government officials and industry groups to discuss trade issues and unique opportunities. *********************************************************************************** AFT Releases White Papers Detailing Farm Bill Recommendations American Farmland Trust Monday released two new white papers that further illustrate its priorities to increase adoption of conservation practices in the next Farm Bill. The priorities include the creation of a federal match to help states and Tribes build up their soil health programs, and increased support for farmer-to-farmer education to accelerate adoption of conservation practices. AFT Policy Director Tim Fink says, “AFT’s is working this Farm Bill to keep land in farming, keep farmers on the land, and to help farmers adopt sound farming practices.” Creating a Federal Match for State and Tribal Soil Health Programs in the Next Farm Bill urges Congress to build up locally-led programs that supplement and fill gaps in NRCS conservation support. Improving On and Increasing Access to Conservation Programs in the Next Farm Bill focuses on how programs can continue their work supporting voluntary, locally-led conservation while ensuring equitable access for farmers. AFT also recommends Congress establish an Office of Small Farms at USDA to support lower-acreage producers. *********************************************************************************** Noble Research Institute Launches Regenerative Ranch Management Program Noble Research Institute Monday announced the launch of its Essentials of Regenerative Ranching program. The effort is designed to help ranchers monitor and improve the health of their land, livestock and livelihood. Essentials provides producers with practical tools, hands-on experience and guidance to break free from the cycle of high inputs and low returns. Farmers and ranchers navigate uncertainty from weather, fluctuating market prices and skyrocketing inputs. Many producers seek new skills and tools that offer greater control and reduce operational uncertainty. While regenerative ranching can help mitigate or avoid some of these issues altogether, ranchers may struggle to find reliable information about implementation or fail to receive support needed for lasting success. In response, Noble Research Institute designed Essentials of Regenerative Ranching to offer farmers and ranchers guidance in using core principles and proven monitoring methods. The first in-person training will be offered July 11-12, 2023, at Tarleton State University in Stephenville, Texas. Registration is open now at www.noble.org/. *********************************************************************************** FFA Members Attending Washington Leadership Conference For more than 50 years, thousands of FFA members from across the country have converged in our nation's capital each summer to engage with legislators, hone civic engagement and leadership skills, and create community impact projects to take back to their cities and towns. National FFA Organization members are in Washington, D.C., this week as part of the National FFA Organization's Washington Leadership Conference. The more than 50-year tradition brings thousands of FFA members to Washington, D.C., to interact with legislators, hone civic engagement and leadership skills, and create community impact projects. More than 2,000 FFA members from throughout the country are expected to attend the 2023 conference. FFA members will spend the week under the guidance of agricultural and leadership professionals, facilitators, and FFA staff. FFA members will also have the unique opportunity to participate in congressional visits with legislators from their states during the week. Members can share concerns and challenges from their communities and discuss agricultural-related legislation. *********************************************************************************** “Natural” Labeled Foods Account for 16% of Consumer Spending New Data from USDA’s Economic Research Service shows foods labeled “natural” accounted for slightly more than 16 percent of consumer retail food purchases in 2018. USDA and the Food and Drug Administration require producers to adhere to specific standards or processes to use certain label claims, such as USDA Organic. The “natural” claim, however, has minimal requirements and using the claim on a food product’s packaging does not require that the product provide any health or environmental benefits. Regulatory agencies treat the claim as meaning nothing artificial was added, and the product was minimally processed. Even so, consumers sometimes attribute benefits to products labeled "natural," research studies show. The share of products labeled "natural" varies by food category. The share of spending on "natural" products in 2018 was highest for dairy products, at 27.7 percent, and lowest for fruits and vegetables, at 5.9 percent and 5.4 percent, respectively. *********************************************************************************** OPEC Could Derail Fuel Price Declines With the summer driving season now underway, the nation's average price of gasoline declined 3.9 cents from a week ago to $3.51 per gallon. The national average diesel price fell 3.4 cents last week and is $3.88 per gallon. However, GasBuddy's Patrick De Haan warns OPEC could change the course of fuel prices this summer. OPEC+ agreed Sunday to additional production cuts, while Saudi Arabia is going above and beyond and cutting July production. As a result, De Haan says, "oil prices are likely to see upward pressure as global supplies, which have remained tight, promise to become even tighter as a result." Oil prices could rally this week and push fuel prices higher, but De Haan says any rise in average prices should be fairly small. U.S. retail gasoline demand saw a 2.3 percent fall last week, with the most common U.S. gas price at $3.39 per gallon.
| Rural Advocate News | Tuesday June 6, 2023 |
Tuesday Watch List Markets The U.S. Energy Department's Short-term Energy Outlook is due out Tuesday with interest in its estimates of world oil supply and demand after OPEC decided to cut production by one million barrels a day Sunday. There are no other significant reports Tuesday, but traders will continue to monitor the latest weather forecasts. Weather A cold front is slipping south through the Midwest on Tuesday, with part of it pushing southwestward toward the Plains. The front will be somewhat active with some isolated showers developing along it. Isolated to scattered showers will develop in the Southern Plains to the Gulf Coast as well as the Canadian Prairies.
| Rural Advocate News | Monday June 5, 2023 |
USTR to Initiate USMCA Dispute Settlement with Mexico The U.S. Trade Representative’s Office announced that it is filing a dispute settlement under the U.S.-Mexico-Canada Agreement in response to Mexico’s ban on biotech corn for human consumption. The National Corn Growers Association has called on the administration to act and praised the development. “Mexico’s actions, not based on sound science, have threatened the financial well-being of corn growers and rural communities,” says NCGA President Tom Haag (HAYG). Under the agreement, once a dispute settlement gets filed, a group of objective experts will hear the case and make a final determination based on the commitments of both parties under the free trade agreement. Tai says Mexico’s measures are inconsistent with several of its obligations in the Sanitary and Phytosanitary Measures and Market Access chapters of the agreement. “The USMCA was written to ensure that all producers in the three countries have full access to each other’s markets,” says Ag Secretary Tom Vilsack. *********************************************************************************** USDA Proposes Action Plan to Modernize FMMOs The National Milk Producers Federation applauds USDA for proposing its “Action Plan” for a national hearing based on NMPF’s proposal to modernize Federal Milk Marketing Orders. The federation looks forward to the next phase of creating a federal order system that better reflects today’s market conditions and dairy producer needs. “We’re grateful USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full because the whole of our plan adds up to more than the sum of its parts,” says NMPF President and CEO Jim Mulhern. “We held more than 150 meetings and wide consultation across dairy producers and the entire industry in coming up with our plan.” The agency says the action plan may include a tentative hearing start date of August 23, 2023. The USDA received the federation’s formal proposal to amend the pricing provisions of all 11 FMMOs on May 2. *********************************************************************************** USB CEO Ruhland Stepping Down Polly Ruhland, CEO of the United Soybean Board, will leave her position effective December 31, 2023. Ruhland has led the organization for six years and played a pivotal role in driving significant organizational changes and setting a foundation for USB’s future. “Polly has been a visionary leader for USB during a very transformative time,” says Meagan Kaiser, USB Chair. “A true servant-leader, her biggest contribution and lasting legacy is building a first-class staff that we can rely on.” During the past six years, USB embarked on a transformative journey marked by numerous accomplishments and milestones, including developing and implementing a comprehensive strategic plan. The plan also reinforced USB’s commitment to innovation, sustainability, and market development. Kaiser will form a search committee to identify a new Chief Executive Officer. The committee will begin the search after USB’s July board meeting to have a new CEO in place by the end of 2023. *********************************************************************************** Senate Ag Chair Comments on Debt Agreement Senate Ag Chair Debbie Stabenow of Michigan was pleased that the Senate voted to pass the bipartisan bill to avoid a debt default, calling it critical for our economy and families. “I’m pleased this agreement protects the important steps that we’ve taken over the last two years to rebuild America, bring jobs home, lower the costs of health care, and tackle the climate crisis,” Stabenow says. Stabenow also says she’s deeply disappointed by the changes that were agreed to in the Supplemental Nutrition Assistance Program. “As the Ag, Nutrition, and Forestry Committee Chair, I intend to produce a bipartisan farm bill that protects critical nutrition and food assistance programs for all Americans,” she said. “And as far as I’m concerned, the work requirements issue is settled for this Congress.” She intends to in no way further erode the dignity of Americans who need roughly $6 a day to buy food. *********************************************************************************** Milk Producers Oppose Shortsighted Infant Formula Legislation The National Milk Producers Federation strongly opposes legislation introduced in both chambers of Congress that would increase U.S. vulnerability to infant formula supply disruptions. The bill would increase U.S. reliance on imported formula and formula inputs. It would also unilaterally and permanently remove tariffs and tariff rate quotas on infant formula and infant formula base powder, resulting in lost jobs and foreign dependence. “This bill puts in place new one-way street trade conditions that would harm dairy farmers, cooperatives, and processors,” says Jim Mulhern, NMPF president and CEO. “We vehemently object to putting unilateral import expansion on the backs of U.S. dairy farmers.” The organization says the bill is a misguided response to the dire shortages of infant formula that occurred last year after a temporary production crisis at a large U.S. formula manufacturing plant. The FDA says formula stocking levels are higher than those seen before last year’s shortage. *********************************************************************************** Legislators Oppose Discriminatory Brazilian Tariffs on Ethanol A bipartisan group of congressional members is asking U.S. Trade Representative Katherine Tai to prioritize ethanol export competitiveness and address unfair import tariffs Brazil has in place on U.S. ethanol. The letter, signed by 21 members, highlighted the importance of biofuel and ethanol production for rural communities throughout the country. Recently announced import tariffs by Brazil on American ethanol would negatively impact American agriculture, which previously received duty-free treatment from Brazil. “We believe the tariff imbalance is unjustified and puts American ethanol and farmers at risk,” the letter says. “We strongly urge you to prioritize American ethanol export competitiveness in the Brazilian market by addressing these unfair policies.” The letter also says should Brazil’s unfair treatment continue, the lawmakers then stand ready to work with Tai to consider measures that protect American farmers and biofuel producers to help counter these unfair trade practices. Brazil’s tariff was reinstated on February 1.
| Rural Advocate News | Monday June 5, 2023 |
Top 5 Things to Watch - WASDE, El Nino and Debt Next Steps 1. WASDE week again: Friday will see the June World Agricultural Supply and Demand Estimates report from USDA. We'll share expectations in our preview story Wednesday. As for the report itself, our initial report flash posts after 11 a.m. CDT, with updates through the morning. 2. El Nino takes hold: The shift from La Nina to El Nino, something DTN meteorologists have talked about since early winter, appears to be moving along. Already we see winners and losers in terms of timely rainfall, a variability that is common with the "Little Boy" pattern. 3. Debt ceiling next steps: The government default may be averted, but there is much yet to learn about federal spending, including Supplemental Nutrition Assistance Program (SNAP) discussions. All this could affect farm bill negotiations going forward. We'll continue to watch and report what we learn as the details eke out. 4. GOP hopefuls: A smattering of potential Republican presidential candidates gathered in Iowa the last few days and on June 3. DTN Policy Editor Chris Clayton will follow up and what was said and what was heard. 5. Reports to watch: We'll have the weekly USDA Crop Progress Report Monday afternoon. Wednesday sees the U.S. trade deficit numbers and the U.S. Energy Department's weekly inventory reports. Thursday USDA releases its weekly export sales, plus the weekly U.S. jobless claims numbers come out and we'll see an update of U.S. Drought Monitor.
| Rural Advocate News | Monday June 5, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and note any news from OPEC's meeting on Sunday. U.S. factory orders are scheduled for 9 a.m. CDT Monday, followed by USDA's weekly report of export inspections at 10 a.m. USDA's Crop Progress report at 3 p.m. will include initial crop ratings for soybeans and spring wheat. Weather After a weekend of widespread rainfall across a lot of the Plains and western Midwest, Monday looks to be a quieter day for many areas. There will still be isolated to scattered showers from the Prairies to the Gulf Coast, however, and more frequent for those southern areas. Temperatures remain quite warm for many areas for this time of year.
| Rural Advocate News | Friday June 2, 2023 |
USDA Lowers 2023 Ag Exports The USDA says America’s agricultural exports in fiscal year 2023 are forecast at $181 billion, down $3.5 billion from the February forecast. The revision is driven by decreases in corn, wheat, beef, and poultry exports. Corn exports are forecast $2.1 billion lower to $14.5 billion on lower unit values and volumes as Brazil is projected to harvest a record second-corn crop. Wheat exports are projected down $900 million to $7.4 billion because of lower volumes and values, as well as increased competition. Soybean exports are projected up $300 million to $32.3 billion on slightly higher volumes. Total livestock, poultry, and dairy exports are expected to decrease by $1.2 billion to $39.3 billion. Declines in beef and poultry exports will more than offset increases in dairy exports. Cotton exports will be $6 billion, up $200 million, as higher volumes more than offset lower unit values. Ethanol exports were unchanged at $3.6 billion. *********************************************************************************** Rising Cost of Carry is Hitting Grain Elevators’ Bottom Lines A new report from CoBank says grain merchandisers have endured rising costs of storing or carrying grain and oilseed inventories during the past year because of rising interest rates. Higher crop prices and rising operating costs like transportation, insurance, fuel, electricity, and labor are also squeezing grain elevators. CoBank forecasts the financial cost of carry will reach record highs in the upcoming 2023-2024 crop year for corn, wheat, and soybeans. Grain elevators are required to buy and market members’ crops, regardless of whether the economics are favorable. The one thing elevators do control is their local bids. Inverted futures markets further penalize elevators for having to store grains and oilseeds. If interest rates stay at their current high level and futures markets remain inverted into the new crop year, then many grain cooperatives are expected to lower their bids and widen their basis to cover the high cost of storing commodities. *********************************************************************************** National Dairy FARM Excellence Award Nominations Open The National Dairy Farmers Assuring Responsible Management Program Excellence Awards are back for a third year. The awards recognize farms and evaluators who demonstrate excellence in the FARM Program. Awards are given in four categories, including Animal Care and Antibiotic Stewardship, Environmental Stewardship, Workforce Development, and FARM Evaluator. “We are so proud of the farms that participate in our program areas and our dedicated evaluators,” says Emily Stepp, executive director of the FARM Program. “We believe it’s important to publicly recognize the people that make the FARM Program so successful.” Farms or FARM evaluators can be nominated by fellow dairy farmers, community members, extension, cooperative and processor staff, veterinarians, and themselves. Nominations are open through August 1. Nominated farms must have a current FARM Program evaluation in the respective category area and must be in good standing with the program. Evaluators must be FARM Program certified. More information is at nationaldairyfarm.com. *********************************************************************************** Legislation will strengthen America’s Food Supply Congressman Tom Tiffany of Wisconsin reintroduced the Guaranteeing Robust Agricultural Independence and Nutrition for America (GRAIN) Act. It would place a one-year moratorium on the enrollment of farmland in the Conservation Reserve Program, which pays farmers to leave land uncultivated. After the one-year moratorium, the bill would prevent prime farmland from getting enrolled in the CRP. “Food security is national security, and America needs to be taking the necessary steps to shore up our food supply,” Tiffany says. “We can only have a prosperous future if we allow our nation’s farmers to unleash their full production potential.” He also says the bill came about because the administration expanded the CRP in a “green fantasy” attempting to achieve net-zero emissions. Tiffany’s GRAIN for America Act would not impact farmland that is already a part of the CRP. Additionally, farmers who already have land in the CRP can re-enroll during the moratorium. *********************************************************************************** Reps Push USTR for Actions on Mexico Under the USMCA Representatives Michelle Fischbach of Minnesota and Adrian Smith of Nebraska led 62 colleagues in a letter to U.S. Trade Representative Katherine Tai regarding Mexico. The House members are calling on Ambassador Tai to fully utilize the tools available under the U.S.-Mexico-Canada Agreement to hold Mexico accountable for its commitments. They’re asking Tai to proceed with a formal USMCA dispute to address Mexico’s discriminatory policies banning U.S. biotech corn. “Now that the thirty-day period for consultations has lapsed without Mexico making any changes, we urge you to take swift enforcement action by initiating a USMCA dispute,” the letter says. “Two months have passed since you made strong comments on Mexico during Congressional testimony, and we strongly believe it’s time to take additional steps in the matter.” The letter also points out that a lack of action would create a dangerous precedent that promises made under USMCA can be ignored without consequence. *********************************************************************************** FFA Hires Equity Executive in Residence The National FFA Organization named Corey Flournoy as the executive in residence for equity, diversity, and inclusion. In the new role, Flournoy will guide the leadership team and national boards in EDI matters. He’ll design, implement, and evaluate an EDI strategy that aligns with the organization’s strategic plan. “We’re excited to have Corey as a part of our team in this role,” says Scott Stump, CEO of the National FFA Organization. “We want to ensure our current and future members feel welcomed, and FFA is indeed a place for all to feel valued and contribute to our mission. Corey is the right person to help us achieve that goal.” Flournoy is a former FFA member and the first African-American FFA president. He brings over 30 years of experience and leadership in diversity and inclusion programming. “My overall goal is to help us rethink how we talk about and approach EDI,” Flournoy says.
| Rural Advocate News | Friday June 2, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Friday, the same time as nonfarm payrolls and the U.S. unemployment rate for May. Traders will continue to monitor the latest weather forecasts and keep tabs on the effort to raise the debt ceiling. Weather Areas of scattered showers and thunderstorms will continue to develop in the Plains and parts of the western Midwest on Friday. Areas of heavy rain are expected to occur, most likely around Montana and west Texas, which may cause flooding. Temperatures continue to be above normal for most places.
| Rural Advocate News | Thursday June 1, 2023 |
West Coast Ports Losing Business as Negotiations Continue West Coast ports in the U.S. started negotiating a new labor contract just over a year ago. While working without a new contract in place isn’t unheard of, the contract has now been expired for over 10 months. A report from the U.S. Meat Export Federation says the labor uncertainty is having an impact on red meat exports. “There’s a lot of questions and uncertainty surrounding the west coast ports,” says USMEF President and CEO Dan Halstrom. “Those ports are a vital starting point for a large number of our shipments to Asia.” The Long Beach and LA ports shut down in mid-April and were followed by further disruptions later that month. He says USMEF is seeing a reduction in imports, and some discretionary cargo is getting diverted away to ports in the Gulf of Mexico and the East Coast. “This isn’t good news for the meat industry,” he says. *********************************************************************************** FAO Issues Report on World’s Hunger Hotspots The United Nations Food and Agriculture Organization has issued an early report on places it expects to be hunger hotspots from June to November. The FAO says food insecurity is likely going to increase in magnitude and severity in 18 hunger hotspots in 22 countries. The report spotlights the risk of spillover in the Sudan crisis, raising the risk of negative impacts in the surrounding countries. It also says deeper economic shocks will continue to drive low- and middle-income nations deeper into crisis. FAO is also warning that a likely El Niño climate event will raise fears of climate extremes in the most vulnerable nations around the world. All of the hotspots at the highest level of concern have populations facing or projected to face starvation or are at risk of deterioration towards those conditions. Countries like Afghanistan, Nigeria, Somalia, and South Sudan remain at the highest level of concern. *********************************************************************************** Global Clean Energy Kickstarting a Climate-Smart Camelina Project Global Clean Energy Holdings and USDA have signed a contract for the Partnerships for Climate-Smart Commodities grant for their Climate-Smart Camelina (kam-uh-LEE-nah) Project. Now that the agreement is signed, work can officially begin on their $30 million project to measure and validate the advantages of camelina as an ultra-low carbon nonfood renewable fuel. The project will implement, measure, and validate the advantages of camelina in both rotational and winter crop production systems. The goal is to accelerate farmers’ adoption of camelina grown to produce feedstock for renewable biofuels and chemicals without causing land-use change and while increasing carbon capture in the soil. Climate-Smart Camelina will also support market development to provide additional revenue streams for growers and provide a premium for this low-carbon intensity crop. “We’re excited to begin this important work,” says Richard Palmer, CEO of Global Clean Energy. “Camelina could be the lowest-carbon intensity feedstock option on the market.” *********************************************************************************** Groups Pushing for Passage of Shipping Reform Implementation Act The Ocean Shipping Reform Implementation Act is designed to help with slowdowns and other issues at U.S. ports. The Ocean Shipping Reform Implementation Act follows the Ocean Shipping Reform Act passed a year ago. The first bill gave the Federal Maritime Commission the power to address the actions of foreign carriers leaving U.S. ports empty and not carrying American goods back home. The new Reform Implementation Act clarifies the FMC role and focuses attention on shipping exchanges. The goals are to streamline port logistics, reduce disruption, and address the influence of Chinese companies on shippers’ operations. U.S. ports are also prohibited from using Chinese state-sponsored software. The FMC can now investigate foreign shipping exchanges like the Shanghai Shipping Exchange to prevent improper business practices. A report from Supply Management says the sponsoring legislators point out it gives the FMC the authority to protect U.S. ports, shippers, and manufacturers from Chinese influence. *********************************************************************************** Weekly Grain Inspections Drop, Bean Assessments Head Higher A USDA report says inspections of corn and wheat for overseas delivery were down week-to-week, while soybean assessments improved during the week ending on May 25. Corn inspections fell to 1.31 million metric tons during the week, down from 1.33 million tons. That’s also lower than the 1.41 million tons inspected during the same week last year. Wheat assessments drop to just over 382,000 metric tons from over 440,000 the prior week. That was up from the 344,300 metric tons during the same week in 2022. Soybean inspections rose to 239,736 metric tons from 166,590 tons the week before. That’s still down from the 404,300 tons assessed during the same week last year. Since the start of the marketing year, USDA has inspected 28.7 million metric tons of corn for offshore delivery – down from 43.3 billion tons last year - 48.5 million metric tons of soybeans, and 19.6 million tons of wheat *********************************************************************************** Water-Quality Certified Farms Make More Profits A study from the Minnesota State Agricultural Centers of Excellence says using water quality practices on the farm has financial benefits. For the fourth year in a row, farmers enrolled in the state’s Agricultural Water Quality Program had higher profits than those that didn’t. More than 100 farms enrolled in the water certification program throughout the state. Forty-three of the state’s 87 counties were represented. On average, water quality-certified farms brought in $23,500 more than non-certified farms, which was a 7.5 percent increase in profits. The average net income was more than $317,800 for farms involved in the study, while the state average was $257,600. “This clearly states the case for water quality certification,” says Keith Olander, AgCentric director. “I can say this because we’re also doing this with cover crops, and we want to carry that forward and see where the environmental metrics go to help farmers with their decisions.”
| Rural Advocate News | Thursday June 1, 2023 |
Thursday Watch List Markets At 7:30 a.m. CDT Thursday, weekly U.S. jobless claims will be out, along with a report on first-quarter productivity and an update of the U.S. Drought Monitor. An index of U.S. manufacturing is set for 9 a.m. The U.S. Energy Department's natural gas storage report will be out at 9:30 a.m. CDT, followed by weekly inventories, including ethanol production at 10 a.m. The monthly Fats and Oils report from NASS is set for 2 p.m. Weather As has been the case all week long, showers and thunderstorms continue to develop in parts of the Plains, being heavy in some spots where they occur, which may produce flooding. The Texas Panhandle has been hit repeatedly but other areas up and down the Plains could see some locally heavy rain as well. Some isolated showers and thunderstorms may occur in parts of the western Midwest and Southeast.
| Rural Advocate News | Wednesday May 31, 2023 |
USDA Extends Deadline for Revenue Loss Programs USDA is extending deadlines for the Emergency Relief Program Phase Two and the Pandemic Assistance Revenue Program to July 14. The goal is to give producers more time to apply for the assistance. Also, USDA’s Farm Service Agency is partnering with nine organizations to provide educational and technical assistance to agricultural producers and provide assistance in completing an ERP Phase Two application. “Farm Service Agency recognizes that there is a learning curve for producers applying for the new revenue-based programs, and we want to make sure producers have the time they need to apply for assistance,” says FSA Administrator Zach Ducheneaux. “Partnering with these organizations through cooperative agreements provides additional assistance to producers who need help with ERP Phase Two.” The groups include Farmers Legal Action Group, Inc., the North South Institute, Rural Coalition, and others. For more information on the nine organizations and their contact information, go to fsa.usda.gov. *********************************************************************************** Next USDA Trade Mission Heading to Japan USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an upcoming trade mission to Japan on June 5-8. The delegation will include a large representation of American agriculture, including businesses, state agriculture departments, and commodity groups. “As one of the world’s leading economies, Japan is an important market for U.S. food and agricultural exports,” Taylor says. “It’s an honor to lead this delegation as we work to expand our bilateral trade relationship even further.” Japan is the fourth-largest market for U.S. food and agricultural exports. In 2022, American exports matched the previous record of $14.6 billion. Exports of specific products like soybeans, dairy, and others reached new highs. The United States is vital to ensuring food security in Japan, with almost a quarter of Japan’s food and ag imports coming from American exporters. Trips like this are important for engaging directly with potential buyers and Japanese industry experts. *********************************************************************************** Talks Continue on Merging U.S. and Canadian Ag Giants Glencore, a global commodities trader, is in talks to merge its agricultural division. The Globe and Mail says the company wants to merge Viterra, Ltd, a large Canadian company acquired in 2012, with Bunge Ltd. If the merger takes place, it will create a large North American-based company. Viterra operates a large number of grain elevators, specialty crop facilities, processing plants, and port terminals through most of Canada and parts of the U.S. Glencore wants to merge it with Bunge, based out of St. Louis, one of the world’s dominant ag companies with a market value of $14 billion. Glencore first proposed a merger idea with Bunge in 2017 but was turned down. A source close to the discussions says a deal seems much more likely this time than six years ago, but the sides haven’t agreed on a final price. Glencore originally bought Viterra for $6 billion in 2012. *********************************************************************************** Safety From too Much Sun People working in production agriculture spend a lot of time out in the sun, and their risks are high for skin cancer. While the warm sun often feels good on the skin, it’s important to take steps to protect yourself from overexposure and reduce skin-related risks. The Upper Midwest Agricultural Safety and Health Center says appropriate sun protection includes covering the whole body with clothing, wearing a hat with a full brim, having adequate sunscreen coverage, and sunglasses. As a part of its safety checklist, they remind farmers to wear long-sleeved shirts and pants when out in the sun. Hats should be wide-brimmed and all the way around the head. An appropriate sunscreen should be anywhere between SPF 30-50 and should be reapplied every two hours or more frequently with heavy sweating. Wear sunglasses to protect the eyes. Check your skin regularly and talk to a doctor about any changes you see. *********************************************************************************** Congressional Leaders, White House Reach Debt Ceiling Agreement Congressional leaders and the White House reached an agreement on extending the debt limit. The new agreement is expected to reach the House floor for debate by Wednesday. The two sides reached an agreement including compromises on work requirements in the SNAP program. Chris Gibbs, Board President of Rural Voices USA, says now that the agreement has been reached, it’s time for Congress to get it passed. “Rural America would be hammered by default and its cascading impacts on retirement savings, farm credit, access to capital, benefits, and more,” he says. “In addition to avoiding this politically-manufactured crisis, Congress needs to get back to the legislating business.” Gibbs also says it’s time to invest in rural America through healthcare and education, expanding new markets for American agricultural products, and protecting every American’s right to vote. With SNAP work requirements settled, it should provide a somewhat smoother path toward the next farm bill. *********************************************************************************** Drought Area Spreading in Parts of Rural America USDA Meteorologist Brad Rippey is looking back at May and notes some farmers are still concerned about drought. “It’s been dry over much of the Midwest during the last one to three months, depending on where you’re at,” Rippey says. The American Meteorological Society says a 4-12 week period of dryness fits the definition of a flash drought. A flash drought is an “unusually rapid onset drought characterized by a multi-week timeframe of accelerated intensification that impacts one or more sectors of the U.S., including agriculture. Rippey also says the area around Chicago is going through a flash drought. Data shows the Chicago area is headed for its second-driest May in history. The likely rainfall total for the Chicago area is just .42 of an inch. Rippey says 26 percent of corn acres, 36 percent of cotton, 20 percent of soybeans, and 47 percent of wheat are in some level of drought.
| Rural Advocate News | Wednesday May 31, 2023 |
Wednesday Watch List Markets The Federal Reserve's Beige Book will be released at 1 p.m. CDT. There are no other significant reports Wednesday. Traders will continue to monitor the latest weather forecasts and follow progress on the proposal in Congress to raise the debt ceiling. Weather As has been the pattern lately, showers and thunderstorms are expected to develop in the Plains for yet another day. However, we should see showers and thunderstorms developing in the western half of the Midwest as well. Models are all over the place with placement and intensity, but some heavier rain should be expected, which could lead to some flooding in spots. Severe weather cannot be ruled out either, especially over west Texas.
| Rural Advocate News | Tuesday May 30, 2023 |
More Reaction to Supreme Court’s WOTUS Decision U.S. agriculture groups continue reacting positively to the Supreme Court’s unanimous ruling in the Sackett vs. EPA case that rejected the Biden Administration’s WOTUS definition. “Cattle producers can breathe a sigh of relief,” says National Cattlemen’s Beef Association President Todd Wilkinson. “This decision refocuses the Clean Water Act on protecting our water through regulatory clarity.” The Fertilizer Institute also welcomed the decision. “The decision to strike down the ‘significant nexus’ test is a win for agriculture,” says TFI President and CEO Corey Rosenbusch. “This is a great first step to needed clarity for the fertilizer industry’s long-term planning and capital investments that will allow us to keep providing critical crop nutrients.” The National Pork Producers Council called the decision a “tremendous victory” for pork producers. “This ruling is a clear punctuation point after decades of attempts to expand the federal government’s control of private land,” says NPPC Vice President Duane Stateler. *********************************************************************************** Report Released Showing Crop Insurance Impact by State Crop insurance is the cornerstone of America’s farm safety net and supports the rural economy and America’s national food security. National Crop Insurance Services has assembled several fact sheets highlighting the importance of agriculture and demonstrating how crop insurance keeps America growing. For example, crop insurance protects more than 490 million acres of U.S. farmland. It covers 136 crops and 604 varieties with 36 different insurance plans. Crop insurance does require farmers to invest in their own protection and share the risk. Last year, farmers paid $6.8 billion to buy more than 1.2 million crop insurance policies. The public-private partnership between the federal government and private crop insurers ensures that aid is delivered quickly, usually within 30 days of a claim being finalized. As if that’s not enough, the number of Americans who benefit from a bountiful supply of domestically-produced food totals 336 million. The state-by-state breakdown is available at cropinsuranceinmystate.org. *********************************************************************************** BLM Holds Information Session on New Rule The Bureau of Land Management hosted the first in a series of three informational sessions on a new agency proposal to broaden its conservation efforts. The draft Conservation and Landscape Health Rule would overhaul a variety of existing land management procedures at BLM. The changes would give it clearer authority to prioritize the health and resilience of ecosystems across almost 250 million acres of federally-owned land. Agency officials and supporters of the rule say it would place conservation and outdoor recreation on level ground with industrial uses like ranching and oil and gas drilling that BLM has facilitated for many years. Opponents and their Republican allies say it will likely curb those uses as much of the rule revolves around “conservation leases.” It’s a new mechanism that would protect certain areas from development for up to ten years. And those leases would be proposed by environmental non-profits or other applicants. *********************************************************************************** H-2A Visa Use Increased Dramatically During the Last Decade According to numbers from the U.S. Labor Department, more than 378,000 workers were authorized for H-2A visas for temporary agriculture positions. The number was less than a third of that as recently as 2012. Farmer Mac says that trend is going to continue for some time. “In the short run, I expect that growth to continue as long as pressure remains on labor markets,” says Jackson Takach, the chief economist with Farmer Mac. Back in 2012, the Labor Department said just 103,000 workers entered the U.S. through the H-2A program. H-2A workers are most heavily utilized in states like California and Florida because fruits and vegetables require more manual labor. However, those workers are also vital for agriculture in the Midwest and Great Plains. Iowa tops the list of states with the most H-2A workers in the Central U.S. Iowa was followed by Minnesota and North Dakota on the list. *********************************************************************************** Legislation on Easing Supply Chain Challenges Advances in the House Several industry trade groups say a number of trucking bills passed by the House Transportation and Infrastructure Committee are a step in the right direction. Food Navigator says the bills should help to further repair and reinforce America’s fragile food supply chains threatened by a severe shortage of drivers. Almost three-fourths of all goods in America’s economy, including all foods sold in grocery stores, get moved by the trucking industry. The bipartisan legislation would reduce the “empty miles” that trucks have to travel by allowing them to increase the weight they carry with an additional axle. A bill from Dusty Johnson (R-SD) would establish a voluntary ten-year pilot program allowing states to increase the weight of six-axle vehicles on federal interstates up to 91,000 pounds. Supporters say increasing the amount of weight trucks can carry would lower greenhouse gas emissions, ease supply chain backlogs, and reduce the number of “empty miles.” *********************************************************************************** Weekly Soybean Sales Rise, Corn and Wheat Drop The USDA says soybean export sales rose during the week ending on May 19, while cancelations of corn and wheat orders from overseas customers resulted in net reductions. Soybean sales rose to 115,000 metric tons during the week, up from the prior week but down 26 percent from the previous five-year average. Germany was the top customer at almost 58,000 metric tons, while Japan bought 53,500 tons. Cancelations of corn orders resulted in a net drop of 75,200 metric tons during the week. However, that’s still better than the net reduction of 339,000 during the prior week. Mexico was the top corn buyer at 216,000 metric tons. But China canceled shipments of almost 332,000 metric tons. Wheat cancelations resulted in net reductions of 45,100 metric tons, the lowest level since the marketing year began. China bought 68,000 tons of wheat while Nigeria took in almost 16,000. Japan canceled shipments totaling 63,000 metric tons.
| Rural Advocate News | Tuesday May 30, 2023 |
Tuesday Watch List Markets Back from the three-day weekend, trading in grains resumes at 7 p.m. CDT Monday evening. Traders will catch up with the latest weather forecasts and see the House is expected to vote on a debt ceiling compromise Wednesday. USDA's weekly report of export inspections is set for 10 a.m., followed by USDA's Crop Progress report at 3 p.m. Weather After a long holiday weekend of widespread showers and thunderstorms for much of the Plains, that general area will again be alight with more rain on Tuesday. Some areas of showers and thunderstorms are also forecast for the northwestern Midwest. Other showers and thunderstorms are forecast in parts of the Midwest, Delta, and Southeast, but at a very isolated coverage pattern.
| Rural Advocate News | Friday May 26, 2023 |
AFBF: Supreme Court Reaffirms Clean Water Rule The Supreme Court Thursday ruled against the Environmental Protection Agency in the case Sackett vs. EPA regarding the Biden administration's Waters of the U.S. rule. The court stated that wetlands under the jurisdiction of the Clean Water Act must have a continuous surface connection to bodies of water, making it difficult to determine where the water ends, and the wetland begins. American Farm Bureau Federation President Zippy Duvall responded, "The justices respect private property rights. It's now time for the Biden administration to do the same and rewrite the Waters of the United States Rule." Representative Dan Newhouse, a Washington state Republican and Congressional Western Caucus Chairman, says, “This landmark decision from the Supreme Court is a clear demonstration of our nation’s commitment to upholding the principles of individual property rights.” Agricultural Retailers Association President and CEO Daren Coppock added, “The decision finally restores common sense back into WOTUS regulation.” *********************************************************************************** Japan Trade Agreement Projected to Grow U.S. Pork Exports Japan’s pork imports are estimated to increase to more than $6 billion over the next five years, according to USDA’s Economic Research Service. Growth is supported by trade agreements Japan ratified between 2018 and 2021 with its major pork suppliers, including the United States, the European Union, and the ten countries party to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. These agreements mandate reductions in Japan’s trade barriers on pork imports. A recent report from USDA estimates these trade agreements will boost 2028 exports to Japan from the United States, EU, and CPTPP countries to totals of $2.08 billion, $2.04 billion, and $2.03 billion, respectively. For the United States, this is a large gain compared with a scenario in which the U.S.-Japan Trade Agreement did not exist. Under that scenario, U.S. pork exports to Japan would have totaled $1.41 billion, and EU and CPTPP countries would have gained market share at the expense of the United States. *********************************************************************************** Drought Monitor: Southern Plains See Drought Relief The Southern Plains saw drought relief over the last week, according to the latest Drought Monitor released Thursday. Still, much of the rain arrived too late to rescue winter wheat, though rangeland, pastures, and summer crops greatly benefited from the soil moisture improvements. In Texas, rangeland and pastures rated in very poor to poor condition by the Department of Agriculture improved from 51 to 36 percent during the week ending May 21. On the same date, topsoil moisture was rated less than one-third very short to short in Texas and Oklahoma. Still, despite abundant showers and thunderstorms, pockets of extreme to exceptional drought persisted in western and central Texas and across the northwestern half of Oklahoma. Farther east, most areas remained free of dryness and drought, aside from a few areas in the central Gulf Coast. Meanwhile, variable rainfall extended westward into the central and southern Rockies and eastward to the southern Atlantic Coast. *********************************************************************************** Lab-Grown Meat Carbon Footprint Potentially Greater than Retail Beef A new report suggests lab-grown meat may have a larger carbon footprint than retail beef. Researchers at the University of California-Davis found that lab-grown or "cultivated" meat's environmental impact is likely to be "orders of magnitude" higher than retail beef based. Researchers conducted a life-cycle assessment of the energy needed and greenhouse gases emitted in all stages of production and compared that with beef. One of the current challenges with lab-grown meat is the use of highly refined or purified growth media, the ingredients needed to help animal cells multiply. The study found that the global warming potential of lab-based meat using these purified media is four to 25 times greater than the average for retail beef. Even the most efficient beef production systems reviewed in the study outperform cultured meat across all scenarios, suggesting investments to advance more climate-friendly beef production may yield greater reductions in emissions more quickly than investments in cultured meat. *********************************************************************************** Program Pays Illinois Farmers to Improve Soil Health American Farmland Trust and ADM are launching the next season of a program that supports Illinois’s farmers and the environment. The Illinois re:generations program encourages farmers to incorporate environmentally friendly practices into their operations while offering financial incentives. The program is an expanded version of the 2022 Illinois Cover Crop Initiative and offers flexible contracts to farmers willing to adopt cover crops and/or provide data to calculate carbon intensity scores. The program provides payments to farmers who enroll in the program, and carbon assets generated from participation are being claimed by ADM. Farmers can enroll acres where practices have previously been used and choose from one to four year contracts. In 2023, farmers throughout the state can enroll for the cover crop incentive, and farmers delivering corn and beans to an ADM elevator can qualify for emissions-scoring payments. Enrollment for the 2023 program launches in June. *********************************************************************************** Legislation Addresses Housing Shortage in Rural Communities Lawmakers this week introduced the Forest Service Flexible Housing Partnerships Act to help address the housing shortage in rural and mountain communities. The bipartisan legislation would strengthen the authority of the United States Forest Service to lease underutilized administrative sites to address local needs, including for building affordable housing. Senator Michael Bennet, a Colorado Democrat, introduced the legislation. Bennet says, “This bill will build on our efforts in the 2018 Farm Bill to help communities and the Forest Service work together to build more affordable housing.” The 2018 Farm Bill secured the authority for the Forest Service to lease underused administrative sites to localities in exchange for in-kind contributions, including housing construction and improvement or maintenance of federal facilities. As a result of the housing crisis in the West, the Forest Service currently experiences a severe staffing shortage. The legislation will also help the agency provide housing for its firefighters and other critical positions to better serve the communities they work for.
| Rural Advocate News | Friday May 26, 2023 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the PCE index for April will be out, the Fed's favorite inflation indicator. We'll also see reports on April durable goods orders, personal incomes and consumer spending. The University of Michigan's index of U.S. consumer sentiment for May follows at 9 a.m. Traders will continue to monitor the latest weather forecasts and news of grain shipments out of the Black Sea. Weather Showers and thunderstorms that have been persistent in Montana and the southwestern Plains are forecast to spread through more of the Plains on Friday. Heavy rain and some severe weather are possible. Most of the Corn Belt stays dry today, with some growing concern over dryness through the Midwest.
| Rural Advocate News | Thursday May 25, 2023 |
Supreme Court Sides With Sacketts in Clean Water Act Case The Supreme Court sided with two Idaho property owners in their ongoing wetlands dispute with EPA on Thursday, ruling EPA's use of the significant nexus test when making Clean Water Act determinations is too broad. In writing the 5-4 majority opinion, Justice Samuel Alito said EPA has misinterpreted the Clean Water Act's reach when it comes to the property owned by Michael and Chantell Sackett and that the term significant nexus isn't found in the Clean Water Act. "In sum, we hold that the CWA extends to only those 'wetlands with a continuous surface connection to bodies that are 'waters of the United States' in their own right,' so that they are 'indistinguishable' from those waters," Alito said in his opinion. "This holding compels reversal here. The wetlands on the Sacketts' property are distinguishable from any possibly covered waters." The ruling will naturally lead to lower courts examining how the decision applies to the Biden administration's definition of "waters of the U.S." that right now is under court injunctions in at least 26 states tied to two separate courts. The American Farm Bureau Federation praised the Supreme Court decision, stating EPA "clearly overstepped its authority under the Clean Water Act by restricting private property owners from developing their land despite being far from the nearest navigable water." Zippy Duvall, president of AFBF, then called on the Biden administration to rewrite its waters of the U.S. rule. "Farmers and ranchers share the goal of protecting the resources they're entrusted with, but they deserve a rule that provides clarity and doesn't require a team of attorneys to properly care for their land," Duvall said. EPA Administrator Michael Regan expressed disappointment in the court ruling, stating the Supreme Court decision "erodes longstanding clean water protections." Regan added, "The Biden-Harris Administration has worked to establish a durable definition of 'waters of the United States' that safeguards our nation's waters, strengthens economic opportunity, and protects people's health while providing the clarity and certainty that farmers, ranchers, and landowners deserve. These goals will continue to guide the agency forward as we carefully review the Supreme Court decision and consider next steps." The Sacketts have been battling EPA since 2007 for the right to build on land the agency has deemed to be a wetland. Their property sits on a lakefront and they've argued that there is no surface connection between the lake and their land. Alito said in the majority opinion that the Clean Water Act's reach is far narrower than EPA has opined. "The EPA, however, offers only a passing attempt to square its interpretation with the text and its 'significant nexus' theory is particularly implausible," Alito writes. He said the definition of waters of the U.S. is more limited. "And, in any event, the CWA never mentions the 'significant nexus' test, so the EPA has no statutory basis to impose it," Alito stated. One environmental group characterized the court's decision as 'stripping out key protections' from the Clean Water Act. Manish Bapna, president and CEO of the Natural Resources Defense Council, said in a statement to DTN that the court "ripped the heart" out of the law. "The majority chose to protect polluters at the expense of healthy wetlands and waterways," Bapna said. "This decision will cause incalculable harm. Communities across the country will pay the price." The agency's use of the significant-nexus standard has been at the heart of opposition from agriculture and other industries to recent iterations of the waters of the U.S. rule. The standard essentially allows the EPA and the U.S. Army Corps of Engineers to determine waters are covered by the law if there is a chemical connection to larger navigable water bodies. The Sacketts have filed many appeals on the EPA decision in the past 15 years. The U.S. Court of Appeals for the Ninth Circuit had sided with EPA's wetland assessment on the Sacketts' property. The court's ruling sends the appeals court decision back to the court for reconsideration. Alito said in the majority opinion that EPA's interpretation of the law "gives rise to serious vagueness concerns in light of the CWA's criminal penalties." "Due process requires Congress to define penal statutes 'with sufficient definiteness that ordinary people can understand what conduct is prohibited'," Alito writes, "and 'in a manner that does not encourage arbitrary and discriminatory enforcement.' Yet the meaning of 'waters of the United States' under the EPA's interpretation remains hopelessly indeterminate. "The EPA contends that the only thing preventing it from interpreting 'waters of the United States' to 'conceivably cover literally every body of water in the country' is the significant-nexus test." Alito's ruling noted in defining "waters of the U.S.," the court revisits what has been "a contentious and difficult task." Alito said the phrase "waters of the U.S." has sparked decades of EPA action and litigation. The boundary between "significant" and insignificant is far from clear, Alito wrote. EPA argued that "waters" also includes wetlands. But Alito points to the presence of puddles and also noted in an earlier decision that ponds are not considered part of waters of the U.S. Alito went into an extensive writing about where wetlands fall in the CWA. Justice Brett Kavanaugh concurs in his opinion but said that the "wetlands with a continuous surface connection to bodies that are 'waters of the United States' in their own right so that they are "indistinguishable" from those waters." Kavanaugh wrote that he agreed the Sacketts' property should not have been covered under the Clean Water Act, but he said the majority ruling goes too far in removing the significant nexus test. The court's new "continuous surface connection" goes against 45 years of consistent agency practice and court precedents, Kavanaugh wrote. "By narrowing the act's coverage of wetlands to only adjoining wetlands, the court's new test will leave some long-regulated adjacent wetlands no longer covered by the Clean Water Act, with significant repercussions for water quality and flood control throughout the United States."
| Rural Advocate News | Thursday May 25, 2023 |
Iowa Cash Rents Hit Highest Average Value on Record The recent yearly survey of Iowa’s cash rental rates for farmland shows rates jumped by nine percent so far in 2023. The average is now $279 per acre, the highest average value on record. This new peak rate is three percent higher than the previous high of $270 in 2013. By way of comparison, average nominal (not inflation-adjusted) corn and soybean prices paid to farmers in the first quarter of this year were 2.8 percent higher and 4.4 percent lower, respectively, than in the first quarter of 2013. Of the usable responses to the Iowa State University Extension survey, 42 percent came from farmers, 37 percent from landowners, nine percent from professional farm managers and realtors, and seven percent came from ag lenders. The survey showed considerable variability across counties in year-to-year changes, typical of these surveys. A total of 91 out of 99 counties showed higher rents for corn and soybeans. *********************************************************************************** Ribbon Cutting on National Bio and Agro-Defense Facility USDA and the Department of Homeland Security celebrated the dedication and ribbon-cutting of the National Bio and Agro-Defense Facility in Manhattan, Kansas. This facility is the first of its kind in the U.S. It offers the highest level of bio-containment laboratories and safety protocols and will allow scientists to study and diagnose critical animal diseases. “America’s farmers, ranchers, and consumers count on our researchers to understand, monitor for, and develop solutions to combat a variety of high-consequence animal pathogens,” says Ag Secretary Tom Vilsack. A facility of this magnitude positions us to respond.” The valuable scientific information delivered by researchers at NBAF will also allow America to remain a leading contributor of countermeasures that will protect agriculture, economies, and citizens across the globe. A USDA news release also says it’s a historic investment for agriculture and our nation in ensuring the health, safety, and security of the U.S. food supply. *********************************************************************************** EPA to Recommend Delaying Electric Vehicles Biofuel Program The Environmental Protection Agency will recommend delaying a program that would allow electric vehicle manufacturers to access tradeable credits under the Renewable Fuel Standard. Two sources told Reuters that the White House will review the EPA’s final rule. The plan would have given EV automakers credits for charging vehicles using power generated from natural gas or methane. The threat of potential lawsuits also could have played a part in the postponement. The initial proposal last November could have generated as much as 600 million tradeable credits in 2024 and 1.2 billion in 2025. Prices for equivalent biofuel credits have recently traded over $2 each. The two sources also say the Biden Administration is still hoping to pass a final rule on the EV program before the end of 2023, even if it gets uncoupled from the yearly blending mandates. Biden is boosting the EV industry in an effort to reduce carbon emissions. *********************************************************************************** China Opposes U.S. Trade Agreement with Taiwan China had a lot to say about the recent trade agreement between the U.S. and Taiwan. Saltwire.com says China’s Ministry of Commerce urged the U.S. to “carefully handle economic and trade relations with Taiwan.” The U.S. Trade Representative’s Office recently announced that the U.S. and Taiwan reached an agreement on the first part of their 21st Century trade initiative. The agreement covers customs and trade facilitation, regulatory practices, and small businesses. The pact is not expected to alter goods tariffs, but supporters say it will tighten economic bonds between the two nations and open up the Chinese-claimed island to more U.S. exports. It will also improve the ability of the island nation to resist Chinese economic coercion. China reacted angrily to the Taiwan president’s recent meetings with high-level U.S. officials, including Speaker of the House Kevin McCarthy. The announcement came just ahead of trade meetings between the U.S. and China. *********************************************************************************** USDA Wants Input on Prevented Planting Crop Insurance Coverage The USDA published a Request for Information announcing public listening sessions and soliciting public comments on possible changes to prevent planting crop insurance coverage. In addition to the written public comment period, the Risk Management Agency will hold in-person and virtual listening sessions from June through August. “We truly care about what our customers, the nation’s agricultural producers, have to say,” says RMA Administrator Marcia Bunger. “That’s why we’re hosting listening sessions in 11 states in addition to accepting written comments.” The request for information is looking for input on the harvest price option, the “1 in 4” Rule, the ten percent additional coverage option, the contract prices, as well as general information on farmers’ willingness to pay additional premiums for expanded prevented planting benefits. They also want recommendations on other potential prevent planting limitations. Additional details on the listening sessions, including the schedule, are available on the RMA website. *********************************************************************************** Soy Innovation Challenge Winner’s New Approach to Soy Meal Processing The United Soybean Board announced Satavie is the winner of the 2023 Soy Innovation Challenge. The Challenge called on entrepreneurs, innovators, startups, and research teams to bring new ways to advance the use of soybean meal and demand in existing markets. Satavie was selected as the winner out of 80 applicants from around the world. The company has a unique approach to extracting concentrated soy protein from soybean meal. Their new method ensures high levels of digestibility, improved nutrient absorption, and increased feed conversion rates that are ideal for swine, poultry, and aquaculture feed. As the winner of the contest, the company gets $100,000 from the United Soybean Board and $5,000 of in-kind technical services and credits from Amazon Web Services. The company’s president says the impact on the soy industry will be enormous. Their water extraction patented technique leads to better health outcomes, overall growth, and improved meat quality.
| Rural Advocate News | Thursday May 25, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, a new estimate of first-quarter U.S. GDP and an update of the U.S. Drought Monitor. More reports follow with U.S. pending home sales in April at 9 a.m. and natural gas storage at 9:30 a.m. Traders remain attentive to changes in weather. Weather Yet another day of isolated to scattered showers are expected in the Plains, being heaviest in parts of the drought across the southwest. Additional strings of showers and thunderstorms are expected for the Northern Plains into the Canadian Prairies as well. Outside of some cool temperatures across the Midwest, it remains rather warm as well.
| Rural Advocate News | Wednesday May 24, 2023 |
Last Chance to Complete the 2022 Census of Agriculture USDA’s National Agricultural Statistics Service will end data collection for the 2022 Census of Agriculture on May 31. Producers who have not yet returned their completed questionnaires have just one week left to respond. Federal law requires everyone who received the ag census to complete and return it. Recipients can respond online at agcounts.usda.gov or by mail. NASS Administrator Hubert Hamer says, “Not being represented in these widely used data means risking being underserved.” USDA NASS is reminding ag census recipients that if they produced and sold $1,000 or more of agricultural product in 2022, or normally would have produced and sold that much, they meet USDA’s definition of a farm. However, landowners who lease land to producers, those solely involved in conservation programs, and even those who may not have farmed in 2022 are still required to respond. USDA will release the results in 2024. To learn more about the Census of Agriculture, visit nass.usda.gov/AgCensus. *********************************************************************************** NIFA Helps Veterinary Medical Students Repay Loans USDA's National Institute of Food and Agriculture helped 89 food animal veterinary practitioners with loan repayments from the Veterinary Medicine Loan Repayment Program in 2022. NIFA reported this week that the 89 students from 28 American Veterinary Medical Association accredited Colleges received nearly $9 million in loan repayment benefits. The program up to $75,000 in loan repayment over a three-year period to help eligible veterinarians offset a significant portion of the debt incurred in pursuit of their veterinary medical degrees in return for their service in certain high-priority veterinary shortage situations. Funding is authorized by the National Veterinary Medical Services Act. NIFA National Program Leader Bob Smith says, "Award recipients regularly tell us that they wouldn't be able to serve these areas without this support." The program helps address the critical shortage of food animal veterinarians in both private and public practice, particularly in rural communities in the United States. *********************************************************************************** Eating Patterns Differ from Federal Recommendations U.S. consumers’ eating patterns differ from Federal recommendations for many food categories, and where food is obtained plays a role. Researchers from USDA’s Economic Research Service examined diet patterns based on density—amounts of food consumed per 1,000 calories—using the latest available national food consumption data. They compared the average consumption densities of 17 food categories with what would be needed to match the Dietary Guidelines for Americans recommendations, assuming a 2,000-calorie intake. Average total consumption densities for 11 food categories fell more than 20 percent outside of recommended levels, with whole grains more than 70 percent below the recommended amount. Refined grains, on the other hand, had a consumption density of more than 85 percent above the recommended level. Densities of six food categories were within 20 percent of the recommended range. Generally, food purchased at grocery stores, supermarkets, and similar retailers for home preparation had consumption densities more in line with dietary recommendations than food obtained from commercial away-from-home sources. *********************************************************************************** USDA, University of Kentucky Break Ground on New Forage Research Building Agriculture Secretary Tom Vilsack Tuesday participated in a groundbreaking ceremony for a new research facility, known as the Forage-Animal Production Research Unit. The University of Kentucky's College of Agriculture, Food and the Environment will host the new facility. Vilsack says, “Today’s groundbreaking builds on more than two decades of partnership with the University of Kentucky, while demonstrating USDA’s latest commitment to pushing the boundaries of what is possible for agriculture.” Upon completion, targeted for 2026, the new facility will encompass approximately 52,600 total square feet of office, supporting a research laboratory space, as well as a collaborative area, headhouse and eight-bay greenhouses. It will be staffed by six Agricultural Research Service scientists, seven university researchers, laboratory technicians, and administrative personnel. Earlier this month, USDA released a three-year science and research strategy, which establishes a scientific framework to transform the U.S. food system and support our nation's farmers, ranchers, producers and foresters. *********************************************************************************** The Alltech ONE World Tour begins in Budapest Central Europe's agriculture producers will play a major role in addressing climate and food supply challenges around the world. The region's agri-food leaders discussed collaborative solutions and strategies for success today in Budapest, Hungary, at the first stop of the Alltech ONE World Tour. The event launches a series of international stops that bring the ideas and inspiration of the annual Alltech ONE Conference to the world. Discussions explored collaborative solutions to the greatest challenges facing the agri-food industry as it confronts the "4 Cs" — the major forces of climate, conflict, consumer trends and rising costs. Alltech president and CEO Dr. Mark Lyons says, "In times of uncertainty, it is crucial for businesses like ours to adapt and innovate." The Alltech ONE World Tour will continue with stops in Dublin, Ireland, on June 19–20 and Calgary, Canada, on July 3–4, then on to the U.S., Asia, South America and the Middle East. For more information and to register for an Alltech ONE World Tour stop, visit one.alltech.com. *********************************************************************************** Ford to Keep AM Radio in New Vehicles Ford CEO Jim Farley announced on Twitter Tuesday that the company would include AM radio as part of all newly manufactured vehicles in 2024. Farley says, “After speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system, we've decided to include it on all 2024 Ford and Lincoln vehicles.” Any owners of a Ford electric vehicle without AM broadcast capability will be offered the capability through a software update, according to the company. The reversal follows action by lawmakers who introduced the AM for Every Vehicle Act last week, and opposition by broadcast associations. The National Association of Broadcasters, in a statement responded, "In light of Ford's announcement, NAB urges other automakers who have removed AM radio from their vehicles to follow Ford's lead." The AM for Every Vehicle Act cited the importance of keeping communities informed during emergencies, particularly rural communities with a lack of other information resources.
| Rural Advocate News | Wednesday May 24, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly report of energy inventories, including ethanol production, is due out at 9:30 a.m. CDT. Minutes from the latest FOMC meeting are out at 1 p.m., followed by USDA's monthly cold storage report at 2 p.m. Traders continue to pay attention to the latest weather developments, news regarding Black Sea grain movement and talks surrounding the debt ceiling. Weather The Plains continue to be a focus for showers, especially across the southern drought areas where moderate to heavy rain has developed this week and continues Wednesday. An additional zone from Montana through Saskatchewan is also producing more consistent showers and thunderstorms. Other isolated showers will dot the rest of the Plains and Southeast as well.
| Rural Advocate News | Tuesday May 23, 2023 |
USDA to Bring Jobs and Improved Infrastructure to Rural Partners Network The Department of Agriculture Monday announced an effort to help rural communities to address some of their immediate needs and foster long-term economic growth. USDA is providing loans and grants to help people living in rural and Tribal communities in the Rural Partners Network access good-paying jobs, improved infrastructure, affordable housing and quality health care. The funding will support 52 projects in Alaska, Arizona, Georgia, Kentucky, Mississippi, New Mexico, North Carolina, West Virginia and Puerto Rico. In the West, the funding will help Tribal communities improve water and wastewater services and bring solar power and other forms of renewable energy to Tribal lands and farms. For people in Southern communities, projects will increase access to fresh foods in high-poverty areas and allow electric cooperatives to connect thousands of people to power with smart-grid technologies. The announcement includes $394 million in awards from USDA that will benefit communities and support their long-term visions for strong, local economies. *********************************************************************************** New Right to Repair MOUs Bring Industry Coverage to 70% The American Farm Bureau Federation signed two more memoranda of understanding with two agricultural equipment manufacturers. The new MOUs were signed by AGCO and Kubota, providing farmers and ranchers the right to repair their own farm equipment. The MOUs, negotiated independently with each manufacturer, follow similar agreements AFBF entered into with John Deere and CNH Industrial Brands earlier this year. The four MOUs cover roughly 70 percent of the agricultural machinery sold in the United States. AFBF President Zippy Duvall says, “These agreements represent ongoing efforts to ensure farmers have access to the tools necessary to keep their equipment running.” The MOUs set a framework for farmers and independent repair facilities in all 50 U.S. states and Puerto Rico to access AGCO and Kubota manuals, tools, product guides and information to self-diagnose and self-repair machines, as well as support from the manufacturers to directly purchase or lease diagnostic tools and order products and parts. *********************************************************************************** Atypical BSE Case Detected in South Carolina USDA’s Animal and Plant Health Inspection Service last week announced the finding of an atypical case of Bovine Spongiform Encephalopathy (in-sef-o-lop-athy). The approximately five-year-old or older beef cow tested positive following routine surveillance protocols at a slaughterhouse in South Carolina. The animal possessed a radio frequency identification tag associated with a herd in Tennessee. USDA APHIS and state animal health officials will conduct a thorough investigation of the case. Atypical BSE cases occur rarely and spontaneously, often in older cattle. This is only the nation's 7th case of atypical BSE, following a previous incident in 2018. This is the nation’s 7th detection of BSE. Of the six previous U.S. cases, the first, in 2003, was a case of classical BSE in a cow imported from Canada; the rest have been atypical. U.S. Cattlemen's Association president Justin Tupper responded, “This animal never entered slaughter channels and at no time entered the food supply chain due to the effectiveness of the surveillance team.” *********************************************************************************** Data Shows Few Farm Estates Must File Estate Tax Return New data from USDA's Economic Research Service shows that less than one percent of farm estates created in 2022 must file an estate tax return. Created in 1916, the federal estate tax is a tax on the transfer of property to a person's heirs upon death. In 2022, the Federal estate tax exemption amount was $12.06 million per person, and the federal estate tax rate was 40 percent. Under the present law, the estate of a person who owns assets above the exemption amount at death must file a federal estate tax return. However, only returns with an estate above the exemption after deductions for expenses, debts, and bequests will pay federal estate tax. Researchers estimate that in 2022, 39,500 estates were created from principal operator deaths. Of those estates, ERS forecasts that 305, or 0.77 percent, will be required to file an estate tax return, and a further 87, or 0.22 percent, will likely owe Federal estate tax. *********************************************************************************** USDA Offers Assistance to Help Organic Dairy Producers The Department of Agriculture recently announced assistance for dairy producers with the new Organic Dairy Marketing Assistance Program/ The program helps dairy producers mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. USDA’s Farm Service Agency is offering $104 million in grants to dairy operations to assist with projected marketing costs in 2023, calculated using their marketing costs in 2022. Organic dairy producers have faced significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic grain and forage commodities. FSA Administrator Zach Ducheneaux says, “Without assistance, many organic dairies, particularly small organic dairies, will cease production.” FSA will begin accepting applications for the program on May 24, 2023. Eligible producers include certified organic dairy operations that produce milk from cows, goats and sheep. *********************************************************************************** Gas Prices Steady Heading into Holiday Weekend As Americans gear up for the start of the summer driving season with Memorial Day weekend, the nation's average price of gasoline is unchanged from a week ago at $3.51 per gallon. The national average diesel price fell 3.2 cents last week and stands at $3.94 per gallon. GasBuddy's Patrick De Haan says, “We’ve seen more states see prices climb than fall, which has been driven by oil’s volatility as debt ceiling discussions are ongoing.” De Haan expects prices to rise slightly this week, especially if there are positive developments in the debt ceiling discussions. With continued discussions about reaching a bipartisan agreement to raise the nation’s debt limit, the price of oil has remained somewhat volatile, given the economic repercussions that come with the situation. U.S. retail gasoline demand saw a rise of 1.1 percent last week, and the most common U.S. gas price was 3.39 per gallon, up ten cents from last week.
| Rural Advocate News | Tuesday May 23, 2023 |
Tuesday Watch List Markets A report on U.S. new home sales for April is set for 9 a.m. Traders will keep watch on the latest weather forecasts and digest Monday afternoon's Crop Progress reports. Weather A weak system continues to bring showers to the Southeast Tuesday. Isolated to scattered showers will continue across the Plains and Canadian Prairies as well, being heaviest and most widespread across parts of Alberta. Showers across the southwestern Plains will continue to ease drought conditions.
| Rural Advocate News | Monday May 22, 2023 |
Winter Wheat Harvest Finds Disappointing Yields The 2023 Wheat Quality Council’s Winter Wheat Tour wrapped up last week with disappointing numbers. After scouting for three days, the tour calculated an average yield of 30 bushels per acre. While an estimated 8.1 million acres of wheat were planted last fall, the winter wheat crop has suffered from a multi-year drought that cut yields and resulted in abandoned fields in Kansas, Nebraska, and Oklahoma. The official tour projection for the total production of wheat to be harvested in Kansas is 178 million bushels. Kansas Wheat says that number shows tour participants thought abandonment might be quite a bit higher than normal at almost 27 percent. The production number is the average of estimated predictions from tour participants who scouted 652 fields across the area. Based on May 1 conditions, NASS predicted the crop to be 191 million bushels, a yield of 29 bushels per acre, and abandonment at 18.5 percent. *********************************************************************************** Updates Begin on Improving Mississippi River Infrastructure The Army Corps of Engineers held a groundbreaking ceremony marking the beginning of repairs to a lock and dam on the Upper Mississippi River that’s crucial to shipping corn and other commodities. Lock and Dam 25, almost 50 miles north of St. Louis, hasn’t been extensively repaired since it was constructed in the early 20th century. Funding for the project was included in the Infrastructure Investment and Jobs Act. The Illinois Corn Growers Association, long at the forefront of advocating for updates to the Lock and Dam, applauded the development. “Our hope is this will be the beginning of a waterfall of infrastructure work on the Illinois and Mississippi Rivers,” says ICGA President Matt Rush. Lock and Dam 25 is crucially important to corn growers as 60 percent of corn and soybean exports are transported on the Mississippi River. The river is important in shipping products both domestically and abroad. *********************************************************************************** USDA Previews Emergency Relief for Agricultural Producers Ag Secretary Tom Vilsack plans to roll out $3.7 billion in Emergency Relief Program and Emergency Livestock Relief Program assistance to crop and livestock producers. The funds will help producers who sustained losses due to a qualifying natural disaster event during calendar year 2022. USDA is sharing the information early to allow producers time to gather documents in advance of program delivery. “U.S. ag producers nationwide endured crippling natural disaster events in 2022, including a mega-drought, hurricane, flooding, and wildfires,” Vilsack says. “While we have streamlined our delivery of natural disaster assistance, funding is limited and significantly less than the estimated losses.” He also says they’re designing payment factors to help as many producers as possible to offset the significant financial impacts resulting from these ongoing and widespread natural disasters. Producers who have participated in FSA programs likely have the required forms on file. Contact your local USDA Service Center with questions. *********************************************************************************** Senators Ask BLM to Withdraw Draft Rule South Dakota Senator Mike Rounds and 15 other senators sent a letter to the Bureau of Land Management asking them to withdraw the proposed Public Lands Rule. The bureau says this rule would let conservationists lease federal land. The senators say it’s intended to set conservation equal to other land uses. The proposal would negatively affect western states, including South Dakota because their economies rely on public land for cattle grazing, energy development, and tourism. “It’s clear that anti-grazing and anti-development organizations would abuse this tool to attempt to halt ranching and block access to our nation’s abundant energy reserves located on public lands,” the letter says. Supporters of this rule say land conservation is necessary to protect the environment. They argue that the rule will not impede current land uses. The BLM website says the bureau will host public meetings, virtually and in person, to discuss the proposed rule. *********************************************************************************** Bill Incentivizes Use of Cover Crops Senator Sherrod Brown (D-OH) and several state representatives introduced bipartisan legislation to incentivize farmers to plant cover crops to help boost environmental conservation. The Conservation Opportunity and Voluntary Environment Resilience Program (COVER) Act would provide farmers who plant cover crops a crop insurance discount of $5 per acre. It will also lower the long-term cost of crop insurance by making the Pandemic Cover Crop Program permanent, authorizing additional funding for technical assistance in accessing the Good Steward Cover Crop Program, and creating a Soil Health Pilot Program. “Farmers are the original conservationists.,” says Brown. “By utilizing cover crops, they can increase yield, decrease pesticide use, and reduce runoff into waterways, which is good for everyone.” Planting cover crops slows erosion, promotes soil health, improves water availability, suppresses weeds, attracts pollinators, helps control pests and diseases, and increases biodiversity. Cover crops increase yields and reduce crop insurance losses caused by prevented planting. *********************************************************************************** Beef Output Will Drop in 2024 U.S. beef production in 2024 will drop eight percent to 24.7 billion pounds amid tighter supplies of cattle. A USDA report says aggregate domestic beef disappearance will fall more than seven percent to 52.8 pounds per capita on a retail-equivalent basis. That’s the lowest level since record-keeping started in 1970. The declining output will push cattle prices to new highs in 2024. A “core portion” of the beef herd is still seeing drought conditions in the Southern Plains, despite improving conditions. That resulted in a shortage of hay. Inventories on May 1 dropped 13 percent year-over-year to the lowest point in a decade. Despite recent rains, for some producers, the very-low hay supplies may not offset poor pastures to sustain herds this summer and allow producers to retain breeding stock,” USDA says. “As a result, culling continues at a relatively high rate.” On a positive note, feed prices will likely decline.
| Rural Advocate News | Monday May 22, 2023 |
Top 5 Things to Watch - DTN Summit Event Tuesday, Dicamba Deadlines Loom OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of May 21. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Ag Summit Series: Our second DTN Ag Summit Series virtual event is May 23 at 8:30 a.m. CDT. You'll hear crop updates from farmers across the country, as well as learn the latest crop, fertilizer, weather and markets updates from DTN's formidable staff of reporters and analysts. Registration allows you to both watch the event live as well as view rebroadcasts if you missed a session, and you can share those rebroadcasts with others in your operation. 2. Will wheat stay bearish?: Wheat markets continue to take an anti-fundamentals drop. Tough to swallow following the 2023 Wheat Quality Council Hard Winter Wheat tour, which put expected wheat yields near lows not seen since President John F. Kennedy proclaimed, "Ich bin ein Berliner." That would be 1963, for those keeping score. Prices have many exclaiming "Was zur Holle," though our analysts note the current drop is due to speculator selloffs in the futures market. We'll be keeping tabs on all that through the week. 3. Continued drought reduction: We continue to watch the colors lighten on the weekly U.S. Drought Monitor map, and now also turn lighter on the latest Climate Prediction Center's U.S. Seasonal Drought Outlook map, thanks to continued precipitation systems the past few weeks. DTN Ag Meteorologist John Baranick notes that just over 20% of the Lower 48 states are currently in drought, the lowest level of drought conditions since June 2020. This week a ridge in the West moves east, and the weak trough behind it should bring showers to the High Plains, perhaps bringing even further drought reduction. Showers could stymie planting a little in the Dakotas, but overall crop progress should keep progressing. 4. Soybean head scratcher: Beans also have a lot of us scratching "die Kopfe." We'll watch for signs of any changes in the bean complex this week. 5. Herbicide deadlines loom: Early planted beans are running into a conflict with dicamba postemergence application rules in many states. The latest rules outlaw post application when beans reach V4 or June 12, whichever comes first. Many early planted fields will likely hit the size limit well ahead of the cutoff date. Watch for the details from DTN Crops Editor Jason Jenkins this week.
| Rural Advocate News | Monday May 22, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the latest weather forecasts and keep tabs on the latest crop comments. USDA's weekly report of export inspections is due out at 10 a.m. CDT, but more attention will turn to the latest reports of planting progress in USDA's 3 p.m. Crop Progress report. Weather A leftover front in the Southeast will bring scattered showers and potential for heavy rain to the Southeast on Monday and into Tuesday as well. Meanwhile, daily showers and thunderstorms will pop up for the Plains this week. For Monday, that targets Montana and the southwestern Plains areas and may fall over areas in deep drought not just Monday but throughout the week as well.
| Rural Advocate News | Friday May 19, 2023 |
Black Sea Grain Deal Extended Two Months The Black Sea grain deal has been extended for another two months, something the United Nations calls “good news for the world.” The news came one day before Russia could have quit the deal because of obstacles to its grain and fertilizer exports. Reuters says Turkey’s president made the announcement, later confirmed by Russia, Ukraine, and the U.N. Moscow was unwilling to extend the deal unless some demands regarding its own ag exports were met. While Russia’s ag exports of food and fertilizer aren’t directly affected by Western sanctions, restrictions on payments, logistics, and insurance are a barrier to shipments. Russia’s ambassador to the U.N. says the deal was extended because they haven’t lost hope that the problems raised by Russia will be resolved. The U.N. also says it hopes that exports of food and fertilizers, including ammonia, from Russia and Ukraine will get to global supply chains safely and predictably. *********************************************************************************** Opposition to House Ag Appropriations Bill The House Agriculture Committee’s Ag Appropriations Subcommittee passed its fiscal year 2024 agriculture funding bill. The National Farmers Union says the legislation includes harmful provisions that would prevent USDA from completing a long-awaited Packers and Stockyards Act rule to protect family farmers and ranchers from abuses of market power by the meat industry. “Our markets are heavily consolidated and ripe for manipulation,” says NFU President Rob Larew. Chris Gibbs, president of Rural Voices USA, a leading rural advocacy group, says it’s hard to watch lawmakers who largely represent rural communities gut funding that goes directly to those same rural communities. “By slashing USDA funding by one-third, the House GOP is showing how backward their priorities are,” Gibbs says. “Instead of allowing rural communities to play a meaningful role in industries of the future, this proposal will leave rural communities behind.” Both groups say rural communities cannot stay silent on proposals like this. *********************************************************************************** NPPC Outlines Industry Priorities During House Hearing Scott Hays, president of the National Pork Producers Council, testified before the House Ag Committee’s Subcommittee on Livestock, Dairy, and Poultry and talked about pork priorities. Hays presented policy priorities ranging from funding that supports programs to safeguard the nation’s food supply against the threat of foreign animal diseases to initiatives that expand foreign market access for U.S. agricultural products. Hays outlined the economic challenges facing pig farmers as hog prices have moderated significantly since 2022. Production costs have risen drastically, the industry faced trade retaliation, supply chain issues, labor shortages, and the unfavorable Supreme Court decision on Prop 12. “This is putting a pinch on the pork industry and could drive consolidation at the farm level as producers may be forced to exit the industry,” Hays says. Other priorities include a one-year extension of Livestock Mandatory Price Reporting, opposition to proposed changes to the Packers and Stockyards Act, and others. *********************************************************************************** Biofuels Must Be a Part of Climate Solutions Biofuels like ethanol must not be ignored as a climate solution. That was part of the testimony by Kansas Corn Growers CEO Josh Roe in front of a House Oversight Subcommittee hearing. The discussion centered on vehicle emissions rules and the electric vehicle transition. “Unfortunately, current and proposed EPA rules prevent us from being part of the solution,” says Roe. “While we believe electric vehicles will play a vital role in achieving climate goals, other complementary alternatives like biofuels have a key role to play but are being pushed aside.” Roe also questioned the EPA proposal that considers electric vehicles as zero emission. “They aren’t truly zero-emission vehicles,” he says. “While they don’t have a tailpipe, you still need to account for the emissions that come from the power grid.” The U.S. power grid is 60 percent powered by coal and natural gas, and EPA rules don’t account for upstream emissions. *********************************************************************************** NCBA Endorses Legislation Protecting Animal Health The National Cattlemen’s Beef Association announced its support the Foreign Animal Disease Prevention, Surveillance, and Rapid Response Act of 2023. The bipartisan legislation would continue making critical investments in foreign animal disease response programs currently overseen by USDA. “The threat of a foreign animal disease outbreak in the U.S. represents an existential threat to every cattle producer,” says NCBA President Todd Wilkinson. “As a cattle producer, it is reassuring to see bipartisan support for legislation like this, which will help our industry prepare for, and ultimately prevent a national crisis.” The Act will provide additional funding for three important animal health programs established through the 2018 Farm Bill, including the National Animal Vaccine and Veterinary Countermeasures Bank, the National Animal Disease Preparedness and Response Program, and the National Animal Health Laboratory Network. “Together, these three form a three-legged stool that represents our strategy for protecting the cattle and beef industries,” Wilkinson adds. *********************************************************************************** First Quarter Solid for Some Animal Product Exports A USDA report says a comparison between first-quarter 2023 exports of seven animal products with the exports from the same time last year shows some improvement. Four of the categories were year-over-year higher and three were lower so far during this year. In the first quarter of 2023, lamb and mutton exports were up 31 percent, pork was up eight percent, broilers 2.5 percent higher, and dairy product exports were six percent higher than in 2022. USDA says the increases were due mostly to favorable prices and the depreciating value of the dollar. Beef and veal exports were eight percent lower than last year because of lower U.S. production in cattle-producing areas hit by extended drought. Egg and egg-product shipments were 22 percent lower than last year, and turkey exports were 21 percent lower. Fewer egg and turkey shipments were caused by export restrictions related to high pathogenic avian influenza.
| Rural Advocate News | Friday May 19, 2023 |
Friday Watch List Markets With the 2023 Hard Winter Wheat Quality Tour wrapped up and the Black Sea grain deal extended for another two months, will we see a quieter grain market Friday? Traders will keep tabs on the latest weather forecasts, but are developing low expectations for export business. USDA's cattle on-feed report for May 1 is due out at 2 p.m. CDT and many expect the on-feed total to be down almost 4% from a year ago. Weather A front is found from the Central Plains through the central Midwest Friday morning, producing some scattered showers in the Midwest, but heavy rain in the Southern Plains. Morning showers will die out across the Plains but redevelop over the south later in the day, which may become severe. Across the Midwest, showers will be lighter. A brief shot of colder air and smoke from Canadian wildfires are following behind the front.
| Rural Advocate News | Thursday May 18, 2023 |
House Ag Spending Bill Released, Markup Thursday The House Agriculture Appropriations bill released this week provides $26.3 billion for total funding, $532 million below the 2023 funding level. The bill provides $17.1 billion to the Department of Agriculture, which is $8.6 billion below current fiscal year spending and $11.7 billion below the budget request. The bill also provides $8.1 billion in funding repurposed from unobligated balances from pandemic-era programs. Conservative leaders in the House say the bill reins in wasteful spending by redirecting billions in American Rescue Plan and Inflation Reduction Act funding to help America’s producers and rural communities. The changes include a $32 billion decrease in mandatory SNAP spending from FY23 levels due to the end of increased pandemic-era benefits and a decrease in participation rates. The proposal also eliminates funding for equity initiatives and climate change, and saves $1 billion by restricting the discretionary use of the Commodity Credit Corporation. The House Agriculture Appropriations Subcommittee was scheduled to markup the bill Thursday morning. *********************************************************************************** Legislation Introduced to Protect Farms from Feral Hogs Lawmakers this week in the Senate introduced the Feral Swine Eradication Act. The legislation would extend and make permanent a pilot program to safeguard public health, agriculture, and local ecosystems against the threat of feral swine. Senators Tommy Tuberville, an Alabama Republican and John Cornyn, A Texas Republican, introduced the bill. Tuberville says, "Over the past five years, feral swine have impacted more than 173,000 acres in Alabama, yet the pigs are still running rampant throughout the South." There are approximately six million feral hogs across the United States, which cause more than $1.5 billion in damages each year. The Feral Swine Eradication and Control Pilot Program was established in the 2018 Farm Bill to respond to rampant feral swine outbreaks and was implemented by the Department of Agriculture. The program includes feral swine removal, restoration efforts, and assistance to producers for feral swine control through grants with non-federal partners. *********************************************************************************** Senate Ag Committee Advances Torres Small Nomination The Senate Agriculture Committee Wednesday advanced the nomination of Xochitl Torres Small to be Deputy Secretary of Agriculture to the full Senate for consideration. Committee Chair Debbie Stabenow, a Michigan Democrat, says, " Ms. Torres Small has a proven track record and a wide-ranging background that make her an ideal candidate to help lead the nearly 100,000 public servants at USDA." Ranking Member John Boozman, an Arkansas Republican, added, "She has shown herself to be a thoughtful leader while overseeing the rural development mission, and I believe those qualities will be an asset in this new role." Torres Small was confirmed by the United States Senate to serve as the Under Secretary for Rural Development on October 7, 2021. She was nominated to serve as Deputy Secretary by President Joe Biden in February following the resignation announcement by Jewel Bronaugh, who stepped away from the role to spend more time with family. *********************************************************************************** Truterra Pays $9 Million to Carbon Sequestering Farmers Truterra, LLC Thursday announced the results of its carbon program for 2022, which paid more than $5.1 million to farmers for approximately 262,000 metric tons of carbon stored. In the first two years of the program, Truterra has paid more than $9 million to farmers for over 462,000 metric tons of carbon. Truterra President Tom Ryan says, “By working with and through farmer's trusted advisor, the carbon program has continued to achieve great success in its second year.” The company reports that 273 farmers participating in the 2022 carbon program, receiving an average total payment per participating farmer of over $18,000. Truterra is a self-described leading sustainability solutions provider, advancing and connecting sustainability efforts throughout the food system at scale – from farmers to ag retailers to value chain collaborators, including food and fiber companies. Truterra was launched in 2016 by Land O'Lakes, Inc., a member-owned cooperative that spans the spectrum from agricultural production to consumer foods. *********************************************************************************** Food Spending Decreased Unevenly Across States in 2020 The COVID-19 pandemic in the United States disrupted the food industry in 2020, according to fresh data from USDA’s Economic Research Service. Inflation-adjusted total U.S. food expenditures were 6.6 percent lower in 2020 than in 2019. However, individual states experienced varying degrees of food spending decline. The ERS developed State-level Food Expenditure Series helps to illustrate annual food spending changes across States since 1997, including Washington, DC. From 2019 to 2020, each state saw decreases in inflation-adjusted, per capita total food spending. The smallest decreases in food spending were in Iowa, South Carolina, and North Carolina. The states that saw the largest decreases in inflation-adjusted, per-capita food spending were Hawaii, Washington, DC, Florida, and Nevada. These states typically have large out-of-state population inflows from nonresident workers and tourists. The spending changes occurred as health concerns and mobility restrictions during the first year of the pandemic led consumers to spend less at restaurants and other eating-out establishments. *********************************************************************************** Dairy Checkoff Building Trust with Youth The dairy checkoff is bringing a new approach to building trust with young Americans by helping high school curriculum writers across the country incorporate accurate science behind dairy farming. The “On The Farm STEM” experience is co-funded by National Dairy Council and Midwest Dairy. The effort brings leading science educators and curriculum directors to dairy farms to discover ideas that can fit into high school curriculum. Ultimately, the program, created in partnership with the American Farm Bureau Foundation for Agriculture, will offer a science-based counterbalance to misunderstanding about how dairy is responsibly produced by farmers and its contributions to health and wellness. National Dairy Council’s Lindsay Datlow says, “With education and action, today’s youth will be empowered to understand how dairy foods fit into an overall healthy and sustainable food system.” Some dairy-focused classroom materials already are being used in school pilot programs. The curriculum is expected to be implemented in several states by early 2024.
| Rural Advocate News | Thursday May 18, 2023 |
Thursday Watch List Markets USDA's export sales report will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing home sales and U.S. leading indicators for April are due at 9 a.m., followed by the Energy Department's weekly report of natural gas storage at 9:30 a.m. After Russia agreed to extend the Black Sea grain deal Wednesday, traders will be watching for shipments out of Ukraine and the latest weather forecasts. Weather A cold front is moving through the Upper Midwest down through the Central Plains on Thursday with scattered showers likely, especially during the afternoon. Moisture ahead of the front should be good enough to produce widespread precipitation across western Kansas and the Panhandles which could be heavy, helping to ease drought conditions in these areas.
| Rural Advocate News | Wednesday May 17, 2023 |
Biden Administration Announces $11 Billion Clean Energy Investment The Biden Administration Tuesday announced the availability of nearly $11 billion in grants and loan opportunities to help rural energy and utility providers. The funding will help bring affordable, reliable, clean energy to communities across the country. The announcement is the single largest investment in rural electrification since President Franklin D. Roosevelt signed the Rural Electrification Act into law in 1936. Agriculture Secretary Tom Vilsack says that through the effort, the administration is "supporting thousands of new jobs and helping lower energy costs in the future." Funding is available through two programs under the Inflation Reduction Act. Specifically, the Department of Agriculture will open a Letter of Interest process for the Empowering Rural America program, making $9.7 billion available to eligible rural electric. USDA will also open a Letter of Interest process for the Powering Affordable Clean Energy program, making $1 billion available in partially forgivable loans to renewable-energy developers and electric service providers. *********************************************************************************** USDA Releases Black Sea Trade Vulnerability Dashboard The Department of Agriculture Tuesday released a dashboard demonstrating the scope of Black Sea grain and oilseed trade. USDA's Foreign Agricultural Service says millions of tons of grain are shipped through the region annually, making the Black Sea region a major supplier of agricultural commodities worldwide. The dashboard demonstrates the impacts Black Sea trade disruption can have on food access in various countries. The analysis focuses on key commodities, including barley, corn, soybean oil, sunflower seed oil, and wheat. For each country, the largest suppliers are shown, which allows the dashboard to illustrate the potential impact of Russia's war in Ukraine. USDA Undersecretary for Trade and Foreign Agricultural Affairs, Alexis M. Taylor, says, "By looking at the Vulnerabilities to Trade Disruption dashboard, it becomes very clear how big an impact Russia's war has on food security in countries." The dashboard and all other USDA FAS tools and reports are available at www.fas.usda.gov. *********************************************************************************** Socially Disadvantaged farms Concentrated in South and West Data from USDA’s Economic Research Service shows socially disadvantaged farmers and ranchers tend to be more concentrated in southern and western regions of the country. USDA defines socially disadvantaged farmers as those belonging to groups subject to racial or ethnic prejudice. In some counties, the proportion of operations classified as racially or ethnically socially disadvantaged is more than 58 percent, such as in parts of Arizona, New Mexico, Texas, and Florida. Overall, socially disadvantaged farms accounted for 9.4 percent of the two million farms in the United States. In 2017, 1.3 percent of all producers identified themselves as Black or African American only, 1.7 percent identified as American Indian or Alaska Native only, 0.6 percent identified as Asian only, 0.1 percent as Native Hawaiian or Pacific Islander only, and 0.8 percent of all producers reported more than one race. In addition, 3.3 percent of all producers of any race indicated Hispanic, Latino, or Spanish origin. *********************************************************************************** 2022 National Beef Quality Audit Shows Efficiency Improvements The beef cattle industry is producing a high-quality product that consumers want more efficiently. NCBA this week announced the findings as part of the 2022 Beef Checkoff-funded National Beef Quality Audit results. Since 1991, the Beef Checkoff-funded National Beef Quality Audit has delivered a set of guideposts and measurements for cattle producers to help determine quality conformance of the U.S. beef supply. NCBA's Josh White says, "The NBQA is an important tool for the industry to identify where improvements are being made and where there are opportunities to capture more value.” When comparing 2016 and 2022 NBQAs, the largest improvement was overall increased efficiency across the beef supply chain. Key findings include market segments no longer consider food safety as a purchasing criterion, but as an expectation, and market sectors indicated that their companies strive to increase their sustainability. The NBQA, conducted approximately every five years, provides an understanding of what quality means to the various industry sectors, and the value of those quality attributes. *********************************************************************************** Certified Angus Beef Expands Offering with Grass-Fed Beef Consumer demand for high-quality beef has been a long-time sales driver for Certified Angus Beef, and ultimately, it has increased demand for superior Angus genetics. As consumer preferences evolve, the brand is growing to provide premium beef for every liking. And now, that will include a grass-fed option: Certified Angus Beef Grass-Fed by Niman Ranch. Certified Angus Beef President John Stika says, “This product will represent a small portion of total sales, but it's an important addition that helps us meet the needs of consumers who have different preferences.” The Certified Angus Beef Grass-Fed by Niman Ranch product will make up less than one percent of the total CAB supply. A niche product, the grass-fed, natural beef will initially only be available through a few, exclusive restaurants and grocery stores. Consistent with all Certified Angus Beef brand products, the grass-fed beef must meet all ten specifications to qualify for the brand. *********************************************************************************** Lawmakers Ask Automakers to Keep AM Radio A group of more than 100 lawmakers this week signed a letter to automakers expressing concerns about the removal and planned removal of AM radio receivers in vehicles. Representative Greg Pence, an Indiana Republican, led the effort, and says, “If automakers are seeking to remove access to AM radio, my constituents deserve an explanation as to how this could impact their lives and public safety.” The letter highlights the need of rural Americans to access AM radio, given limited internet and cell phone connectivity. The letter states, “We urge you to maintain AM radio receivers in all vehicles and prioritize consumers and public safety.” Federal data shows that more than 75 radio stations, mostly AM stations, cover at least 90 percent of the U.S. population and are equipped with backup communications equipment for broadcasting during public emergencies. There have been reports that automakers, including Ford, Volkswagen, BMW, Mazda, Volvo, Tesla, Polestar, Rivian, GM, and Mercedes Benz, removed, or are planning to remove, broadcast AM radio receivers from all-electric vehicles.
| Rural Advocate News | Wednesday May 17, 2023 |
Wednesday Watch List Markets A report on U.S. housing starts in April is set for 7:30 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly inventory report at 9:30 a.m. Traders will continue to monitor the latest weather forecasts and watch for any news regarding the Black Sea grain deal. Weather An old front and humid weather will produce scattered showers in the Southeast on Wednesday. Isolated showers and thunderstorms will develop in the High Plains ahead of a cold front that is moving through the Northern Plains. The front is producing scattered light showers, not enough to impact planting for too many areas today
| Rural Advocate News | Tuesday May 16, 2023 |
Lawmakers Introduce Legislation to Classify Corn as an Advanced Biofuel New legislation introduced Monday in the House of Representatives would allow for ethanol from corn starch to qualify as an advanced biofuel. The Fuels Parity Act would also require the Environmental Protection Agency to use the Argonne GREET model to determine the greenhouse gas emission profile of biofuels under the RFS. Corn is currently prohibited from qualifying as an advanced biofuel, even if it can meet the required scientific thresholds, by a provision in the 2007 RFS expansion known as the “corn discrimination clause.” No other feedstock is limited – only corn starch used for ethanol. Allowing corn to qualify as an advanced biofuel would incentivize lower emissions from ethanol production and allow corn to access another bucket of the RFS. If ethanol can meet the scientific thresholds, then it should be allowed to qualify as an advanced biofuel and generate an advanced biofuel RIN, according to lawmakers introducing the legislation. *********************************************************************************** NCGA: Ethanol Bill Would Level the Playing Field The National Corn Growers Association supports the Fuels Parity Act introduced in the House of Representative's Monday. NCGA President Tom Haag says the legislation "Recognizes the declining carbon intensity of today's low-carbon ethanol and helps level the playing field." Published analysis from the Department of Energy's Argonne National Laboratory concludes corn ethanol's carbon intensity decreased 23 percent from 2005 to 2019 due to increased corn yield, reduced fertilizer intensity and improved ethanol production efficiency, with corn ethanol now between 44 and 52 percent lower in carbon intensity than the gasoline it replaces. Argonne's analysis is consistent with recent research from Environmental Health and Engineering that corn ethanol today is 46 percent lower in carbon intensity than gasoline, with the potential for further reductions from additional corn feedstock and production process improvements. Under the law, advanced biofuels must deliver a 50 percent or more reduction in greenhouse gas emissions compared to gasoline, a requirement today's ethanol now meets. *********************************************************************************** New Survey Reveals Farmer Use of Automation Growers now spend an average of $500,000 a year on automation in response to the persistent ag labor shortage. Western Growers discovered the data in its Specialty Crop Automation Report. The report, which tracks and measures industry progress in harvest automation across the fresh produce industry, is part of the Western Growers Global Harvest Automation Initiative, which aims to accelerate ag automation by 50 percent in ten years. Most progress was made in the weeding and harvest assist segments; market-ready solutions are able to meet grower economic targets and alleviate key challenges, such as lack of labor availability. Growers reported ROIs for weeding solutions of less than one to two years, depending on the type of crop and technology used. Growers want more trained agtech personnel, with 50 percent indicating that they had internal employees who dedicated the majority of their time to the integration of automation investments. *********************************************************************************** Groundwater Organizations see Nitrate Contamination As Top Concern New data from USDA’s Economic Research Service finds that 30 percent of groundwater organizations cite nitrate contamination as a groundwater quality concern. Nitrates can come from animal manure and chemical fertilizers that leach into groundwater. When groundwater pumping exceeds the volume of groundwater recharge, the concentration of contaminants like nitrates can increase. Nitrate contamination is a concern on more than half of the groundwater-fed irrigated acreage within groundwater organization service areas. USDA’s Survey of Irrigation Organizations collected information on the estimated 735 local entities that manage on-farm groundwater use through statutory, regulatory, or other powers. While nitrate contamination was the most common groundwater quality concern reported, contamination by salinity, other nutrients, and heavy metals are a concern for 27, 19, and 18 percent of groundwater organizations, respectively. USDA’s Economic Research Service says contaminated groundwater can harm crops or make the water unusable for irrigation entirely. *********************************************************************************** Rodale Institute Applauds USDA Investments in Organic Farmers The Department of Agriculture is expanding opportunities for organic farmers, a welcome investment, according to the Rodale Institute. USDA announced the expanded opportunities last week. Through the newly-established Organic Market Development Grant Program, USDA’s Agricultural Marketing Service will issue up to $75 million in competitive grants to fund projects designed to expand and improve markets for domestically produced organic products. In addition, the Farm Service agency increased the cost share amount under the Organic Certification Cost Share Program, which helps organic producers cover organic certification costs, to the maximum amount allowed by statute. Rodale Institute CEO Jeff Tkach says, “Consumer demand for organic products is growing rapidly and the USDA’s support will help American farmers meet the needs of the market.” Recent USDA data shows farms and ranches in the United States sold over $11 billion in certified organic commodities in 2021, a 13 percent increase from 2019. *********************************************************************************** Gas Prices Edge Higher, Diesel Lower For the first time in several weeks, the nation's average gasoline price increased, rising four cents from a week ago to $3.51 per gallon. The national average is down 14.9 cents from a month ago and 95.6 cents per gallon lower than a year ago. The national average diesel price fell four cents in the last week and stands at $3.97 per gallon, $1.59 lower than one year ago. GasBuddy's Patrick De Haan says, "We're likely to soon see gasoline prices slip to their largest year-on-year deficit since COVID hit, when prices fell over $1 per gallon from 2019, so the relief at the pump has been significant." With continued discussion over the U.S. hitting its debt limit, oil prices have seen additional volatility. De Haan adds that it’s looking more likely that, barring a major hurricane or series of refinery outages, the national average may not end up hitting the $4 per gallon mark.
| Rural Advocate News | Tuesday May 16, 2023 |
Tuesday Watch List Markets A report on U.S. retail sales for April is due out at 7:30 a.m. CDT, followed by U.S. industrial production at 8:15 a.m. Traders continue to keep an eye on the latest weather forecasts and watch for any update of the Black Sea grain deal. Weather A small system is moving east along the Ohio Valley, producing scattered showers and thunderstorms, some of which may be heavy and severe. Additional showers and thunderstorms are expected to pop up to the south of this system as well across the Gulf Coast and Southeast. Drier weather elsewhere will help to dry out areas that were flooded last week.
| Rural Advocate News | Monday May 15, 2023 |
USDA Releases U.S. Crop Production Outlook USDA projects a record U.S. corn crop of 15.3 billion bushels, up over 10 percent on increases to both area and yield. The yield projection is 181.5 bushels per acre. The 2023-2024 corn outlook calls for larger production, greater domestic use and exports, and higher ending stocks. Total corn supplies are forecast at 16.7 billion bushels. The season-average farm price is expected to be $4.80 a bushel, down $1.80 from the prior year. The U.S. soybean crop will be 4.51 billion bushels, up five percent from last year on higher yields. Soybean supplies are projected to be up four percent to 4.75 billion bushels. The season-average soybean price is forecast more than $2 lower at $12.10 per bushel. The USDA’s all-wheat production is forecast at 1.65 million bushels, up slightly from the previous year. The all-wheat yield is projected at 44.7 bushels, and the season-average price is down to $8 a bushel. *********************************************************************************** Credit Conditions Strong as Interest Rates Climb Agricultural credit conditions in the Tenth District of the Kansas City Fed remained strong, and farm real estate values continued to increase. However, growth has softened. While improvements in farm finances and credit conditions steadied and some lenders expected a deterioration in the months ahead, multiple years of strong incomes continued to keep credit stress low. The outlook for the U.S. farm economy in 2023 remained favorable as prices of key commodities were at multi-year highs. Financial performance and liquidity at agricultural banks remained solid and farm lenders appeared well-positioned to meet higher credit demand through the early months of this year. Farm loan interest rates rose alongside further increases in benchmark rates. The average rate charged on agricultural loans was about 30 basis points higher than the previous quarter and almost 300 basis points higher than a year ago. The farm real estate market has softened as interest rates rose. *********************************************************************************** More Reaction to Supreme Court’s Prop 12 Decision The Supreme Court decision upholding California’s Prop 12 continues to draw strong reactions from America’s agricultural stakeholders. Kansas Republican Senator Roger Marshall says he’s disappointed in the Court’s decision not to strike down Prop 12. “We can’t allow radical state laws to dictate the agricultural practices in every other state,” Marshall says. “This will only increase food costs for people already suffering from food insecurity and drive farmers and ranchers out of business.” Marshall plans to re-introduce his Exposing Agricultural Trade Suppression Act which will prohibit state and local governments from interfering with agricultural production in other states. Iowa’s Ag Secretary Mike Naig says this decision opens the door for the largest states to dictate laws and regulations to the rest of America. “While the ruling was focused on agriculture, it will certainly creep into other industries,” he says. “It will drive the cost of production and food prices higher.” *********************************************************************************** More Elected Officials Concerned About Lack of AM Radio in New Cars Representatives Mike Gallagher of Wisconsin and Josh Gottheimer of New Jersey sent a bipartisan letter to the Federal Emergency Management Agency regarding the future of AM radio in new vehicles. They expressed concerns over auto makers’ decision to drop AM radio access in the new electric vehicles that will be coming to market. The members talked about the important role that AM radio plays in providing life-saving information to the public. They also asked FEMA to outline what impact this would have on the nation’s Emergency Alert System and what steps the agency is taking to prevent this from happening in future vehicle models. “AM radio has extensive geographic reach, including areas where there’s little cell service or broadband internet access,” they say in the letter. “Given the growth in electric vehicle sales, it’s vital that FEMA makes clear the impact that no AM radios will have on public safety.” *********************************************************************************** Industry Groups Want More Biomass-Based Diesel in RFS Volumes Clean Fuels Alliance America joined four other trade associations in sending a letter to EPA administrator Michael Regan regarding biofuel volumes in the Renewable Fuels Standard. They want the EPA chief to substantially raise the biomass-based diesel and overall advanced biofuel volumes in the RFS for 2023-2025. The letter highlights the need for strong RFS volumes to support the goals of the National Blueprint for Transportation Decarbonization. “Our industries need these fuels to decarbonize air transport, long-haul shipping and trucking, home heating, and to meet the needs of our customers and supply chain partners,” the letter says. “The proposed RFS volumes are simply inconsistent with the investments our industries will make to continue expanding production and commercial availability of these fuels by 2025.” The groups also say in the letter that their industries continue to make significant investments in producing, distributing, and using low-carbon fuels, but more can be done. *********************************************************************************** Groups Urge Congress to Reject Increases in Farm Subsidies A group of taxpayer, agriculture, and environmental organizations held a press conference to urge Congressional leadership to reject attempts to increase reference prices for covered commodities. The National Sustainable Agriculture Coalition was one of the groups who opposed raising the Price Loss Coverage reference prices in the 2023 Farm Bill at a time when gross farm income is higher than ever. “Taxpayer commodity program subsidies were designed as a safety net tool, triggered when necessary, to help protect against unpredictable losses that are a part of farming,” says Billy Hackett, NSAC Policy Specialist. “It’s not an annual entitlement program for the country’s most successful farms. Ten percent of the farms get 70 percent of the subsidies and throwing money at an unsustainable system is no solution.” The other organizations taking part in the press conference included the Environmental Working Group, FreedomWorks, the National Taxpayers Union, Farm Action, and several others.
| Rural Advocate News | Monday May 15, 2023 |
Top 5 Things to Watch - Wheat Tour Highlights Coverage OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of May 14. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Kansas wheat tour: Crop tours are always highly anticipated, but for certain this year commodity markets are listening for how bad conditions are in hard red winter wheat country. We'll report from the annual Wheat Quality Council Hard Winter Wheat Tour starting Tuesday night, with mid-day updates and a full report from tour scouts each evening Tuesday and Wednesday. Final numbers will be available late-morning Thursday. 2. Markets respond to bullish news: We'll continue to track the market's response to Friday's World Agricultural Supply and Demand Estimates (WASDE) report, which sent wheat futures skyward, and what the wheat tour adds to that. There is also continued news coming on Brazil's safrina (second-crop) corn. 3. Change in the weather patterns: The trough of low pressure that has been situated over the West, supplying energy to fire off the past week's thunderstorms, is about to shift. DTN weather forecasters expect a ridge over the West, heating up western North America. At the same time, a new trough moves into Eastern Canada, chilling that area as well as the Midwest and Northeast. We'll watch for bursts of cold that carry a slight chance for frost in far northern U.S. and Canadian Prairies. 4. Ukraine grain deal: In an ongoing issue, we'll again watch for the latest in the Russia-Ukraine grain sales agreement, set to expire May 18. As the AP has reported, the deal has been extended twice so far, and Ukraine officials and allies are seeking another extension to continue the flow of grain to Africa, the Middle East and Asia. Russia continues to balk at those extensions, pushing to tie renewed ability to move its fertilizer supplies into the market stream. 5. Economic reports fill the week: Monday sees the ongoing USDA Crop Progress and grain export inspections reports, as well as soybean crush reports. On the broader economy, April retail sales and industrial production numbers hit Tuesday, with housing starts and Energy Department inventory numbers on Wednesday. Thursday sees weekly U.S. jobless claims, existing home sales and the April U.S. index of leading indicator numbers. May's Cattle on Feed report hits Friday, with DTN analysis coming in that afternoon.
| Rural Advocate News | Monday May 15, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking for any movement of news on the Black Sea grain initiative and taking in the latest weather forecasts. USDA's weekly report of export inspections is due out at 10 a.m. CDT, followed by a soybean crush report from the National Oilseeds Processors Association later Monday morning. USDA's Crop Progress report will have new estimates of planting progress at 3 p.m. Weather A small system in the Ozarks is producing areas of showers for the Southern Plains into the southwestern Corn Belt Monday morning and will spread more showers through these areas and into the Ohio Valley Monday night. Some isolated showers may pop up in the West and through the Southeast as well. Drier conditions are forecast for northern zones into Canada.
| Rural Advocate News | Friday May 12, 2023 |
Supreme Court Rejects Challenge to Prop 12 The U.S. Supreme Court rejected a challenge to California’s Prop 12. The law bans the sale of pork from pigs that are kept in tightly confined spaces. The justices voted 5-4 to uphold a lower court’s decision to dismiss a lawsuit filed by the National Pork Producers Council and the American Farm Bureau that sought to invalidate the law. The groups argued that the measure violated a U.S. constitutional provision called the Commerce Clause that courts say gives the federal government the power to regulate interstate commerce, not the states themselves. “While the Constitution addresses many weighty issues, the type of pork chops California merchants may sell is not on that list,” wrote conservative Justice Neil Gorsuch, who authored the Court’s main opinion. The Prop 12 measure was approved by California voters in 2018. It bans in-state sales of pork, veal, and eggs from animals whose confinements didn’t meet space requirements. *********************************************************************************** Reaction to Supreme Court Decision on Prop 12 The National Pork Producers Council reacted negatively to the Supreme Court’s decision on California’s Prop 12. “We are very disappointed with the Supreme Court’s opinion,” says Scott Hays, NPPC president. “Allowing state overreach will increase prices for consumers and drive small farms out of business, leading to more consolidation.” NPPC is still evaluating the Court’s full opinion to fully understand all the implications. “We will continue fighting for our pork farmers and American families against misguided regulations,” Hays adds. Kitty Block, president and CEO of the Humane Society of the U.S., says she’s “delighted” that the Supreme Court upheld California’s Prop 12. “It’s the nation’s strongest farm animal welfare law, and the Court made clear that preventing animal cruelty and protecting public health are core functions of our state governments,” she says. Also, HS-USA “won’t stop fighting until the pork industry stops confining sows in cages so small they can’t turn around.” *********************************************************************************** Senators Slam Plant-Based Dairy Labeling Senators Tammy Baldwin of Wisconsin and Jim Risch of Idaho led a bipartisan group in calling out the administration’s draft guidance on labeling non-dairy product imitators. The Biden administration’s guidance allows non-dairy products to use dairy names like milk when labeling their products. The Food and Drug Administration contradicted its own regulations by releasing guidance that would allow plant-based products to continue using dairy terms despite not containing dairy or having the nutritional value of dairy products. “The inaction by FDA harms public health as a result of consumer misperception over dairy products’ inherent nutritional value,” the Senators wrote. “As a result, it’s imperative that FDA enforce existing standards of identity for dairy in both current and future guidance.” The two senators have led the charge to crack down on imitation products using dairy’s name. They authored bipartisan legislation called the Dairy Pride Act to combat the unfair labeling practice. *********************************************************************************** Combine Sales Continued Growing in April Combine harvester sales in the U.S. and Canada continued growing while total tractor sales declined below the five-year average. The Association of Equipment Manufacturers says total U.S. ag tractor unit sales decreased in April, down 16 percent year-over-year. Unit sales of four-wheel-drive tractors climbed 54 percent higher, and the 100-plus horsepower segment sales climbed five percent. U.S. self-propelled combine sales grew 23 percent for the month, leading to a year-to-date gain of 72 percent. Sales dropped in both the sub-40 horsepower segment by 20 percent, and the 40-100 horsepower segment dropped 13 percent during April. In Canada, combine harvester sales continued growing, up 51 percent in April and 133 percent year-to-date. Total unit sales in tractors finished the month down 25 percent due to continued losses in all tractor segments. Curt Blades of AEM says, “Strong commodity prices are behind increases in the sales of the larger segments of tractors and harvesters.” *********************************************************************************** Ag Innovation Challenge Deadline Extended The American Farm Bureau Federation has extended the deadline to May 26 for entrepreneurs to apply online for the 2024 Farm Bureau Ag Innovation Challenge. The tenth year of this national business competition showcases U.S. startup companies developing innovative solutions to the challenges faced by America’s farmers, ranchers, and rural communities. Farm Bureau is offering $165,000 in startup funds through the course of the competition, which will culminate in the top ten semi-finalists competing in a live pitch competition in front of Farm Bureau members, investors, and industry representatives at the 2024 Farm Bureau National Convention. “Start-up companies like those we recognize through the Ag Innovation Challenge play an important role in the future of American agriculture,” says AFBF President Zippy Duvall. Detailed eligibility guidelines and the competition timeline can be found at fb.org/challenge. “Farmers rely on continuous improvements powered by innovation to keep providing food, fuel, and fiber,” Duvall says. *********************************************************************************** South Korea Hit by Foot and Mouth Outbreak Authorities in South Korea have ordered the culling of several hundred cattle and put biosecurity measures in place after cases of foot and mouth disease were found in a central province. The Cattle Site says the cases marked the first confirmed outbreak of FMD since January 2019. The current contagion occurred on three farms in a province south of Seoul, the country’s capital. The South Korean Vice Ag Minister says related agencies and local governments were asked to make all-out efforts on preventative measures to stop the further spread of foot and mouth disease. A team was sent to the area to investigate the outbreak, disinfect farms in surrounding areas, and put a 48-hour hold in place on all movement of people or livestock in the area. Foot and Mouth is highly transmissible and causes lesions and lameness in cattle, sheep, goats, and other cloven-hoofed animals. Authorities plan to cull 360 cattle.
| Rural Advocate News | Friday May 12, 2023 |
Friday Watch List Markets The University of Michigan's index of U.S. consumer sentiment is set for 9 a.m. CDT Friday. But, for grain traders, the highlights of the day are out at 11 a.m. CDT, when USDA releases its WASDE and Crop Production reports. Traders will also check the latest weather forecasts, watch for any export activity and for any news regarding the extension of the Black Sea grain deal. Weather An upper-level system is meandering in the Plains, spreading showers and thunderstorms across the Plains into the Midwest down to the Southeast on Friday. Rain is slow-moving, causing some heavy rain and potential for flooding. Areas in the northern half of the Plains and across parts of Texas stand the best chance at seeing meaningful, heavy rain that could ease drought conditions. But those same showers could become severe storms with the focus around eastern Nebraska and western Iowa for the greatest threats.
| Rural Advocate News | Thursday May 11, 2023 |
Consumer Price Index Increases, Grocery Story Prices Lower The Consumer Price Index rose again in April, but grocery store prices for food declined. The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index for All Urban Consumers rose 0.4 percent in April. The overall food index was unchanged in April, as the food at home index fell 0.2 percent over the month, following a 0.3-percent decrease in March. Four of the six major grocery store food group indexes decreased over the month. The index for fruits and vegetables decreased 0.5 percent in April, and the index for meats, poultry, fish, and eggs declined 0.3 percent. The dairy and related products index decreased 0.7 percent in April as the milk index fell 2.0 percent, the largest decline in that index since February 2015. The nonalcoholic beverages index declined 0.1 percent over the month. In contrast, the index for other food at home rose 0.2 percent in April, following a 0.4-percent increase the previous month. *********************************************************************************** USDA Announces Steps to Enhance Organic Markets, Support Producers The Department of Agriculture is taking additional steps to strengthen the market for domestically grown organic goods and support producers seeking organic certification. Agriculture Secretary Tom Vilsack Wednesday announced funding opportunities through USDA's Organic Transition Initiative. Launched in 2022, the program helps existing organic farmers and those transitioning to organic production and processing. Vilsack says, "For many farmers, the transition period before attaining organic certification can be cost-prohibitive, so USDA is also helping mitigate the risk involved for farmers who want to be able to grow and market organic crops." USDA's Agricultural Marketing Service will issue up to $75 million in competitive grants through the new Organic Market Development Grant Program. The Farm Service Agency increased the cost share amount under the Organic Certification Cost Share Program as part of USDA's broader effort to support organic producers. Specifically, FSA will cover up to 75 percent of costs associated with organic certification. *********************************************************************************** Booker-Grassley Bill Offers CRP Reforms Bipartisan legislation introduced by New Jersey Democrat Cory Booker and Iowa Republican Chuck Grassley in the Senate would change the Conservation Reserve Program. The Conservation Reserve Program Reform Act would prioritize enrolling marginal farmland in the CRP, rather than prime farmland. The lawmakers say the legislation would generate more durable wildlife and environmental benefits while reducing competition for productive farmland between the Department of Agriculture and farmers, especially new and beginning farmers. Senator Grassley says, “The reforms in this bill ensure that CRP is not used on highly-productive farmland and instead focus the program on highly-erodible land.” The CRP Reform Act would set CRP's overall acreage cap at 24 million acres for fiscal year 2024 to 2028, with an emphasis on enrolling marginal land. The bill would increase incentives to enroll marginal farmland through the continuous enrollment and grasslands categories while reducing the rental rate for general CRP sign-ups by ten percent. *********************************************************************************** NCGA: Biofuels Should be Used to Lower Auto Emissions The National Corn Growers Association urges the Environmental Protection Agency to use biofuels to reduce automobile emissions. NCGA Chairman Chris Edgington testified to the EPA during a public hearing earlier this week regarding EPA's proposed Multi-Pollutant Emission Standards for model years 2027-2032. Edgington expressed frustration that EPA only looked at one solution, electric vehicles, to lower greenhouse gas and pollutant emissions. The NCGA leader says, "EPA's proposal limits the ability of clean, low-carbon ethanol to contribute greater emission reductions and support affordable options." Edgington encouraged EPA to address the serious limitations of its proposal and work with NCGA to level the playing field and advance the needed rulemaking to improve fuel standards. Edgington added, “Clean, high-octane fuel from mid-level ethanol blends, used as a system with advanced engines, offers an essential pathway for achieving significant greenhouse gas and complementary criteria emission reductions from model year 2027 and later vehicles.” *********************************************************************************** Gene-Editing Produces First Calf Resistant to Viral Disease Scientists have collaborated to produce the first gene-edited calf with resistance to bovine viral diarrhea virus, a virus that costs the U.S. cattle sector billions of dollars annually. Over the past 20 years, the scientific community discovered the main cellular receptor and the area where the virus binds to that receptor, causing infection in cows. Scientists modified the virus binding site in this recent study to block infection. The first gene-edited calf, named Ginger, was born healthy on July 19, 2021. The calf was observed for several months and then later challenged with the virus to determine if she could become infected. She was housed for a week with a BVDV-infected dairy calf that was born shedding the virus. Ginger's cells displayed significantly reduced susceptibility to BVDV, which resulted in no observable adverse health effects. USDA says the study demonstrates the possibility of reducing the burden of bovine viral diarrhea virus-associated diseases in cattle by gene editing. *********************************************************************************** Apples and Oranges Top U.S. Fruit Choices Apples held the top spot for total fruit available for consumption in 2021 at more than 26 pounds per person after adjusting for losses. USDA’s Economic Research Service’s loss-adjusted food availability data adjusts food availability data for food spoilage, plate waste, and other losses to more closely approximate actual consumption. People in the United States consumed an average of 1.7 gallons of apple juice, roughly nine pounds of fresh apples, and a total of 3.1 pounds of canned, dried, and frozen apples in 2021. Among the top seven consumed fruits in 2021, apples were the only fruit in which data were available for all five forms, fresh, canned, frozen, dried, and juice. Pineapples were the only other canned option among these seven fruits for which data were available, while strawberries were the only other frozen fruit. Bananas, at 13.2 pounds per person, topped the list of most popular fresh fruits, while orange juice, at 1.9 gallons, was the most popular fruit juice.
| Rural Advocate News | Thursday May 11, 2023 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, producer prices for April and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Traders continue to watch the latest weather forecasts and check for either export sales announcements or cancellations at 8 a.m. Weather A weakening upper-level system is slowly moving into the Plains and already has produced areas of heavy rain and severe weather since Wednesday afternoon. More of the same will occur Thursday, though a bit farther east than Wednesday. Some of the driest areas of the country are finding some good rainfall, though rain is not coming to all places. Still, this is an excellent boost to soil moisture for a lot of areas.
| Rural Advocate News | Wednesday May 10, 2023 |
EIA Expects Less Electricity Demand this Summer, More Generation from Renewables The U.S. Energy Information Administration expects a slightly cooler summer in 2023 will lead to less demand for air conditioning than in 2022. The result will slightly reduce overall electricity demand this summer. EIA expects that despite less electricity demand this summer, more electricity will be generated from renewable sources and natural gas throughout 2023. EIA forecasts this summer will see the second-most U.S. natural gas consumption for electricity generation on record, surpassed only by last summer. EIA continues to expect significant growth in U.S. electricity generation from wind and solar, but the wet winter in California and the western United States should also increase electricity generated from hydropower during the coming months. EIA expects U.S. retail electricity costs will remain higher than before the COVID-19 pandemic. Those higher prices mean that even if households consume less electricity, their electricity bills will likely be similar to or slightly higher than last summer. *********************************************************************************** USDA Seeking American Agriculture Feeds Kids and Families Acquisitions The Department of Agriculture plans to purchase various protein items to support activities to leverage American Agriculture to feed kids and families. Potential materials may include dairy, meat, fish, and poultry items. The funds, provided through USDA's Commodity Credit Corporation, will support nearly $1 billion to purchase food for emergency food providers like food banks. The purchases are phase two of the program. Interested parties shall be responsible for ensuring that they have the most up-to-date information about this acquisition. The contract type is anticipated to be firm-fixed price, indefinite-delivery/definite quantity. Commodities and the products of agricultural commodities acquired under this contract must be a product of the United States and shall be considered to be such a product if it is grown, processed, and otherwise prepared for sale or distribution exclusively in the United States. Potential contractors must meet the AMS vendor qualification requirements to be eligible to submit offers. *********************************************************************************** AFBF Urges USDA to Accept Petition for FMMO Hearing The American Farm Bureau Federation urges the Department of Agriculture to accept the National Milk Producers Federation Federal Milk Marketing Order petition. AFBF says the petition provides a long-overdue comprehensive Federal Milk Marketing Order hearing to ensure that consumers can access fresh milk and dairy products while protecting dairy farmers from potentially harmful market conditions. AFBF President Zippy Duvall calls on USDA to hold a hearing on FMMO reform and asks the department to go further than a recent NMPF petition by asking for mandatory, audited surveys of dairy processors to be used when determining the make allowances factored into dairy pricing. The letter indicates USDA's authority to conduct a mandatory audit under the Agricultural Marketing Agreement Act. This change and the need for additional reforms were part of a farmer consensus formed at the AFBF-hosted FMMO Forum held in Kansas City, Missouri, last October. NMPF filed its petition on May 1, and USDA must respond to the petition within 30 days. *********************************************************************************** Research: Tinplate Steel Tariffs Will Harm American Consumers The Consumer Brands Association says implementing proposed tariffs of up to 300 percent on tinplate steel imports would increase the cost of canned foods and products by up to 30 percent. The association released two studies on the proposal, which would threaten nearly 40,000 union and non-union manufacturing jobs. The economic impact studies bolster Consumer Brands’ efforts to urge the Department of Commerce and International Trade Commission (I to deny a petition submitted by steel conglomerate Cleveland-Cliffs to impose tariffs of up to 300% on imported tinplate steel from eight countries. Because tinplate is used in hundreds of canned goods – everything from soup to shaving cream – imposing the requested tariffs would raise production costs for U.S. can manufacturers and trigger price hikes for every consumer, as supported by the research. According to the research, the proposed tariffs will increase the cost of canned foods and products by up to 58 cents per product. *********************************************************************************** U.S. Imports of Cut Flowers Grew to $3.3 Billion in 2022 Fresh-cut flowers and plants are popular gifts for special occasions such as Mother’s Day. Many bouquets contain flowers grown in countries where cool, wet climates have historically favored production. In 2022, the United States imported nearly $3.3 billion of cut flowers, plants, and nursery stock products from 81 countries, according to USDA’s Economic Research Service. Imports of fresh-cut roses totaled more than $800 million, while other fresh-cut flowers were valued at a combined $1.1 billion. Live plant imports were valued at nearly $860 million, and imports of other nursery stock products, such as bulbs and greenery, were valued at $492 million. Of the many countries supplying flowers and other nursery stock, Colombia made up the largest import value at $1.2 billion. From 2018 to 2022, Colombia provided about 37 percent of U.S. cut flower and nursery stock value. Other leading suppliers in 2022 included Canada, Ecuador, and the European Union, as well as Mexico, Taiwan, and Costa Rica. *********************************************************************************** USDA, Colorado Introduce Conservation Practice to Address Drought Concerns The Department of Agriculture and Colorado are continuing and strengthening their Conservation Reserve Enhancement Program partnership. Announced this week, the effort supports farmers in Colorado in reducing water use and protecting water quality. Specifically, the newly revised Colorado Republican River project will offer producers a dryland crop production practice on eligible cropland. This option will give producers meaningful tools to continue farming as they work toward permanently retiring water rights and conserving the Ogallala Aquifer for future generations. Through the revised Colorado Republican River Conservation Reserve Enhancement Program partnership, USDA and the State of Colorado will make resources available to program participants who voluntarily enroll in CRP for 14-year to 15-year contracts. The program provides participants with two ways to enroll eligible land. Producers can enroll eligible land in “CP100, Annual Crop Production, Non-Irrigated.” Additionally, participants within the Republican River CREP project area may enroll eligible land in “CP2, Permanent Native Grasses,” “CP4D, Permanent Wildlife Habitat,” and “CP23 or CP23A, Wetland Restoration.”
| Rural Advocate News | Wednesday May 10, 2023 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, the U.S. Labor Department will release the consumer price index for April, a number that will get a lot of attention regarding the future of interest rates. The U.S. Energy Department's weekly inventory report, including ethanol, will follow at 9:30 a.m. The U.S. Treasury reports on the federal budget for April at 1 p.m. Traders will continue to monitor the latest weather forecasts and any news regarding grain shipments in the Black Sea. Weather Waves of showers that have been developing this week continue in the Plains on Wednesday and will spread through more of the region tonight as a weak system in the West approaches. Another batch of showers across the western Gulf of Mexico will move north through the South-Central U.S. throughout the day as well. Other sporadic showers will be possible, but a drier stretch will lead to a nice window for planting before more rain moves through the Midwest later this week and weekend. Mild to warm temperatures continue for most areas.
| Rural Advocate News | Tuesday May 9, 2023 |
Economic Research Service: Farm Income Decline Varies by Region After reaching recent highs in 2021 and 2022, the average net cash income of U.S. farm businesses is expected to decline by 18 percent in 2023 compared with 2022. Farm businesses across the country are forecast to see higher production expenses, lower cash receipts, and lower Government payments in 2023, resulting in lower expected average net cash farm income. However, this overall decline will vary considerably across the country. USDA’s Economic Research Service uses resource regions to depict the geographic specialization in production of U.S. commodities. Farm businesses in the Northern Crescent region, which leads the nation in dairy production, are forecast to see the largest average percentage decrease, 30 percent, while those in the Mississippi Portal, which leads the nation in rice production, are forecast to see the smallest percent decrease, nine percent. Meanwhile, the Fruitful Rim will see an estimated 24 percent decline in average net cash income. *********************************************************************************** AEM Offers Ways to Address the Industry’s Technician Shortage It’s no secret to anyone working in equipment manufacturing the ever-growing technician shortage is a problem poised to get a lot worse before it gets better. According to a 2020 report, the industry may need to fill as many as 73,500 heavy equipment technician positions by 2025. In addition, the report stated equipment manufacturing possesses a job opening rate three times higher than the national average. Among survey respondents, 95 percent agreed with the assertion there was a skills gap in the industry, while 89 percent reported a shortage of workers within their companies. Julie Davis, AEM Senior Director of Workforce and Industry Initiatives, says, “Equipment manufacturers can and should embrace and adopt a number of short-term and long-term strategies to set themselves up for sustained success as it relates to workforce development. AEM offers four tips to businesses for addressing the shortage: focus on retention, fill the talent pipeline, diversify and optimize recruitment strategies, and collaborate with others. *********************************************************************************** March Pork Exports Largest in Nearly Two Years; Beef Exports Show Signs of Rebound March U.S. pork exports were the largest since May 2021, and beef export volumes were the largest since October, according to the U.S. Meat Export Federation. March pork exports totaled 260,195 metric tons, up 17 percent year-over-year and the ninth-largest volume on record. Export value was also the ninth largest at $724 million, up 18 percent from a year ago. These results capped a strong first quarter for U.S. pork as exports reached 716,691 metric tons, up 14 percent from a year ago, valued at $1.96 billion. Beef exports totaled 120,495 metric tons in March, down five percent from a year ago. Export value fell 17 percent to $892.6 million, but both volume and value were the highest in five months. Through the first quarter, beef exports were down eight percent year-over-year to 326,494 metric tons, valued at $2.35 billion. March exports of U.S. lamb muscle cuts totaled 218 metric tons, down five percent from a year ago. *********************************************************************************** Research Reveals How Grazing Management Affects Cattle Weight Gain USDA’s Agricultural Research Service is completing a 10-year study on grazing practices. The study focuses on the two systems of grazing, season-long grazing and intensive rotational grazing, looking at how the systems affect cattle foraging behavior, diet quality, and yearly weight gain in semi-arid, extensive rangelands. The study showed herds in the multi-paddock rotating system feeding in more linear pathways instead of moving around looking for greener grass and selecting bites of more digestible vegetation. They also fed slower, spent more time on the same patch of grass, and didn't turn their heads around much while feeding, compared with steers in the continuous grazing system. These behaviors of less selective foraging resulted in a lower diet quality, reducing weight gain during the growing season. Results, published in Agriculture, Ecosystems, and Environment, show that large herds grazing in small, homogenous paddocks have little opportunity to move around in ways that let them feed on high-quality diet. *********************************************************************************** Smidt Named AFT’s New Director of Land Use and Protection Research American Farmland Trust has named Sam Smidt as National Director of Land Use and Protection Research to develop and implement the organization’s land use protection research agenda. Among his duties, Smidt will lead the Land Use and Protection Research Initiative, which includes and builds upon the existing Farms Under Threat projects. He will also be part of both AFT’s internal virtual research team that discusses and prioritizes overall research needs and AFT’s farmland protection unit, which will work with Sam to help identify and prioritize research questions that could advance farmland protection and retention efforts and AFT’s policy and program development. With an extensive agricultural background, Smidt is skilled at evaluating and modeling land transformation impacts on human and natural systems. Smidt is a native of Morton, Illinois, and he has graduate degrees in both earth and environmental science and policy from Michigan State University and The University of Iowa. *********************************************************************************** Fuel Prices Fall for Third Straight Week For the third consecutive week, the nation's average gasoline price has fallen, declining 7.5 cents from a week ago to $3.50 per gallon. The national average is down 7.5 cents from a month ago and 80.7 cents per gallon lower than a year ago. The national average diesel price declined 6.3 cents in the last week to $4.01 per gallon, $1.51 lower than one year ago. GasBuddy's Patrick De Haan says, “In addition to gasoline prices declining, the average price of a gallon of diesel will join gasoline in the days ahead, falling below $4 per gallon.” De Haan attributes the decline partly due to oil prices holding near recent lows and the transition to summer gasoline being essentially complete. The debt ceiling concerns have also hit oil markets and remain a threat moving forward, should lawmakers approve a solution to the looming potential shutdown of the U.S. government, oil prices may see a stronger rally.
| Rural Advocate News | Tuesday May 9, 2023 |
Tuesday Watch List Markets There are no significant reports scheduled Tuesday, but traders will act busy, checking on the latest weather forecasts and watching out for any news regarding the Black Sea grain deal. Outside markets also remain a source of concern and we should soon hear estimates for Friday's WASDE and Crop Production reports. Weather Another day of rain in the Plains is expected for Tuesday, though these showers will be largely disorganized and come in clusters across the region. Even so, there is still a risk of severe weather, mostly centered around Kansas. Mild temperatures continue to promote planting progress where rains are missing.
| Rural Advocate News | Monday May 8, 2023 |
Food Prices Rise in April The United Nations Food and Agriculture Organization reports that food prices rose in April for the first time in a year. The organization says the increases stem from higher sugar, meat, and rice prices. The Food Price Index, which tracks the international prices of commonly-traded food commodities, averaged 127.2 points in April, 0.6 percent higher than in March. That reading was 19 percent below April 2022 but still five percent higher than April 2021. The FAO Sugar Price Index rose almost 18 percent in March, reaching its highest point since October 2011. The Meat Price Index rose 1.3 percent during the month, driven primarily by higher prices for pig meat. The Cereal Price Index dropped 1.7 percent in April and averaged almost 20 percent below April 2022. The Vegetable Oil Price Index dropped 1.3 percent in April, its fifth-straight monthly decline. The FAO Dairy Price Index dropped by 1.7 percent. *********************************************************************************** Smaller U.S. Cattle Herd Squeezing Meatpacker Profits America’s beef cow herd hasn’t been this small since 1962. Drought and the high cost of feed forced producers to cut their herd sizes instead of keeping animals for breeding. Livestock producers who fatten cattle suddenly have leverage over meatpackers as they negotiate cattle prices with organizations like Tyson Foods, JBS, and Cargill. U.S. News says meat processors are assessing the future of consumer demand should beef prices rise, along with cattle supplies and margins, to determine how many animals to slaughter in the months ahead. Cargill says it expects cattle prices will rise further and beef prices to rise as well. “The unknown factor is demand: how much will consumers be willing to pay,” says Tom Windish of Cargill. The amount of money that meatpackers make buying cattle and converting them to meat dropped under $40 per head in April. That’s after reaching over $700 a head in May 2020. *********************************************************************************** Corn Export Sales Hit Marketing-Year Low Point The USDA says corn export sales hit the lowest level since the 2022-2023 marketing year began on September 1. Cancelations led to a net reduction in corn sales during the seven days ending on April 27 of 315,600 metric tons. China canceled shipments of 562,800 metric tons. Meantime, exports of corn during the week hit a marketing-year high of 1.7 million metric tons. Soybean sales fell to 289,700 metric tons, a seven percent week-to-week drop and seven percent lower than the five-year average. China was the largest buyer at 134,300 metric tons. Soybean exports rose 24 percent on the week to 561,200 metric tons. Wheat sales rose 26 percent from the prior week to just over 211,000 metric tons, up 14 percent from the previous four-week average. Mexico was the leading buyer at 72,600 metric tons. Wheat exports during the week hit almost 289,000 metric tons, down five percent from the previous week. *********************************************************************************** NRCS Opens Up Soil Conservationist Positions The Natural Resources Conservation Service will hire team members over the next few years to help implement the $19.5 billion in the Inflation Reduction Act for conservation programs. The NRCS announced new jobs are opening up for soil conservationists. This is part of a broader effort by the agency to help producers develop conservation plans and implement conservation practices, including critical climate-smart practices. “The Inflation Reduction Act represents the single largest investment in climate and clean energy solutions in American history, and the NRCS programs are an important part of our efforts,” says Robert Bonnie, USDA’s Undersecretary for Farm Production and Conservation. “To help agricultural producers invest in conservation on their farms, ranches, and working forests, we need to grow our team that delivers conservation programs.” The announcements are currently open and close on May 15, 2023. Interested candidates can find more information and apply for the job at USAjobs.gov. *********************************************************************************** Ag Export in 2021 Generate Billions in Economic Activity A new USDA report says exports constitute a significant market for American farm and food products and send ripples of activity through the nation’s economy. The Economic Research Service says America’s agricultural exports, valued at $177.3 billion in 2021, generated an additional $190.5 billion in economic activity. That’s a total of $367.8 billion in overall economic output. On average, that means every $1 of U.S. agricultural products exported generated a total of $2.07 in domestic economic activity. The services, trade, and transportation sectors benefited the most from agricultural exports, generating an estimated $79.5 billion worth of economic activity. On the farm, agricultural exports supported an additional $43.6 billion in business activity beyond the value of the agricultural exports themselves. The impact starts at the farm through purchases of inputs like fuel and fertilizer, spurring additional economy in the manufacturing, trade, and transportation sectors, and the impact continues in many other sectors. *********************************************************************************** USCA Applauds Introduction of the DRIVE Act Last week, Oklahoma Republican Representative Josh Brecheen, himself a fourth-generation rancher, introduced the Deregulation Restrictions on Interstate Vehicles and Eighteen Wheelers Act. The bill would prohibit the Federal Motor Carrier Safety Administration from implementing any rule or regulation requiring vehicles over 26,000 pounds that are engaged in interstate commerce to be equipped with a speed-limiting device set to a maximum speed. In 2022, the FMSCA issued a notice of intent that it was considering rules requiring speed-limiting devices for certain large commercial vehicles. USCA Transportation Committee Chair Steve Hilker says their members are responsible for safely transporting millions of animals. “Livestock haulers must take into consideration the welfare of their cargo, which means avoiding rough road conditions, adjusting speed, and being more aware of their surroundings to prevent animal injuries,” says Hilker. “USCA is opposed to any federal mandate that limits a driver’s autonomy over their own truck and trailer.”
| Rural Advocate News | Monday May 8, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and rain coverage amounts. They will also be interested in any news regarding the Black Sea grain deal or U.S. banking system. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather A small system is producing a line of thunderstorms across Missouri and Illinois early Monday morning. The line is forecast to weaken this morning but redevelop in the afternoon across parts of the Midwest and Tennessee Valley where heavy rain and severe weather may occur. Other areas of showers and thunderstorms will pop up across the Plains and Midwest throughout the day as well, a continuation of the disorganized nature of storms that occurred over the weekend.
| Rural Advocate News | Friday May 5, 2023 |
Ag Lenders See Tighter Credit Tied to Regional Bank Collapses OMAHA (DTN) -- With regional banks facing stock-price declines, U.S. senators on Thursday asked community bankers, Farm Credit lenders and representatives from the crop insurance industry about lending stability in agriculture and rural America. Less than a day after Federal Reserve Chairman Jerome Powell expressed support for the banking system with the Fed declaring "the U.S. banking system is sound and resilient," at least two publicly traded regional banks were under pressure from investors. PacWest Bancorp, a California-based bank, saw its share price collapse, and the bank announced it was trying to sell a $2.7 billion loan portfolio. PacWest is now the fourth bank in recent months that is under significant financial pressure. Senators asked bankers about systemic risks within the banking industry and the broader implications for farmers and rural America in a hearing Thursday on agricultural credit and crop insurance held by the Senate Agriculture Subcommittee on Commodities, Risk Management and Trade. Sen. Kirsten Gillibrand, D-N.Y., pointed out the country has seen "three of the four largest bank failures in American history" just since early March. Gillibrand said regulators and the private sector have stabilized the situation "to a point," but she said Congress will need to step in to prevent a further collapse. "It's clear Congress must act with some banking reform to guarantee long-term economic stability in the banking sector or risk similar future events," Gillibrand said. Gillibrand asked if the banking disruptions pose a risk to rural lenders and rural creditors. Jase Wagner, president and CEO of Compeer Financial, a member of the Farm Credit System in Wisconsin, said the impact on credit is real "when you have contagion like you have." The increased spreads in interest rates require more collateral for the risks being taken. That is costing farmers and others in rural money. "The impact is not real acute right now," Wagner said. "It is around the edges, new producers coming in, new loans that are being funded, but it is something we are actively watching." The backstop stemming from bank failures is that everyone else also becomes more conservative with their lending practices, Wagner added. "What you are seeing more broadly is everyone talking about risk, and when everyone is talking about risk, you tend to get more conservative," Wagner said. "So, it's immediately impactful to your young, beginning farmers." Gus Barker, president and CEO of First Community Bank in Newell, Iowa, stressed to senators that the problems affecting the stability of "megabanks" are not systemic to community banks. "We have not seen an impact," he said. "Those megabanks were not typical bank management. We just feel there needs to be a distinguished line drawn in the sand between the risk of those megabanks who are investing in far-out ways of doing business compared to what the community bank model has always been," Barker said. "It's been stable. It's survived everything from world wars to the ag crisis and survived that bank model. We just feel we are stable. We have not seen withdrawals of major deposits or anything like that." Barker added that small lenders and customers also shouldn't have to pay higher risk-based fees because of the financial problems facing those larger banks. "We shouldn't be tagged on to paying for those failures of those people." Gillibrand said she was concerned about regional and smaller banks. She asked if other institutions are seeing "capital flight" to larger banks and "misalignment of interest rates." "We have data and information that they have not reached stability," Gillibrand said, pointing to regional banks seeing declines in their stock prices. Phillip Morgan, CEO of Southern AgCredit, a Mississippi-based Farm Credit lender, said all lenders are concerned any time there is discussion of a credit crunch, "whether it is ag or non-ag, that bothers all of us." Morgan added, "I can tell you Farm Credit is well positioned, well capitalized, and does not have the same concerns, and we're well positioned to continue to support local agriculture." Morgan also said the rapid rise of interest rates over the past 12 months affects every farm operator. A number of long-term real-estate loans will "reprice" this year as the original price expires, he said. "They will be facing much higher interest rate costs," Morgan said, adding some producers will be facing both higher operating costs and real-estate loans. William Cole, a Mississippi crop insurance agent and a farmer representing the Crop Insurance Professionals Association (CIPA) at the hearing, said his customers, "for the most part" were able to secure operating loans this year, but that will become more difficult going forward. "It's just apparent the high rates are going to have a severe impact, especially with the cost of production just dramatically rising," Cole said. James Korin, president of NAU Country Insurance in Minnesota and testifying for the American Association of Crop Insurers, said reinsurance costs for the industry overall are up 40% this year, though that is a bigger issue for property and casualty lines of insurance instead of crop insurance. "There's no doubt the change in the banking industry has impacted capital," Korin said. He added, "We're seeing our cost of capital really go up." Sen. Debbie Stabenow, D-Mich., chairwoman of the Senate Agriculture Committee, also weighed in about the possible impacts on interest rates and credit if the U.S. were to default on its debt obligations. "My bigger worry right now is the economic environment we are in with all of the discussion about default and so on," Stabenow said. Sen. John Boozman, R-Ark., ranking member of the overall Senate Agriculture Committee, asked if any of the bankers or Farm Credit members were now facing more scrutiny. Barker said community banks "have always been scrutinized pretty heavily," but said "our files are up to date," and "our customers are well-positioned. They've had some very good years, and we hope to keep that sustained." Barker added that the farm safety net, such as crop insurance, is critical because bank regulators often ask about it. "That is a question we get asked about every customer from the examiners. Do they have federal crop insurance? As long as we tell them yes, they have much more comfort." FSA LOAN GUARANTEES As part of the farm bill, multiple senators also asked if the borrowing limit on FSA-guaranteed loans should be raised. Sen. Tommy Tuberville, R-Ala., said a new producer trying to start a four-building poultry operation can cost roughly $2.5 million. Both Farm Credit and the Independent Community Bankers of America would like to see FSA-guaranteed loan limits raised from the current $2.03 million to $3.5 million for construction loans and $3 million in operating loans. Barker also suggested those FSA-guaranteed loan limits should be indexed to inflation. "They need to be adjusted upward. The price of land and inputs has just skyrocketed upward for us," Barker said. TAX-EXEMPT BANK LOANS Barker also said Farm Credit has a better funding system because of the bond market, but community bankers are looking for a way to be more competitive with Farm Credit on interest rates. The Independent Community Bankers of America is pitching a bill, the "Access to Credit for our Rural Economy" or ACRE Act, which would provide banks with tax exemptions on interest earned in rural lending -- agricultural real-estate or rural home sales in towns under 2,500 in population. "We've calculated that could be the difference of 1.5% to 2.5% lower rates for our folks, and that is another tool we would love to use for our beginning farmers and our low-income families in our towns," Barker said.
| Rural Advocate News | Friday May 5, 2023 |
Michigan Reps Jump Into AM Radio Discussion Eight Michigan Representatives entered into a campaign to reverse Ford’s decision to remove AM radio from most new models in 2024. The eight reps sent a letter to Ford’s board of directors making a case to keep the legacy band in cars. “Not only is AM still widely listened to for entertainment purposes, especially in rural areas, but it is vitally important for emergency services in times of trouble or natural disaster,” the letter says. “Removing AM capability from future vehicles could jeopardize the safety and livelihood of millions of your customers.” Michigan Rep David Prestin says that Ford’s decision represents “a lack of vision or thought towards national security, our ability to communicate on the most basic level in the future for the unknown things we may have to face. I just find it reckless.” He also points out that AM radio is the backbone of the Emergency Alert System. *********************************************************************************** NCBA Welcomes Senate Action on Lesser Prairie Chicken The National Cattlemen’s Beef Association welcomed the Senate passage of a resolution of disapproval that would stop the listing of the lesser prairie chicken on the Endangered Species Act. The Congressional Review Act Resolution of Disapproval was led by Kansas’ Roger Marshall. “The lesser prairie chicken listing will do little to benefit the bird, but it will succeed in shutting down the voluntary conservation work that is responsible for the species surviving today,” says NCBA Policy Division Director Gene Copenhaver. “This resolution puts flexible, locally-led conservation efforts back at the forefront.” Representative Tracy Mann of Kansas is leading a companion resolution in the House to disapprove the lesser prairie chicken listing. The resolution recently passed the House Natural Resources Committee. NCBA is currently suing the Department of the Interior and the U.S. Fish and Wildlife Service over the listing of the lesser prairie chicken. The lawsuit was filed in Texas in March. *********************************************************************************** NFU Appreciates USDA Funding to Strengthen Food Supply Chain Infrastructure The USDA recently announced the creation of 12 new USDA Regional Food Business Centers, and the National Farmers Union is pleased with the move. “This is the kind of capacity and investment that we need to make meaningful improvements in our food system,” says NFU President Rob Larew. “Providing local and regional access to processing and distribution is one avenue to fight back against the rampant consolidation in the agriculture and food sector.” The new USDA Regional Food Centers will provide national coverage coordination, technical assistance, and capacity building to help farmers, ranchers, and other food businesses access new markets and navigate federal, state, and local resources. “This move provides support for farmers and ranchers to market their products in their own communities, and keeping those resources local is a win for everyone,” Larew says. “This will build resiliency in the food supply and vitality in our rural and agricultural economy.” *********************************************************************************** AEM Looking for Hall of Fame Nominations Nominations are now open for the Association of Equipment Manufacturers’ Hall of Fame. The Hall celebrates the men and women who create the equipment and technologies that help build, feed, and power the world. Since its inception in 1993, the Hall of Fame has inducted 67 individuals who have broken ground, literally and figuratively, on the job sites and farm fields of the world. AEM is looking for nominations for the 2023 induction ceremony, especially individuals that reflect the diverse and inclusive nature of the modern construction and agriculture equipment manufacturing industry. “The oldest member of the AEM Hall of Fame is John Deere, who was born in 1804,” says AEM President Megan Tanel. “A lot has changed since then, and today’s technology would be unrecognizable to Mr. Deere.” The AEM Hall of Fame is accepting 2023 Hall of Fame nominations until Friday, June 16. For more information, go to aem.org. *********************************************************************************** Smithfield Reportedly Closing 37 Sow Farms in Missouri A local Missouri news outlet says that Smithfield Foods plans to close 37 sow farms. An employee who requested anonymity said the closures were to begin on May 1. Smithfield Foods didn’t confirm the story or offer any more details regarding the closures when National Hog Farmer asked for clarification. “We’re always taking steps to enhance our business for consistently strong performance during favorable and unfavorable market conditions,” says Jim Monroe, vice president for corporate affairs with Smithfield. In April, China’s WH Group informed shareholders and potential investors that it was expecting a 56 percent drop in its first quarter 2023 profit outlook, down from $395 million during the same time last year. “Hog raising costs remain elevated while pork prices have been adversely impacted by softer consumer demand,” Smithfield says. The company also says the drop was mainly attributable to the challenging market conditions in the U.S. pork segment. *********************************************************************************** Ethanol Output Rises While Stock Hit Five-Month Low Point The Energy Information Administration says ethanol production rose week-to-week while inventories dropped to the lowest level in five months during the week ending on April 28. Output increased to an average of 976,000 barrels a day. That’s up from 967,000 barrels during the prior week. The Midwest region, which produces the most ethanol in the country, rose to an average of 922,000 barrels a day from 916,000 barrels the previous week. Rocky Mountain output increased to 14,000 barrels a day, 1,000 barrels higher than the week prior. West Coast production also rose by 1,000 barrels a day to an average of 4,000 barrels. Production on the East Coast and Gulf Coast held steady at 12,000 and 24,000 barrels a day respectively. Ethanol inventories during the week plunged to 23.36 million barrels, down from 24.31 million barrels a week earlier, and the lowest levels since the week ending on December 2.
| Rural Advocate News | Friday May 5, 2023 |
Friday Watch List Markets The U.S. Labor Department reports on nonfarm payrolls and the unemployment rate for April at 7:30 a.m. CDT Friday. Traders will keep tabs on the latest weather forecasts from around the world as a new growing season begins in the Northern Hemisphere. They will also watch for any sign of movement on the extension of the Black Sea Grain Initiative and any news regarding the health of U.S. banks. Weather A cluster of storms continues across the Delta Friday morning which could see more development later Friday. The focus for rainfall will be across the Plains and Upper Midwest, though. Some thunderstorms may develop across central and eastern Texas this afternoon and evening, and could be severe, but the more widespread precipitation is expected farther north as a system moving through the West starts to move into the Central Rockies tonight. Showers should increase from Nebraska up into Wisconsin with time, and some severe weather may be possible across Nebraska as well. Showers are not likely to be widespread but will be of some benefit to drier areas.
| Rural Advocate News | Thursday May 4, 2023 |
Farm Sector Chapter 12 Bankruptcies in 2022 Lowest Since 2004 New data from USDA’s Economic Research Service confirms a decline in the farm Chapter 12 bankruptcy rate. In 2022, the Chapter 12 bankruptcy rate reached the lowest level in nearly two decades, with 0.78 bankruptcies per 10,000 farms. Under Chapter 12 bankruptcy, a financially distressed family farmer can propose and carry out a plan to repay their debts fully or partially. The total number of these bankruptcies is an indicator of financial stress in the farm sector. In 2003, the annual bankruptcy rate reached a high of 3.3 per 10,000 farms and then declined to a low of 0.5 per 10,000 farms in 2004. After 2010, the bankruptcy rate declined until 2014 but increased again in 2015, with another peak in 2019 at 2.9 bankruptcies per 10,000 farms. Since then, bankruptcies have declined to the lowest level in two decades after 2004. Wisconsin had the highest rate at 5.66 per 10,000 farms, followed by Nebraska and Kansas. *********************************************************************************** Legislation Seeks to Increase USDA Technical Service Providers Legislation introduced in the House and Senate Wednesday seeks to help address America's shortage of Technical Service Providers at the Department of Agriculture. Technical Service Providers help producers deploy and manage conservation programs through one-on-one assistance. USDA Natural Resources Conservation Service Chief Terry Cosby recently projected his agency would need to hire between 3,000 and 4,000 employees to meet demand for technical assistance. Specifically, the bill would help build the workforce by cutting red tape, streamlining Technical Service Provider certification requirements, and ensuring they are paid the market rate. Representative Abigail Spanberger, a Democrat from Virginia, and Senator Mike Braun, a Republican from Indiana, lead the effort. Spanberger says, “This massive workforce issue is having real effects on the ground — and it’s slowing down the ability of producers to make smart management plans for their land.” Braun adds, “Our nation’s farmers and ranchers play a critical role in conservation, so it is important that they have access to Technical Service Providers.” *********************************************************************************** USDA Announces Finalists for 12 New USDA Regional Food Business Centers The Department of Agriculture Wednesday announced the creation of 12 new USDA Regional Food Business Centers. The centers will provide national coverage coordination, technical assistance, and capacity building to help farmers and ranchers access new markets and navigate federal, state, and local resources. USDA also announced a $420 million Resilient Food Systems Infrastructure Program to fund innovative projects designed to invest in processing and distribution capacity to build resilience across the middle of the supply chain and strengthen local and regional food systems. Agriculture Secretary Tom Vilsack says the efforts will “create new and expanded local market opportunities which will improve farm income.” In September 2022, USDA announced $400 million to fund this initiative and 12 organizations were selected to lead efforts in their region and together serve all areas of the country. Regional Food Centers will target their work to historically underinvested communities. Find the 12 centers and more information on the USDA Regional Food Business Centers Program webpage. *********************************************************************************** Farm Bureau Foundation Fellows Launch Free Digital Skills and Ag Literacy Lessons The 2023 Farm Bureau Foundation Fellows have launched four free Applied Digital Skills lessons dedicated to helping students learn about food, fuel and fiber. The lessons were developed with support from Grow with Google to make digital skills and agricultural literacy more accessible to students across the country, with a focus on rural classrooms. The lessons are part of the Agriculture and Rural Communities Collection, available for free to educators across the United States. Foundation for Agriculture executive director Daniel Meloy says, “Whether you’re a teacher in a rural, urban or suburban classroom, these lessons can be used to teach a broad variety of technical skills while fostering understanding of agriculture.” The lessons were developed over the course of an eight-month fellowship. As part of the program, each Fellow will receive a stipend and Chromebooks for their classroom. For more information, visit the Farm Bureau Foundation website, agfoundation.org. *********************************************************************************** Hershey Company Announces Income Accelerator for Cocoa Farmers The Hershey Company recently announced the launch of its Income Accelerator in the Ivory Coast. The program will support increased incomes for cocoa farming households by providing cash transfers and investments in village savings and loan associations. The Income Accelerator offers a proven, multi-faceted approach to help address cocoa farmer poverty while also supporting sustainable farming practices and mitigating the risk of child labor. As part of the Income Accelerator, Hershey, in partnership with the Rainforest Alliance, will distribute mobile cash transfers of up to $600 per household per year to approximately 5,000 cocoa farming households within its supply chain. These transfers, which will offer an additional source of income for households, will be based on the adoption of sustainable and regenerative farm management practices that increase farm profitability and resiliency to unexpected environmental circumstances. The Income Accelerator is expected to positively impact no fewer than 20,000 households within Hershey's supply chain and related communities. *********************************************************************************** Cargill, Taco Bell, Fish and Wildlife Foundation, Announce Partnership With bold ambitions to operate 10,000 restaurants in the coming years, Taco Bell acknowledges its responsibility to balance global expansion with intentional impact. Taco Bell is now partnering with its long-time supplier Cargill and the National Fish and Wildlife Foundation to implement conservation and regenerative agriculture practices across cattle grazing lands. The partnership is part of Taco Bell's parent company Yum! Brands' efforts to reduce greenhouse gas emissions by nearly 50 percent by 2030. The partnership will support beef producers with technical and financial tools to expand their regenerative ranching practices, from conserving grassland ecosystems to improving river water quality and biodiversity. The commitment from Cargill and Taco Bell will allocate $2 million and will leverage up to $2 million in federal funds for a combined total of $4 million in new grants over the next four years. Taco Bell estimates the partnership will conserve and restore tens of thousands of acres and sequester up to 44,000 metric tons of carbon dioxide equivalent per year in 2030.
| Rural Advocate News | Thursday May 4, 2023 |
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, the U.S. trade deficit for March, first-quarter U.S. productivity and an update of the U.S. Drought Monitor. The Energy Department's weekly report on natural gas storage is at 9:30 a.m. Traders will keep watch over the latest news from Russia, weather happenings and any further news about U.S. bank problems. Weather A cold trough in the East is on its way out and is being replaced by a ridge and warmer temperatures east of the Rockies, though it is a slower process for those farther east. A trough in the Southwest continues to develop showers there and through the Plains on Thursday, with some risk of severe weather from Oklahoma through Texas this afternoon and evening. Those showers should grow into a cluster of heavier rain tonight that will expand north into eastern Kansas and then through the Ozarks overnight.
| Rural Advocate News | Wednesday May 3, 2023 |
Farm Bill Hearing: Farmers Need a Stronger Safety Net During a Senate Agriculture Subcommittee hearing Tuesday, a sorghum farmer told lawmakers farmers need a stronger farm safety net. National Sorghum Producers' Past Chairman, Kody Carson of Texas told lawmakers, "Right now, the farm safety net is not adequate." Carson also reaffirmed support for crop insurance, adding, "the tool has been absolutely critical in helping us manage the ongoing drought conditions decimating the Sorghum Belt." Meanwhile, American Soybean Association Secretary Caleb Ragland of Kentucky called crop insurance the most effective and important component of farm policy for soybean farmers. Ragland says that without crop insurance, “the risk would be more than many farmers and lenders could stand—it certainly would be for me,” while calling for improvements to the Title I farm safety net for soybeans. And National Corn Growers Association First Vice President Harold Wolle told the committee NCGA supports increasing the affordability of crop insurance coverage. Wolle adds, “The individual costs of purchasing coverage can discourage higher levels of coverage.” *********************************************************************************** Ag Economy Barometer: Farmer Sentiment Improves Farmer sentiment improved modestly in April as the Purdue University-CME Group Ag Economy Barometer reversed a two-month decline, up six points to 123. The Current Conditions Index rose three points to 129, while the Index of Future Expectations rose seven points to 120. More producers expect prime interest rates to either hold steady or possibly decline during the next 12 months than felt that way earlier in the year. Perspectives on farmland values shifted somewhat in April, with fewer producers expecting values to decline in the upcoming year and more producers looking for values to rise. When asked about the possibility of a new Farm Bill being passed by Congress in 2023, responses were mixed, with 40 percent of producers saying that passage was at least somewhat likely, while nearly 30 percent of respondents think that passage is at least somewhat unlikely. Meanwhile, 40 percent of respondents considered crop insurance the most important Farm Bill title, followed by commodity programs and conservation. *********************************************************************************** Renderers Support Protein PACT Legislation The North American Renderers Association Tuesday endorsed The Protein PACT: For the People, Animals and Climate of Tomorrow. The legislation is the largest effort to strengthen animal protein's contributions to healthy people, animals, communities, and a healthy environment. NARA endorsed the Protein PACT because the association "recognizes the importance of continuous improvement in the animal agriculture industry and see the benefit that the Protein PACT’s accomplishments will have on our organization, our members, and global consumers.” The organization says The Protein PACT uses transparent, data-based reporting to verify progress and keep the industry accountable for achieving its global goals. The Protein PACT Sustainability Framework encompasses more than 100 metrics developed through extensive collaboration with sustainability experts and supply chain partners. The association joins dozens of other food and Agriculture organizations in endorsing the Protein PACT’s vision to place Animal Agriculture at the center of global solutions. *********************************************************************************** NMPF Submits Milk-Pricing Plan to USDA The National Milk Producers Federation this week submitted to USDA its comprehensive proposal for modernizing the Federal Milk Marketing Order system. The proposal follows two years of examination and more than 150 meetings to build consensus behind updates to a program that last saw significant changes in 2000. The NMPF proposal calls for updating the so-called "make allowance," returning to the “higher of” Class I mover, and updating the Class I differential price system, among other updates. Upon acceptance, USDA will have 30 days to review the plan and decide whether and how to move forward with a federal order hearing to review the plan. NMPF will pursue two other components of its Federal Order proposal outside the federal order hearing process. Those include extending the current 30-day reporting limit to 45 days on forward-priced sales on nonfat dry milk and dry whey, and developing legislative language for the farm bill to ensure the make allowance is regularly reviewed. *********************************************************************************** USDA Providing $130 Million to Farmers Facing Financial Risk The Department of Agriculture this week announced nearly $130 million in additional, automatic financial assistance for qualifying farm loan program borrowers facing financial risk. The announcement is part of the $3.1 billion to help distressed farm loan borrowers provided through the Inflation Reduction Act. Borrowers who received the automatic payments include Farm Service Agency direct loan borrowers whose interest exceeded principle owed on outstanding debts, borrowers who had a balance up to 60 days past due as of September 30, 2022, and borrowers with a recent restructure between February 28, 2020, through March 27, 2023, or who had accepted an offer to restructure on or before March 27, 2023, but had not yet closed that restructure. FSA is accepting distressed borrower assistance requests from direct loan borrowers who missed a recent installment or cannot make their next scheduled installment. USDA will continue to update borrowers and the public about new eligibility criteria. *********************************************************************************** Nutrient Intakes by Consumers Differ from Federal Recommendations U.S. consumers' intakes of several key nutrients differ from Federal recommendations, and those differences are associated with where they obtain food. Researchers from USDA's Economic Research Service examined diet patterns based on density—amounts of nutrients consumed per 1,000 calories—using the latest available national food consumption survey data collected in 2017–18. They compared average consumption densities of six nutrients with what would be needed to match Dietary Guidelines for Americans recommendations. On average, dietary fiber and iron intake densities were more than 20 percent below the recommended level. Meanwhile, calcium densities were closer to the recommended level but still fell short of recommendations. Total fat intake was within 20 percent of the highest recommended percent of calories from total fats, which is 35 percent. The density of saturated fats for food away from home and densities of sodium from all sources were more than 20 percent above the recommended limit.
| Rural Advocate News | Wednesday May 3, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly report of energy inventories, including ethanol production is set for 9:30 a.m. CDT Wednesday. The Federal Reserve concludes a two-day meeting with a widely anticipated interest rate announcement at 1 p.m. Many are expecting a quarter-percent increase in the federal funds target to an upper limit of 5.25%. Weather A storm system continues its slow movement through the northeast where showers will be possible, but most areas of the country are becoming dry. The exit of the system will mean rising temperatures for the next couple of days. In the warmth, isolated showers will be possible for the Central and Southern Plains.
| Rural Advocate News | Tuesday May 2, 2023 |
Farm Sector Real Estate Debt Hits Record High New data from USDA’s Economic Research Service shows farm sector debt tied to real estate is expected to be at a record high of $375.9 billion in 2023. Farm sector real estate debt has been increasing continuously since 2009 and is expected to reach an amount that is 87.5 percent higher in 2023 compared with 2009 in inflation-adjusted dollars. Real estate debt now far outpaces debt that is not secured by a mortgage. Historically, real estate debt and non-real estate debt have trended similarly, but they have diverged in recent years. Non-real estate debt showed an 11.9-percent year-to-year increase in 2014 in inflation-adjusted dollars but declined after 2017. Meanwhile, there has been a continuous increase in real estate debt since 2009. In 2023, real estate debt is expected to be 33.0 percent higher than the ten-year average, while non-real estate debt is expected to be 10.2 percent lower than the ten-year average. *********************************************************************************** USGC Releases 2022/2023 Corn Export Cargo Quality Report The average aggregate quality of U.S. corn samples tested for the U.S. Grains Council’s 2022/2023 Corn Export Cargo Quality Report released this week was better than or equal to U.S. No. 2 on all grade factors. The report is based on 430 export cargo samples collected from corn shipments undergoing federal inspection and grading processes at export terminals. It also provides information on grading, handling and how U.S. corn is moved and controlled through export channels. USGC Chairman Josh Miller says, “International importers and consumers can know that they are making a smart, informed purchase by seeing the exact benefits and characteristics of this year’s crop.” Average test weight found by the analysis was higher than in 2021/2022 and the five-year average, with 93.3 percent of samples at or above the minimum requirements for U.S. No. 1 grade corn, indicating overall good quality. The export cargo quality report is a companion to the USGC 2022/2023 Corn Harvest Quality Report. *********************************************************************************** TFI Releases 2023-2024 Public Policy Priorities The Fertilizer Institute Monday released its list of 2023-2024 public policy priorities for working with the Biden Administration, regulatory agencies, and a closely divided 118th Congress. TFI President and CEO Corey Rosenbusch says, “we are strongly advocating for policies that ensure the fertilizer industry is able to continue feeding the world sustainably though innovation, efficiency, and legislative and regulatory updates that are long overdue.” TFI’s priorities are broken down into seven key areas: Economic Growth & Competitiveness; Transportation & Infrastructure; Environment; Safety & Security; Farm Bill Reauthorization; Permitting & Registration; and Innovation. Those changes include reforming the National Environmental Policy Act. TFI describes the legislation as convoluted, time-consuming, and expensive, regarding its permitting process. As for the Farm Bill, Rosenbusch says it’s “all about conservation and continuing to push for science-backed 4R Nutrient Stewardship adoption by growers and removing the existing barriers to grower adoption.” TFI also wants hurdles removed for biostimulants, a new innovation in agricultural fertilizers. *********************************************************************************** U.S. Marine Fish Stocks Show Improvements in 2022 The National Oceanic and Atmospheric Administration released the 2022 Status of Stocks report last week, outlining U.S. marine fish stocks managed by NOAA Fisheries. In 2022, U.S. fisheries data revealed that 93 percent of stocks are not subject to overfishing and 81 percent are not overfished. These numbers show slight improvements compared to the 2021 figures of 92 percent and 80 percent, respectively. Positive trends were seen this year with the number of stocks on the overfishing list decreasing by two stocks to 24, and the number of overfished stocks decreasing by three stocks to 48. NOAA administrator Rick Spinrad says, “This annual report reveals the U.S. remains a global leader in maintaining the sustainable fisheries that drive the blue economy, support coastal communities and play a key role in marine ecosystems.” The latest data show that U.S. commercial and recreational fishing supports 1.7 million full- and part-time jobs, generated over $253 billion in sales impacts and contributed $79.4 billion to the gross domestic product. *********************************************************************************** FAA Approves Guardian Agriculture Done System Guardian Agriculture recently announced it has received approval from the U.S. Federal Aviation Administration to operate its aircraft nationwide. FAA approval makes Guardian Agriculture the first commercially authorized Electric Vertical Take-Off and Landing in the U.S., allowing Guardian Agriculture to safely operate its systems across the country. Guardian Agriculture Founder and CEO Adam Bercu says, “FAA approval represents an important turning point for American leadership in this fast-growing market." Commercial farmers are rapidly moving away from ground spraying equipment in favor of unmanned autonomous systems. However, the majority of systems available today are too small to provide growers with full-field coverage at a competitive price point. The Guardian SC1 platform - which already has more than $100 million in customer orders - is the only autonomous, electric, aerial crop protection system designed specifically for large-scale agriculture. Guardian Agriculture will begin commercial operations in support of its Wilbur-Ellis customer in California in the coming months as it continues to ramp up its production capacity. *********************************************************************************** Fuel Prices Slide Again: Diesel Reaches 13-Month Low For the second straight week, the nation's average price of gasoline declined, falling 6.3 cents from a week ago to $3.58 per gallon. The national average is up 8.2 cents from a month ago but 59.6 cents per gallon lower than a year ago. The national average diesel price fell 5.3 cents in the last week and stands at $4.07 per gallon, $1.18 lower than one year ago. Oil prices have come under additional selling pressure alongside wholesale gasoline prices, and diesel prices have followed. The latest data shows diesel prices fell to their lowest level in over 13 months as demand remains weak due to concerns over the economy. GasBuddy’s Patrick De Haan says, “With refinery maintenance wrapping up, we should see supplies start to build in the weeks ahead, just in time for the summer driving season, potentially putting more downward pressure on prices.”
| Rural Advocate News | Tuesday May 2, 2023 |
Tuesday Watch List Markets A report on March U.S. factory orders is set for 9 a.m. CDT on Tuesday, the same time as a report on U.S. job openings. The Federal Reserve begins a two-day meeting Tuesday and is expected to conclude with a quarter-percent rate hike on Wednesday. Traders will keep an eye on the latest weather forecasts and digest Monday's Crop Progress numbers from USDA. Weather A storm system continues to spin around the eastern Great Lakes with scattered showers for Tuesday. Temperatures will be on a slow rise Tuesday with temperatures conducive for planting across the Plains up into the Canadian Prairies. Some isolated showers may develop in the southwestern Plains this afternoon but would be very spotty.
| Rural Advocate News | Monday May 1, 2023 |
Biden Administration Allowing Summertime Sales of E15 The U.S. Environmental Protection Agency announced Friday that it will use existing authority to prevent drivers from losing access to lower-cost and lower-emission E15, a higher ethanol blend often marketed as Unleaded 88. “We appreciate Administrator Regan’s timely action to prevent a disruption in E15 availability,” says National Corn Growers Association President Tom Haag (Hayg). “EPA’s action will help address the fuel supply constraints and ensure drivers continue to have access to a lower-cost fuel choice that cuts emissions.” The fuel conditions that warranted EPA taking the same successful step last year are continuing today. Haag says the nation’s corn growers are proud to contribute to an energy and environmental solution that saves consumers money at the pump. Continued access to E15 during the summer months will help relieve ongoing energy supply pressures. When EPA took a similar action last year, drivers saved nearly a dollar per gallon in some locations. *********************************************************************************** U.S. Agriculture Reacts to EPA E15 Emergency Waiver The U.S. Environmental Protection Agency issued an emergency fuel waiver to allow E15 fuel to be sold during the summer driving season. Reaction from some of America’s leading ag and renewable fuel organizations has been positive. “U.S. gas inventories are even tighter than they were last year, and the war in Ukraine continues wreaking havoc on global fuel supplies,” says Geoff Cooper, President and CEO of the Renewable Fuels Association. “We thank the EPA for taking this step.” Emily Skor, CEO of Growth Energy, says, “This is a win for drivers across the nation, who can rest easier knowing they’ll have access to savings on lower-carbon E15 this summer.” Rob Larew, president of the National Farmers Union, says, “Today’s announcement from EPA is good news for farmers and consumers heading into the summer travel season. Drivers will see increased choice and competition while farmers will see more opportunities for their bottom line.” *********************************************************************************** U.S. Trade Consultation Request “Violates Mexican Law” The United States requested trade consultations in March on Mexico’s plan to limit the use of genetically modified corn. Reuters says a top Mexican official called the request an “unacceptable violation” of Mexican law that feeds the interest of giant seed companies. The U.S. is Mexico’s main trading partner and requested the consultations under the U.S.-Mexico-Canada Agreement, which calls for science-based regulations. Mexico’s Deputy Agriculture Minister Victor Suarez says, “The United States’ request to Mexico follows the interests of seed, agrochemical, and other foodproducing oligopolies.” He also points out that seed makers like Bayer, Corteva, ChemChina’s Syngenta, and BASF are winning under U.S. agriculture and trade policies. However, Suarez feels those companies don’t represent all U.S. farmers. The consultations are a first step toward a trade panel that could ultimately mean a ruling calling for placing punitive tariffs on Mexico. Suarez says Mexico’s policy won’t affect U.S. corn farmers at all. *********************************************************************************** Applications Open for NCGA Women and Mentors Program Applications are now open for the third class of the National Corn Growers Association’s Women and Mentors Program on June 22-23 in St. Louis. The program helps women looking to find the next steps of their leadership journey to partner with a mentor who has traveled that path. Mentors help foster leaders of tomorrow and learn how to share the wealth of knowledge and understanding accumulated through years of service. Class members learn how to quiet their inner critic, explore what they can learn from another woman’s leadership journey, and develop an action plan for their own mentorship journey. Each participant also gains a supportive group of peers committed to their success. NCGA officials say everyone leaves the retreat with a concrete action plan and a mentorship pairing to help each other reach their goals. The last day to apply for the program is May 19. For more information, go to ncga.com. *********************************************************************************** U.S. Pork Growing in the Japanese Market National Pork Board representatives recently met with two of Japan’s largest importers of U.S. pork and one of the country’s top retailers. NPB says the meetings were a sign of stronger partnerships and trust established in the market. One of Japan’s largest retailers committed to increasing their purchases of U.S. pork, replacing Canadian pork in the meat case. Also, Japanese authorities are lifting COVID-19 restrictions next month, which is expected to boost the country’s economy. The Japanese market has consistently been proven valuable for U.S. pork exports. In 2022, Japan imported over 534,000 metric tons of American pork, amounting to $1.5 billion, and ended the year as the second-largest value market. The growth of the market can be attributed to its demand for chilled pork and loin products. Japan’s pork demand consists of 62 percent imported products, with the U.S. holding a 24 percent market share in chilled and frozen pork. *********************************************************************************** Fetterman Opposes IRA Funds for Farm Bill Conservation Efforts Late last week, Pennsylvania Senator John Fetterman sent a letter to Senate Ag Committee leadership detailing his opposition to Inflation Reduction Act funding for farm bill conservation efforts. “I strongly oppose any measures that would essentially cannibalize IRA conservation funding in order to pay for the farm bill’s conservation efforts,” Fetterman said in the letter. “The bottom line is that to both support our nation’s agricultural producers and mitigate climate change, we must maintain the Inflation Reduction Act programs and include separate robust agriculture conservation funding in the upcoming farm bill.” Fetterman also says the country can and must do both. The letter was supported by multiple Pennsylvania-based environmental and farming-focused groups. Senator Fetterman says he’ll continue to oppose any effort to move Inflation Reduction Act funding away from its original purpose to get used for farm bill conservation efforts. Farmers in Pennsylvania continue to support funding for voluntary conservation programs.
| Rural Advocate News | Monday May 1, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the news, the latest weather forecasts and international manufacturing indices that start rolling in early Monday. USDA's weekly report of export inspections is due out at 10 a.m. CDT. At 2 p.m., NASS's Fats and Oils report will be out, followed by Crop Progress at 3 p.m. Weather A storm system has built up in the Great Lakes over the weekend and continues to spin on Monday, producing showers across the eastern Midwest into the Northeast, and some breezy winds. Some of the showers may mix with snow in the colder air swirling around the low. The rest of the country should be rather quiet and mild.
| Rural Advocate News | Friday April 28, 2023 |
World Bank: Commodity Prices to Drop Through 2024 Global commodity prices are expected to drop this year at the fastest clip since the beginning of COVID-19. A World Bank report says that clouds the prospective growth of approximately two-thirds of the developing economies that depends on exports. The Commodity Markets Outlook says the drop in prices is expected to bring little relief to the almost 350 million people around the world who are facing food insecurity. While food prices are expected to drop by eight percent this year, they will be at their second-highest level since 1975. Food price inflation is at 20 percent globally, the highest level in 20 years. “The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in commodity trade,” the report says. Overall, commodity prices are expected to fall by 21 percent in 2023, relative to last year. *********************************************************************************** House Amendment Preserves Renewable Fuel Tax Credits Clean Fuels Alliance welcomed an amendment to House legislation that would raise the nation’s debt limit and make substantial changes to clean energy tax credits. The amendment would preserve the biodiesel and renewable diesel blenders’ credits as they are written in current law. “The clean fuels industry thanks all the House members who sought to preserve predictability and stability in tax policy,” says Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. Midwestern House Republicans were also concerned about the bill’s elimination of ethanol tax credits. A manager’s amendment eliminated those provisions that would have eliminated tax credits for biofuels that were part of the Inflation Reduction Act. The amendment added a grandfather clause in a section that eliminates sustainable aviation fuel and alternative fuel tax credits for those engaged in activities who would have received a credit after the Inflation Reduction Act passed and before it was introduced. *********************************************************************************** Ag Groups Testify on Farm Bill Priorities American Soybean Association President Daryl Cates testified before the House Agriculture Committee’s Subcommittee on General Farm Commodities, Risk Management, and Credit. Cates offered ASA’s perspectives on the 2023 Farm Bill and asked for help with two priorities under the subcommittee’s jurisdiction. The first was protecting crop insurance, and the second was improving the Title 1 farm safety net for soybeans. Cates called crop insurance, “The most effective and important component of the farm safety net for soybean farmers.” National Sorghum Producers Chair Craig Meeker also testified during the hearing. “It’s clear that more resources will be necessary to enact a strong farm bill this year as there’s a major shortfall of funding compared to previous bills,” Meeker says. He also reaffirmed his group’s support for crop insurance, noting that he would not be the sixth generation on his family farm without it. Crop insurance has been critical in managing an ongoing drought. *********************************************************************************** From Drought to Flooding in Six Months Last fall, the main topic of discussion with historically-low water levels on the Mississippi River and other navigable rivers. Now, high water levels are presenting a challenge to barge transportation, especially along the Upper Mississippi River levels. Significant snowfall and rain over the past several weeks have resulted in a sizable increase in water levels. Many of the Mississippi River locks between St. Paul, Minnesota, and Quincy, Illinois, have been closed by the high water conditions. Many will likely stay closed until the first and second week of May. Mike Steenhoek, executive director of the Soy Transportation Coalition, says, “Closures of these locks will obviously impede the delivery of any remaining soybeans or grain for the export markets. However, lock closures at this time of year will particularly impact northern fertilizer shipments.” The USDA estimates that 2.4 million tons of fertilizer have been delivered during the first 12 weeks of 2023. *********************************************************************************** USDA Kicks Off Implementation Phase of Partnerships for Climate-Smart Commodities The USDA kicked off the implementation phase for projects funded through the $3.1 billion Partnerships for Climate-Smart Commodities effort. As projects get started, the agency is also launching the Partnerships for Climate-Smart Commodities Learning Network, which will generate key lessons learned as projects get implemented. “Farmers, ranchers, and forest landowners are on the frontlines of climate change,” says Ag Secretary Tom Vilsack. “At the same time, they are uniquely positioned to deliver climate solutions through climate-smart production that reduces greenhouse gas emissions and sequesters carbon.” Vilsack also says through these projects, the agency’s partners are working to create new markets for climate-smart commodities while developing the tools needed to quantify impacts and help producers implement those climate-smart practices on their land. Producers interested in participating in projects can go to the Partnerships for Climate-Smart Commodities Active Project Dashboard to find projects in their areas. For more information on projects, go to usda.gov. *********************************************************************************** Canadian Farmers Planting More Wheat This Year As Canadian farmers gear up for spring planting, they expect to plant more wheat this year and increase crops of canola and soybeans. The University of Illinois’ Farm Policy News says, “Canada’s farmers forecast planting 26.97 million acres of wheat in 2023, six percent higher than 2022 but still well below the 8.2 percent annual increase recorded last year.” The spring wheat area will increase 7.5 percent to 19.39 million acres, durum wheat is predicted to edge up 0.9 percent to just over six million acres, and the winter wheat area is anticipated to jump more than 12 percent to 1.52 million acres. Geopolitical concerns may be behind Canada’s increasing wheat crop. Canada’s farmers are planting the most wheat in 22 years as the war in Ukraine and a significant drought in the U.S. tighten global supplies. Global wheat stocks and vegetable oil supplies are limited by obstacles facing Ukraine’s exports
| Rural Advocate News | Friday April 28, 2023 |
Friday Watch List Markets The Federal Reserve's preferred inflation gauge, the PCE index, will be out at 7:30 a.m. CDT Friday, the same time as the employment cost index for the first quarter and reports on U.S. personal incomes and spending in March. The University of Michigan's consumer sentiment index for April will be out at 9 a.m. Traders will keep up on the latest weather forecasts and pause at 8 a.m., not knowing if USDA has an export sale, a cancellation or neither. Weather A couple of systems are pushing through the country on Friday, producing areas of scattered showers from the Southern Plains to the Northeast and places in between. Some stronger thunderstorms will be possible across Texas later today as well as some breezy winds behind a front across the western Plains.
| Rural Advocate News | Thursday April 27, 2023 |
NCGA Outlines Farm Bill Priorities Corn growers are optimistic that Congress can make key farm bill programs more effective and responsive to the needs of farmers, according to the National Corn Growers Association. NCGA President Tom Haag, a Minnesota farmer, testified to the House Agriculture General Farm Commodities, Risk Management, and Credit Subcommittee. The committee hearing focused on stakeholder priorities for the crop insurance and commodity titles. Haag says, "Corn growers consistently rank crop insurance as the most important program and title of the farm bill. NCGA broadly supports increasing the affordability of crop insurance." Haag also offered recommendations for the commodity title, saying NCGA supports increasing the maximum rate in the Agriculture Risk Coverage County program to provide increased assistance to growers who experience significant revenue losses. Haag says NCGA recommends increasing the coverage level for ARC County to make the program more responsive to revenue losses. NCGA supports the improvement of the Price Loss Coverage program, investment to expand international markets and trade promotion. *********************************************************************************** NCBA Reiterates Importance of Food Safety, Opposes PRIME Act The National Cattlemen's Beef Association Wednesday once again announced opposition to the Processing Revival and Intrastate Meat Exemption, or PRIME Act. Representatives Thomas Massie, a Kentucky Republican, and Chellie Pingree, a Maine Democrat, introduced the bill. The legislation would allow beef processed in a non-U.S. Department of Agriculture inspected facility to be distributed interstate, posing a threat to food safety and consumer trust in beef. NCBA President Todd Wilkinson says, "While the PRIME Act is well-intentioned, allowing uninspected beef to enter the retail market is dangerous to consumers." NCBA supports federal and state meat inspection efforts and has previously supported legislation like the DIRECT Act. That legislation would allow state-inspected beef to be sold interstate in limited quantities, direct-to-consumer, and through e-commerce. Unlike the PRIME Act, these measures would create the necessary paper trail to trace and contain any potential food safety concerns. *********************************************************************************** AEM Calls on Congress to Bolster American Competitiveness The Association of Equipment Manufacturers is mobilizing thousands of industry supporters through its I Make American grassroots campaign. The supporters call on lawmakers to address national priorities, including modernizing the permitting process necessary to build critical infrastructure and boost domestic energy production. Other priorities include ensuring that infrastructure funding moves expeditiously from Washington to urgently needed project sites, and passing a farm bill to guarantee a safe and abundant food supply for all Americans. AEM’s Kip Eideberg says, "Lawmakers must act to ensure that the 2.3 million men and women of our industry can out-innovate and outcompete the rest of the world. The campaign includes 88,000 letters to Capitol Hill. AEM’s I Make America campaign engaged CONEXPO-CON/AGG 2023’s 139,000 attendees to raise awareness for the policies that will strengthen the industry and ensure that equipment manufacturers can continue to make the equipment that builds, powers, and feeds the world. *********************************************************************************** USDA: Meat and Dairy Production Lead Food Sector Sales New data from USDA’s Economic Research Service shows meat processing and dairy product manufacturing are the largest components of food sector sales. Food and beverage manufacturing plants transform raw food commodities into products for intermediate or final consumption by using labor, machinery, energy, and scientific knowledge. These plants accounted for nearly $267 billion or 16.8 percent of sales, shipment values, and revenue from all U.S. manufacturing plants in 2021, according to the latest data from the U.S. Department of Commerce, Bureau of the Census’ Annual Survey of Manufactures. Meat processing is the largest industry group in food and beverage manufacturing, with 26.2 percent of sales in 2021. Meat processing includes livestock and poultry slaughter, processing, and rendering. Dairy product manufacturing, which ranges from fluid milk to frozen desserts, accounted for the second-most sales at 12.8 percent in 2021. Other important industry groups by sales include other foods, beverages, and grain and oilseeds. Other foods include snack foods, coffee and tea, flavorings, and dressings. *********************************************************************************** NFU: Colorado Right to Repair Law a Win for Farmers Across the Country The National Farmers Union calls the signing of Colorado’s Right to Repair law a win for all farmers and ranchers. Colorado Governor Jared Polis signed the Consumer Right to Repair Agricultural Equipment Act this week. NFU President Rob Larew says, "seeing a bill like this cross the finish line is a testament to the persistence of our members and the need for this issue to be addressed nationally." Major farm equipment manufacturers have refused to make the software tools necessary to repair modern tractors, combines, and other farm equipment available to farmers and independent mechanics. This leaves farmers no choice but to take their broken equipment to licensed dealerships, which has led to repair delays and inflated repair costs. Right to Repair is a key issue in NFU's Fairness for Farmers campaign, which aims to build fairer and more competitive agricultural markets, and to address the monopoly crisis in agriculture. *********************************************************************************** USDA’s CLEAR30 Enrollment Open Farmers and landowners with certain expiring Conservation Reserve Program contracts can receive additional rental incentives and extend that land’s role in conservation for another 30 years. The Department of Agriculture has opened the signup period for its Clean Lakes, Estuaries, And Rivers enrollment, known as CLEAR30, now through July 31, 2023. CLEAR30 is a part of the CLEAR initiative, which prioritizes water quality practices as a part of Continuous CRP enrollment, and is one of several CRP enrollment opportunities. CLEAR30 allows producers and landowners enrolling certain water quality practices to enroll in 30-year contracts, extending the lifespan and strengthening the benefits of important water quality practices on their land. Like other CRP enrollments, CLEAR30 is a voluntary, incentive-based conservation opportunity offered by USDA’s Farm Service Agency. To sign up for CLEAR30, landowners and producers should contact their local USDA Service Center by July 31, 2023.
| Rural Advocate News | Thursday April 27, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as U.S. weekly jobless claims, first-quarter U.S. GDP and an update of the U.S. Drought Monitor. An index of U.S. pending home sales in March is out at 9 a.m., followed by the Energy Department's natural gas storage report at 9:30 a.m. Weather A system is moving across the South with areas of thunderstorms and heavier rainfall. This system continues to press eastward and may contain some severe storms near the Gulf Coast. To the north, another system is moving through the Northern Plains and will produce scattered showers as its cold front dives south throughout the day. Frosts occurred in the eastern Midwest again this morning, yet another day of risk for more-advanced wheat and emergent corn and soybeans.
| Rural Advocate News | Wednesday April 26, 2023 |
Number of U.S. Farms Continues to Decline New data released Tuesday by USDA’s Economic Research Service shows the number of U.S. farms continues to decline. After peaking at 6.8 million farms in 1935, the number of U.S. farms and ranches fell sharply through the early 1970s. Researchers say the rapidly falling farm numbers in the mid-20th century reflect the growing productivity of agriculture, increased mechanization, and increased nonfarm employment opportunities. Since 1982, the number of U.S. farms has continued to decline, but much more slowly. In 2022, there were 2.0 million U.S. farms, down from 2.2 million in 2007. Similarly, the acres of land in farms continue a downward trend with 893 million acres in 2022, down from 915 million acres ten years earlier. The average farm size in 2022 was 446 acres, only slightly greater than the 440 acres recorded in the early 1970s. The data comes as USDA this year predicts net farm income at $136.9 billion in calendar year 2023, a decrease of $25.9 billion relative to 2022. *********************************************************************************** Inflation Impacting Organic Fresh Produce Sales Inflation continued to impact organic fresh produce sales in the first quarter of 2023. Overall dollar sales grew by slightly less than one percent, and volume declined by 3.4 percent from the same year-over-year period. The data was released by the Organic Produce Network this week and included in its Q1 2023 Organic Produce Performance Report. Overall, the total produce department gained 2.6 percent in dollars for Q1 2023 compared to the same period in 2022 and declined by 1.3 percent in volume. Sales of organic fresh produce totaled nearly $2.4 billion for the first quarter of 2023, while overall volume topped 703 million pounds. Conventional produce dollars rose higher than organic dollars by about two percent and declined in volume by a smaller degree than organic. Current trends show both conventional and organic produce volume shrinking year over year. However, while volume for conventional produce is below 2020 and organics are on par with 2020, both are consistently gaining in dollars. *********************************************************************************** Coalition Urges Protection of IRA Conservation Funds in Farm Bill A coalition of lawmakers urges the House Agriculture Committee to protect the nearly $20 billion from the Inflation Reduction Act for climate-smart agriculture programs in the upcoming 2023 Farm Bill. The House Sustainable Energy and Environment Coalition made the request this week in a letter to Committee leadership. The letter states, “The $19.5 billion in Inflation Reduction Act investments for Farm Bill Title II conservation programs and technical assistance within USDA is critical to fighting climate change, and the next Farm Bill represents a significant opportunity to strengthen climate-resilience.” The letter was signed by coalition co-chairs, Representatives Chellie Pingree and Kim Schrier, along with the 16 other members of the task force. The letter explains that because agriculture also holds the potential to store significant quantities of carbon, it represents a unique opportunity to tackle climate change. The coalition was founded in January 2009 to advocate for policies for clean energy innovation, environmental protection, and policies that address global climate change. *********************************************************************************** USDA Proposes Changes to Salmonella Regulations for Select Poultry Products USDA's Food Safety and Inspection Service proposed to declare Salmonella an adulterant in breaded stuffed raw chicken products. Under the proposal, FSIS would consider any breaded stuffed raw chicken products that include a chicken component that tested positive for Salmonella at one colony forming unit per gram before stuffing and breading to be adulterated. FSIS also proposes to carry out verification procedures, including sampling and testing the chicken component of breaded stuffed raw chicken products prior to stuffing and breading, to ensure producing establishments control Salmonella. Agriculture Secretary Tom Vilsack says the proposal "represents the first step in a broader effort to control Salmonella contamination in all poultry products." The announcement is part of USDA's proposed regulatory framework to reduce Salmonella infections linked to poultry products, released in October 2022. The Centers for Disease Control and Prevention estimates that Salmonella bacteria cause approximately 1.35 million human infections in the United States every year, with 23 percent attributed to poultry consumption. *********************************************************************************** USDA APHIS Announces New Strategic Plan USDA's Animal and Plant Health Inspection Service Tuesday released a new five-year strategic plan for the agency. The plan incorporates input received from stakeholders on the strategic framework published in June 2022. The plan includes six strategic goals, outlining the objectives and performance measures that set the direction for the agency. The goals focus on protecting agriculture from plant and animal diseases and pests, positioning the agency's workforce to better meet current and future challenges, delivering solutions that reduce the impacts of zoonotic and emerging diseases, and ecosystem changes, such as climate change, expanding safe trade, managing wildlife diseases, and promoting the welfare of animals. The Animal and Plant Health Inspection Service protects the health of U.S. agriculture and natural resources against invasive pests and diseases, regulates genetically engineered crops, administers the Animal Welfare Act, and helps people and wildlife coexist. APHIS also certifies the health of U.S. agricultural exports and resolves phytosanitary and sanitary trade issues. *********************************************************************************** Vroom Joins Stratovation Group Board Stratovation Group Tuesday announced the addition of Jay Vroom to its Board of Advisors. After retiring as President and CEO of CropLife America, Vroom continues to be active as an agricultural leader and consultant to numerous national agricultural organizations. Vroom says, “Stratovation is bringing exciting new energy to the food and ag market with innovative approaches to both research and strategic advice for clients.” Vroom joins other executives on the Stratovation Group Board of Advisors, including Missouri Farmer Blake Hurst; Russ Green, managing director of MACKAYBEN; Kristen Snow, CEO of Level D&I; Jenn Wells, president of TalentID; and Ward Hill, CEO of Candor Hill. Stratovation Group Chief Operating Officer Mace Thornton says of Vroom, “He’s the kind of person who cares and you want to have in your corner.” Stratovation Group provides market research and intelligence, strategy and consulting, marketing and branding, along with web content services to the agricultural sector.
| Rural Advocate News | Wednesday April 26, 2023 |
Wednesday Watch List Markets A report of U.S. durable goods orders in March will be watched at 7:30 a.m. CDT Wednesday as the market is wary of a possible slowdown in the economy. The U.S. Energy Department will have its weekly inventory report at 9:30 a.m., including ethanol production. As usual, the latest weather forecasts will also be of interest. Weather A storm system has been and continues to produce heavier rainfall in the Southern Plains on Wednesday. The rain does come with a risk of severe storms, mostly across parts of central Texas, but the heavy rain should reduce the impacts of the deep drought that have gripped the region. Still, one storm will not eliminate drought. Other showers will move across the Northern Plains and Canadian Prairies throughout the day as well. Cold temperatures remain in place with frosts this morning and another day of risk tomorrow across the eastern Midwest.
| Rural Advocate News | Tuesday April 25, 2023 |
Court issues another blow to WOTUS Another day, another ruling against the Biden Administration’s Waters of the United States rule. This time the Sixth Circuit Federal Court of Appeals issued a stay on enforcing the rule in Kentucky until May 10. That means WOTUS is now the law of the land in only 23 states. Kentucky Attorney General Daniel Cameron says the ruling stops the Biden administration from enforcing what he considers to be a burdensome rule. “This is an important win for Kentuckians, especially our farmers, who were being unnecessarily burdened by these new restrictions,” Cameron says. “We are grateful to the court and will be working to make this ruling permanent in the weeks and months ahead.” A federal judge had previously denied a request by the State of Kentucky and the Kentucky Chamber of Commerce to issue an injunction against WOTUS. The State and Chamber then asked the appellate court to issue a stay pending their appeal. In their ruling, Circuit Court Judges Ralph Guy, Raymond Kethledge and John Bush said they granted the stay because the federal government failed to identify any particular interest in immediate enforcement of WOTUS. “Given the circumstances, an administrative stay is necessary to preserve the status quo and to provide us with the opportunity to give reasoned consideration to the plaintiff’s motion for an injunction pending appeal,” the judges said in their ruling. This is the latest in a series of legal blows against WOTUS. In March, a federal court judge issued an injunction halting the rule in Texas and Idaho. On April 12, a North Dakota District Court Judge issued an injunction against the law in 24 additional states. While multiple lawsuits continue to make their way through various courts, all eyes remain on the Supreme Court and its ruling in the Sacket v. EPA case. That ruling is expected by early summer. Many observers believe the court’s decision could significantly limit EPA’s regulatory authority.
| Rural Advocate News | Tuesday April 25, 2023 |
AFBF: Families Deserve Truth in Food Labeling America's families deserve to know what they're buying when shopping in the dairy aisle, according to the American Farm Bureau Federation. AFBF Monday filed comments with the Food and Drug Administration. The comments call on the agency to enforce food labeling standards for dairy substitute products and enforce existing prohibitions on the misleading labeling of nut- and other plant-based beverage products as "milk." AFBF supports a consumer's right to access dairy-free products, but one in four Americans, 83 million people, are confused or have been misled about whether dairy alternatives contain milk, according to a survey used by FDA. AFBF Public Policy Vice President Sam Kieffer says, "Consumers know the healthiness of dairy labels such as 'milk' and may infer that any product bearing this term possesses the same or an equivalent nutritional profile." AFBF is urging FDA to require non-dairy products to be labeled accurately, as is required in several markets outside of the U.S. For instance, "almond milk" is labeled "almond beverage" in Canada. *********************************************************************************** USDA Announces New National Institute of Food and Agriculture Director The Department of Agriculture Monday announced the appointment of Manjit K. Misra as the new Director of the National Institute of Food and Agriculture. Agriculture Secretary Tom Vilsack says, “Dr. Misra is an esteemed scientist and educator whose devotion to studying and sharing his knowledge of seeds with the world will benefit society and inspire generations to come.” Before joining USDA, Dr. Misra served as a Professor of Agricultural and Biosystems Engineering at Iowa State University. For more than 30 years, he was Director of the university’s Seed Science Center. The center has administered the National Seed Health System, authorized by USDA's Animal and Plant Health Inspection Service, since 2001. Dr. Misra also was founding Director of the Iowa State’s Biosafety Institute for Genetically Modified Agricultural Products. The NIFA Director leads the agency’s work in advancing agricultural research, education, and extension to solve societal challenges. Dr. Misra will start his new role on Monday, May 8, 2023. *********************************************************************************** Winter Cover Crops Could Reduce Nitrogen in Drainage Water As Corn Belt states seek ways to curb nitrogen flow from farms into the Gulf of Mexico, new research suggests winter cover crops can help. Research from the University of Illinois finds widespread planting of cereal rye in Illinois could reduce nitrate in the state's tile drainage water by 30 percent. The team simulated both cover crop planting and fertilizer timing under real climatic conditions in Illinois between 2001 and 2020. They used a crop simulation model known as Decision Support System for Agrotechnology Transfer, which allows multi-year growth projections for more than 42 crops. Two management implications were revealed in the study. One is that farmers should apply a winter cover crop, such as cereal rye, to reduce tile water flow and nitrate loss by 25 and 30 percent, respectively. The data also reinforced that farmers should switch to spring fertilization, if possible. Cover crop adoption remains low in Illinois and the Midwest despite the availability of cost-sharing programs and growing evidence touting benefits. *********************************************************************************** California Lawmakers Request Disaster Relief for Farmers A coalition of California lawmakers Monday requested a disaster recovery package to aid California farms and ranches devastated by historic storms earlier this year. The coalition, which includes Representatives Jim Costa, Jimmy Panetta and Zoe Lofgren, made the request in a letter to House leadership. The letter states, “We, therefore, request a disaster recovery package be swiftly put together to allow the rebuilding and recovery process to begin,” From December 27, 2022, to January 16, 2023, California had nine atmospheric rivers–each of which held as much water as a hurricane–producing powerful storms. Areas of California saw more than $500 million in estimated flood and storm damage to agricultural operations. Subsequent storms in California from February through March complicate recovery efforts further–with claims filed with the Farm Service Agency already numbering more than 1,000 and assessments still ongoing. California has more agricultural production than any other state in the union, with nearly 70,000 farms operated on 24.3 million acres. *********************************************************************************** USDA: Number of Limited-Service Restaurants in Rural America Growing The food-away-from-home retail landscape continues to evolve. USDA’s Economic Research Service recently examined the changing food-away-from-home landscape in nonmetropolitan counties between 1990 and 2019, with a focus on the most rural counties. As of 1990, full-service restaurants were the most common restaurant type, making up 76 percent of all food-away-from-home establishments in these counties. However, over the last several decades, the composition shifted. While full-service restaurants remain the most common in rural counties, their prominence has fallen from about 75 percent of establishments to about 50 percent of establishments in 2019. By contrast, quick-service restaurants have become increasingly popular. Quick-service restaurants accounted for 18 percent of the total number of establishments in rural counties in 1990 but have since doubled, making up 36 percent of all food-away-from-home establishments in 2019. USDA researchers conclude that the shift could affect overall food options available for consumers in these rural areas. *********************************************************************************** Sorghum Bran Rises as an Ingredient for Enhancing Gluten-Free Bread Sorghum bran, often a low-cost byproduct of sorghum milling, can enhance gluten-free bread's nutritional value without compromising its flavor, according to a new study. USDA’s Agricultural Research Service studied sorghum bran to improve gluten-free foods. One of the USDA researchers says, “we used optimization models to create a gluten-free bread with enhanced dietary fiber while preserving other desirable bread attributes such as color, texture, and flavor.” The study found that people liked the gluten-free bread that contains 14.2 percent sumac sorghum bran. According to the National Institutes of Health, about two million people in the United States have celiac disease, an autoimmune condition, and must avoid dietary gluten, a protein found in wheat, rye, and barley. Additionally, over 20 percent of U.S. consumers purchase gluten-free products without a medical reason. The potential health benefits provided by tannin-containing sorghum bran in gluten-free foods can benefit consumers who must avoid gluten as well as those seeking other food options.
| Rural Advocate News | Tuesday April 25, 2023 |
Tuesday Watch List Markets Traders will keep up with the latest weather forecasts and pause at 8 a.m. CDT Tuesday for a possible export sales announcement. Reports on U.S. new home sales in March and consumer confidence in April will both be out at 9 a.m. USDA's monthly report of cold storage follows at 2 p.m. Weather A storm system will enter into the Southern Plains on Tuesday, with increasing coverage and intensity of showers and thunderstorms throughout the day, providing some relief for the hardest-hit drought areas in the country. Colder temperatures continue east of the Rockies, limiting fieldwork and planting.
| Rural Advocate News | Monday April 24, 2023 |
Natural Gas May Get More Expensive in the Future Natural gas is an important source of energy for U.S. farms. While U.S. natural gas futures prices have fallen sharply recently, CoBank says higher prices and increased volatility could be on the long-term horizon as the energy transition accelerates and European markets respond to recent supply constraints. Rising U.S. exports of liquefied natural gas, fewer opportunities for fuel switching between coal and gas, and supply chain bottlenecks may contribute to higher domestic energy costs in the future. “Over the past 100 years, the U.S. has been a natural gas island with domestic supply sufficient to meet the nation’s requirements,” says a CoBank report. “From a pricing perspective, domestic consumers benefited from their proximity to natural gas reserves and experienced only brief periods of high prices.” However, as natural gas production expanded, it became necessary for exports to grow, increasing potential price volatility as the U.S. and EU markets became more connected. *********************************************************************************** Consumers Save 25 Cents a Gallon With E15 A new analysis from the Renewable Fuels Association shows American drivers saved an average of more than 25 cents per gallon since the beginning of 2022 with E15. RFA analyzed more than 3,000 actual pump prices for E15 and E10 submitted by drivers to E15prices.com. The average of 1,520 prices reported for E10 was $3.69 per gallon, while the average for corresponding E15 prices was $3.41 per gallon. Thus, the average discount for E15 was 27 cents per gallon or 7.4 percent. “The review of prices submitted by drivers shows lower-carbon E15 is providing real savings for American families,” says RFA President and CEO Geoff Cooper. “At a time when U.S. drivers were facing record high gas prices, this report confirms that E15 delivered relief at the pump.” As a result, Cooper’s group is urging the administration to carefully review data as it considers allowing the sale of E15 this summer. *********************************************************************************** FDA Extends Comment Period on Plant-Based “Milk” Labeling The U.S. dairy industry is concerned about plant-based milks in grocery stores carrying the label “milk.” The Food and Drug Administration announced it is reopening the public comment period on draft guidance for labeling plant-based products. “The FDA is reopening the comment period in response to requests from industry stakeholders for more time for interested people to develop and submit comments,” the agency says. Food Safety News says the draft recommendations were initially published in February and are for industry comments on naming plant-based beverages that are marketed and sold as alternatives to milk. The draft guidance also recommends voluntary nutrient statements for labeling some of the plant-based milk alternatives. Products made from plant materials like tree nuts and legumes are often labeled “milk.” The FDA’s draft guidance from February doesn’t apply to other plant-based dairy alternatives like plant-based cheese or yogurt alternatives. Interested parties can submit their comments at regulations.gov. *********************************************************************************** China Aims for More Self-Sufficiency in Food Production China is one of the biggest trading partners for the U.S. However, the South China Morning Post says the Southeast Asian nation may be attempting to change that. The country aims to increase soybean production this year in an attempt to become more self-sufficient and import less food. Escalating geopolitical tensions are one of the big reasons for the change. China will try to increase its national soybean yield by 11 pounds per mu, which is a Chinese unit of land measurement equal to approximately 0.165 acres. China imports more than 80 percent of the soybeans used to feed its people and livestock, and shipments come mainly from Brazil and the U.S. That heavy reliance on imported commodities has raised significant governmental concerns about its food security. However, Chinese farmers appear less motivated to grow beans than last year because of the low market price of soybeans and their low benefits. *********************************************************************************** Lamb Board Releases Final Video in Lamb Quality Series The American Lamb Board released the final video in its five-part series emphasizing lamb quality. The final video’s title is “Retail Meat Yield.” The overall goal of the video series is to help the U.S. lamb industry provide a consistently high-quality product for Americans’ dinner plates. “By emphasizing lean meat growth in U.S. sheep, we can make lambs with more muscle and less fat and improved yield and value,” says Peter Camino, ALB Chair. “That increases our commercial lamb industry competitiveness with imported lamb and other animal protein sources.” He also says it’s in the best interest of progressive sheep producers to produce a protein product that consistently meets consumers’ expectations and delights their taste buds.” Trim, muscular lambs harvested at the appropriate time return more value for the entire U.S. sheep and lamb industry. “Retail Meat Yield” is available at LambResourceCenter.com or on the American Lamb Board’s YouTube channel. *********************************************************************************** Corn, Soybean Export Sales Drop Data from USDA shows that corn and soybean sales to overseas buyers declined in the seven days ending on April 13. Exporters sold 312,400 metric tons of corn for offshore delivery for 2022-2023, down 41 percent from the prior week and 79 percent from the four-week average. The top three buyers were China, Saudi Arabia, and Colombia. Exports rose 42 percent to 1.3 million metric tons. USDA says soybean sales were down 73 percent week-over-week to 100,100 metric tons for 2022-2023. The top three buyers were the Netherlands, Mexico, and China. The USDA report says exports dropped 15 percent week-over-week to 582,800 metric tons. Wheat sales improved 91 percent from the prior week and 93 percent from the four-week average, coming in at 259,000 metric tons. South Korea was the top wheat buyer, followed by Taiwan and the Philippines. Overall exports for the week dropped 28 percent to 202,800 metric tons.
| Rural Advocate News | Monday April 24, 2023 |
Monday Watch List Markets Starting a new week, traders will check the latest weather forecasts and be attentive to any news affecting outside markets. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Recent concerns include planting in the Northern Plains, falling soybean prices in China and the condition of Brazil's corn crop. Weather A trough of low-pressure overhead continues cold temperatures across most areas east of the Rockies Monday, including some frosty temperatures this morning as far south as Oklahoma and Tennessee. A small trough moving down the Rockies will develop showers in the Southern Plains later today, which will be enhanced over the next couple of days, bringing optimism for those in drought.
| Rural Advocate News | Friday April 21, 2023 |
U.S. Government Planning Year-Round Sales of E15 Next Year The Biden administration is planning to begin year-round sales of E15 in 2024. Oil Price Dot Com says the Environmental Protection Agency feels the move will help reduce the retail price of fuel. Eight Midwestern states originally asked the EPA for waivers to provide E15 fuel this summer. EPA chief Michael Regan says the agency studied if they could make the change this year but decided there wasn’t enough time to allow for final adequate rule-making. Regan told the House Agriculture Committee that the agency will look into issuing temporary emergency waivers to allow sales of E15 this summer. The EPA proposed a rule in March that would allow year-round sales of E15 beginning in 2024. “There would be a significant disruption to consumer pricing and the like if we moved too quickly in 2023,” Regan says. “We are confident year-round E15 sales will be ready to go in 2024. *********************************************************************************** Oklahoma Signs Trade Pact with the UK British Trade Minister Nigel Huddleston signed a trade deal with the state of Oklahoma during a recent trip to Washington, D.C. Oklahoma Governor Kevin Stitt says the pact will focus on increasing trade through wider economic development on both sides of the Atlantic Ocean. It will also maintain a focus on reliable and affordable energy. As Oklahoma and the UK grow their economies through increased trade and development cooperation, that will strengthen businesses and create jobs on each side. The agreement will also allow the sides expand academic and research ties, as well as together in agriculture and food production. “Both the United Kingdom and Oklahoma share the same vision for providing reliable, affordable energy for our citizens,” Stitt says. “We can learn a lot from each other.” After the signing, Huddleston said, “I’m delighted that we’ve taken an important step forward in deepening our commercial and economic ties with Oklahoma.” *********************************************************************************** U.S. Dairy Leading on Climate Coalition The National Milk Producers Federation and the U.S. Dairy Export Council have signed a set of principles and a new partnership with National Agricultural Organizations from several other countries. The goal is to constructively engage governments and international organizations around the world on the issues of livestock, agriculture, climate, and trade. The countries in the new partnership include Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia, and Colombia. USDEC and the NMPF will coordinate and support engagements with government officials and international organizations in promoting policies that encourage sustainable productivity growth while taking into consideration the unique needs of the livestock industry as well as profitability for farmers. The U.S dairy groups point out that, “Far too often, global convenings and climate proposals reflect ideologies at the expense of science, ignore any progress that the industry already made in reducing emissions, and try to impose one-size-fits-all solutions on industries they don’t fully understand.” *********************************************************************************** Smithfield Foods Wins Environmental and Safety Awards The North American Meat Institute recently held its 2022 environmental awards and worker safety recognition programs. Smithfield Foods won awards for its environmental and safety achievements. “Protecting the environment, including decreasing our carbon footprint, implementing water conservation strategies, and reducing packaging have all been Smithfield priorities for decades,” says Stewart Leeth, chief sustainability officer for Smithfield. “These priorities are all part of our constant commitment to producing good food the right way.” Five Smithfield facilities were recognized with NAMI’s environmental recognition awards, which acknowledge commitment to continuous environmental improvement through the development and implementation of Environmental Management Systems. Forty of the company’s facilities were recognized with Tier 4 awards, the highest recognition in the category. Also, 29 Smithfield locations earned the organization’s highest worker safety recognition awards. Smithfield earned an honorable mention in the DEI category for its industry-leading programs that attract and retain minority and underrepresented employees and customers. *********************************************************************************** Legislation to Improve Flexibility of Farmland Conservation Program Senators Michael Bennett of Colorado and Roger Marshall of Kansas introduced the Conservation Reserve Enhancement Program Improvement Act. The bill would provide the flexibility family farmers and ranchers need to conserve water on working lands while fairly compensating them for retiring their water rights or limiting their water use. “With the CREP Improvement Act, we can give farmers the flexibility they need to conserve their water supply and pass their operations to their kids and grandkids,” Bennett says. The act would improve the CREP program in several ways, including directing USDA to allow dryland agricultural uses on CREP acreage where appropriate. Other improvements include specifically adding dryland crop production and grazing to the list of appropriate conservation practices for the CREP program. “Time and again, we hear USDA is being too rigid in their interpretation of good programs, and this bill will help give farmers and ranchers more flexibility,” Marshall says. *********************************************************************************** Iowa Legislature Passes Bill Allowing Raw Milk Sales It’s taken years, but the Iowa Legislature gave its final approval on a bill that would allow Iowa residents to buy fresh-from-the-farm raw milk. After several failed attempts, the state Senate approved the final bill 37-13 and sent it to Governor Kim Reynolds for her signature. The bill previously passed the Iowa House with amendments. It allows producers to sell unpasteurized milk from their farms directly to Iowa residents, as well as cheese, yogurt, ice cream, and other raw milk products. “I call it the fresh milk bill,” says Senator Jason Schultz, the bill’s manager on the Senate floor. He told the Des Moines Register that he’s waited 17 years for a raw milk bill to get through the Iowa legislature. The bill’s supporters say raw milk tastes better and has more nutrients. Opponents say it can contain bacteria that are dangerous to children and could spark a public health outbreak.
| Rural Advocate News | Friday April 21, 2023 |
Friday Watch List Markets After two days of bearish risk-off selling, traders may be a little touchy at the end of the week, but Thursday's economic news was not encouraging. Traders will continue to keep watch over the latest weather developments and any talk of what the Federal Reserve will do on May 3. At 2 p.m. CDT, USDA will issue the cattle on-feed report for April 1, the only significant report of the day. Weather A storm system spinning in northern Minnesota is producing scattered snow showers across the Northern Plains and Upper Midwest, which may come in short, heavy bursts at times throughout the day. A front is bringing showers from far east Texas to Indiana that will be pushed eastward throughout the day. Cold temperatures are filling in behind the front, which will lead to some frosty morning temperatures in the Plains over the weekend.
| Rural Advocate News | Thursday April 20, 2023 |
Continuing Contract Negotiations at West Coast Ports Concerning Increasing attention is getting devoted to the West Coast port contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union. The concern is because of the recent and continued slowdowns and temporary work stoppages at the Ports of Los Angeles and Long Beach. “Given how the tension between the two parties appears to be increasing, this topic will likely remain a significant point of discussion for the foreseeable future,” says Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition. A recent work stoppage from April 6 to April 7 at both ports and the subsequent slowdowns were “deliberately disruptive,” according to the PMA, the group that represents 70 terminal operators. The two parties have been negotiating a new five-year contract since July 1, 2022. These negotiations don’t apply to the bulk of exports of soybeans and grain from Pacific Northwest ports, which operate under separate contracts. *********************************************************************************** Farm Lending Slows as Interest Rates Rise Growth in farm lending activity at commercial banks was limited in the first quarter of 2023 as interest rates climbed higher. The Kansas City Fed says alongside additional increases in the federal funds’ rates, interest rates on farm loans rose sharply. The rapid rise has shifted the range of rates offered to borrowers considerably higher. Non-real estate farm loan volumes decreased about 10 percent from the previous year in the first quarter of 2023, following average growth of 15 percent in 2022. Lending activity was pushed down by fewer new loans and smaller-sized operating loans. The outlook for farm finances remains favorable alongside elevated commodity prices, but higher interest rates, increased production costs, and drought remain key ongoing concerns. Strong farm income during recent years has bolstered liquidity for many producers and supported historically strong farm loan performance. Despite higher interest rates, the availability of credit remains strong at agricultural banks. *********************************************************************************** USCA Affirming Safety, Transparency of Beef Supply Chain The U.S. Cattlemen’s Association responded to efforts in the Missouri State Legislature to regulate products sold, distributed for use, or administered to a person that are designed to alter their genome. Missouri House Bill 1169 attempts to implement a regulatory framework for labeling products that could act as “gene therapy” or that could potentially impact, alter, or introduce genetic material or a genetic change in the user. This came about because of concerns that mRNA vaccines are being introduced into the nation’s cattle supply. “The USCA strongly supports truth in labeling on consumer goods and full transparency throughout the supply chain,” the group said in a statement. “Currently, there are no mRNA vaccines licensed for beef cattle in the U.S..” Similar legislation is also being introduced in Tennessee, Arizona, and other states. The USCA will be forming a task force to develop a fact- and science-based assessment of the issue. *********************************************************************************** WOTUS Veto Override Fails in Congress The House of Representatives was unsuccessful in getting enough votes to override President Biden’s veto of legislation undoing a rule defining the Clean Water Act’s jurisdiction. The vote failed 227-196 and didn’t meet the two-thirds requirement for overriding a presidential veto. Successful Farming says Republicans persuaded ten Democrats to vote against the Biden EPA’s rule, including House Ag Ranking Member David Scott (D-GA) and Rep. Sanford Bishop (D-GA). The rule specified what wetlands, streams, and other waterways qualify for federal protection as Waters of the United States. Critics like farmers, land developers, and construction companies have called the policy “extreme government overreach.” In March, both the House and Senate passed a disapproval resolution with bipartisan support that would have scrapped Biden’s Waters of the U.S. Rule. Two federal judges have issued preliminary injunctions against implementing the WOTUS rule in 26 states while lawsuits are heard regarding the validity of the regulation. *********************************************************************************** The Number of Dairy Herds Fell in 2022 A USDA report says roughly six percent of U.S. dairy farms quit milking cows in 2022, but that was a slower rate of decline than during the past five years. Twenty years ago, there were 70,375 dairy herds in the country. In 2022, there were 27,932 herds, down from 29,842 in 2021. Calendar-year 2022 saw an exit of 1,910 dairy herds across the nation, which was about six percent of the country’s dairy operations. That compares to a loss of 1,794 herds nationwide, or 5.7 percent of the country’s total, in 2021. However, the decline was larger during the previous three years. Over the past two decades, the U.S. lost an average of 2,300 dairy herds per year. Meanwhile, dairy cow numbers dropped slightly. The average herd size is growing, and per-cow and total milk production have increased. The average dairy herd size reached a record high of 337 head in 2022. *********************************************************************************** NCBA Files Comments on USDA Traceability Rule The National Cattlemen’s Beef Association filed comments on the USDA’s proposed traceability rule. The rule would emphasize the importance of electronic animal identification to protect the cattle industry from the threat of a foreign animal disease. USDA’s proposed rule would apply to cattle 18 months or older only when moving interstate. “Traceability is about risk protection and ensuring we have the tools to quickly identify and respond to an outbreak while strengthening consumer trust in our high-quality beef,” says NCBA President Todd Wilkinson. “Our comments emphasize protecting U.S. cattle herds from the threat of a foreign animal disease while also protecting producers’ private data, limiting the cost of tagging devices, and operating at the speed of commerce.” Without a national traceability system in place, the impact of a foreign animal disease outbreak would be magnified. The system would also support cattle producers in quickly returning to normal operations after an outbreak.
| Rural Advocate News | Thursday April 20, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m., followed by U.S. existing home sales in March and an index of U.S. leading indicators at 10 a.m. Weather A system is moving through the middle of the country Thursday morning with a line of thunderstorms from Iowa to Oklahoma, more in the Great Lakes, and snow in the Northern Plains and Canadian Prairies. The system will continue to wind up over the middle of the country today, with a risk of severe storms from Illinois down through Texas. Winds across the Plains and Midwest will be breezy and more dust storms are possible for western Kansas. Temperatures are falling rapidly behind a cold front moving through.
| Rural Advocate News | Wednesday April 19, 2023 |
NPPC Issues Q2 Economic Update The National Pork Producers Council released its second quarter pork industry economic update that provides a look at the top pork industry issues, trends, and market conditions impacting farmers. The report shows pork production increased 2.3 percent through the first quarter, with the USDA now projecting a 1.4 percent annual increase in pork production this year. Retail, wholesale, and farm-level prices show a year-over-year decline. Pork and variety meat exports gained momentum in the first quarter of 2023. Pork producer returns for the remainder of this year will be influenced by various factors, including domestic and export pork demand and input prices. “The U.S. is a worldwide leader in pork production, which is a significant contributor to the U.S. economy,” says Duane Stateler, NPPC Vice President. “Pork producers will continue navigating the economic challenges to ensure we raise safe, wholesome, and affordable food for communities here and around the world.” *********************************************************************************** USDA Announces Grassland Conservation Reserve Program Signup The USDA announced that agricultural producers and private landowners can begin signing up for the Grassland Conservation Reserve Program now through May 26. Among CRP enrollment opportunities, Grassland CRP is a unique working lands program, allowing producers and landowners to continue haying and grazing practices while conserving grasslands and promoting plant and animal biodiversity as well as healthier soil. “Grassland CRP clearly demonstrates that agricultural productivity and conservation priorities can not only coexist but also complement and enhance one another,” says Zach Ducheneaux, administrator of the Farm Service Agency. “The strength of the program lies in its many benefits.” More than 3.1 million acres were accepted through the 2022 Grassland CRP signup from agricultural producers and private landowners. That was the highest-ever level of signups for the program. The current total participation in Grassland CRP is 6.3 million acres. For information or to signup, go to your local USDA Service Center. *********************************************************************************** Wall Street Rules Don’t Belong on Family Farms Wall Street rules intended for publicly-traded companies shouldn’t extend to family farms. That’s the message from the American Farm Bureau and six other agricultural groups to the Securities and Exchange Commission. The SEC proposed a rule to require public companies to report on Scope 3 emissions, which are the result of activities not owned or controlled by a publicly-traded company but contribute to its value chain. Public companies that produce goods from agricultural products would need to report emissions from the relevant agricultural operations. The farm groups’ concern is that the rule will burden family farmers and ranchers and drive further consolidation in agriculture, all for no real environmental benefit. “The tracking will be extremely expensive, invasive, and burdensome for farmers and ranchers, at the cost of improved production practices that will generate actual environmental gains,” the groups say in the letter to the SEC. “Family farms will get hit hardest.” *********************************************************************************** Scott Condemns SNAP Work Requirements House Agriculture Committee Ranking Member David Scott (D-GA) released a statement responding to House Speaker Kevin McCarthy’s debt limit framework. If that framework gets passed as proposed, it will include what Scott calls additional “punitive” work requirements for SNAP participation. “Let me be perfectly clear,” Scott says. “Holding food assistance hostage for those who depend on it, including 15.3 million children, 5.8 million seniors, and 1.2 million veterans, in exchange for increasing the debt limit is a non-starter.” He also points out that the “ransom note” McCarthy unveiled in front of a crowd of Wall Street bankers is dead on arrival. “Republican attempts to punish low-income families to pay for tax cuts they pushed through under President Trump will not result in self-sufficiency,” Scott says. “It will only drastically increase hunger for our American people.” He says the additional work requirements on top of already-existing work rules won’t spur economic growth. *********************************************************************************** USDA Offers More Funding for Expanding High-Speed Internet in Rural Areas The USDA announced the availability of $20 million to deliver broadband technical assistance resources for rural communities and to support the development and expansion of broadband co-ops. The agency is offering the funding under the new Broadband Technical Assistance Program. The program supports technical assistance projects such as feasibility studies, completing network designs, and developing broadband financial assistance applications. Applicants can choose from one of three funding pools. “USDA is committed to making sure that people, no matter where they live, have access to high-speed internet,” says USDA Under Secretary for Rural Development Xochitl (zo-CHEEL) Torres Small. “That’s how you grow the economy not just in rural communities but across the nation.” The undersecretary also says the agency is partnering with small towns, local utilities, cooperatives, and private companies to increase access to a critical service. “The service builds brighter futures by creating more opportunities across rural America,” she says. *********************************************************************************** Ag Retailers Association List Top Five Farm Bill Priorities The Ag Retailers Association says it’s cautiously optimistic the Farm Bill gets written on time. However, the association is worried that debt limit discussions may interfere. It’s going to be tough this year with the farm bill coming up right as the debt ceiling discussion hits the deadline,” says Hunter Carpenter with the Ag Retailers Association. “I’m cautiously optimistic.” The group has five priorities they’re advocating for in the bill. They want the continuation of a strong farm safety net and crop insurance. They want to maintain the current acreage dedicated to conservation programs. Other priorities revolve around biologicals. The previous farm bill started to build a structure around defining plant biologicals. The new farm bill can go further in providing uniform definitions. They’d like to see the farm bill support research functions of USDA, including the National Agricultural Statistics Service. “We’re pushing hard to get it done this year,” he says.
| Rural Advocate News | Wednesday April 19, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. CDT, including ethanol production. The Federal Reserve's Beige Book will follow at 1 p.m. Traders will continue to monitor the latest weather events around the world as the northern Hemisphere gradually shakes off a long winter season. Weather A multi-pronged system is moving into the Plains Wednesday and will be setting up conditions that favor increasing showers and thunderstorms across the middle of the country throughout the day, including some severe thunderstorms for the eastern Plains into Iowa. Across the north, it is cold enough for areas of snow in Montana, North Dakota and across the border into Saskatchewan and Manitoba, where snowfall is likely to be heavy. Winds continue to be breezy across the Plains, which is unfavorable for crops in drought, mainly wheat.
| Rural Advocate News | Tuesday April 18, 2023 |
Farm Credit Reports on Ag Economy and Condition of Its System The Farm Credit Administration recently received a quarterly update on economic issues affecting agriculture as well as an update on the performance of the Farm Credit System through 2022. Inflation continues to be a core economic issue despite recent declines. Inflation has been driven, in part, by a tight labor market and rising production costs and consumer demand. The report also says strong prices for many commodities have continued into 2023. Tight global grain stocks, declining cattle inventory, and disruptions to specialty crop production continued to support prices. Input costs will remain high this year and curb farm profitability. With the end of the three-year La Niña pattern, drought conditions have improved across many parts of the country. The update also says the System reported strong financial results in 2022, including strong loan growth and higher earnings. The System’s loan portfolio continued to perform well, and portfolio credit quality remained strong. *********************************************************************************** Consider Corn Challenge Still Finding New Uses for Corn The National Corn Growers Association is launching its fourth Consider Corn Challenge. The open-innovation contest invites participants to submit proposals for new uses of field corn as a primary feedstock for producing novel sustainable chemicals and products with quantifiable market demand. “Consumers have a genuine interest in biobased products, and corn is investing in solutions that meet that need,” says NCGA Market Development Action Team Chair Troy Schneider. “In order to continue drawing in game-changing participation, the prize pool has increased to $250,000.” If all 15 winners of the first three Consider Corn Challenges reach full commercialization with products in the marketplace, the potential for additional corn demand would be approximately 3.4 billion bushels. One to six winners will be selected for the fourth Consider Corn Challenge. The submission deadline is June 30 at 5 p.m. Central Time, and winners will be announced in October. To learn more, go to ncga.com/ConsiderCorn. *********************************************************************************** NFU Supports Torres Small for Deputy Ag Secretary The National Farmers Union released a letter in support of the nomination and confirmation of Xochitl (Zo-CHEEL) Torres Small to serve as the Deputy Secretary of Agriculture at USDA. NFU President Rob Larew says current Under Secretary for Rural Development Torres Small has tirelessly served family farmers in New Mexico and the country. “She’s done amazing work for rural communities and supply chains that support our entire economy,” says Larew. “I’m proud to share our support knowing that Under Secretary Torres Small will make a positive impact as Deputy Secretary of the USDA.” NFU has a long history with Torres Small going back to her time as a member of Congress when she represented family farmers and ranchers in New Mexico. NFU urges the Senate Committee on Agriculture to advance Torres Small’s nomination to serve as Deputy Secretary of USDA and looks forward to working with her in the new role. *********************************************************************************** Taylor Leads USDA Trade Mission to the Netherlands USDA’s Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor launched the first-ever regional agribusiness trade mission to the Netherlands in Amsterdam. The delegation includes representatives from 31 agribusiness and farm organizations and ten state departments of agriculture. The group aims to expand economic partnerships between the U.S. and the Netherlands and markets throughout Scandinavia. “As the gateway to Europe for U.S. exports, the Netherlands is an important trading partner,” Taylor says. “Company representatives from Belgium, Denmark, Finland, Germany, Iceland, Norway, and Sweden are joining us in Amsterdam.” She also says with combined total agricultural and related exports to these markets topping $4.5 billion in 2022, Taylor is confident the delegation will be successful in building new relationships that are critical to expanding opportunities for increased trade. USDA will help facilitate business-to-business meetings between small and medium-sized agribusinesses and regional buyers looking to import American farm and food products. *********************************************************************************** Optimism Despite Headwinds in the Ag Equipment Market Equipment manufacturers are still recovering from pressures brought on by COVID-19, but they’re working toward a state of normalcy despite trials and tribulations. Kip Eideberg is the Senior Vice President of Government and Industry Relations for the Association of Equipment Manufacturers. Eideberg says supply chain pressures and a lack of workforce retention have been ongoing struggles for the industry, and individual sectors are facing their own problems as well. A recent AEM survey of its members detailed the strains and pressures that have built up in the global ag sector during the last few years. “Overall, far too many equipment manufacturers still feel the impact of COVID and supply chain disruptions in operations, lead times on components, labor force participation, and financial performance,” says Eideberg. In tracking sales and global data, the ag equipment market is in a good position right now, and there’s more optimism moving forward despite economic headwinds. *********************************************************************************** Illinois Farmland Prices Up 45 Percent in Two Years Illinois farmland prices continued their upward curve in the last several years, and it applies to all classes of farmland throughout the state. That’s according to a report issued during the 2023 Illinois Farmland Values Conference sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers. Last year continued to see a sharp rise in land values. While certain parts of the state saw more strength than others, Illinois land values were up across the board. Class A land across Illinois rose 45 percent from 2021-2022. While premium acreage always carries the flag, the report says lesser quality acreage saw increases of over 25 percent and, in some instances, over 40 percent during the same period. The state’s professional farmland managers and appraisers said reduced transactions in 2020, historically-low interest rates, strong demand, increased commodity prices, and overall fear in other economic sectors all play a role in rising prices.
| Rural Advocate News | Tuesday April 18, 2023 |
Tuesday Watch List Markets Overnight, China reported first quarter GDP was up 4.5% from a year ago, better than expected, reported RTTNews.com. China's unemployment rate was 5.3% in March, also better than expected. A report on U.S. housing starts in March will be out at 7:30 a.m. CDT Tuesday. In addition to watching the latest weather developments, traders may be leery of Russia's next move. Weather A storm system in the West will move into the Plains on Tuesday, increasing showers and a few thunderstorms. Bouts of snow will develop over the far Northern Plains and into the Canadian Prairies. Winds will also be a little breezy in the Plains, unfavorable for winter wheat.
| Rural Advocate News | Monday April 17, 2023 |
Texas Barn Fire Kills 18,000 Dairy Cattle A Texas dairy farm suffered an explosion and fire that possibly resulted in the largest single-incident livestock death toll in history. Agriculture Dot Com says the Southfork Dairy Farm in Dimmitt, Texas, reports approximately 18,000 dairy cattle died in the blaze. The Castro County Sheriff’s Office said that was about 90 percent of the farm’s total herd. Investigators are working to find out the cause of the devastating fire. “They’re trying to determine if it came from machinery known as a honey wagon that sucks out manure and water,” says Castro County Sheriff Sal Rivera. “It may have possibly ignited methane gas.” The farm employs 60 workers, and all were accounted for. One female was trapped inside, and first responders were able to rescue her from the structure and airlifted her to a nearby hospital, where she’s critical but stable. Southfork Dairy Farm had been running for less than a year. *********************************************************************************** Brazil’s Record Soybean Harvest Continuing Brazil’s farmers will produce 153.6 million metric tons of soybeans this year. CONAB (KOH-nab), a private company that works under Brazil’s Ministry of Agriculture, says that’s up 1.5 percent from their outlook last month. The USDA had projected Brazil’s soybean harvest to reach 154 million metric tons, one million tons higher than the previous forecast. USDA data showed that Brazil produced 130.5 million metric tons a year ago. Global soybean stocks were forecast by the agency at 100.3 million metric tons, up from the prior forecast of 100 million. If reached, that would be up from 99.7 million tons a year earlier. Brazil’s CONAB also expects the country’s corn production to reach a record 124.9 million metric tons, slightly higher than last month’s forecast. The forecast for Argentina’s soybean harvest continues to drop, coming in at 27 million metric tons. That’s six million tons lower than the March USDA forecast. *********************************************************************************** Farmers, Conservationists Ask Court to Strike Down Dicamba Public-interest groups representing farmers and conservationists filed arguments in court seeking to have the Environmental Protection Agency’s approval of dicamba struck down. The arguments are a continuation of an earlier lawsuit that resulted in a 2020 court ruling overturning prior approvals of dicamba as unlawful. The groups say the new litigation was prompted by the EPA’s decision to ignore the court’s ruling and move forward with reapproving the pesticide. “We now have years of incontrovertible evidence revealing that these dicamba products cannot be used without causing grave harm to other farmers and the environment,” says George Kimbrell, legal director of the Center for Food Safety and counsel in the case. The petitioners say dicamba drift and runoff damage natural areas and wildlife refuges, injuring wild flowering plants, including some federally-protected species on which bees and other insects rely. Plaintiff groups include the National Family Farm Coalition, Pesticide Action Network, and others. *********************************************************************************** Vilsack Urged to Deny Petitions on Make Allowance Hearing The American Dairy Coalition sent a letter to Ag Secretary Tom Vilsack asking him to deny two recent petitions for hearings on the Federal Milk Marketing Order. The petitions from processor groups ask USDA to increase payments from farmers to processors to offset higher input costs. The coalition says holding a federal milk pricing hearing on these “make-allowances” without looking into additional concerns facing dairy farmers is misaligned, and therefore ADC can’t support it. “As a grassroots dairy farmer organization, ADC believes a comprehensive FMMO hearing is needed,” says ADC CEO Laurie Fischer. “We do not support ‘make allowance’ updates based on processors having the ability to voluntarily participate in the cost surveys, which undoubtedly would exclude essential relevant data.” ADC also says farmers need transparency in order to understand how their net payment is calculated, and these make allowances are not line items, but they’re embedded in pricing formulas. *********************************************************************************** Ford Phasing Out AM Radios Globally Ford Canada confirms that it’s removing AM radios from all vehicles globally. Ford’s Canadian division says Canada will no longer have access to the AM band in upcoming vehicles. Radio Ink Dot Com says it’s the first confirmation that removing AM from dashboards won’t be isolated to the U.S. A Ford Canada spokesperson says that to listen to AM, all drivers have to do is link their phones to the vehicles entertainment system and stream the stations they’re looking for. Canada has more than 180 AM radio stations. Many of those stations broadcast news and information needed in remote areas that have less than ideal data coverage, making streaming difficult, if not impossible. The Canadian Association of Broadcasters says this marks another profound challenge to AM radio. “It’s unfortunate that the assumption is made that internet streaming of stations will be a suitable substitute in remote Canadian areas,” the group says. *********************************************************************************** U.S. Wheat Planted Area Projected at Seven-Year High The National Agricultural Statistics Service recently estimated the total U.S. 2023-2024 wheat planted area will be 49.9 million acres. That’s up nine percent from the previous year and would be the highest total since 2016-2017. The total winter wheat area is projected up 13 percent as high prices and strong profitability provides major incentives to plant. Hard Red Winter Wheat is projected up 13 percent to 26 million acres, even higher than the January 12 forecast. HRW production regions continue to be impacted by drought, which is likely to affect harvested area and yield. Soft Red Winter Wheat plantings are forecast up 19 percent from the previous year to 7.8 million acres, slightly below the January forecast. Hard Red Spring area is projected down three percent to ten million acres. But the area planted for this class will depend on planting conditions. Durum is projected up nine percent to 1.8 million acres.
| Rural Advocate News | Monday April 17, 2023 |
Top 5 Things to Watch - Field Progress, Frost Watch and Cattle on Feed OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 16. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Frosty week: Weather models took a turn to the colder side as the weekend approached. DTN Ag Meteorologist John Baranick is watching to see if the trend continues through the week. This could bring frost to hard red winter areas, but unlikely be cold enough or long enough to cause much further damage. And, while planters have begun to move, it's also unlikely that there are too many emerged plants in the path of any significant frosts. Early planted gardens might benefit from some cover, however, on species prone to frost damage. 2. Fertilizer trending lower: Our DTN Staff Reporter Russ Quinn, who keeps a close eye on the fertilizer beat, has been documenting the downtrend in fertilizer prices -- and has noted anhydrous prices getting close to that $1,000 level. He'll report where prices landed the previous week. 3. Dairy disaster: We've been reporting on the terrible fire and cattle deaths at the dairy in Dimmit, Texas. Progressive Farmer Senior Editor Victoria Myers will continue following the saga to see if there are lessons to be learned for other large animal units. 4. Market news on our radar: DTN analysts will watch several market-moving actions through the week, especially the ongoing saga of the Black Sea grain deal. We'll have the USDA weekly export inspections at 10 a.m. CDT Monday, with soybean crush numbers from the National Oilseeds Processors Association later Monday morning. Also on Monday, at 3 p.m. CDT, USDA's Crop Progress and Livestock, Dairy and Poultry reports will be out. It will be interesting to see how planting progressed with the warmer weather the week of April 9. 5. Latest cattle call: Friday will see the USDA Cattle on Feed report, due out around 3 p.m. CDT. Watch for preview thoughts ahead of that, and DTN Livestock Analyst ShayLe Stewart's thoughts on the report soon after its release.
| Rural Advocate News | Monday April 17, 2023 |
Monday Watch List Markets Back from the weekend, traders will get acquainted with the latest weather forecasts and any news, especially regarding Russian comments about the Black Sea grain deal. USDA's weekly export inspections will be out at 10 a.m. CDT Monday, followed by a report on members' soybean crush from the National Oilseeds Processors Association, later Monday morning. At 3 p.m., USDA's Crop Progress and Livestock, Dairy and Poultry reports will be out. Weather A storm system continues to bring snow to the Great Lakes area Monday, including heavy snow for parts of Wisconsin. This system will be winding down tonight but there is another one entering the Pacific Northwest which will send several pieces of energy through the country for the rest of the week.
| Rural Advocate News | Friday April 14, 2023 |
Colorado Passes First Right to Repair Legislation Colorado farmers will get the first opportunity to fix their own equipment next year, thanks to newly-approved right-to-repair legislation. Manufacturers will now be required to provide their customers with diagnostic software manuals and other aids. Colorado is the first U.S. state to approve this kind of law. The “Consumer Right to Repair Agriculture Equipment Act” passed the Colorado Senate 46-14 this week, while the state House passed the bill in February. The bill had bipartisan support as farmers’ profits were squeezed by expensive repairs and rapidly rising input prices. The legislation mandates that farm machinery manufacturers like Deere and CNH Industrial furnish their customers with diagnostic tools, software documents, and repair manuals beginning on January 1, 2024. Manufacturers must also provide those resources to independent technicians. A Deere spokesman told Reuters that the company supports farmers’ right to repair but believes this bill wasn’t necessary and will carry unintended consequences. *********************************************************************************** Ag Groups Respond Positively to Court Halting WOTUS Rule A court ruling out of North Dakota halted implementation of the 2023 Waters of the United States Rule in 24 states, and ag groups responded positively. American Farm Bureau President Zippy Duvall says his group proudly stood with the 24 states involved and more than a dozen organizations in this challenge. “Two District Courts have acknowledged the new rule oversteps EPA’s authority under the Clean Water Act,” Duvall says. “With the rule on hold in more than half the country, EPA and the U.S. Army Corps should do the right thing, listen to our legitimate concerns, and rewrite the rule.” The National Cattlemen’s Beef Association also applauded the court’s decision. “Cattle producers in a total of 26 states now have some additional certainty while this rule is being litigated, and we’re optimistic the Supreme Court will provide nationwide clarity on the federal government’s water jurisdiction,” says NCBA President Todd Wilkinson. *********************************************************************************** Sorghum Foundation Opens 2023-2024 Scholarship Applications The National Sorghum Foundation opened three scholarship applications for college students studying agriculture in the upcoming 2023-2024 academic year. The application deadline is June 1, 2023. In the 22 years that the National Sorghum Foundation has been in operation, more than 50 scholarships have been awarded to deserving agricultural students who excel in academics, leadership, and service. “The Foundation is excited to announce that three scholarships will be offered during the spring 2023 semester,” says National Sorghum Foundation Chair Jeff Dahlberg. “These scholarships are named in memory of three giants of the sorghum industry who served for many decades.” Each scholarship includes an award of $1,500 to be applied to one semester of tuition expenses, and one scholarship also includes an all-expense paid trip to Washington, D.C., with the National Sorghum Producers. More information about each scholarship’s criteria and application forms for each scholarship can be found online at SorghumGrowers.com/foundation-scholarships. *********************************************************************************** USDA: Most Improved Award Winner in Best Place to Work Rankings The USDA announced that it’s received recognition for being the “Most Improved” for large federal agencies in the Partnership for Public Service’s 2022 Best Places to Work Rankings. The department now ranks 12th among very large agencies in the Best Places to Work Rankings, up from a 16th place ranking in 2020. “At USDA, we are committed to reaching new heights by cultivating a workplace environment that is collaborative, service-oriented, mission-centered, healthy, and inclusive,” says Ag Secretary Tom Vilsack. “I’m pleased to see these results as we strive to live up to the moniker of ‘the People’s Department,’ and we will continue to move forward with a strong commitment to making improvements on behalf of all employees, attracting talent that represents the diversity of America, and putting people at the center of everything we do.” He says they’re working together to create an engaging environment and cultivate an exceptional workforce. *********************************************************************************** U.S. Potato Exports Hi $2.1 Billion in 2022 Potato exports reached a record $2.1 billion in sales in 2022. Compared to 2021, volume sales dropped 4.2 percent but were higher than in 2018 and 2020. The value of U.S. potato exports rose across all potato types, resulting in an 11 percent increase over the previous year. Global price hikes and inflation can be attributed to this growth. Demand for U.S. potatoes remained strong in 2022, showing that the slight drop in export volume resulted from tight supply. Over the year, the top export markets for U.S. potatoes were Mexico, Canada, Japan, South Korea, and the Philippines, in descending order. The value of U.S. frozen potato exports rose almost 14 percent, reaching $1.34 billion. However, volume dropped 2.5 percent compared to 2021. The top destinations for U.S. frozen potatoes were Japan, Mexico, South Korea, and the Philippines. Potatoes USA says despite inflation-driven price increases of U.S. products, global potato demand remained strong. *********************************************************************************** Iowa House Passes Bill Restricting Drone Surveillance of Livestock Facilities The Iowa House of Representatives passed a bill that restricts drone surveillance of livestock facilities without permission from the property owner. If House File 572 becomes law, remotely piloted aircraft couldn’t fly within 400 feet of homesteads or other areas where animals are kept. People caught in violation would face a simple misdemeanor for intruding on farm airspace. If the device happens to record images, sounds, or other data, that increases the penalty to a serious misdemeanor charge. Agriculture Dot Com says the bill comes in response to animal welfare organizations documenting the conditions and treatment of animals at Iowa’s livestock and dog-breeding facilities. Iowa’s legislators have repeatedly passed “ag-gag” laws to attempt to criminally penalize activists who record and publish images and videos of livestock facilities. Judges have ruled in the past that those laws are unconstitutional. Rep Derek Wulf says the bill “provides privacy rights for our farmers and ranchers.”
| Rural Advocate News | Friday April 14, 2023 |
Friday Watch List Markets The U.S. Commerce Department will report on March retail sales at 7:30 a.m. CDT Friday, followed by the Fed's report on March industrial production at 8:15 and a consumer sentiment index for April at 9 a.m. Traders will keep an eye on the latest weather forecasts and watch for a possible export sale announcement at 8 a.m. Weather A disturbance continues to move northeast out of the Gulf of Mexico, spreading showers through the Southeast on Friday. Behind it, another system is leaving the Rockies with increasing showers across the Plains and Upper Midwest. It remains very warm ahead of this system, with another day or two of good weather for fieldwork for some areas before a more active pattern starts back up.
| Rural Advocate News | Thursday April 13, 2023 |
EPA’s Tailpipe Standards Overlook Ethanol’s Low-Carbon Benefits The Environmental Protection Agency released its proposed tailpipe emissions standards for 2027 and beyond. The Renewable Fuels Association says the agency blatantly tipped the scales in favor of electric battery vehicles. The EPA also overlooked a significant near-term opportunity to achieve significant vehicle efficiency improvements and carbon emissions reductions through increased use of high-octane, low-carbon ethanol fuel blends. “We strongly disagree with the policy approaches that arbitrarily pick technology winners and losers with no clear scientific basis,” says RFA President and CEO Geoff Cooper. RFA points out that a flex fuel vehicle running on E85 made from certain forms of ethanol would provide similar or even lower carbon emissions at a far lower cost. “Today’s EPA proposal would effectively force automakers to produce more electric battery vehicles and strongly discourage them from pursuing other technologies that could achieve the same or better environmental performance at a lower cost for families,” Cooper says. *********************************************************************************** Court Grants Request to Block Biden Administration’s WOTUS Rule in 24 States The U.S. District Court of North Dakota issued a preliminary injunction against the Biden administration from implementing its final rule redefining the Waters of the United States in 24 states. The court’s move comes in response to a motion filed by Montana Attorney General Austin Knudsen. According to the Montana Farm Bureau Federation, estimates from the similar Obama-era rule would have placed nearly 90 percent of Montana’s land under the jurisdiction of the Environmental Protection Agency. “This injunction resulting from our lawsuit is welcome relief to farmers and ranchers and workers in mining, energy, and other industries who would be harmed if this unconstitutional rule is allowed to take effect,” Attorney General Knudsen says. “This is just the first step to stopping the overreaching WOTUS rule.” Knudsen also says he will continue to fight the Biden administration and prevent them from claiming federal jurisdiction over massive swaths of land and water. *********************************************************************************** China Is Now the World’s Largest Wheat Importer The USDA’s Foreign Agricultural Service issued its “Grain: World Markets and Trade Report” and says China is now the biggest wheat importer in the world. The report says China’s wheat imports are forecast up to 12 million tons this year, the country’s highest level of imports since 1995-1996, when imports totaled 12.5 million tons. China’s domestic grain prices have remained high given the country’s minimum support price policy and reduced auction activity amidst uncertainty surrounding the government’s COVID policies. Chinese wheat prices have lingered around $450 per ton during the past year, while China’s corn prices averaged $400 per ton. FAS says competitive pricing has prompted China to import large volumes of both milling and feed-quality wheat. Australian wheat is especially competitive following three consecutive years of record crops. China continues to aggressively import Australian wheat supplies, with July through February wheat imports up 66 percent compared to the previous year. *********************************************************************************** Harvester Sales Continue Recent Gains Combine harvester sales in the U.S. and Canada continued growing while tractor unit sales stayed close to their five-year average. That’s according to new data from the Association of Equipment Manufacturers. Overall, U.S. ag tractor sales continued sliding in March despite gains in the four-wheel drive segments, which were up 106 percent. U.S. self-propelled combine sales grew 45 percent in March, keeping the year-to-date gains above 100 percent. All other tractor segments fell, with the sub-40 horsepower segment leading the losses in March by dropping 14.2 percent. Total U.S. farm tractor sales fell 12.1 percent compared to March 2022 and are down 15.1 percent this year. In Canada, combine harvester sales continue growing, up 190 percent for the month and almost 200 percent year to date. Total Canadian tractor sales finished March down 24 percent. “The March tractor and combine report is a mixed bag,” says Curt Blades of AEM. *********************************************************************************** NPB Hires First Chief Sustainability Officer The National Pork Board has hired James “Jamie” Burr as its first Chief Sustainability Officer. Burr brings over 20 years of experience to help the pork industry meet sustainability goals in his new role. “Jamie’s input has been invaluable to several key producer-funded initiatives for over a decade,” says Bill Even, National Pork Board CEO. “He’s served on and chaired several Pork Board environmental and sustainability committees and task forces, so his leadership has already helped shape the industry’s sustainability vision.” Even also says establishing a CSO position and adding Burr to the team continues to demonstrate the industry’s strong commitment to advancing pork sustainability. Burr comes to the NPB from Tyson Foods, where he recently served as director of environmental compliance and was the environmental lead for all of Tyson’s live-animal production businesses. Burr earned a Master’s Degree in Soil Science and a Bachelor of Science in Agronomy from Missouri State University. *********************************************************************************** Food Help on the Way to Arkansas After Tornadoes, Severe Storms Approximately 7,000 families in Cross and Pulaski Counties in Arkansas were hit hard by recent tornadoes and severe storms. They’ll soon get food packages containing nutritious, high-quality foods that are 100 percent grown and produced on farms in the U.S. The packages are known as USDA Foods. “In challenging times like this, USDA plays a critical role in supporting Americans, and none are more challenging than climate-related disasters that threaten lives, destroy communities, and disrupt food systems,” says Ag Secretary Tom Vilsack. “Until their recovery is complete, we will continue to coordinate with our state, local, and federal partners to help get food and nutrition assistance to them when they need it most.” The Disaster Household Distribution program was approved to start on April 7. Arkansas officials will work directly with partners and local food banks to issue food boxes to participants located in affected areas. More information is available at fns.usda.gov.
| Rural Advocate News | Thursday April 13, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, the producer price index for March and an update of the U.S. Drought Monitor. The U.S. Energy Department reports on natural gas in storage at 9:30 a.m. Traders will keep track of the latest weather developments, especially in the U.S. and Brazil. Weather A storm system moving north from the Gulf of Mexico is spreading showers into the Southeast on Thursday. Another system moving through the West will see showers increasing across the Plains as well. Some heavy snow will move through Montana while the snowpack farther east will continue melting. Warm and breezy conditions continue ahead of the storm system with another good day for fieldwork occurring for most areas.
| Rural Advocate News | Wednesday April 12, 2023 |
WOTUS Stopped in 26 States After Ruling - Federal Judge in North Dakota Issues Injunction in 24 States OMAHA (DTN) -- The waters of the U.S. rule is now on hold in 26 states after a federal judge in North Dakota issued a preliminary injunction on Wednesday in the 24 states that filed a lawsuit against the Biden administration. The U.S. District Court for the District of North Dakota's ruling now prevents enforcement of the WOTUS rule in Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. Texas and Idaho previously received an injunction from the U.S. District Court for the Southern District of Texas. The states along with several agriculture and other industry groups have argued in the lawsuit the latest WOTUS rule is a federal overreach and would exact serious costs to states and others to comply. In his opinion and order, Judge Daniel L. Hovland said he agreed. "The numerous declarations filed in this case by state officials outline in detail the specific costs of state compliance with the EPA's new 2023 rule, as well as the significant infringement on state sovereignty that confers standing on the named plaintiffs," Hovland said in the ruling. "The 2023 rule does cause injury to states because they are the direct object of its requirements. And the states are also landowners with direct obligations under the Clean Water Act. There is not a mere possibility the new regulations will impact the states -- it is a given. The irreparable harm to the states that occurs with the implementation of the new 2023 rule is clear and undisputed." Ag groups led by the American Farm Bureau Federation had asked the court to issue a national injunction against the rule, but the judge stopped short of that. The track the legal challenges to the new rule are taking is nearly identical to what occurred with the 2015 rule. At one point during the legal battles on the Obama-era rule, there was a near 50-50 split on where the rule was being enforced. AG REACTION The National Cattlemen's Beef Association, one of the ag groups intervening in the lawsuit in North Dakota, said the ruling was important. "Once again, the courts have affirmed that the Biden administration's WOTUS rule is overreaching and harmful to America's beef farmers and ranchers," NCBA President Todd Wilkinson said in a statement. "Cattle producers in 26 states now have some additional certainty while this rule is being litigated, and we are optimistic that the Supreme Court will provide nationwide clarity on the federal government's proper jurisdiction over water." Sometime this spring it is expected the Supreme Court will issue a ruling in Sackett v EPA. A ruling could determine how EPA and the U.S. Army Corps of Engineers make Clean Water Act determinations -- particularly when it comes to wetlands. Agriculture and other groups pressed the agencies to hold off issuing the new rule until after the Supreme Court delivers an opinion. Hovland criticized EPA for moving forward with a rule while the Supreme Court ruling was pending. "There is little public interest or any efficiency gained by implementing a new rule which codifies the 'significant nexus' test before the United States Supreme Court issues a decision in Sackett," Hovland said in the opinion. Hovland added, "Common sense dictates that it only makes sense to wait. There is no urgency to implement the 2023 rule. The Supreme Court's decision in Sackett will be issued by June 2023 and will likely address many of the unresolved legal issues and jurisdictional determinations at the heart of this lawsuit." Environmental groups and the federal agencies have tried to make the case that an injunction will lead to further environmental damage to water resources. The judge disagreed. "There is no legitimate concern that natural resources are threatened because all local lands and waters remain under the state's traditional protection," Hovland said in the opinion. "A delay allows for a full and final resolution on the merits and is in the best interests of the public. The court finds that a far broader segment of the public would benefit from a preliminary injunction because it would ensure that federal agencies do not extend their power beyond the express delegation from Congress."
| Rural Advocate News | Wednesday April 12, 2023 |
USDA Releases April WASDE Report USDA’s latest World Agricultural Supply and Demand Report offers few changes to the outlook for corn, soybeans and wheat. Released Tuesday, this month's 2022/23 U.S. corn outlook predicts reductions to imports and food, seed, and industrial use, with unchanged ending stocks. Corn imports are lowered ten million bushels based on observed trade to date. The season-average farm price was unchanged at $6.60 per bushel. The U.S. soybean supply and use forecasts for 2022/23 are unchanged relative to last month. Soybean and soybean meal prices are also unchanged. The soybean oil price is projected at 64.0 cents per pound, down two cents. This is the second-straight month USDA did not change the season-average soybean price per bushel, at $14.30. This month's outlook for 2022/23 U.S. wheat predicts slightly higher supplies, reduced domestic use, unchanged exports, and increased ending stocks. The 2022/23 season-average farm price is forecast $0.10 per bushel lower at $8.90. *********************************************************************************** West Coast Port Labor Disagreements Could Be Dangerous, Permanent The lack of a West Coast labor contract between the International Longshore and Warehouse Union and the Pacific Maritime Association could be dangerous and permanent. That's according to the Agriculture Transportation Coalition. Coalition Executive Director Peter Friedmann says, "Too many West Coast marine terminals are operating on reduced schedules, creating massive disruption." Shippers are moving cargo from the West Coast to ports on the East Coast. Friedmann says that could be a permanent move. West Coast ports are essential to the competitiveness of U.S. agricultural exporters. U.S. agriculture's largest international markets are in the Asia Pacific, and the most direct and fastest route is by truck or rail to the West Coast gateways. U.S. ag faces extremely competitive global sourcing competition, so it must be faster and less expensive than other exporters. Friedmann adds, "If the import cargo and the ships carrying it is trending to U.S. East Coast ports and away from the West Coast, exporters have fewer vessel sailings." *********************************************************************************** USDA Grant Funding Research to Reduce Beef Ghg Emissions The Department of Agriculture is investing $40 million this year for 31 projects through its Conservation Innovation Grants. One grant includes the Innovative Technologies to Reduce Beef Industry Ghg Emissions project led by Colorado State University. The investments emphasize adoption and implementation of climate-smart practices, including nutrient management, which helps producers manage nutrients and soil amendments to maximize their economic benefit while minimizing their environmental impact. NRCS Colorado State Conservationist Clint Evans says, “These investments move the needle in helping agricultural producers adopt and implement climate-smart practices, including nutrient management.” This year, NRCS is investing $25 million through On-Farm Trials, which supports adoption and evaluation of innovative conservation approaches. Incentive payments are provided to producers to offset the risk of implementing innovative approaches. Colorado State University received $1 million for the project to generate science-based estimates of CO2-equivalent emissions from the livestock grazing and finishing sectors using novel technologies and evaluate potential CO2e reductions from conservation practices. *********************************************************************************** USDA Seeking Applications to Expand Conservation Assistance to Underserved Producers The Department of Agriculture reminded farmers and ranchers this week the agency is seeking applications for projects that will improve outreach to underserved producers. Specifically, USDA wants to improve outreach about conservation programs and services and opportunities for students to pursue careers in agriculture, natural resources and related sciences. USDA's Natural Resources Conservation Service is offering up to $70 million in cooperative agreements with entities for two-year projects encouraging participation in NRCS programs, especially in underserved communities and urban and small-scale producers. NRCS Chief Terry Cosby says, “The projects funded through this opportunity will better ensure these producers receive the benefits our conservation programs deliver.” The funding opportunity builds on NRCS’ fiscal year 2022 investment of $50 million in more than 100 partnerships to expand access to conservation assistance for climate-smart agriculture and forestry. The application deadline is April 27. Applications information and guidance is available online at grants.gov. *********************************************************************************** USDA Researchers Develop Natural, Washable Antimicrobial Cleaning Wipes Most antimicrobial wipes, predominantly made of synthetic fibers like polyester and polypropylene, are discarded after a single use and end up in landfills. However, USDA Agricultural Research Service scientists recently developed sustainable, machine-washable antimicrobial wipes that can be used at least 30 times for cleaning hard and nonporous surfaces. ARS researchers developed antimicrobial wipes by using raw cotton fiber that naturally produced silver nanoparticles inside the fiber. These embedded nanoparticles can then release ions that act as antibacterial agents and kill harmful bacteria. The researchers say people will be able to clean surfaces by wetting the antimicrobial cloths with tap water and then wiping surfaces. In their research, scientists found that the wipes killed 99.9 percent of harmful bacteria on surfaces. The worldwide antimicrobial wipes market is estimated to reach $21.6 billion by 2030, According to the Antimicrobial Wipes Market Outlook report. *********************************************************************************** Alltech Feed Division Announces New Leadership Roles Alltech Tuesday announced new leadership roles within the Alltech feed division. Scot Harold will assume commercial leadership as executive vice president, Feed & Premix, and Brian Gier joins the company as vice president of sales for Hubbard Feeds. Alltech COO Mike Castle says, “Scot and Brian will bring leadership and experience that will enable us to capitalize on opportunities within our feed business.” Harold joined Alltech in 2020 as the director of sales for Ridley Feed Ingredients, part of the Alltech feed division. He will work with the leadership team to develop and implement strategy for growth of the feed business while strengthening alignment across the feed, premix and specialty ingredients teams. Before joining Alltech, Harold served as Cargill Animal Nutrition's national sales leader for both the Dealer & Multi-Store Ag Retailer segments. Alltech welcomes Gier to the team from Purina Mills, where he served as vice president of sales.
| Rural Advocate News | Wednesday April 12, 2023 |
Wednesday Watch List Markets The U.S. Labor Department's consumer price index for March is due out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories, including ethanol production at 9:30 a.m. At 1 p.m., the Federal Reserve will have minutes from the latest FOMC meeting and the U.S. Treasury will report on the federal budget for March. Weather A pair of systems are entrenching on the country Wednesday. One over the Gulf of Mexico will start to bring showers northward into the coast for the next couple of days. Another is moving into the West and Canadian Prairies where showers will expand into the Northern Plains. That includes some snow in spots. Breezy winds across the Plains and Midwest are a risk for spreading wildfires, though the warmth continues to be a boon for fieldwork and early planting. The snowpack across the north has taken a major hit and flooding is starting up.
| Rural Advocate News | Tuesday April 11, 2023 |
World Food Price Index Continues Decline The Food and Agriculture Organization of the United Nations Food Price Index averaged 126.9 points in March 2023, down 2.8 points or 2.1 percent from February. The average marks the twelfth consecutive monthly decline since reaching its peak one year ago. During the past twelve months since March 2022, the index has declined 20.5 percent. The Cereal Price Index averaged 138.6 points in March, down 5.6 percent from February and 18 percent below its one year ago. The Vegetable Oil Price Index averaged 131.8 points in March, down three percent from February and 47.7 percent below its level a year ago. The Dairy Price Index averaged 130.3 points in March, down 1.1 points from February and 10.7 percent lower for the year. The Meat Price Index averaged 113.0 points, up slightly in March, but 5.3 percent lower than a year ago. Finally, the Sugar Price Index averaged 127.0 points in March, up 1.5 percent from February, the second consecutive monthly increase, reaching its highest level since October 2016. *********************************************************************************** Coalition Asks Lawmakers to Fund Export Promotion Programs The Coalition to Promote U.S. Agricultural Exports urges congressional appropriators to continue mandatory funding for Market Access and Foreign Market Development programs. The Coalition also asked the Senate agriculture committee to include a provision that would double the dollars for those programs in the next Farm Bill. In letters sent to the chairs and ranking members of the Senate and House agriculture appropriations subcommittees, the Coalition asked that the MAP get at least $200 million and FMD receive a minimum of $34.5 million in fiscal 2024. The Coalition also called on House and Senate Agriculture Committee leaders to include the Expanding Agricultural Exports Act of 2023 in the 2023 farm bill. The legislation would double the annual funding for MAP and FMD over the five years of the new Farm Bill. The Coalition says the outlook for agricultural trade is "uncertain due to continuing supply chain disruptions, surging international competition and the absence of new, near-term trade agreements." The group includes more than 120 agricultural organizations. *********************************************************************************** Academics Predict USMCA Dispute Panel Would Favor U.S. over Mexico Ag economists at The Ohio State University predict a U.S.-Mexico-Canada Agreement dispute settlement panel over biotech corn would rule in favor of the United States. The U.S. Trade Representative's Office recently requested technical consultations with Mexico under the Sanitary and Phytosanitary Measures Chapter of USMCA. The dispute has its origins in a decree issued by Mexico calling for GM corn for human consumption to be phased out by the end of January 2024. Given Mexico is the second-largest export market for U.S. corn totaling $4.792 billion in 2022, the original decree ratcheted up trade tensions between the two countries. Following U.S. pressure, Mexico scrapped the 2024 deadline banning GM corn for animal feed and industrial use on February 13, 2023, while retaining the ban on its use for human consumption. The experts say that “if a panel investigation goes ahead, “our expectation is that it will rule in favor of the United States.” *********************************************************************************** Beginning Farm Operations Tend to be in the South and West Beginning farms tend to be more concentrated in Southern and Western States than in other areas of the United States, according to USDA's Economic Research Service. Data published Monday by ERS shows that in some counties in California and Texas, the proportion of beginning farms is more than one-third of the total farms. As of 2017, there were about 340,000 farms—with almost 900,000 operators—on which all operators were beginning farmers with ten or fewer years of farm management experience. Most beginning farms are small-scale operations, about 67 percent of beginning farms produce less than $10,000 worth of output. Less than two percent of beginning farms achieve an annual production value of more than $1 million. Among farms with at least $10,000 in production, principal operators of beginning farms were 43 years old on average. In contrast, the age of operators of established farms averaged 63 years old. USDA offers numerous resources for beginning farmers. *********************************************************************************** Missouri River Runoff Forecast Improves The latest 2023 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, is showing improvement. Spring precipitation, including increased mountain snowpack and late-season plains snow, has provided improved runoff conditions. The 2023 calendar year runoff forecast above Sioux City is 26.4 million acre-feet, 103 percent of average. The runoff forecast is based on current soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. March runoff in the Missouri River Basin above Sioux City was 1.7 million acre-feet, 57 percent of average. System storage is currently 46.8 million acre-feet, 9.3 million below the top of the carryover multiple-use zone. Beginning in mid-March, releases from Gavins Point Dam were adjusted to provide flow support for Missouri River navigation. Navigation flow support for the Missouri River is at minimum service for the first half of the 2023 season, which began April 1 at the mouth of the river near St. Louis, Missouri. *********************************************************************************** Gas Prices Inch Higher, Diesel Lower For the second straight week, the nation's average price of gasoline has increased, up 8.8 cents from a week ago to $3.57 per gallon. The national average is up 13.0 cents from a month ago but 52.6 cents per gallon lower than a year ago. The national average diesel price fell 1.6 cents last week and stands at $4.15 per gallon, 88.9 cents lower than one year ago. GasBuddy's Patrick De Haan says, “Expect the upward trend to continue through much of the rest of spring.” However, once the transition to summer gasoline is complete, prices may slump in June. Over the last few weeks, the price of West Texas Intermediate crude rallied by over 20 percent from a low of $65 per barrel to back over $80 last week after OPEC+’s surprise decision to piece together a 1.15 million barrel per day production cut, and as the banking crisis has eased.
| Rural Advocate News | Tuesday April 11, 2023 |
Tuesday Watch List Markets USDA's WASDE report for April is due out at 11 a.m. CDT on Tuesday, followed by DTN's webinar at 12:30 p.m. Traders will keep up with the latest weather forecasts and any planting anecdotes in the U.S. The market will also pause at 8 a.m., in case USDA has an export sale announcement. Weather A ridge of high pressure continues to dominate most of the U.S. on Tuesday, leading to generally dry and warm conditions. A system moving through the Pacific Northwest and Canadian Prairies is bringing some showers, however. Winds will be a bit breezy in the Plains, but another day of warmth and sunshine should be beneficial for getting out into the fields in a lot of areas, as well as melting the northern snowpack.
| Rural Advocate News | Monday April 10, 2023 |
Top 5 Things to Watch - WASDE, Warm Weather and Road Warriors OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 16. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. April WASDE: April 11 is the next World Agricultural Supply and Demand Estimates (WASDE) report. DTN Lead Analyst Todd Hultman will post his expectations for the report on April 10. We'll have coverage just after 11 a.m. CDT, as quick as those little electrons can get to your computer, satellite unit and mobile devices. You'll see updated commentary on the report through the 11:00 hour. 2. Change in weather pattern: Troughs, and the clashing storms they create, stay away. Milder conditions are in, at least through most of this week. That may help coax some planters and tillage equipment out of the shed, but it also means the beginning of the Big Melt in the Northern Plains. We'll continue to be on flood watch as the week progresses, and as the potential for rain comes back in the following week. 3. Lively livestock markets: The past week saw significant cash sales around the country, with the dollars to keep the sale rings going. We'll continue to track this hot market. 4. Be safe out there: The first rush of spring always brings the chance of roadway conflicts as the nonfarm world remembers what those big pieces of equipment with orange and red triangle signs are all about. The closing rate between 60 mph and 17 mph is, well, faster than you think. Be watchful, no matter which end of that speed scale you're on. 5. Speaking of safety: One of the nastiest days you can have is standing over or next to an anhydrous ammonia connection that fails. If you're a "gasser," remember: Gloves, goggles, rinse water. And doublecheck those hoses before you crack the valve.
| Rural Advocate News | Monday April 10, 2023 |
Monday Watch List Markets Back from Easter weekend, traders will check the latest weather forecasts and pause at 8 a.m. CDT, in case an export sale is announced. DTN's WASDE preview will be out Monday morning. USDA will have its weekly report of export inspections at 10 a.m., followed by the second Crop Progress report of 2023 at 3 p.m. Weather A very small disturbance may bring some showers to the Plains Monday, while a small system moves through the Pacific Northwest and Canadian Prairies. But most of the county will be rather quiet with rising temperatures. Over the deep snowpack in the Northern Plains and Canadian Prairies, this will likely lead to snowmelt and some areas of flooding.
| Rural Advocate News | Friday April 7, 2023 |
Ford Keeping AM Radios in Commercial Vehicles A new report says Ford will keep AM radios in certain vehicles. The company plans to exclude AM radio from “most new and updated vehicles we bring to market” but also says commercial vehicles will continue to have AM radios. A Ford Authority report says, “This group of vehicles will likely consist of vehicles that count toward Ford Pro sales – the automaker’s commercial-focused division.” The report also says it’s not, by any means, a given because Ford could ditch the feature in some or all of those vehicles as well. So far, a total of eight automakers say they will remove AM radio from the dashboards of some of their models, mostly in the fast-growing electric vehicle segment. In a series of letters, none of the eight are signaling any second thoughts despite the Federal Emergency Management Agency’s push about the critical role AM plays in delivering public safety information. *********************************************************************************** Asia and Africa are the Future of Trade The best opportunities for increasing agricultural trade in the years ahead will take place in Southeast Asia and Africa. The Hagstrom Report says Foreign Agricultural Service Administrator Daniel Whitley made that observation during a recent speech before the American Association of Port Authorities. “Southeast Asia is the fastest-growing market for America’s products,” Whitley says. “People are moving from low-income to middle-income consumers who eat more fruits and vegetables and patronize restaurants and high-end grocery stores.” He also says Vietnam, Malaysia, the Philippines, Thailand, and Singapore already have a “fixation” with the U.S. brand. Whitley says Africa is “visibly shifting before our eyes.” Africa is going from being development recipients to commercial customers. “We need to be in a business relationship and not a developmental relationship with African countries,” he says. “While African countries have traditional ties with the EU, they also want to break some of those ties.” *********************************************************************************** Sorghum Yield Contest is Now Open National Sorghum Producers will now begin accepting entries for the 2023 National Sorghum Yield Contest. State and national winners get selected from contestants split into east and west regions for each division, which includes irrigated, dryland no-till, dryland tillage, and one overall winner for food grade. The entry deadline for the contest is November 15. A complete field of 10 or more continuous acres, planted in the sorghum seed variety named on the entry form, will be designated as the contest field. The contestants must harvest and report at least 1.5 contiguous acres. “The competition motivates farmers and seed companies to explore innovative genetics and techniques for enhancing sorghum yields,” says NSP CEO Tim Lust. “Despite the drought of 2022, we saw excellent top-end yields in the contest from growers nationwide.” To find the entry form, 2023 yield contest rules, and more information, interested sorghum producers can go to sorghumgrowers.com. *********************************************************************************** CHS Reports Second-Quarter Earnings CHS, Inc., released its second-quarter earnings results of $292.3 million in net income compared to $219 million in the second quarter of fiscal year 2022. The second quarter ended on February 28. For the first six months of fiscal year 2023, the company reported net income of $1.1 billion and revenues of $24.1 billion. That compares to net income of $671 million and $21.2 billion in revenues during the first half of fiscal year 2022. The report also says decreased prices for agronomy products and ethanol contributed to lower earnings in the company’s agriculture segment. “Strong global demand for commodities and improved market conditions for refined fuels led to increased earnings for the quarter as well as the first half of the fiscal year,” says Jay Debertin, president and CEO of CHS. “The strength of our diversified portfolio offset margin pressures experienced in our ag segment, particularly wholesale and retail agronomy products.” *********************************************************************************** No mRNA Vaccines in U.S. Cattle Social media has been sharing information that mRNA vaccines are getting used in raising the U.S. cattle herd. A National Cattlemen’s Beef Association statement says there are no current mRNA vaccines licensed for use in beef cattle in the United States. “Cattle farmers and ranchers do vaccinate cattle to treat and prevent many diseases,” the statement says, “but presently, none of these vaccines include mRNA technology.” Texas agriculture commissioner Sid Miller says his department has been working towards a fact and science-based assessment of the risks associated with this technology. “Our analysis will include the clinical research and the public policy, economic, and production impact of the different policy prescriptions we may adopt,” Miller says. “It’s a serious issue we are looking into here at TDA.” A January 12 article on the website Truth Press said if Americans consumed meat from a vaccinated animal, the mRNA vaccines then entered their bodies. *********************************************************************************** Hereford Association Growing Young Leaders Twenty-one National Junior Hereford Association members were selected to accompany the NJHA Board of Directors at the second Building on Leadership Development Conference in Texas. The board created the BOLD conferences for college-aged junior Hereford members seeking opportunities to expand their leadership skills. BOLD is geared toward college and career-focused junior members. It provides them with a personalized learning experience focused on improving their leadership, providing career opportunities, and cultivating life-long relationships. “From the moment I got there, I was laughing and having fun with my peers,” said Lauren Jones, a BOLD conference attendee. “But I was also challenged to think of what I want my future to look like and how to achieve it.” BOLD is an annual leadership opportunity and is scheduled for April 4-7, 2024. Junior members ages 14-22 looking to expand their leadership skills are invited to attend the 2023 Faces of Leadership Conference scheduled for July.
| Rural Advocate News | Thursday April 6, 2023 |
Farmers Seek Comprehensive Reform to Federal Milk Pricing The American Farm Bureau Federation told Agriculture Secretary Tom Vilsack Wednesday that requests to increase make allowances fall short of fairly supporting dairy farmers. Make allowances are used in part to calculate how much a processor pays for milk. Dairy farmers, on average, lose $6.72 per hundredweight of milk produced, according to USDA data. The loss for dairy farms with less than 50 cows was even greater at $21.58 per hundredweight. Two dairy processor associations requested a federal milk marketing order hearing to increase make allowances. While AFBF is not opposed to updating make allowances, the proposals to USDA do not address the wider need for changes to milk pricing regulations, according to AFBF President Zippy Duvall. In a letter to Vilsack, Duvall says, "The petitions we oppose here threaten to undercut trust between farmers who produce the milk and the processors who turn it into the dairy products we all know and love." *********************************************************************************** Boozman, Thune Lead Effort to Permanently Repeal Death Tax Republican Senators John Boozman, John Thune and Mitch McConnell are leading an effort to permanently repeal the death tax. The Death Tax Repeal Act would permanently repeal the federal estate tax, more commonly known as the death tax. Senator Boozman says, “The Death Tax hangs over too many family agriculture operations and small businesses as a potential destroyer of generations worth of work and investment.” Senator Thune adds, “I will continue to do everything in my power to remove these roadblocks for family businesses and repeal the death tax once and for all.” The legislation also has backing from a majority of Senate Republicans and is supported by more than 150 members of the Family Business Coalition and 111 members of the Family Business Estate Tax Coalition, which includes the American Farm Bureau Federation. Senate Majority Leader McConnell concludes, “Washington Democrats need to recognize the economic damage they’ve inflicted and join Republicans in ending this harmful tax.” *********************************************************************************** RFA Calls on Biden Administration to Allow E15 This Summer The Renewable Fuels Association kicked off an advertising campaign this week urging for quick action by the White House to allow summer availability of E15. The campaign comes as the summer driving season is less than two months away, and fuel prices are again rising. The campaign targets ethanol supporters across the Midwest, as well as policymakers and insiders in Washington, D.C. RFA President and CEO Geoff Cooper says, "Our message to the Biden administration is simple: Unless the White House acts quickly, American drivers will lose access to the lowest-cost, lowest-carbon fuel at the pump on June 1." Cooper pointed out that a Morning Consult poll conducted late last month found strong voter support for year-round E15 sales. 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence, while 62 percent support recently introduced bipartisan legislation allowing the lower-carbon E15 blend to be sold year-round nationwide. *********************************************************************************** Application Rates of Manure as a Nutrient Source Vary by Crop Data from USDA’s Economic Research Service shows the use of manure as a nutrient varies by type of crop. Between 2013 and 2019, producers of seven major crops in the U.S. who used manure were asked how much manure they applied per acre, allowing ERS to estimate crop nutrient application rates. Corn received the highest application rate of nitrogen from a manure source—92 pounds per acre—followed by cotton, wheat, barley, oats, soybeans, and peanuts. Cotton led phosphorus application at 37 pounds per acre, and corn led potassium application at 59 pounds per acre. Soybeans and peanuts require less nitrogen fertilization, and they were applied with the lowest manure nitrogen application rates. Manure applied to soybeans and peanuts is valued primarily for its phosphorus and potassium. In 2020, manure was applied to about eight percent of the 240.9 million acres planted to seven major U.S. field crops. *********************************************************************************** Bayer Investing $65 Million in Ukraine Seed Production Site Bayer announced a $65 million investment in its corn seed production facility in Ukraine, as part of its commitment to Ukraine. The investment includes a new seed dryer, state-of-the-art agricultural field equipment, storage facilities and the construction of two bomb shelters to ensure safety. Matthias Berninger of Bayer says, “Bayer has been active in Ukraine for many years and is committed to the country, its people and farming communities.” Before the war, the company made a significant investment to establish corn seed production through a network of skilled Ukrainian farmers and the greenfield seed processing site. The plant was inaugurated in 2018 and operates with around 100 on-site employees and about 250 to 300 seasonal workers. Bayer, with its plant, is one of the biggest investors in the region. This included the donation of more than 40,000 bags of corn and vegetable seeds as well as healthcare product donations. *********************************************************************************** USDA Funding to Support Food Security in Alaska, Hawaii, US Territories The Department of Agriculture Wednesday announced $7.6 million in funding to improve food security in Alaska, Hawaii and U.S. Territories. The funding seeks to increase the quantity and quality of locally grown food through small-scale gardening, herding, and livestock operations in food-insecure communities. USDA announced the funding as part of its Micro-Grants for Food Security Program. This year, the program received an additional $3 million through the Consolidated Appropriations Act of 2023. The program is authorized by the 2018 Farm Bill and awards grants to eligible states and territories through a non-competitive application process. USDA’s Jenny Lester Moffitt says, “Micro-Grants provide funding to ensure communities in these areas have sustained access to quality, locally grown food.” States and territories that receive funding will grant competitive subawards to individuals, Tribal nations, nonprofit organizations engaged in increasing food security, federally funded educational facilities, or local governments.
| Rural Advocate News | Thursday April 6, 2023 |
Thursday Watch List Markets USDA's weekly report of export sales will be out at 7:30 a.m. CDT, the same time as U.S. weekly jobless claims and an update of the U.S. Drought Monitor. At 9:30 a.m., the Department of Energy will have its weekly report on natural gas storage. U.S. futures markets will be closed Friday, but the Labor Department will report on nonfarm payrolls and the U.S. unemployment rate for March at 7:30 a.m. Weather A frontal boundary will continue periods of showers and thunderstorms for parts of the South and Southeast Thursday. Some of the rains may be heavy and cause some flooding. It will be cooler behind that front across a lot of the country, but the skies will be quieter.
| Rural Advocate News | Wednesday April 5, 2023 |
Commodity Prices, Interest Rates, Prompt Ag Economy Barometer Decline Farmer sentiment weakened again in March as the Purdue University-CME Group Ag Economy Barometer fell eight points to a reading of 117. Both the Index of Current Conditions and the Index of Future Expectations declined eight points in March, leaving the Current Conditions Index at 126 and the Future Expectations Index at 113. Weaker prices for key commodities, including wheat, corn, and soybeans, from mid-February through mid-March were a key factor behind this month's weaker sentiment reading. This month's survey was conducted from March 13-17, 2023, which coincided with the demise of Silicon Valley Bank and Signature Bank. Although the March survey did not include any questions directly related to the bank closures, it did reveal that rising interest rates have become a bigger concern among farmers. Although producers still cite high input costs as their top concern, they are becoming more worried about rising interest rates and the impact those higher rates will have on their operations. *********************************************************************************** Corn Growers to EPA: Maintaining Consumer Access to E15 Increases Fuel Supply The National Corn Growers Association president and 18 state groups call on the Environmental Protection Agency to ensure uninterrupted access to E15 through the summer. In a letter to the EPA Tuesday, the industry leaders say, "Fuel market conditions that warranted EPA's actions last summer are expected to continue this summer." Last year, the EPA provided a waiver to allow summertime sales of E15. NCGA points out that E15 has been sold year-round for the past four years, but outdated regulatory barriers continue to hinder permanent full-market access to E15. Retailers have increased availability of E15, often marketed as Unleaded 88, to offer consumers choice and lower fuel costs, as well as increase the fuel supply. The corn grower leaders pointed to warning signs, such as OPEC's announcement of a 1.16 million barrels per day output reduction beginning in May, as reason the Biden administration should do everything possible to increase the domestic fuel supply to help keep prices down. *********************************************************************************** Study: UK Ag Trade Depends Heavily on Imports New data from USDA’s Economic Research Service shows the United Kingdom is the world’s fifth-largest importer of agricultural products. The U.K. imported $78.2 billion in agricultural and related goods in 2021 and exported $31.9 billion, less than half the value of imports. Historically, the European Union has been the largest trading partner with the U.K., but the U.K.’s formal departure from the European single market, known as “Brexit,” will likely impact the UK’s trade dynamics as the country seeks to diversify trading partners. An estimated two-thirds of agricultural goods imported by the U.K. in 2021 were high-value, consumer-oriented products. The United States exported about $1.12 million in alcoholic beverages to the U.K. in 2021. Agreements between the U.K. and the United States in 2022 to allow for the export of British beef and lamb to the United States for the first time since the 1990s are expected to generate $50 million in trade over the next five years. *********************************************************************************** Grassley Joins Bill to Crack Down on Xylazine Republican Senator Chuck Grassley joined Democrats Catherine Cortez Masto of Nevada and Maggie Hassan to introduce the Combating Illicit Xylazine (zy-la-zeen) Act last week. Grassley of Iowa sits on the Senate Ag Committee and joins the effort to crack down on the highly dangerous sedative causing fatal overdoses nationwide. Xylazine is an easily accessible veterinary tranquilizer that is being used as a low-cost cutting agent. The Drug Enforcement Agency recently reported 23 percent of fentanyl powder contained it in 2022. The legislation would classify xylazine illicit use under Schedule III of the Controlled Substances Act and enable the DEA to track its manufacturing to ensure it is not diverted to the illicit market. However, lawmakers say the bill will also protect access for veterinarians, farmers, cattlemen, and ranchers by protecting the veterinary medicine use of xylazine. The American Veterinary Medical Association "fully supports" the effort, adding. "it strikes the right balance of protecting our communities while preserving veterinary access to this critically important animal drug." *********************************************************************************** USDA: Look for Invasive Pests This Month The Department of Agriculture Tuesday declared April as 2023 Invasive Plant Pest and Disease Awareness Month. The outreach effort is dedicated to highlighting the impact of invasive plant pests and diseases on plants nationwide. The campaign also seeks to inform Americans on how they can help reduce the spread of invasive plant pests. Each year, invasive insects and plant diseases cause an estimated $40 billion in damages to plants, including key agricultural crops. Agriculture Secretary Tom Vilsack says, “This spring, familiarize yourself with the invasive pest quarantines in your area and do your part to avoid inadvertently moving invasive insects and plant diseases to new areas.” Nonnative plant pests can hitchhike in untreated firewood, attach themselves to cars, boats, and other outdoor surfaces—or take a ride in the mail. They can travel to new areas on agricultural materials such as soil, seeds, homegrown produce, and plants. *********************************************************************************** FMC Collaboration Seeks Improved Farm Safety in Ukraine FMC Corporation and The HALO Trust this week announced a new collaboration to improve farm safety in Ukraine. Under its Cultivating Freedom campaign, FMC will donate three percent of its 2023 sales revenue in Ukraine to significantly expand The HALO Trust's demining efforts. With the funding, The HALO Trust will be able to increase its capacity to remove landmines from Ukrainian farms. FMC president and CEO Mark Douglas says, "This project not only ensures Ukrainian farmers can safely return to their fields for planting and harvest, but it also contributes to improving food security around the globe." James Cowan, CEO of The HALO Trust CEO James Cowan adds the investment "will allow us to invest in the people, equipment and new technology needed for the enormous task of making Ukraine safe from landmines, bombs and shells." The collaboration between FMC and The HALO Trust will start this month in several communities across Ukraine.
| Rural Advocate News | Wednesday April 5, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department's will post the trade deficit for February at 7:30 a.m., including export data USDA will make available later Wednesday morning. The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. Traders will keep an eye on the latest weather forecasts with warmer temperatures expected in the northern U.S. Plains later this week. Weather A very strong storm system continues to drop snow in the Northern Plains, though that will be diminishing throughout the day. Strong winds in the region will continue blowing snow and blizzard conditions, even after the snow ends. Areas of scattered thunderstorms are found along a cold front stretching from Wisconsin to Texas early this morning, which will continue eastward throughout Wednesday day and Wednesday night. Storms will be capable of all hazards today, with the Great Lakes areas most at risk.
| Rural Advocate News | Tuesday April 4, 2023 |
Study Shows Red Meat Exports Important to Corn and Soybean Industries A new study shows a record value of beef and pork exports brought significant returns to America’s corn and soybean industries in 2022. The independent study done by World Perspectives and commissioned by the U.S. Meat Export Federation says America’s beef and pork exports contributed to an estimated total economic impact of 15 percent per bushel of corn and 13 percent per bushel for soybeans. “For every bushel of corn that we marketed in 2022, a little over $1 was attributed to red meat exports, and with soybeans, pork exports contributed $1.94 per bushel,” says USMEF Chair Dean Meyer. “Pork and beef exports bring critical support to our bottom lines.” Beef and pork exports accounted for 503.4 million bushels of U.S. corn usage, which equates to a market value of $3.4 billion. Pork exports account for 89.7 million bushels of U.S. soybean usage, which equated to a market value of $1.33 billion. *********************************************************************************** Thune Reintroduces Repeal of the “Death Tax” Senator John Thune (R-SD) and 40 colleagues reintroduced legislation to permanently repeal the federal estate tax. The “Death Tax Repeal Act” would end a tax that hits family-run farms, ranches, and businesses hard after the owner’s death. “Agriculture is the backbone of the rural American economy,” Thune says. “Family-owned farms and ranches often bear the brunt of this tax, which makes it difficult and costly to pass these businesses down to future generations.” Todd Wilkinson, president of the National Cattlemen’s Beef Association, says no cattle producers should ever be forced to sell their family’s farm or ranch to pay a tax bill due to the death of a family member. “Repealing the death tax is a commonsense way to keep the farm or ranch in the family,” Wilkinson says. “As a land-based, capital-intensive industry, most cattle families are asset rich and cash poor, with few options to pay tax liabilities.” *********************************************************************************** Dairy Farm Innovations Yield Big Environmental Benefits From parlor to pasture, many advances in dairy farm management are helping drive up dairy farm efficiency in North America, and that helps drive down environmental impact. The Association of Equipment Manufacturers issued a report titled “Environmental Benefits of Modern Dairy, Hay, and Forage Production Technologies.” The report points out several statistics that help quantify the environmental impact of modern dairy practices in North America. As milk yield increased 19 percent over the past 15 years, feed use dropped 15 percent. Land use also dropped 26 percent, greenhouse gas emissions decreased 17 percent, and water use dropped 10 percent. “Over the past 15 years, the industry has gained a better understanding of how to go about managing a dairy animal,” says Chad Huyser (Heiser), president of Lely (LAY-lee) North America. Technology is also helping dairy farmers better understand how to manage some of the cost drivers around dairy more efficiently. *********************************************************************************** Contrasting Soybean Harvests in South America South American countries typically account for almost 55 percent of the world’s soybean supply. A University of Illinois Farmdoc Daily report says South America’s top soybean producers are experiencing varying harvest expectations this crop season. Brazil looks to be on the verge of breaking a record in soybean production. However, Argentina will have its worst harvest in more than 20 years. The contrast in harvest predictions is due to La Niña. Overall, South America’s soybean production is still expected to bypass the previous year, but to a smaller extent than first thought. The consequences of a larger soybean crop in South America, combined with the potential for a larger U.S. soybean crop this fall, could push prices lower. The effects of La Niña this season were more concentrated in southern South America, affecting extreme southern Brazil, Argentina, and Uruguay. Paraguay, the world’s fourth-largest soybean exporter, was spared from the drought’s effects. *********************************************************************************** EPA Comments on National Farmworker Awareness Week Environmental Protection Agency Deputy Administrator Janet McCabe spoke out in celebration of National Farmworker Awareness Week. “During National Farmworker Awareness Week, we applaud more than two million unsung heroes who do the toughest work to help put food on our tables in the United States,” McCabe says. “Farmworkers often work through day and night in the face of challenges like extreme heat to promote healthy and secure food supplies.” McCabe also says she’s seen that firsthand in her home state of Indiana. This week, the EPA is highlighting these unsung heroes and their contributions to the nation. EPA’s mission is to protect human health and the environment, and that includes how its policies and programs support farmworkers and their families across the country. “As an agency, we are committed to continuing to work closely with farmworkers and the broader agricultural community to confront environmental issues and other challenges,” she adds. *********************************************************************************** Farm Credit Merger is Complete Farm Credit Mid-America and Farm Credit Midsouth officially merged on April 1 to become Farm Credit Mid-America. The new association now serves more than 137,000 customers. Those customers live in 391 counties across Arkansas, Indiana, Kentucky, Missouri, Ohio, and Tennessee. “This is an exciting time for Farm Credit Mid-America as we bring our customer-owners and team members together to form an even stronger cooperative,” says Andrew Wilson, Chair of Farm Credit Mid-America’s Board of Directors. “Together, we are fulfilling our purpose to secure the future of rural communities and agriculture by serving their needs with excellence.” Dan Wagner continues to serve as Farm Credit Mid-America’s President and CEO. “With a combined net income of $477 million and $38 billion in total assets owned and managed, we are well-positioned to capitalize on our customers’ opportunities, and we are committed to agriculture and rural communities when challenging times arise,” Wagner says.
| Rural Advocate News | Tuesday April 4, 2023 |
Tuesday Watch List Markets A report on U.S. factory orders in February will be out at 9 a.m. CDT Tuesday and is the only significant report of the day. Traders will check the latest forecast and watch for a possible export sales announcement at 8 a.m. Another winter storm is expected to dump more snow across the Northern Plains Tuesday and Wednesday. Weather A large, strong system will move into the Plains on Tuesday. It has already started a band of heavy snow across South Dakota that will expand through the Northern Plains throughout the day. Strong winds will build across the middle of the country, and where they coincide with the snow will create blizzard conditions. Farther south, it will mean more blowing dust and poor conditions for struggling winter wheat in the drought. Increasing moisture in the middle of the country will produce areas of showers and thunderstorms in several waves, all of which may become severe. A zone from Wisconsin to northeast Texas is in the main risk area for today, which includes large hail, damaging winds, and strong tornadoes.
| Rural Advocate News | Monday April 3, 2023 |
Farmers Planting More Corn and Soybean Acres in 2023 USDA released its Prospective Plantings report showing producers are planting more corn and soybean acres than last year. Farmers intend to plant 92 million acres of corn, up four percent from last year. Soybean growers intend to plant 87.5 million acres this year, up slightly from last year. The all-wheat planted area is estimated at 49.9 million acres, up nine percent from 2022. Winter wheat planted estimates are 37.5 million acres, 13 percent higher than in 2022. Spring wheat acres are expected to reach 11.3 million, 18 percent below last year. All-cotton planted acres are expected to total 11.3 million acres, 18 percent lower than in 2022. USDA also released the Quarterly Grain Stocks report. Corn stocks totaled 7.4 billion bushels, five percent lower than March 2022. Soybeans stored totaled 1.69 billion bushels, 13 percent lower than last year. All-wheat storage totaled 946 million bushels, eight percent lower than March 2022. *********************************************************************************** USDA Expands Margin Protection for Corn and Soybean Growers USDA announced it is expanding the Margin Protection insurance plan. The agency will add more than 1,000 counties to the insurance option that provides coverage against an unexpected decrease in operating margins for corn and soybean farmers. This expansion comes from growing interest among producers and will be available by June 30. Interested producers will need to purchase their coverage by September 30 to be eligible for the 2024 crop year. “Increasing the availability of a program is sometimes the best way we can improve upon an effective program and serve our farmers with more risk management resources,” says Marcia Bunger, administrator of the Risk Management Agency. Margin Protection protects against decreases in margin caused by reduced county yields, reduced commodity prices, increased prices of certain inputs, or any combination of these issues. “This expansion will provide a viable insurance option for so many more farmers across the country,” Bunger adds. *********************************************************************************** Next Generation Fuels Act Reintroduced in the House The Next Generation Fuels Act has been officially reintroduced in the House of Representatives. Several of America’s top agricultural organizations endorsed the move, saying it would help address the country’s most pressing energy issues through a transition to cleaner fuels and vehicles. “The Act would clean up the nation’s fuel supply and transition new vehicles to use cleaner, more efficient fuels that would also lower costs for drivers,” says Tom Haag (Hayg), president of the National Corn Growers Association. “By establishing a clean, high-octane standard for fuel and requiring that sources of additional octane result in at least 40 percent fewer greenhouse gas emissions, automakers could improve fuel efficiency through advanced engines.” Rob Larew, president of the National Farmers Union, says there’s no time to waste. “America’s farmers and ranchers are ready to be part of the global climate solution,” Larew says. “This will benefit farmers, consumers, and the planet.” *********************************************************************************** U.S. Ethanol Gets Full Access to Japan Japan’s Ministry of Economy, Trade, and Industry released its final proposed rule for partial amendment of the “Act on Sophisticated Methods of Energy Supply” structures last week. The act, in place through 2028, allows the country to further contribute to its climate targets through the consumption of lower-carbon ethanol. For the first time, ethanol will successfully access 100 percent of the biofuel market in Japan. Ryan LeGrand of the U.S. Grains Council, Emily Skor of Growth Energy, and Geoff Cooper of the Renewable Fuels Association issued a joint statement applauding the news. “The U.S. ethanol community thanks the Japanese government for recognizing the role ethanol can play in the global effort to address climate change at the same time it takes steps to decarbonize its transportation sector,” the statement says. “Countries around the world are recognizing that biofuels like ethanol are a simple and effective solution to meeting our climate goals.” *********************************************************************************** NCBA, PLC Denounce New Public Land Rule The National Cattlemen’s Beef Association and the Public Lands Council have serious concerns about a new rule from the Bureau of Land Management. The proposed rule is titled “Strengthening the Stewardship of America’s Public Lands” and would completely upend BLM’s multiple-use mandate and jeopardizes the agency’s ability to be a good partner to the ranchers who manage millions of acres across the West. “Ranchers have a reasonable expectation of transparency and predictability when dealing with the Bureau, and this proposed rule falls short on both counts,” says Kaitlynn Glover, executive director of the PLC. “The covert manner in which the rule was developed and announced has left permittees feeling like the rule is either a capitulation to the extremist environmental groups who want to eradicate grazing from the public landscape or a concerted effort to develop rules that preclude ranchers’ input.” She also says BLM will face serious questions needing answers. *********************************************************************************** U.S. Hog Inventory Up Slightly As of March 1, U.S. farms had 72.9 million hogs and pigs. That number is up slightly from March 2022 but down two percent from December 1, 2022. The Quarterly Hogs and Pigs report from the National Agricultural Statistics Service shows that of the 72.9 million hogs and pigs, 66.7 million were market hogs, while 6.13 million were kept for breeding. Between December 2022 and February, 32.1 million pigs were weaned on U.S. farms, up slightly from the same period one year earlier. From December through February, producers weaned an average of 11 pigs per litter. Producers intend to have 2.93 million sows farrow between March and May 2023, and 2.97 million sows farrow between June and August 2023. Iowa hog producers had the largest inventory at 23.4 million head. Minnesota had the second-largest herd at 8.9 million head. North Carolina was third in the country at eight million head.
| Rural Advocate News | Monday April 3, 2023 |
Top 5 Things to Watch - Start of Crop Progress Reports, Recovery From Spring Storms OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 2. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Spring storms are no April Fools: Once again, as we look forward into the coming week, we have severe weather during the weekend. DTN weather experts forecasted continued severe storms across the Midwest and Tennessee Valleys as moisture pours in from the Gulf of Mexico, possibly hitting an even wider area than the killer storms of March 24-26. So, the first week of April will see additional recovery efforts from weekend storms. 2. Checking on wheat conditions: We continue to hear reports of failed wheat fields across Kansas and Oklahoma. As the calendar turns to April we have been talking to farmers and agronomists to learn more. 3. Mixed market signals: We'll continue to watch market reaction to the March 31 Quarterly Grain and spring Prospective Plantings reports, which gave a mixed bag of signals for corn and soybeans. Look to see if beans keep their post-report momentum with continued updates in the Markets sections of DTN digital platforms throughout the week and watch our daily market videos on weekday afternoons. 4. Start of crop progress: The weekly USDA Crop Progress reports begin this week, and you'll see our update and take on that Monday afternoon, and on subsequent Mondays. They've become an anticipated weekly feature through the crop season. 5.Other reports of note: Additional reports analysts will watch during the week include: Monday -- USDA's weekly grain export inspections, and foreign manufacturing indices; Wednesday -- U.S. trade deficit and DOE weekly energy inventories; Thursday -- USDA weekly export sales and U.S. jobless claims; Friday -- U.S. nonfarm payrolls and U.S. unemployment rate.
| Rural Advocate News | Monday April 3, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts and pause for a possible export sale at 8 a.m. CDT. Reports of manufacturing indices from several countries will be coming in overnight, joined by a U.S. report for March at 9 a.m. USDA's weekly report of export inspections is due at 10 a.m., followed by the first weekly Crop Progress report of 2023 at 3 p.m. Weather After a weekend that saw heavy snow, blizzard conditions, and widespread severe weather, yet another storm system brewing in the West will do the same early this week. Snow will be building across Wyoming and into South Dakota throughout the day, but really increase across the Northern Plains Monday night and Tuesday. Strong winds are developing in the Central and Southern Plains yet again with potential for more blowing dust and an increased risk for wildfires, especially on Tuesday. Some other batches of rain and thunderstorms will move through the Midwest and Southeast, the latter of which could be severe again. More severe storms are forecast for Tuesday and Wednesday for the middle of the country out of the system.
| Rural Advocate News | Friday March 31, 2023 |
Senate Passes Resolution Overturning Biden Administration’s WOTUS Rule The Senate passed the Congressional Review Act joint resolution of disapproval that overturns the Biden Administration’s Waters of the United States Rule by a 53-43 vote. Senator Shelley Moore Capito (CAP-ih-toe) (R-W.VA.), ranking member of the Environment and Public Works Committee, introduced the resolution in February. The administration introduced a new rule in December 2022 that repealed the Navigable Waters Protection Rule and changed the definition of WOTUS in a way that will significantly expand regulatory authority. “By voting to overturn the president’s waters rule, we are sending a clear, bipartisan message that Congress, even a divided one, will defend working Americans in the face of executive overreach,” Capito says. The National Cattlemen’s Beef Association commended the Senate for passing the resolution. “The president now has a choice: sign the resolution and pull back the rule or turn his back on rural America,” says NCBA President Todd Wilkinson of South Dakota. *********************************************************************************** Poll Shows Voters Want Year-Round E15 A new poll shows overwhelming support among voters for year-round access to E15 across the country. With retail gas prices still high, almost 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence. Only 13 percent of those surveyed said they didn’t support expanded E15 availability. Meanwhile, 62 percent support recently introduced bipartisan legislation that would allow the lower-carbon E15 blend to be sold year-round nationwide. “We’re pleased but not surprised,” says Geoff Cooper, President and CEO of the Renewable Fuels Association. “Drivers continue to embrace an American-made fuel that’s more affordable and lower in carbon emissions.” Last summer, E15 sold for 20 to 30 cents a gallon cheaper than regular gasoline. Those savings will disappear on June 1 unless Washington takes action. “They need to act quickly to make sure lower-cost E15 is available through the summer driving season,” Cooper adds. *********************************************************************************** Groups Want Tighter Checkoff Rules Over 130 agricultural and food groups are asking the House and Senate Ag Committees for stricter rules that govern checkoff programs. The organizations wrote committee leaders in both chambers to support the Opportunities for Fairness in Farming Act. The groups say the legislation would restore what they call a “minimum level” of oversight. “Several of the mandatory checkoff programs and associated boards have well-documented histories of waste, conflicts of interest, misuse of funding, anti-competitive behavior, and other issues,” the letter says. “For these reasons, many farmers and ranchers across the country have grown disillusioned with the effectiveness of many of these checkoff programs as they operate today.” The legislation would prohibit checkoff programs from contracting with any organization that lobbies on agricultural policy, prohibit employees and agents of the checkoff boards from engaging in activities that may involve a conflict of interest, require publishing of checkoff financial information, and make other changes. *********************************************************************************** Iowa State Releases the 2023 Custom Farming Rates Report Many farmers in rural America hire some custom machine work in their farm business or perform custom work for others. Others may rent machinery or perform other services. To help producers and custom operators examine the current market, Iowa State University Extension and Outreach publishes the Iowa Farm Custom Rate Survey. Most custom farming rates saw an increase of 10-15 percent. Custom planting ranges from $12.50 to $45 per acre, depending on the type of planter and setup. Combining corn showed an average of $41.30 per acre, and combining soybeans averaged $39.90 an acre, an increase of 12.4 percent and 10.7 percent, respectively. ISU Extension says the information in the survey is meant to be a starting point for farmers and agribusinesses to engage in conversations and negotiations. It’s not meant to set the rate for a particular practice or operator. The survey assumed diesel prices would be around $3.39 a gallon. *********************************************************************************** Train Carrying Ethanol Derails in Minnesota A freight train carrying ethanol and corn syrup derailed in a fiery crash near a small Minnesota town in the early hours of Thursday morning. The incident was reported to law enforcement and emergency responders at 1 a.m. and forced residents to evacuate the area. A BNSF Railway train had multiple tankers derail and catch fire on the western edge of Raymond, a small southwestern Minnesota town of fewer than 800 people. The local county sheriff’s office says the train was carrying a “form of ethanol” and a “corn syrup liquid.” BNSF, one of the largest freight railroad networks in North America, is investigating the cause of the incident, and so far, there are no reported casualties, according to ABC News. “The main track is blocked in that area, and an estimated time for reopening the line isn’t available yet,” says spokesperson Lena Kent. “We’re working closely with local first responders.” *********************************************************************************** Sorghum Checkoff Partners with Google to Grow Awareness, Demand The United Sorghum Checkoff Program has announced a strategic partnership with Google to increase sorghum consumer awareness through innovative marketing strategies. USCP is a producer-funded national organization dedicated to improving the sorghum industry and representing sorghum farmers across the U.S. The program will leverage Google’s expertise in digital marketing to create consumer awareness campaigns that promote the sustainability and health benefits of sorghum and its versatility as a food ingredient. USCP recently developed and launched a new campaign for this partnership titled “Sorghum. Food’s Best Kept Secret” to showcase and offer a new whole-grain option for consumers. The campaign’s ads can be viewed on the Sorghum Checkoff’s YouTube channel, “Sorghum. Nature’s Super Grain,” and are powered by Google Ads, leveraging Google’s expertise in digital marketing. “Our partnership with Google will allow us to take our sorghum consumer awareness campaigns to the next level,” says USCP Director of Communications Clint White.
| Rural Advocate News | Friday March 31, 2023 |
Friday Market Watch Markets Reports on U.S. personal incomes and consumer spending are due out at 7:30 a.m. CDT Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. USDA's Prospective Plantings and Grain Stocks reports are set for 11 a.m., followed by DTN's webinar at 12:30 p.m. Traders will monitor the latest weather forecasts and watch for a possible export sale announcement at 8 a.m. Weather A strong storm system in the Plains will continue east through the Midwest on Friday. Widespread precipitation is developing with this storm, especially across the Midwest early Friday morning. The cold front racing between the Rockies and Appalachians will produce a line of very strong and severe thunderstorms by midday across the middle of the country. A widespread severe weather event is expected from this activity across the middle of the country. A band of heavy snow is also found in South Dakota and Nebraska that will be continuing eastward through the Upper Midwest for Friday and Friday night. Strong winds with the system will create some damage, and in the southwest it will be another day of blowing dust in the drought. Where it coincides with the heavy snow across the north, some blizzard conditions will be possible.
| Rural Advocate News | Thursday March 30, 2023 |
Agriculture Takes the Spotlight on Capitol Discussions on agriculture ran rampant through the halls of Capitol Hill this week, with several high-profile Cabinet officials meetings with legislators. Agriculture Secretary Tom Vilsack fielded questions from Senate and House agriculture and appropriations committees on issues ranging from nutrition assistance to disaster aid, rural broadband funding, the Environmental Protection Agency's pesticide regulation and foreign ownership of U.S. farmland. Just this morning, reauthorization of the Animal Drug User Fee Act (ADUFA) kicked off with a hearing in the House Energy and Commerce Subcommittee on Health, with the subcommittee chair calling for the Food and Drug Administration’s Center for Veterinary Medicine (CVM) to “modernize its review process, so sponsors can continue to bring safe and effective animal drugs to the market” and confirmed the committee’s commitment to reauthorizing these critical user fee programs before the Sept. 30 expiration date. In other news, we finally received word on the administration’s trade agenda, or lack thereof, late last week when U.S. Trade Representative Katherine Tai testified before both the House Ways and Means and Senate Finance Committees. Tai told the committee that lawmakers who have urged her office to return to negotiating traditional free trade agreements, “Needed to wake up to the realities of the new economic order,” and that “we live in a very different world” where “we can't keep doing things the same way.” In addition, she noted the administration would continue pressing Mexico on its biotech corn ban and would not “let this go on indefinitely.”
| Rural Advocate News | Thursday March 30, 2023 |
University of Missouri Releases 2023 Market Outlook The University of Missouri’s Food and Agricultural Policy Research Institute Wednesday released its 2023 U.S. Agricultural Markets Outlook. The report summarizes baseline projections for agricultural and biofuel markets prepared using market information available in January 2023. The report finds that if weather conditions allow crop yields to return to trend-line levels in 2023, prices for corn, soybeans, wheat, cotton and many other crops will likely fall. Higher input costs contributed to a sharp increase in farm production expenses in 2022. A smaller increase is projected in 2023, and lower prices for some inputs will reduce production costs in 2024 and 2025. In 2023, most projected livestock sector prices will fall as supplies rebound and demand growth slows. The one major exception is cattle, where drought and other factors limit the number of animals available for slaughter. Finally, net farm income reached a record level in nominal terms in 2022. The report projects net incomes to decline in 2023 and 2024 as receipts and payments fall. *********************************************************************************** Survey Shows Strong Public Support for Farm Bill Passage Almost three-quarters of Americans say that not reauthorizing the farm bill in 2023 would have a significant impact on the country. The response comes from a new American Farm Bureau Federation poll that explores the public's awareness of the farm bill. The poll, conducted by Morning Consult, showed more than half of respondents said they would be more likely to support their member of Congress if they voted to reauthorize the farm bill. Nearly 70 percent of respondents also identified two areas of the farm bill as top priorities for government funding: risk management programs that serve as a safety net for farmers and nutrition programs that serve as a safety net for families facing hunger. A majority of adults agree that nutrition programs, 68 percent, and risk management, 67 percent, should be top priorities for government funding in the farm bill. Further, the survey found 89 percent of adults trust farmers. *********************************************************************************** Lawmakers Welcome Vilsack Support of PASS Act Agriculture Secretary Tom Vilsack this week expressed support for their Promoting Agriculture Safeguards and Security, or PASS Act. The legislation would ensure USDA is fully involved in reviewing foreign acquisition of American agricultural land and companies, specifically targeting China. Vilsack responded to Representative Rick Crawford's question during a House Agriculture Committee hearing regarding the role of a USDA Secretary on the Committee of Foreign Investment in the United States. Vilsack says, “Being a permanent member would allow us to educate the other members of CFIUS in the United States what to look for and what to be sensitive to when it comes to agriculture and agricultural production.” Crawford, an Arkansas Republican, responded, “It’s time to be proactive in addressing these threats to our food supply and to our producers.” Representative Elise Stefanik, a New Yor Republican, adds the legislation "takes critical steps to ensure we do not concede any ownership of our food supply to those actively working against our security interests." *********************************************************************************** FBN Releases Spring Planting Intentions Report Farmers Business Network this week released its 2023 Planting Intentions Report. The survey, according to FBN, is one of the most accurate in recent years, released ahead of USDA’s Prospective Plantings report Friday. The report found U.S. corn acreage is projected to increase 3.9 million acres to 92.5 million acres in 2023, a 4.45 percent. Meanwhile, U.S. soybean acreage is expected to be at 84.5 million for 2023, 3.4 percent or three million acres lower than last year. U.S. farms are expected to plant 11 million acres of spring wheat in 2023, up only slightly from last year's total. FBN Chief Economist Kevin McNew says, “This report helps decipher how the complex global geopolitical factors, weather conditions, and market demand are shaping farmer decisions for the year ahead.” During March 2023, an electronic survey was distributed to U.S. FBN members. The FBN survey responses accounted for 4.7 million acres of principal crops across the United States. *********************************************************************************** CFTC Charges Chinese National with Fraudulent Scheme to Trade Against Employer The Commodity Futures Trading Commission this week filed charges against a Chinese national, in the Northern District of Illinois Court. CFTC charged Dichao Xie (De-chow Sheah) with a fraudulent scheme in which he misused knowledge of his employer’s trading in feeder cattle futures and options to trade for his own benefit in breach of a duty to his employer. Xie’s trades also constituted illegal fictitious and noncompetitive trades under the Commodity Exchange and CFTC regulations, according to the complaint. The complaint seeks, among other relief, civil monetary penalties, return of any ill-gotten gains, restitution, and permanent trading and registration bans. The complaint alleges that from approximately December 2021 to April 2022, Xie engaged in a fraudulent scheme to misappropriate material, non-public information from his employer in breach of a duty to that employer. Xie misused that information to enter into trades of feeder cattle futures and options fraudulently and deceptively for his personal benefit. *********************************************************************************** Economic Research Service: Georgia Leads U.S. Production of Peanuts New data from USDA’s Economic Research Service finds Georgia leads U.S. production of peanuts, outpacing all other states combined. Peanuts are grown mainly in the South, where the climate is warmer and growing seasons are longer than in northern zones. Most U.S. peanut production comes from six States: Georgia, Florida, Alabama, North Carolina, South Carolina, and Texas. USDA data finds the U.S. peanut crop in 2022 was estimated at 5.57 billion pounds. Accounting for more than 50 percent of all U.S. peanut production, Georgia produced the most peanuts of any state, with a 2022 peanut crop estimated at 2.9 billion pounds. Alabama’s peanut harvest, at 559 million pounds, was a distant second to Georgia, followed closely by Florida with 554 million pounds. The 2022 U.S. peanut crop was nearly 13 percent smaller than in 2021 because of lower acreage and yields. Smaller crops were estimated in all states except North Carolina, where production increased three percent from 2021.
| Rural Advocate News | Thursday March 30, 2023 |
Senators Roll Back EPA WOTUS Rule, Though Veto is Expected OMAHA (DTN) -- Republicans in Congress succeeded in passing a bill through the Democratic-led Senate on a 53-43 vote Wednesday to overturn the controversial waters of the U.S. rule under the Clean Water Act, sending the bill to President Joe Biden, who is expected to veto the measure. The resolution of disapproval matched a bill passed by the House on a 227-198 vote earlier this month. Agricultural groups have been among some of the most ardent critics of the latest attempt to define waters of the U.S. in a federal rule. Groups maintain the new rule is overly broad and could lead to federal regulation of ditches, ephemeral streams and low spots on farmland. Zippy Duvall, president of the American Farm Bureau Federation, called on Biden to follow Congress and rescind the rule. "Farmers and ranchers are committed to protecting the land and water they rely on to grow food for America's families," Duvall said. "Unfortunately, the 2023 WOTUS threatens the progress made to responsibly manage natural resources. We urge President Biden to recognize the concerns from members of both parties and rescind this troubled rule." The White House has said the president will veto the resolution, which would mark his second veto in the past month. Still, a veto on the waters of the U.S. (WOTUS) rule would come essentially while the U.S. Supreme Court has a pending case, Sackett v EPA, that also likely will go a long way in determining whether the latest EPA rule will need to be rewritten. IMPACT ON FARMERS, RANCHERS Senate Minority Leader Mitch McConnell, R-Ky., lashed out at the rule, which he said would affect farmers, ranchers and infrastructure projects. He also pointed to the bipartisan opposition to the rule. "America's farmers and ranchers have tough enough jobs without Washington Democrats inventing new problems," McConnell said. "But yet again, unelected bureaucrats at the EPA are trying to dump massive new regulations onto the heads of the small businesses that feed and fuel our economy. The Biden administration's latest version of the Waters of the United States is not some commonsense conservation measure. It's a radical power grab that would give federal bureaucrats sweeping control over nearly every piece of land that touches a pothole, ditch, or puddle." McConnell also pointed to the pending Supreme Court case. "If the president vetoes it, Americans will need to hope the Supreme Court makes it clear that these EPA bureaucrats are way outside the authority that Congress actually provided in the Clean Water Act." LONG-STANDING BATTLE The Sackett case involves a long-standing battle between an Idaho couple and EPA over whether the Ninth Circuit Court of Appeals followed the proper legal tests for determining whether wetlands qualify as waters of the U.S. The case was argued in October, and a ruling will come sometime this spring. The outcome of the Sackett case will more than likely lead federal courts to either uphold or reject the new WOTUS rule based on the language in the ruling. The bill passed the Senate with the support of every Republican senator along with four Democrats -- Sens. Joe Manchin of West Virginia, Catherine Cortez Mastro and Jacky Rosen of Nevada and Jon Tester of Montana, as well as Sen. Krysten Sinema, I-Ariz. As it is, the latest version of the WOTUS rule is on hold due to court injunctions in Texas and Idaho. Another 24 other states have asked a federal court for a similar injunction. EPA ADMINISTRATOR CRITICIZED EPA Administrator Michael Regan was criticized Tuesday in a House Appropriations Subcommittee hearing about the latest Clean Water Act rewrite. Regan told the subcommittee he doesn't believe EPA expanded federal authority over waters in the new rule. He said the agency believes the new rule "narrowed" the test put forward by the Supreme Court on making Clean Water Act determinations, emphasizing that USDA also supports the rule. Regan, when asked why EPA drafted the new rule before the Supreme Court ruling on the Sackett case, said the agency moved forward because the last rule from the Trump administration also had been rejected by federal courts. "There are also some aspects of this rule that the Sackett case won't touch," Regan said. He added, "And so, what we decided to do was move forward, try to codify a number of exemptions that were requested of us by the agricultural community. And I obviously respect the Supreme Court's position. I will respect the Supreme Court's ruling. What we have now is we can adjust it to what the Supreme Court rules this summer. We will adjust this rule, and we will move forward in a much more expeditious way than waiting to June and then start a two- to three-year rulemaking process. So, I think we are ahead of the curve in terms of having the framework for moving forward."
| Rural Advocate News | Thursday March 30, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and updates of second-quarter U.S. GDP and the U.S. Drought Monitor. The U.S. Energy Department's natural gas storage report is set for 9:30 a.m., followed by USDA's March 1 hog and inventory report at 2 p.m. Weather A strong storm system that has been building in the West the last couple of days is moving into the Plains on Thursday. Strong winds will be the first noticeable change to the region while scattered showers and thunderstorms will develop later in the day across the Plains and into the Midwest. A band of moderate to heavy snow will develop overnight across southeast Montana, northeast Wyoming and South Dakota and continue eastward for Friday. More impacts will be felt on Friday across the eastern half of the country.
| Rural Advocate News | Wednesday March 29, 2023 |
Wednesday Watch List Markets Traders will check the latest weather forecasts and wait to see if USDA has an export sale announcement at 8 a.m. CDT Wednesday. The U.S. Energy Department's weekly inventory report, including ethanol production is due out at 9:30 a.m. Weather A storm system in the West will continue to slowly move through the region on Wednesday with widespread precipitation and wind hazards. It will be a rather quiet day east of the Rockies, with just some isolated showers across the South and a little snow in the Midwest behind a cold front. Temperatures across the north in particular continue to be quite cold for this time of year, limiting snow melt on a large snowpack.
| Rural Advocate News | Tuesday March 28, 2023 |
Biden Asked to Intervene in West Coast Port Labor Talks A large coalition of agriculture and business groups asked President Joe Biden to intervene in the west coast port labor negotiations. In a letter signed by the groups, including the American Farm Bureau Federation, they say, “It is imperative that the administration work with the parties to quickly reach a new agreement and ensure there is no disruption to port operations." The coalition previously voiced concerns when the labor contract expired in July last year. Negotiations have been ongoing for over ten months, with little to no progress towards a new long-term agreement, according to the letter. The letter further states, “the only way to resolve these issues is for the parties to remain at the bargaining table and actually negotiate.” The effort is to encourage the administration to provide any and all support to the parties in their negotiations to reach a final agreement between the International Longshore and Warehouse Union and the Pacific Maritime Association. *********************************************************************************** NCBA Calls for Continued Ban on Paraguayan Beef Imports The National Cattlemen’s Beef Association is calling on Agriculture Secretary Tom Vilsack to continue blocking Paraguay from importing beef to the United States. The effort is in response to the Department of Agriculture releasing a proposed rule that would grant access to Paraguayan beef imports. NCBA Executive Director of Government Affairs Kent Bacus says, “Paraguay has a history of outbreaks of foot-and-mouth disease, and we cannot jeopardize the safety of U.S. consumers and the health of our U.S. cattle herd.” NCBA says the data used to inform the proposal by USDA is nine years old from site visits that occurred in 2008 and 2014. Bacus says the United States has the highest animal health and food safety standards in the world “because we rely on the most up-to-date information and the highest science-based standards.” NCBA adds USDA should not proceed with the application until a thorough review can be conducted with current information that demonstrates Paraguay’s equivalence in animal health. *********************************************************************************** 2022/23 U.S. Sorghum Crop: Highest Quality The U.S. Grains Council’s 2022/23 Sorghum Quality Report for the fourth year in a row, found U.S. sorghum was, on average, graded above the necessary requirements for U.S. No. 1 certification. Released last week, the report provides international customers and other interested parties accurate, unbiased information about the 2022/23 U.S. sorghum crop. USGC Chairman Josh Miller says, “We hope this year’s report helps give our valued trade partners even more confidence in the continued reliability and quality of U.S. sorghum.” A total of 97 samples were collected from 15 participating elevators and one participating farmer in the central and southern regions of the United States. Total sorghum damage came in at 0.0 percent in the aggregate, and broken kernel and foreign material was only 1.4 percent, lower than last year’s results, highlighting the grain’s hardness and how well it survives handling and storage. Additionally, tannins were absent from the sorghum samples for the fourth year in a row and protein content averaged 11 percent. *********************************************************************************** Most Row Crop Acreage Now Managed Using Auto-steer and Guidance Auto-steer and guidance system adoption on U.S. farms increased sharply in the past 20 years, according to USDA’s Economic Research Service. Farmers indicate they use the technology on more than 50 percent of the acreage planted to corn, soybeans, winter wheat, and cotton as of 2019. Adoption rates were 58.4 percent of acres planted to corn in 2016, 55.9 percent of winter wheat acres in 2017, 54.5 percent of soybean acres in 2018, and 64.5 percent of cotton acres in 2019. Economic Research Service researchers examined producer responses from various Agricultural Resource Management Surveys to better understand how auto-steer and guidance systems use has evolved. Using GPS, these technologies visualize and track the position of tractors, harvesters, and sprayers in the field in real time. Autonomous steering permits automatically guided fertilizing, harvesting, and other tasks in the field with minimal involvement from the farmer, increasing field efficiency, reducing operator fatigue, and freeing up operator time in the equipment’s cab. *********************************************************************************** USDA Research: Increasing Vegetable Consumption May Better Mental Health New research finds that increasing vegetable consumption has a positive effect on how happy a person feels. USDA’s Agricultural Research Service says that holds true for adults who consume the daily amount of vegetable servings recommended by the Dietary Guidelines for Americans. Researchers at the Grand Forks Human Nutrition Research Center conducted the eight-week study. The study divided healthy men and women between 18 and 65 years old into two groups. The first group of participants received daily servings of the recommended number and variety of vegetables based on their energy needs during the course of the study. The second group of participants received the same number of interactions and attention from the researchers while maintaining a diet without adding vegetables. All participants completed a questionnaire called the Subjective Happiness Scale, or SHS. Researcher Shanon Casperson says, “Results suggest that increasing the amount of vegetables you eat every day may benefit your mental health.” *********************************************************************************** Fuel Prices Decline Again, GasBuddy Warns of Increase Soon Gas and diesel prices fell again last week. The nation’s average gas price declined three cents to $3.40 per gallon, which is 7.8 cents high than a month ago, but 83 cents lower than a year ago. The national average diesel price dropped 5.9 cents to $4.19 per gallon, 92.7 cents lower than a year ago. However, GasBuddy’s Patrick De Haan warns prices should start moving higher again. De Haan says, “any downward trends are still likely to be temporary and not necessarily long lasting.” GasBuddy cites the start of the upcoming summer driving season as a potential to increase demand and prices, along with the ongoing switch to more expensive summer blends of gasoline. Meanwhile, concerns over the recent banking collapse are fading and oil prices are seeing some strength as Chinese consumption rebounds. However, U.S. retail gasoline demand saw a rise of 0.14 percent last week, which on the surface was much more tame than expected.
| Rural Advocate News | Tuesday March 28, 2023 |
Tuesday Watch List Markets Traders will check the latest weather forecasts and pause at 8 a.m. CDT Tuesday to see if USDA has another export sale to announce. A report on U.S. consumer confidence for March will be out at 9 a.m., the only significant report on Tuesday's docket. Traders are already looking ahead to Thursday's Hog and Pigs report and Friday's Grain Stocks and Prospective Plantings reports. Weather A couple of small disturbances are working their way through the country east of the Rockies on Tuesday, but with limited shower potential. The Gulf Coast will have some heavier showers along a stalled front there. All eyes are focused on the West where another storm system is moving in with widespread heavy precipitation. That storm system will bring widespread impacts to the country throughout the week. Colder temperatures over the northern snowpack continue to limit melting.
| Rural Advocate News | Monday March 27, 2023 |
USTR Hearing Before Senate Committee Gets Testy U.S. Trade Representative Katherine Tai testified before the Senate Finance Committee last week, and the discussion turned contentious. The Hagstrom Report says both Democrats and Republicans had a lot to say about the administration’s agricultural trade policies. Committee Chair Ron Wyden (D-Ore.) said he has real concerns that USTR isn’t doing enough to break down the barriers our exporters face. “I’ll draw a line here – the U.S. cannot conclude agreements with Japan, Indonesia, or the EU that leave issues facing our exports unaddressed,” Wyden said. In other remarks, Tai said she’s open to trade talks with China. “While we keep the door open to conversations with China, including on its Phase 1 agreement commitments,” she said during prepared remarks, “we must also defend our values and economic interests from the negative impacts of China’s unfair economic practices.” Her remarks didn’t indicate specific plans for discussions with China’s new economic team. *********************************************************************************** Planting Survey Shows Smaller 2023 Corn Crop Farm Futures conducted its March survey and found farmers opting for more drought-consistent crops this spring as depleted soil moisture levels present a big challenge for farmers. Steep input costs are also a factor in acreage decisions this spring. As a result, Farm Futures expects that 2023 planted corn acreage will drop one percent from last year to 87.7 million acres. If that corn number is realized, the projected 87.7 million acres would be the smallest-planted U.S. corn acreage since 86.4 million acres got planted in 2009. Survey results show farmers in the Plains have the highest chance of changing some corn acres in 2023. Farm Futures’ soybean estimate of 89.6 million acres is a 2.5 percent increase from last year and would be the second-largest soybean crop on record. Farm Futures’ total wheat estimates are noticeably similar to acreages from a year ago but include 3.4 percent more winter wheat acres. *********************************************************************************** ERS Releases Report on U.S. Export Crop Competitiveness The USDA’s Economic Research Service released a report titled “U.S. Export Competitiveness in Select Crop Markets,” and it showed the U.S. is still the world’s top corn exporter. The report says that export shares and exports-to-production ratios indicate that the United States is still the top exporter of corn, tree nuts, and cotton. However, it also says other competitors have gained shares in the global wheat and soybean markets. “Over the last decade, the U.S. lost its position in the global wheat market as the EU, Russia, and Ukraine gained market shares,” the report says. “Similarly, Brazil and Argentina continue to pose a challenge to U.S. soybean exports.” Brazil has been the largest exporter of soybean oilseed since 2021. The ERS report also shows the United States’ involvement in trade agreements contributes to its export competitiveness. “From 2012 through 2020, the U.S. didn’t establish any new free trade agreements,” the report says. *********************************************************************************** Food Prices Drop Slightly From January and February The Food Price Index averaged 129.8 points in February 2023, down 0.6 percent from January and continuing the downward trend for the eleventh-consecutive month. As of February, the index has dropped 30 points from the peak it reached in March 2022. The marginal decline in February reflected significant drops in the price indices of vegetable oils and dairy together with smaller drops in cereals and meat indices. The sugar price index was the only one to rise sharply, up 8.1 points to 124.9 in February. The Cereal Price Index averaged 147.3 points in February, down a fraction from January and two points above its level one year ago. The Vegetable Oil Price Index averaged 135.9 points, down 4.5 points from January and reaching the lowest level since early 2021. The Dairy Price Index was 131.3 points, 3.6 points lower than in January, and the Meat Price Index dropped fractionally to 112 points. *********************************************************************************** Plant Closure Raises Antitrust Concerns Tyson Foods recently announced it will be closing a Virginia processing plant in May. The two-month notice given to its chicken suppliers has raised concerns among farmers and legal experts about Tyson’s compliance with antitrust regulations. Those regulations require a company like Tyson to give a 90-day notice before they end a contract. The planned closure means chicken producers are scrambling to find new buyers in a region with few or no options. Reuters says there may be forthcoming fines for Tyson under the Packers and Stockyards Act, the U.S. antitrust law requiring the minimum advance warning. However, Tyson says it’s not canceling any farmers’ contracts and will pay the growers for the full remainder of their contracts, keeping them in compliance with federal antitrust regulations. Antitrust issues in meatpacking have been a priority for the USDA because four companies control up to 85 percent of the beef, pork, and chicken markets. *********************************************************************************** Kansas Winter Wheat Struggling with Drought Spring is typically a good time for rain on winter wheat. However, intense drought conditions in western Kansas continue to hurt winter wheat. Less than 20 percent of Kansas winter wheat is in good to excellent condition. The U.S. Drought Monitor says only 15 percent of Kansas’ acres are not experiencing any level of drought stress. More than 36 percent of the state reported D4 exceptional drought compared to just a little over one percent last year. D3 extreme drought conditions are hurting 16 percent of the state, with D2 severe drought hitting 13 percent of Kansas. Dennis Todey of the Midwest Climate Hub says the best chance of precipitation this spring is in the areas currently experiencing extreme drought to exceptional drought. Still, he says it’s going to be very hard to eliminate the drought in those areas. Todey says the worst drought is outside of corn and soybean growing areas.
| Rural Advocate News | Monday March 27, 2023 |
Top 5 Things to Watch - Reports, Reports and Weather Reports OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 26. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Beware of corn and bean bears: The DTN commodity analyst team is continuing to watch for bearish market news as interest rates, bank closures and renewed saber rattling on the Black Sea grains front take headlines. DTN subscribers will know that we've recently made several marketing recommendations via our Six Factors Strategies. 2. Big grain reports: March 31 sees the release of the USDA Quarterly Grain Stocks report and the spring Prospective Plantings report. Watch for Hultman's preview of those reports midweek. Coverage of the actual reports will hit right after 11 a.m. CDT on Friday, with updates throughout the morning. 3. The week will also include: Monday -- USDA's weekly grain export inspections; Tuesday -- U.S. consumer confidence index for March. Wednesday -- DOE weekly energy inventories; Thursday -- USDA weekly export sales, U.S. jobless claims, Q2 update of U.S. GDP numbers and the quarterly hogs and pigs inventory. 4. Spring storms roll in: As we write this, severe weather appears likely for Tennessee Valley March 25-27. This is on top of the flooding and other rain damage in Missouri, Texas and Oklahoma. The states of Tennessee, Kentucky, and down into Alabama have certainly had their share of rough early spring weather the past few years. We're also watching the Southern Plains area for March 30 weather. Weather models show another big ol' doozy of a storm churning up for that area. "Big ol' doozy" is an official meteorological term, by the way, according to DTN resident cloud whisperer John Baranick. 5. Vilsack talks to Congress: There were lots of conversations around expectations for the 2023 Farm Bill and ag spending in general last week during the Ag Day celebrations in Washington, D.C. Those talks continue with Agriculture Secretary Tom Vilsack testifying before the U.S. House Agriculture Committee on Tuesday. We'll watch for insights around those questions and, more importantly, the answers.
| Rural Advocate News | Monday March 27, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts, especially for rain prospects in Brazil and have grown accustomed to expecting a daily corn sale announcement from USDA at 8 a.m. CDT. USDA's weekly export inspections report is due out at 10 a.m. and is the only significant event on Monday's docket. Weather A cold front that stalled out in the Southeast over the weekend and brought heavy rain while severe weather remains active. A weak system is moving through the Central Plains with some areas of snow that may be moderate in spots. Other small areas of showers dot the U.S. on Monday. Cold morning temperatures in the southwestern Plains may be causing more damage to more-advanced wheat as this area yet again misses out on precipitation.
| Rural Advocate News | Friday March 24, 2023 |
Midwest Farmers Planting More Corn and Wheat Midwestern farmers are planning to plant more corn and wheat this spring. An Ag Access survey says farmers will add 27 percent more acres to corn and 32 percent more to wheat. A smaller percentage, at 17 percent, says they’ll increase their soybean acres. The survey results match up with USDA projections at its recent Ag Outlook Forum. The agency forecasts corn plantings at 91 million acres, up from 88.6 million in 2022. Wheat plantings will be 49.5 million acres, up from 45.7 million in 2022. Soybean acres will total 87.5 million acres, unchanged from last year. USDA Chief Economist Seth Meyers says the increase in wheat acres is in response to tight supplies and high global prices brought on in part by the war in Ukraine. The Ag Access survey also asked farmers about their top concerns for 2023. Ninety-three percent said their top answer was high input costs. *********************************************************************************** Farmers Face Extreme Variation in the Price of Inputs Farmers Business Network released its 2023 Ag Chemical Price Transparency Report which highlights the extreme price variation facing farmers. The report collected information from 37 states and accounts for over 800 insecticides, fungicides, and herbicides. “The last two years have seen extreme fluctuations in chemical pricing for farmers,” says Kevin McNew, chief economist and VP of FBN Research. “Providing more transparency enables producers to make more informed buying decisions to drive ROI from every input dollar.” Across 236 different chemical products, there was a 15 percent variance, on average, between the average list price of a product and the price farmers actually paid for it. For example, the average list price for Roundup PowerMAX 3 in June 2022 was $60 per gallon, but farmers paid between $45-$73 during that time. FBN says extreme farmer-to-farmer variability suggests that chemical markets make it challenging for farmers to get uniform costs for ag chemicals. *********************************************************************************** Next Generation Fuels Act Reintroduced in the Senate The Next Generation Fuels Act was reintroduced in the Senate, a move that drew praise from the National Corn Growers Association. The legislation, one of NCGA’s top agricultural advocacy priorities, would lower fuel prices, reduce carbon emissions, and help keep America’s energy secure. The Act would clean up the nation’s fuel supply and transition new vehicles to use cleaner, more efficient fuels that also lower costs for drivers. It would establish a clean, high-octane standard for fuel and require that sources of additional octane result in at least 40 percent fewer greenhouse gas emissions. That would allow automakers to significantly improve vehicle fuel efficiency through advanced engines. The legislation builds on the nation’s clean energy progress by advancing higher ethanol blends and new vehicles that work together to deliver greater emissions reductions, cost savings, and consumer choice. The Act would also permanently remove barriers that prohibit access to year-round ethanol. *********************************************************************************** Bankers Report an 8.1 Percent increase in Farm Bank Lending Despite numerous headwinds in 2022, agricultural lending by U.S. farm banks increased by 8.1 percent in 2022 to $103.1 billion. The American Bankers Association’s annual Farm Bank Performance Report says the change is due to a 9.7 percent increase in outstanding loans secured by farmland and a 5.9 percent increase in agricultural and production loans. The report also says farmland continues to provide a strong equity base for producers to tap as land values saw strong growth in 2022 after staying flat for several years. The bankers say the ag sector will face continued challenges in 2023 due to monetary policy actions targeting persistent inflation in the U.S. and continuing geopolitical uncertainty. The report also shows farm banks are a major source of credit to America’s small farmers. Banks held more than $43.8 billion in small farm loans, including $9.3 billion in micro farm loans at the end of 2022. *********************************************************************************** Ethanol Output Drops Below One Million Barrels a Day The Energy Information Administration says ethanol production dropped below an average of a million barrels a day during the week ending on March 17. That’s the first time production dropped below that mark in over two months. Output totaled 997,000 barrels a day, on average. That’s down from 1.04 million barrels a day during the prior week and the lowest since the seven days ending on January 6. The country’s largest-producing region is the Midwest, which saw production drop to 954,000 barrels a day from 966,000 the previous week. That’s also the lowest since early January. Gulf Coast production dropped an average of 8,000 barrels to 24,000 barrels per day. East Coast and West Coast production totals were the only ones higher than the prior week, with each rising about 1,000 barrels to an average of 11,000 and 5,000 barrels a day, respectively. Stockpiles averaged about 26.188 million barrels a day. *********************************************************************************** Nomination Open for American Lamb Board Members Nominations for new members of the American Lamb Board must be submitted by certified nominating organizations and are due to the USDA’s Ag Marketing Service by May 5. The Secretary of Agriculture appoints the board members from the nominations. USDA is looking for a producer with 100 or fewer lambs, a producer with more than 500 lambs, a feeder with 500 or fewer lambs, a first handler, and a seedstock producer. One of the producer representatives must be from Region One, east of the Mississippi River. The board positions for feeder, first handler, and seedstock representatives are not limited to geographic location. Board members who have completed two consecutive three-year terms are not eligible for reappointment to the ALB. Each vacant position needs a minimum of two nominations. The 13-member board maintains and expands markets for sheep and lamb products. Board members come from both east and west of the Mississippi River.
| Rural Advocate News | Friday March 24, 2023 |
Friday Watch List Markets A report on February U.S. durable goods orders will be out at 7:30 a.m. CDT Friday, the only significant report of the day. Traders will continue to monitor the latest weather forecasts and keep an eye on financial markets. Traders will also pause at 8 a.m. CDT, having gotten accustomed to USDA announcing a corn export sale. Weather Widespread rain and thunderstorms are occurring along a stalled front in the Ohio Valley back to a system moving through the Southern Plains. Thunderstorms are strong Friday morning across Oklahoma and Texas and will move through the Lower Mississippi Valley later Friday with significant risks of severe weather. Meanwhile, heavy rain will continue in the Ohio Valley. As the system moves northeast along the front later Friday night, a band of snow will develop across the Midwest and could be heavy for a small stripe from eastern Iowa through Michigan.
| Rural Advocate News | Thursday March 23, 2023 |
Federal Court in North Dakota Weighs Granting WOTUS Injunction LINCOLN, Neb. (DTN) -- Over the objection of EPA attorneys, a federal judge on Wednesday granted agriculture groups' motion to intervene in an ongoing lawsuit filed by 24 states challenging the Biden administration's waters of the U.S. rule. Though the WOTUS rule took effect on March 20, the U.S. District Court for the District of North Dakota also is considering a motion filed by the states for a preliminary injunction. Earlier this week the U.S. District Court for the Southern District of Texas granted a preliminary injunction to the states of Texas and Idaho, while denying a motion to intervene and a motion for a national injunction filed by ag groups including the American Farm Bureau Federation. The federal judge in North Dakota was much more lenient in granting ag groups' motion to intervene. "In the Southern District of Texas litigation, as in this case, the defendants asserted no preliminary injunction should issue but, alternatively, asserted any injunctive relief should be geographically limited to the plaintiff states," Judge Alice R. Senechal said in the court's decision. "Because defendants oppose nationwide injunctive relief, movants contend the only avenue open to organizations such as theirs with nationwide interests is to file separate actions covering the entire nation. And they point to litigation over the 2015 WOTUS rule -- where several courts enjoyed enforcement in only states that were parties to the litigation -- as 'instructive.' In fact, the injunction recently issued in the Southern District of Texas applies only in the two states that are plaintiffs in that case." The court granted the ag groups' motion in part because otherwise they would face the possibility of filing separate lawsuits in the each of the 24 states. States filing the lawsuit include Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. Their lawsuit alleges EPA and the U.S. Army Corps of Engineers have "toppled the cooperative federalism regime" by implementing a rule that is "overbroad and hopelessly vague." The interest groups allowed to intervene include the American Farm Bureau Federation, American Petroleum Institute, National Cattlemen's Beef Association, National Corn Growers Association, National Pork Producers Council, Public Lands Council, U.S. Poultry and Egg Association as well as state-level ag groups and construction interest groups. "Keeping in mind the premise that any doubts should be resolved in favor of intervention, in this court's view, movants have established that their interests are not adequately protected by the existing parties," the court said. The 24 states have asked the federal court in North Dakota to vacate the Biden administration's iteration of the WOTUS rule and to find it unlawful, and to prevent the agencies from enforcing the rule.
| Rural Advocate News | Thursday March 23, 2023 |
Coalition Calls for Farm and Food Business Technical Assistance in the Farm Bill An agriculture-focused coalition Wednesday asked the House and Senate Agriculture Committees for dedicated funding for business technical assistance and farm viability in the upcoming Farm Bill. American Farmland Trust, the Agricultural Viability Alliance, and a national coalition of agricultural organizations, service providers, nonprofits, businesses, lending institutions, and government entities made the request in a letter to lawmakers. The call for dedicated Farm Bill funding builds on work that AFT, in partnership with the Agricultural Viability Alliance, began in 2021 requesting USDA to set aside a portion of Coronavirus relief funding for one-to-one business technical assistance. Business technical assistance covers a wide range of one-to-one services offered to farm and food businesses by nonprofit organizations, state agencies, private consultants, and extension services. Customized to meet the unique needs of individual businesses, these services include coaching, skill development, and planning related to financial and labor management, marketing and business strategies, farm transfer and succession, and access to land and capital. *********************************************************************************** Grains Council Signs Ethanol MOU in Panama The U.S. Grains Council this week signed an ethanol memorandum of understanding with the Industrial Association of Sugar Cane of Panama. The signing came as part of a USDA trade mission to South America. The Grains Council held a regional seminar in Panama City that brought together stakeholders and government officials from Central American countries and the Dominican Republic to learn about ethanol and gasoline blending in the region. The MOU recognizes the importance of assessing the role and benefits of biofuels and ethanol in promoting economic growth, diversification of the energy matrix and decarbonization of transportation in the global energy transition to address global greenhouse gas emissions. USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor says, "This MOU bolsters economic and energy security through both domestic production and strengthening trade ties between our two nations." Global ethanol consumption has grown from 16 billion gallons in 2010 to more than 27 billion in 2022. *********************************************************************************** NCGA to EPA: Ensure Consumer Access to Higher Ethanol Blends The National Corn Growers Association urged EPA officials to implement a petition from Midwest governors that would remove barriers to higher blends of ethanol and avoid further delay. EPA’s public hearing reviewed the agency’s recent proposal to implement a plan from eight Midwest governors to require lower-volatility gasoline so drivers in those states continue to have year-round access to fuel with 15 percent ethanol, often marketed as Unleaded 88. EPA has proposed delaying implementation of the governors’ plan until 2024. NCGA President Tom Haag took issue with the delays to date and urged EPA to avoid further delays in implementation. He also highlighted the emissions reduction benefits of E15 and the current cost savings of up to 20 cents or more per gallon when drivers choose E15. Haag says, “we now strongly urge EPA to implement this rule with an effective date of April 28, 2024 -- as proposed --without further delay.” *********************************************************************************** USDA Announces Investments in School Meals The Department of Agriculture Wednesday announced new investments to provide healthy school meals to students. USDA announced several actions to expand support and access to the school meal program including $50 million in grants to increase collaboration between schools, food producers and suppliers. Agriculture Secretary Tom Vilsack says, "Continuing to make school meals healthier and available to more students are some of the best ways we can help our children thrive early in life." Grants were awarded to Boise State University, the Chef Ann Foundation, Full Plates Full Potential and the Illinois Public Health Initiative. USDA says the grants will foster innovation in the school food marketplace to get a wider variety of healthy, appealing foods into the marketplace and onto kids' lunch trays. Schools and other eligible organizations can apply for the challenge sub-grants later this year and are encouraged to check the USDA’s Healthy Meals Incentives website for updates. *********************************************************************************** Commodity Classic 2023 Sets Record Attendance Organizers of the 2023 Commodity Classic announced more than 10,400 attendees were at the event in Orlando earlier this month. The 2023 event broke the previous Commodity Classic record of 9,770 attendees from New Orleans in 2016. Commodity Classic co-chair George Goblish says, "We knew going into the event that registration was up 30 percent over last year, but to have a record-breaking show just blew us away." Co-chair Kenny Hartman of Illinois added, "There's nothing like connecting in person, and it just felt like everyone was so excited to come together again to see the best agriculture has to offer. This year's event featured more than 30 educational sessions, a sold-out trade show with more than 400 exhibitors, a keynote address by Agriculture Secretary Tom Vilsack, and policy meetings of the sponsoring commodity associations. The 2024 Commodity Classic will be held February 29 - March 2, 2024, in Houston, Texas. For information, visit CommodityClassic.com. *********************************************************************************** Lawmaker Seeks to Ensure AM Radio in All Vehicles Representative Josh Gotthemier this week urged electric vehicle manufacturers to include AM radio in their cars and trucks. The New Jersey Democrat says, "I would think that if Elon Musk has enough money to buy Twitter and send rockets to space, he can afford to include AM radio in his Teslas." The lawmaker says that despite the public safety uses of AM radio, many EV manufacturers have stopped including AM radio in their vehicles. AM radio is the backbone behind America's National Public Warning System, which provides emergency-alert and warning information to the public during major natural disasters and domestic threats. Gottheimer is writing to major EV auto manufacturers urging them to reconsider their decision to discontinue AM radio in their cars. Gottheimer also called on the National Highway Traffic Safety Administration to add AM radio to the Federal Motor Vehicle Safety Standards to require that all automakers include AM radio as a stock feature in their vehicles.
| Rural Advocate News | Thursday March 23, 2023 |
Thursday Watch List Markets USDA's export sales report is out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. February U.S. new home sales are set for 9 a.m., followed by weekly U.S. natural gas storage at 9:30 a.m. USDA's monthly cold storage report will be released at 2 p.m. Traders will continue to monitor the latest weather forecasts and are in the habit of expecting an export sale announcement at 8 a.m. Weather A cold front from Texas through the Midwest is going to be fairly active on Thursday as a system moves out of the Southern Rockies and attaches itself to the front. That will increase the risk of severe weather across Oklahoma and Texas later Thursday and Thursday night, mostly with a hail threat. Heavier rain and thunderstorms are going to develop along this front, which could lead to some areas of flooding going through Friday from Oklahoma through the Ohio Valley.
| Rural Advocate News | Wednesday March 22, 2023 |
NASDA Releases Feeding the Economy Report As part of the National Ag Day Celebration Tuesday, the National Association of State Departments of Agriculture released its annual Feeding the Economy Report. The data shows food and agriculture industries and their suppliers contribute over $8.6 trillion to the U.S. economy. NASDA CEO Ted McKinney says the report "proves our industry's continued strength across the states and around the globe." This year's report shows the U.S. food and agriculture sector directly supports nearly 23 million jobs, provides $927 billion in wages, and is particularly vital to rural communities across America. Notably, the 2023 report reveals that manufacturing agricultural products accounts for nearly one-fifth of total manufacturing jobs in the United States. Overall, more than 46 million jobs are supported across the food and agriculture supply chain, increasing nearly two percent since the 2019 report despite the economic challenges and disruptions associated with the global pandemic. Find the report at feedingtheeconomy.com. *********************************************************************************** Biden Creates new National Monuments to Conserve Land and Waters President Biden Tuesday announced two new actions to conserve and restore lands and waters across the nation. The effort includes establishing the Avi Kwa Ame (Avak-yuh-ah-may) National Monument in Nevada and Castner Range National Monument in Texas. The Avi Kwa Ame National Monument in Nevada will honor Tribal Nations and Indigenous peoples while conserving public lands and growing America’s outdoor recreation economy, according to the White House. The Castner Range National Monument will expand access to the outdoors for the El Paso community while honoring veterans and servicemembers. Together, these new national monuments protect nearly 514,000 acres of public lands. The President also directed the Secretary of Commerce to consider initiating a new National Marine Sanctuary designation within 30 days to protect all U.S. waters around the Pacific Remote Islands. If completed, the new sanctuary would ensure the U.S. will reach the President's goal of conserving at least 30% of ocean waters under American jurisdiction by 2030. *********************************************************************************** New Coalition Calls for Robust Farm Bill Agriculture and Nutrition Funding Feeding America this week announced the launch of Farmers Feed America. The organization says the broad coalition shows that farmers and food banks are united in calling for a strong 2023 Farm Bill that meets the needs of America's farmers and protects federal nutrition programs. The new nonpartisan coalition comprises farmers, food companies, food retailers, and hunger-relief organizations, including Feeding America and the American Farm Bureau Association. This year's farm bill reauthorization process is an opportunity to reflect on the innovations that worked during the pandemic and apply those learnings to future food and nutrition policy, according to the organization. The Farmers Feed America coalition has come together to establish shared principles for the next farm bill that help meet the continued needs of communities facing hunger, bolster the nation's food resilience, and enhance markets for farmers and ranchers. The coalition urges members of Congress to adopt these principles as they write the 2023 Farm Bill. *********************************************************************************** USDA Announces Wildfire Prevention Investments The Department of Agriculture this week announced the first investment of a $1 billion effort to mitigate wildfire risks as the nation faces an ongoing wildfire crisis. USDA announced a $197 million investment for 100 projects that benefits 22 states as part of the Community Wildfire Defense Grant program. USDA's Forest Service worked with states and tribes through an interagency workgroup to develop the Community Wildfire Defense Grant program, originally announced in June 2022. Grant proposals underwent a competitive selection process, including review panels of state forestry agencies and tribal representatives. The agency used the three priorities outlined in the Bipartisan Infrastructure Law to narrow down the communities in greatest need. These priorities included communities impacted by severe disasters, those with high or very high wildfire hazard potential or classified as low income. The initial round of investments will assist communities in developing Community Wildfire Protection Plans, key roadmaps for addressing wildfire risks locally. *********************************************************************************** Food Retail Concentration Increases as Geographic Area Shrinks New data from USDA’s Economic Research Service shows food retail concentration increases as geographic area shrinks. The food retail market comprises individual firms, such as grocery stores and supercenters, that sell food products to consumers. The concentration of these retailers’ shares of the market increased over the last three decades at the national, State, Metropolitan Statistical Area, and county levels in the United States. USDA uses the HHI index to calculate concentrations. HHI values range from 0 to 10,000, with higher values reflecting higher levels of market concentration, fewer firms, or increasing disparity between the size of the firms in the market. On average, food retail concentration is higher at the Metropolitan Statistical Area level than at the national level, and concentration is even higher once the market is defined at the county level. As the geographic market area shrinks, the market concentration in 2019 increased from 593 nationally to 1,300 at the state level, 1,800 at the Metropolitan Statistical Area, and 3,700 at the county level. *********************************************************************************** Sorghum Ups Investment Game with Venture Capital Platform Launch The Collaborative Sorghum Marketing Transformation Program Tuesday announced the launch of a venture capital platform. The platform is dedicated exclusively to attracting capital for companies, projects and innovations that create opportunities for sorghum farmers. Board Director JB Stewart of Oklahoma says, “The number of opportunities to add value to sorghum farmers by attracting capital to our industry is truly unprecedented.” The program matches private capital with funding to support startups and established companies investing in sorghum and facilitates a network of private investors seeking opportunities for competitive returns in agriculture. Fueled by relationships across the sorghum industry and the supply chain, the program leverages knowledge and financial flexibility to support startups, existing companies and investors bringing innovation to the sorghum industry. Known as cSmart, the program is a 501(c)(3) nonprofit that comes alongside private investors by providing funding to startups and established businesses seeking to add new value to sorghum farmers.
| Rural Advocate News | Wednesday March 22, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. CDT Wednesday, the only significant report of the day before the Federal Reserve announces its decision on interest rates at 1 p.m. Traders will continue to monitor the latest weather forecasts, especially in Brazil and have gotten in the habit of expecting an export sale announcement at 8 a.m. Weather Several storm systems are passing through the country on Wednesday morning. Some are coming and some are going, producing widespread areas of precipitation for much of the country throughout the day. This may turn into a band of moderate snow across Nebraska and into Iowa Wednesday night, along with a small potential for severe thunderstorms from northern Missouri into northern Indiana Wednesday evening as well. A cold front separates cold air in the north from warm air in the south while winds whip through the Southern Plains for yet another day.
| Rural Advocate News | Tuesday March 21, 2023 |
NCBA Concerned with District Court Decision to Let WOTUS Rule Stand The Biden administration's version of the Waters of the U.S. rule went into effect Monday. The National Cattlemen's Beef Association expressed displeasure in a District Court decision to deny a preliminary injunction of the rule. NCBA President Todd Wilkinson says, "This latest WOTUS rule will place more burdens on family farms and ranches, drive up costs, and prevent cattle producers like me from making investments in our land." The Environmental Protection Agency finalized the latest WOTUS rule at the end of 2022. NCBA and its litigation partners filed a lawsuit seeking to overturn the rule on January 18, 2023. NCBA sought a nationwide preliminary injunction, which would have prevented the federal government from implementing the WOTUS rule until the entire case is decided. Instead, the court granted a limited injunction in only two states—Texas and Idaho. NCBA Chief Counsel Mary-Thomas Hart adds, “The court’s decision to keep the Biden administration’s WOTUS rule in place is concerning and irresponsible.” *********************************************************************************** UN Reaches Black Sea Grain Initiative Extension The United Nations Secretary-General over the weekend announced an extension of the Black Sea Grain Initiative. The announcement came at the last minute as the agreement was set to expire. The Initiative facilitates the safe navigation for the exports of grain and related foodstuffs and fertilizers, including ammonia, from designated Ukrainian seaports. During the first two terms, some 25 million metric tons of grain and foodstuffs have been moved to 45 countries, helping to bring down global food prices and stabilizing the markets. The Black Sea Grain Initiative, alongside the Memorandum of Understanding on promoting Russian food products and fertilizers to the world markets, are critical for global food security, especially for developing countries. The original agreement was signed in July of 2022 to address the need for Ukraine to export agricultural products during the Russia-Ukraine war. Ukrainian officials indicate the agreement was extended for another 120 days. *********************************************************************************** AFBF Hails Bipartisan Effort to Freeze Flawed Wage Rate The American Farm Bureau Federation urges Congress to pass legislation to freeze the flawed 2023 Adverse Effect Wage Rate, or AEWR (a-were). AFBF says the rate distorts labor costs for farmers across the country who hire nearly 400,000 employees through the H-2A program. The bipartisan Farm Operations Support Act temporarily resets the AEWR at 2022 levels, providing much need wage relief to farm families and giving Congress an opportunity to deliver a fair and reasonable solution. Farm Bureau says the 2023 AEWR rule missed the mark by such a wide margin that farmers in some states experienced required wage increases of more than ten percent after smaller increases last year. The AEWR has significantly outpaced increases in the national average wage for most workers in America for most of a decade. AFBF President Zippy Duvall adds, “Farmers are committed to paying their employees a fair wage, but the new AEWR rule used flawed data to reach a flawed conclusion.” *********************************************************************************** USDA Kicks Off Central America-Dominican Republic Trade Mission Department of Agriculture Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor arrived in Panama City Monday to launch a regional agribusiness trade mission. Taylor and the trade delegation on the trip look to develop stronger ties and build economic partnerships between the United States and Panama and markets throughout the Dominican Republic-Central America Free Trade Agreement region. Taylor says, “I’m confident the next few days will produce mutually beneficial results to help expand trade and increase collaboration on key issues impacting agriculture in the United States and Central America.” Local staff from FAS Panama City will host business meetings between U.S. trade mission delegates and companies from Panama and six other countries seeking to import American food and farm products. The itinerary also includes bilateral meetings with the Panamanian government, retail promotions featuring U.S. products, and a memorandum of understanding signing between the U.S. Grains Council and the Panamanian Sugar Cane National Industry on ethanol blending. *********************************************************************************** USDA Announces No Actions Under Feedstock Flexibility Program USDA's Commodity Credit Corporation announced Monday it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2022, which ends September 2023. The CCC is required by law to quarterly announce estimates of sugar to be purchased and sold under the Feedstock Flexibility Program based on crop and consumption forecasts. Federal law allows sugar processors to obtain loans from USDA with maturities of up to nine months when the sugarcane or sugar beet harvests begin. On loan maturity, the sugar processor may repay the loan in full or forfeit the collateral, sugar, to USDA to satisfy the loan. The program was initially authorized in the 2008 Farm Bill, as an option to avoid sugar forfeitures. Under the Feedstock Flexibility Program, if USDA is faced with the likelihood of loan forfeitures, it is required to purchase surplus sugar and sell it to bioenergy producers to reduce the surplus in the food use market and support sugar prices. *********************************************************************************** USDA: Education Gaps Exist Between Rural and Urban Communities Formal educational attainment in rural America has grown, but rural areas still lag behind urban areas. USDA’s Economic Research Service data shows the share of adults ages 25 and older with a bachelor’s degree or higher increased in rural areas from 15 to 21 percent. In the same time span, the share of adults in urban areas with a bachelor’s degree or higher increased from 26 to 36 percent, widening the rural-urban gap from 11 to 15 percentage points in these two reference periods. The rural-urban gap in the share of people with at least a bachelor’s degree is even larger for younger age groups. In 2017–21, the share of working-age adults, ages 25–64, with at least a bachelor's degree, was 37 percent in urban areas and 21 percent in rural areas. The share of younger adults ages 25–44 with at least a bachelor’s degree was 40 percent in urban areas and 22 percent in rural areas.
| Rural Advocate News | Tuesday March 21, 2023 |
Tuesday Watch List Markets On Tuesday, the second day of spring, February U.S. existing home sales are due out at 9 a.m. CDT. The Federal Reserve begins its two-day meeting with a lot to talk about, but no decision to announce until Wednesday. Traders will continue to monitor weather forecasts and will remain touchy about any new events in the financial sector. Weather The first in a string of storms is moving into the Plains Tuesday, bringing scattered showers to the southeastern Plains into the Midwest and Delta, and a batch of snow to the Northern Plains. Winds again will be breezy for the Southern Plains, which will continue to draw out what available soil moisture exists for areas that are going to stay dry in this active pattern. Speaking of which, the next storm system in the series is moving into California, which will make for two more storm systems for later in the week.
| Rural Advocate News | Monday March 20, 2023 |
Court Puts WOTUS Hold in Texas, Idaho Federal Judge Also Denies Request to Issue a National Injunction LINCOLN, Neb. (DTN) -- A federal judge in Texas granted a preliminary injunction on Sunday, halting the Biden administration's waters of the U.S. rule in Texas and Idaho, pending the outcome of a lawsuit filed by the state of Texas and several industry groups including the American Farm Bureau Federation. U.S. District Judge Jeffrey Brown in the Southern District of Texas in Galveston put the injunction in place as the rule took effect on Monday in the rest of the country. The injunction will remain in place pending consideration of motions to vacate the rule and send it back to the EPA. Brown, a Trump appointee, denied a motion for a national injunction against the new rule by ag groups led by the American Farm Bureau Federation. Texas and five agencies in the state filed a lawsuit against the EPA and the U.S. Army Corps of Engineers on Jan. 18 and a total of 18 interest groups including the agriculture, oil and housing industries filed suit a day later in the same court in Galveston. There are two other lawsuits pending in federal court in North Dakota, where 24 states have sued the Biden administration, and in Kentucky where the state of Kentucky has sued the EPA. In granting the preliminary injunction, Brown found Texas and Idaho have a "substantial likelihood" they would prevail on the merits of the case, would face a "substantial threat" that they would suffer "irreparable injury" without an injunction, that the threat of injury outweighs the "threatened harm" to the party they seek to enjoin and that the injunction was in the public's interest. Brown, however, found the associations also party to the lawsuit, including the AFBF, have not shown "irreparable harm" if a national injunction is not issued. The National Cattlemen's Beef Association said in a statement it was disappointed in the court's decision not to grant a national injunction. "This latest WOTUS rule will place more burdens on family farms and ranches, drive up costs, and prevent cattle producers like me from making investments in our land," NCBA President Todd Wilkinson, a South Dakota cattle producer, said in a statement. "While we appreciate the court's injunction of the rule in Texas and Idaho, we are strongly disappointed in the decision to keep this WOTUS rule in place in 48 states." Brown's ruling was critical of the Biden administration's use of two tests -- significant nexus and relatively permanent -- when making jurisdictional determinations. "Even if the court assumes that Justice Kennedy's significant-nexus test appropriately measures the agencies' jurisdiction under the act, the rule does not accurately reflect his test," Brown said in his ruling. "Indeed, the rule's substantial variance from Justice Kennedy's test compels the court to question its legitimacy and persuades the court that the plaintiffs will likely succeed on the merits. Certainly, the court agrees with the defendants that federally regulating some interstate waters may be necessary to carry out Congress's intent to protect the nation's waters but the court is not convinced that the act's text supports unrestrained federal jurisdiction over all interstate waters. "As explained above, the court finds a substantial likelihood that the 2023 rule exceeds the agencies' statutory authority under the act." Brown's decision was seen as a setback by environmental groups that are defending the Biden administration's approach. "This decision is a setback for the public, which has long depended on the Clean Water Act to safeguard downstream communities and the environment," said Stuart Gillespie, senior attorney with Earthjustice. "We will work closely with our partners to ensure the law and science prevail, and that our communities receive the protections afforded by the Clean Water Act." Texas and the ag groups said in motions the court should stop the agencies from implementing the rule, pointing out their concerns with the reach of the new rule. "The rule abandons any limitation to waters that impact interstate commerce, relying on an arbitrary 'significant-nexus' test that strays far from any legal authority," Texas said in a motion. "Texas asks the court for an injunction to support the public interest and prevent irreparable harm to Texas' sovereignty, its agencies' core objectives and incurrence of unrecoverable costs to comply with a rule unlikely to survive review." Texas argued the WOTUS rule effectively asserts jurisdiction "over non-navigable, intrastate waters based solely on whether the use, degradation, or destruction of the water could affect interstate or foreign commerce." Texas said the rule "unlawfully expands" federal jurisdiction and "arbitrarily casts federal authority over a remarkable array of water features (or dry land). "The issue before the court is whether Texas must incur the burden and expense of complying with a federal 'clarification' while Texas challenges that rule as federal overreach," Texas said in its motion.
| Rural Advocate News | Monday March 20, 2023 |
Organizations Want Congress to Pass TPA America’s top food and ag organizations representing thousands of farmers, ranchers, producers, and workers sent a letter to Congress urging action to improve ag exports. More than 50 of the most influential food and ag groups urged Congress to pass Trade Promotion Authority. TPA is regularly passed by Congress to give the administration objectives and guidance in pursuing tariff-cutting trade agreements. The letter notes when it comes to trade agreements with tariff reduction, the U.S. is falling behind global economic competitors like China and the European Union. “Regrettably, America is falling badly behind,” the letter says. “Between 2010 and 2020, China and the E.U. enjoyed over twice as much advantage from trade agreement tariff reductions as the U.S.” They also say the situation has gotten much worse this decade. “The United States has not implemented a comprehensive trade agreement that opens new markets in more than a decade,” the groups add. *********************************************************************************** USDA Awards Funding to Protect U.S. Cattle From FMD The USDA’s Animal and Plant Health Inspection Service awarded the National Cattlemen’s Beef Association with $445,400 in funding to advance the Secure Beef Supply Plan. The plan would go into effect in the event of a foot-and-mouth disease outbreak in the U.S. “NCBA is grateful for this critical funding to help continue defending the U.S. cattle herd from the threat of foot-and-mouth disease,” says Allison Rivera, NCBA executive director of government affairs. “The Secure Beef Supply Plan combined with USDA’s national vaccine bank provides a strong safety net for cattle producers and multiple tools to mitigate the risk of a potential outbreak.” This funding was made available through the 2018 Farm Bill and shows why continued support and further funding for animal disease preparation measures like the Secure Beef Supply Plan and the National Animal Vaccine and Veterinary Countermeasures Bank are so important as Congress works on the 2023 Farm Bill. *********************************************************************************** African Swine Fever Surging Again in China African Swine Fever is making a resurgence in China and will potentially push prices higher for the most popular protein in the country. Bloomberg says multiple outbreaks have shown up in different parts of the country throughout the winter. Rabobank expects the most recent wave of ASF to significantly lower production capacity and push prices higher during the second quarter of 2023. The outbreak was most severe in the northern regions of the country, and multiple areas are still struggling with the disease. Rabobank estimates say the latest wave has hit 10 percent of the nation’s sow herd, which controls hog production. An outbreak in 2018-2019 decimated China’s pig herd, at the time, the largest herd in the world. The spike fueled inflation as pork is a key element in the Chinese consumer price index. Official estimates say 8-15 percent of total production could be lost in the current outbreak. *********************************************************************************** TFI Happy with Biostimulant Legislation The Fertilizer Institute President and CEO Corey Rosenbusch is pleased with the introduction of the Plant Biostimulant Act. The act, introduced in both the House and Senate, will support the adoption of biostimulants by farmers and provide clarity to the emerging marketplace. Biostimulants have the potential to enhance the existing environmental stewardship of growers and complement their 4R practices. “Biostimulants support environmental stewardship by improving the efficiencies of fertilizer application and soil health while also increasing crop yields,” Rosenbusch says. “With a growing population, demand for agricultural production continues to increase.” He also says biostimulants are a relatively new innovation in agriculture and that there’s great potential in these products. However, there are hurdles to overcome, including the lack of a uniform framework to regulate them as plant nutrition products. “We need the guardrails this act provides to help foster innovation, research, testing, and a path to market these products,” Rosenbusch says. *********************************************************************************** USDA Accepting Applications for 2024 Export Programs The USDA’s Foreign Agricultural Service is accepting applications from eligible organizations for fiscal year 2024 funding for five export market development programs. FAS recently published the FY 2024 Notices of Funding Opportunity for the Market Access Program, Foreign Market Development Program, Technical Assistance for Specialty Crops Program, the Quality Samples Program, and the Emerging Markets Program. Under the Market Access Program, USDA provides cost-share assistance to U.S. exporters and agricultural, fish, and forest product trade organizations for international marketing and promotion of U.S. commodities and products. Under the Foreign Market Development Program, USDA partners with nonprofit agricultural and forest product trade associations to build longer-term international demand for U.S. commodities. The Emerging Markets Program supports technical assistance activities for developing emerging markets for U.S. agricultural, fish, and forest products. The application deadline for the five programs is May 19. For more information on the rest of the programs, go to fas.usda.gov. *********************************************************************************** Drought Relief in the Western U.S. The National Oceanic and Atmospheric Administration says spring flooding is an ongoing problem in the western U.S., especially in California. The abnormally wet winter will further improve drought across much of the western U.S. as a historically-high snowpack melts in the months ahead. Winter precipitation combined with recent storms has eliminated exceptional and extreme drought in California for the first time since 2020 and is expected to further improve drought conditions this spring. Moisture in the spring is expected to improve drought conditions across parts of the Northern and Central Plains. Drought conditions are expected to improve or disappear over the next three months in Florida. Areas of extreme to exceptional drought across parts of the Southern High Plains are likely to persist through the spring season. Drought is also expected to develop in parts of New Mexico. In the Northwest U.S. and northern Rockies, drought conditions are expected to continue.
| Rural Advocate News | Monday March 20, 2023 |
Top 5 Things to Watch - Celebrations, Frosted Wheat and Bank Dramas OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 19. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Ag's big day Tuesday: March 21 is National Ag Day, as DTN and Progressive Farmer will help celebrate all that is agriculture. 2. Ridin' the fallout: With apologies to those rockers from Champaign, Illinois, we will continue to track the gathering storm of Silicon Valley Bank and other bank failures, along with their ripple effects around the globe. Our focus, as always, is on what it all means to your farming operation. 3. Speaking of storms: Things may be a little quieter on the weather front this week, with less chance of heavy precipitation in the areas that have been dumped on lately. Low temperatures will slow soil drying, however, and there have already been some reports of frost in the southern parts of the hard red winter wheat world. We'll watch for how that's playing out in Texas and Oklahoma wheat fields already hurt by dry soils and high winds. 4. Research falling behind? A House Agriculture subcommittee hearing Thursday will discuss the need to increase research dollars in the next farm bill. Many U.S. land-grant universities make the case we are falling critically behind in public ag research. It's not a new argument, but there are many new ears to hear it. 5. Key economic reports: Bank defaults and Fed intentions may get most of the attention, but there also are several rank-and-file economic reports coming this week that analysts will watch for clues to the state of the general economy. We'll look at existing home sales on Tuesday, Thursday sees new home sales, jobless claims and on the farm side of things we'll watch USDA weekly export sales numbers and the USDA monthly cold storage report. And many eyes will focus on the ongoing Black Sea grain deal, particularly now that there's an international arrest warrant for one Mr. V. Putin.
| Rural Advocate News | Monday March 20, 2023 |
Monday Watch List Markets Back from the weekend, in addition to checking the latest weather forecasts, traders will review reports UBS is buying Credit Suisse for roughly $3.2 billion and will be looking for a better explanation of how long the Black Sea grain deal will be extended for. Traders will also pause at 8 a.m. CDT to see if USDA has another corn sale to report. USDA's weekly report of export inspections is due out at 10 a.m. Weather There is a storm system moving through the Southwest U.S. Monday, but most of the country is quiet and cool. Temperatures early Monday morning are below freezing yet again in the Southeast but will rise early this week. The Southwest system is the first of a string that will move through the country this week, pushing a cold front through the country and offering widespread precipitation to boot.
| Rural Advocate News | Friday March 17, 2023 |
Allendale Predicts Corn and Soybean Planted Acres A farmer survey by commodity brokerage firm Allendale says America’s farmers are expected to plant 90.41 million acres of corn and 87.76 million acres of soybeans this year. Those projected corn planting acres would be below the USDA’s Outlook Forum forecast of 91 million acres but above the 88.57 million acres planted in 2022. Projected soybean plantings would top the USDA forecast of 87.5 million acres and exceed the 87.45 million acres planted to soy in 2022. Allendale predicts the all-wheat plantings at 48.7 million acres, below the USDA prediction of 49.5 million but higher than the 2022 planted area of 45.73 million acres. Allendale projected U.S. farmers’ winter wheat seedings to be 36.52 million acres, below the USDA’s January estimate of 36.95 million acres but up from the 33.71 million acres seeded during 2022. The brokerage and analysis firm projects “other spring wheat” acreage for 2023 at 10.6 million acres. *********************************************************************************** National Wheat Organizations Disappointed in Railroad Merger U.S. Wheat Associates and the National Association of Wheat Growers are disappointed that the Surface Transportation Board approved the merger of the Canadian Pacific Railway and Kansas City Southern Railroad. They believe the STB has given a green light to rail consolidation without regard for the consequences on agricultural shippers from a lack of competition in the U.S. rail sector. “U.S. rail consolidation has led to poorer, not improved, service for agricultural shippers,” says USW President Vince Peterson. “In addition, we see extreme disparity in rates for wheat shippers.” Higher shipping rates make U.S. wheat less competitive in the global market at a time when higher prices already hurt the competitiveness of American wheat. “With 50 percent of wheat getting exported, wheat is heavily reliant on rail transportation to move across the U.S.,” says NAWG CEO Chandler Goule. They say the STB must conduct more rigorous oversight of rail rates and service issues. *********************************************************************************** New SD Law Gives More Protection to Ag Operations A new law in South Dakota makes it harder to file nuisance complaints or lawsuits against an agricultural operation. South Dakota Searchlight says it will also limit the amount of monetary awards. After legislators approved the bill earlier this winter, Governor Kristi Noem signed it at a Mitchell, South Dakota, implement dealership this week. She says agriculture is the state’s “number one industry,” and the law protects farmers from frivolous lawsuits. Provisions in the law say only the owner or lessee of an affected property can file a nuisance action and only if the affected property is within a mile of the operation. Groups like Dakota Rural Action and the Izaak Walton League say the law is unnecessary and goes too far. Additional provisions say the plaintiff must present “clear and convincing evidence” the operation violated local, state, or federal laws. The new law goes into effect on July 1. *********************************************************************************** New AI Platform Will Predict Ag Supply Chain Disruptions Helios (HE-lee-ohs) Artificial Intelligence, Inc. launched the open beta of its platform that will identify agricultural supply chain disruptions ahead of time. The company’s founder and CEO says they’ve created a one-stop platform for agricultural importers to understand the risks to their supply chain and get ahead of their competitors. The AI platform will eventually predict supply availability ahead of a company’s competitors and find alternative suppliers before they do. It identifies climate and economic risks to yields and works with supply chain partners to mitigate them before it’s too late. The AI will also provide actionable input into the negotiation process with insights and access to billions of data points. Existing customers are seeing good results so far. William Hovis, who used to be with Coca-Cola, says when suppliers missed deliveries, the company was missing sales. “Helios provides companies with actionable insights to help them get ahead of competitors.” *********************************************************************************** Bill to Support Cutting-Edge Agricultural Research Senators Michael Bennet (D-CO) and Roger Marshall (R-Kan.) introduced the Advancing Cutting Edge Agriculture Act to support high-risk, high-reward agricultural research and development at USDA. The sponsors say the act will help “secure America’s food supply” and give farmers and ranchers the tools to meet the challenges of the 21st century. “Now more than ever, Americans have seen how vulnerable the nation’s food system can be,” Marshall says. “Targeting the many risks our food system faces through research will ensure that the U.S. continues to provide a safe, secure food supply for a growing world population.” Bennet also notes that family farmers and ranchers face persistent drought, higher costs, extreme weather, and increased global competition, saying, “That makes it more important than ever to invest in cutting-edge research to spur agricultural breakthroughs, including practices to conserve water and cut greenhouse gas emissions.” Companion legislation will be introduced into the House. *********************************************************************************** 2023 Power of Meat Research Released at Annual Meat Conference Last week at the Annual Meat Conference, research from the latest Power of Meat Study showed consumers’ meat usage, attitudes, and trends. The report says 2022 meat sales rose 5.7 percent versus 2021, and almost 87 percent of all home-prepared dinners featured meat or poultry. Also, more than 98 percent of shoppers make meat purchases. Inflation is becoming an issue for the entire meat industry. Consumers spent at least 25 percent more on food in 2022 than in 2019. Economic conditions are prompting 76 percent of Americans to change what groceries they purchase. The POM report says 50 percent of meat eaters purchase meat and poultry for use over the next few days after the sale. Price plays a much more important role among younger meat eaters, while Boomers emphasize quality and appearance. The total package price rose in importance during prior years, but shoppers emphasize value as quality going hand-in-hand with the price.
| Rural Advocate News | Friday March 17, 2023 |
Friday Watch List Markets The Federal Reserve's report on U.S. industrial production is set for 8:15 a.m. CDT Friday, followed by the Conference Board's U.S. index of leading indicators and the University of Michigan's U.S. index of consumer sentiment, both due out at 9 a.m. In addition to monitoring weather and the latest bank news, traders will also pause at 8 a.m. to see if USDA might have a fourth consecutive export sale announcement. USDA's cattle on-feed report for March 1 will be out at 2 p.m. Weather A storm system that brought widespread precipitation to the middle of the country Thursday continues across the East and South on Friday. Most of this will be rain but colder air filtering in behind the system will lead to some areas of snow and lake-effect in the Great Lakes. Colder temperatures down in the Plains may be damaging to more-advanced wheat. Some breezy conditions will continue across the Midwest as well.
| Rural Advocate News | Thursday March 16, 2023 |
Surface Transportation Board Approves CP, KCS Merger The Surface Transportation Board Wednesday approved the Kansas City Southern Railway Company acquisition by Canadian Pacific Railway Limited, with conditions. The decision includes an unprecedented seven-year oversight period and contains many conditions designed to mitigate environmental impacts, preserve competition, protect railroad workers, and promote efficient passenger rail. The Board also anticipates the merger will result in improvements in safety and the reduction of carbon emissions. The companies filed a merger application in October of 2021 with the Surface Transportation Board. The combination of the two railroads, known as Canadian Pacific Kansas City, will create the first railroad providing single-line service spanning Canada, the United States, and Mexico. Yet, the merged company will continue to be the smallest Class I railroad, with a network that is a few thousand route miles shorter than the next smallest Class I and half the size of the Western railroads. *********************************************************************************** Mexico Voices Concern over Product of US Label Mexico’s Agriculture Ministry recently voiced concerns regarding the proposed voluntary “Product of USA” label effort. Announced by Agriculture Secretary Tom Vilsack last week, the label claim would be used on meat, poultry and egg products only when derived from animals born, raised, slaughtered and processed in the United States. Mexico's Agriculture Ministry claims the proposal, "even when it is a voluntary claim, could have implications for discriminating against Mexican exports of live animals and meat products." Mexico is the second largest supplier of beef and beef products to the U.S., representing 24 percent of total U.S. imports. Congress repealed mandatory Country of Origin Labeling for meat products in 2016, after the World Trade Organization approved trade retaliations by Canada and Mexico over the issue. USDA says petitions, thousands of stakeholder comments, and data support its proposal. A comprehensive review in 2021 by USDA “shows there is a clear need to revise” the “Product of USA” label claim. *********************************************************************************** Bipartisan Bill Introduced to Provide Clean Drinking Water for Rural Americans Senators Tommy Baldwin and Susan Collins Wednesday introduced the bipartisan Healthy Drinking Water Affordability Act, or The Healthy H2O Act. Baldwin, a Wisconsin Democrat and Collins, a Maine Republican, say the bill will provide water testing and treatment technology grants directly to individuals and non-profits in rural communities. Currently, nearly 43 million households, primarily in rural communities, rely exclusively on groundwater delivered through private wells for their drinking water. These sources are not subject to the same oversight and testing for contamination of public water sources. Water quality improvement systems installed at the faucet or within a building can provide immediate and ongoing protection from known and emerging water contaminants, like PFAS, lead and nitrates. The bill follows a proposal to create standards for PFAS chemicals in drinking water Tuesday by the Environmental Protection Agency. The legislation would allow the Department of Agriculture to provide grants for testing and removing contaminants from drinking water. *********************************************************************************** Fertilizer Institute Welcomes Lower Energy Costs Act President of The Fertilizer Institute, Corey Rosenbusch, this week welcomed the introduction of the Lower Energy Costs Act. TFI says the legislation will provide a streamlined and simplified permitting process for hard rock mining, including phosphate and potash mining. Rosenbusch says, “Delays are measured in years and in the millions of dollars, with those paying the price being consumers who are already struggling with the rising costs of everyday goods.” The delays Rosenbusch referenced include a permit to mine phosphate in Florida that took nearly ten years and tens of millions of dollars in expert fees, studies, legal analysis, and legal fees, and a mining expansion permit for an existing mine that has been in limbo for over 12 years at a cost of over $25 million that has yet to be approved. The fertilizer industry is asking Congress for a reliable and predictable permitting process to ensure mining projects have a clear path toward compliance and approval. *********************************************************************************** Bills Providing Permanent E15 Fix Introduced in House and Senate The National Corn Growers Association this week applauded legislation that would provide permanent, nationwide market access for E15, often marketed as Unleaded 88. NCGA reports 35 bipartisan Senate and House members introduced the Consumer and Fuel Retailer Choice Act. NCGA President Tom Haag says, "There's no reason for market access to a safe, clean and affordable fuel option to remain in question." Despite EPA approving E15 for use in all 2001 and newer vehicles, and a 2019 update to regulations, a 2021 court decision would have ended year-round market access to E15. Temporary action by the Biden administration allowed E15 sales last summer, but access is in question for 2023. The Environmental Protection Agency proposed implementing a plan from eight Midwest governors to require lower-volatility gasoline in their states to ensure year-round E15. However, EPA has proposed to delay implementation until 2024. NCGA encourages the Biden administration to again provide temporary access for the 2023 summer driving season. *********************************************************************************** Registration Open for World Pork Expo 2023 Registration for the 35th annual World Pork Expo opened this week. The 2023 World Pork Expo, organized by the National Pork Producers Council, will be held at the Iowa State Fairgrounds in Des Moines, Iowa, from June 7-9. This year marks a major milestone for the world’s largest pork-specific trade show. NPPC president Scott Hays says, “We’re looking forward to celebrating the Expo’s incredible legacy this year with an impressive schedule of events.” The 2023 World Pork Expo will feature three days of programming and educational seminars that showcase the pork industry's latest product and process innovations. Additionally, industry professionals will have networking opportunities to meet and connect. Registration is available online and includes entry to the World Pork Expo for all three days. Until June 1, discounted rates are available during pre-registration, including $10 per adult. On-site registration will be $20 per adult. Attendees can register to attend at WorldPork.org.
| Rural Advocate News | Thursday March 16, 2023 |
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, February housing starts and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is out at 9:30 a.m. After two days of corn export sales, traders will be watching to see if another export sale gets reported Thursday and will also have antenna up for any further bank problems. Weather A storm system is moving from the Central Plains to the western Midwest on Thursday. Scattered showers have already developed across South Dakota and Nebraska and will expand across more of the central states throughout the rest of the day. This is including a band of moderate to heavy snow from Nebraska to Lake Superior and potential for severe storms across the southeastern Plains, most notably along the Red River. Winds are also elevated and where it coincides with the snow, could create some blowing snow and visibility issues.
| Rural Advocate News | Wednesday March 15, 2023 |
Consumer Price Index Increases Again The Consumer Price Index rose 0.4 percent in February on a seasonally adjusted basis, after increasing 0.5 percent in January. Over the last 12 months, the all-items index increased 6.0 percent before seasonal adjustment. The food index increased 0.4 percent in February, and the food at home index rose 0.3 percent over the month. The index for nonalcoholic beverages increased 1.0 percent in February, after a 0.4-percent increase the previous month. The indexes for other food at home and for cereals and bakery products each rose 0.3 percent over the month. The index for fruits and vegetables increased 0.2 percent in February, and the index for dairy and related products rose 0.1 percent. In contrast, the meats, poultry, fish, and eggs index fell 0.1 percent over the month, the first decrease in that index since December 2021. The index for eggs fell 6.7 percent in February following sharp increases in recent months. *********************************************************************************** EPA Proposes PFAS Standards for Drinking Water The Environmental Protection Agency Tuesday proposed the first-ever national drinking water standard for PFAS chemicals. As part of EPA's PFAS Strategic Roadmap, the agency proposed to establish legally enforceable levels for six PFAS known to occur in drinking water. The proposal also initiates the distribution of $10 billion in funding to address emerging contaminants under the Bipartisan Infrastructure Law. EPA Administrator Michael Regan says the proposal "would help provide states with the guidance they need to make decisions that best protect their communities." If finalized, the proposed regulation will require public water systems to monitor for these chemicals. Senator Joe Manchin, a West Virginia Democrat, says, "Many farmers, producers and growers, at no fault of their own, have found alarmingly high levels of PFAS in their food products.” Last month, Manchin encouraged the Biden administration to provide funding to help farmers when they are forced to remove their products from the commercial market. *********************************************************************************** More Than 400 Organizations Voice Support for Existing Pesticide Law More than 400 organizations affirmed the support of the pesticide regulatory system under the Federal Insecticide, Fungicide and Rodenticide Act, or FIFRA, in a letter to lawmakers this week. The letter is in response to recently introduced legislation that would undermine the science-based standards contained within our nation's pesticide law. This is the third time these organizations have contacted Congress to voice concern over similar proposed legislation. Crop Life America president and CEO Chris Novak says, "Any legislation seeking to ban individual chemistries and politicize the regulatory process undermines EPA's work and the long-standing laws that serve our nation well." Novak says the proposed legislation would jeopardize the continued availability and innovation of pesticide products by imposing an unscientific and unbalanced process. The proposal could unnecessarily remove pest control options from those who need them to safely grow crops, adopt conservation practices such as conservation tillage and resource-saving crop rotations. *********************************************************************************** USA Rice: India Violating WTO Commitments Data from the Department of Agriculture shows India will continue to dominate the world rice trade in the 2022/23 marketing year. USDA projects India will break its own world record with 22.5 million metric tons of rice exports. In May 2022, the U.S. government along with nine other governments initiated technical consultations with India regarding its trade-distorting rice subsidies. However, to date, the U.S. government has not taken formal action to address India's alleged World Trade Organization violations. Now, the USA Rice Federation is calling for a WTO trade dispute action. "India's policies not only violate their WTO commitments, but also impact the livelihoods of those that produce or consume rice across five other continents," according to Bobby Hanks, USA Rice International Trade Policy Committee chair. Hanks added, "We encourage the U.S. Trade Representative to initiate a dispute settlement action to help American farmers and our counterparts compete on a level playing field." *********************************************************************************** Researchers Aim to Reduce Pesticide Drift in the Lower Mississippi Delta Researchers with USDA's Agricultural Research Service in Mississippi are investigating the best ways of using hooded sprayers to combat drift. Pesticide drift occurs when droplets move through the air to another place other than the target area during or after pesticide application. The research finds using a hooded sprayer can reduce pesticide drift of pre-emergent herbicide applications by 63 percent, in comparison to a nonhooded sprayer. Hooded or shielded sprayers effectively minimized the exposure of herbicide spray to wind and led to fewer off-target depositions. While hooded sprayers have advantages, the presence of a physical shield can pose challenges during road transport or repairing nozzles when compared to conventional sprayers. If a farmer does not have access to a hooded sprayer or prefers to use a conventional sprayer, mitigating pesticide drift is still possible by avoiding high wind speed and high temperature during spraying. Researchers also found reduced drifting with a longer sprayer boom length during pre-emergent herbicide applications. *********************************************************************************** USMEF Announces Spring Conference Details The U.S. Meat Export Federation Tuesday announced the speaker lineup and registration details for its 2023 Spring Conference, set for May 24-26 in Minneapolis. The opening general session will feature USMEF's senior staff from the Asia Pacific region, who will discuss emerging issues in key Asian markets, including how the removal of many COVID restrictions could provide momentum for the region's foodservice sector. The following day, USMEF will examine the state of U.S.-Mexico trade relations. At the closing session, former House Agriculture Committee Chairman Collin Peterson – who oversaw development of four farm bills during his 30 years in Congress – will discuss the challenges lawmakers face as they work to craft an effective, pro-trade farm bill over the coming year. In addition to the general sessions, the Beef, Pork, Exporter and Feedgrain/Oilseed breakouts will provide in-depth discussions on topics relevant to each sector. More information, including registration details, are available on the USMEF website, USMEF.org.
| Rural Advocate News | Wednesday March 15, 2023 |
Wednesday Watch List Markets The U.S. Labor Department's producer price index for February will be out at 7:30 a.m. CDT Wednesday, the same time as a report on February U.S. retail sales. The U.S. Energy Department's weekly report of energy inventories is due out at 9:30 a.m., followed later Wednesday morning by February soybean crush estimates from the National Oilseeds Processors Association. Weather Colder temperatures settled into the southeastern states Wednesday morning, with widespread areas below freezing for the first time in a long time. Another storm system was working through the West, but outside of some breezy winds in the Southern Plains and some snow across the far Northern Plains, will be relatively quiet east of the Rockies today. That storm system in the West will bring more widespread precipitation through the Plains late Wednesday night and Thursday, heading eastward to close out the week.
| Rural Advocate News | Tuesday March 14, 2023 |
Canada Seeks Conversation With Mexico Regarding Biotech Crops Canada requested talks with Mexico regarding its decree banning biotech corn imports. The request came under the U.S.-Mexico-Canada Agreement, just like the request from the United States. The U.S. formally requested technical consultations last week with Mexico regarding the issue, the first step towards a dispute resolution panel under USMCA. Canada is not a major exporter of corn to Mexico, but is concerned about Mexico putting prohibitions on agriculture biotech products, according to Bloomberg. Canada also raised concerns regarding Mexico’s lack of respect for trade regulations agreed to within USMCA. The updated decree by Mexico limits the import and use of biotech corn, including banning white corn exports immediately. Mexico’s economy ministry claims it will “demonstrate with data and evidence that there has not been an effect on trade” and that it has acted in accordance with the USMCA. The United States counters that the decree is not based on scientific evidence that biotech corn is safe. *********************************************************************************** AEM: Combine Sales Growth Continues Tractor unit sales in both the U.S. and Canada stay near their five-year average while combine harvesters in both countries continue triple-digit growth. The latest data from the Association of Equipment Manufacturers released Monday shows that overall U.S. ag tractor unit sales fell for the month of February, despite gains in the 100-plus horsepower and four-wheel-drive segments. Combine sales, however, put up another strong month, rising 165 percent year-over-year. Total farm tractor sales in the U.S. for the month fell 19.4 percent versus February 2022 and are down 17.2 percent year-to-date. In Canada, combine sales were hot again, growing 246.7 percent in February. Overall unit sales in tractors finished the month down 8.1 percent Year to date, tractors in Canada are down 0.5 percent, while combines are up 205.1 percent. AEM’s Curt Blades says, “On the tractor side, most of those losses are the result of overly hot sales of small units during the pandemic.” *********************************************************************************** Meat Plants employed Nearly 31% of US Food Workers in 2021 The latest federal data shows that in 2021, the U.S. food and beverage manufacturing sector employed 1.7 million people, or more than 1.1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest share of employees, 15.4 percent. USDA’s Economic Research Service Monday announced the data, noting that these employees help to transform raw agricultural materials into food products for intermediate use or final consumption in thousands of food and beverage manufacturing plants located throughout the country. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, and recordkeeping, as well as nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. In 2021, meat and poultry plants employed the largest share of food and beverage manufacturing workers at 30.6 percent, followed by bakeries at 14.7 percent, and beverage plants at 12.4 percent. *********************************************************************************** American Farmland Trust Awards Over $1 Million in Microgrants to Farmers For the first time, American Farmland Trust awarded more than $1 million in grants in a single year to 190 farmers across the country. The grants were from AFT’s Brighter Future Fund and the New England Farmer Microgrants Program. Both microgrants programs seek to improve farm viability, facilitate farm transfer and succession, help farmers access farmland, and work to permanently protect farmland for future generations. AFT makes grants to farmers and ranchers to advance AFT’s mission to protect farmland, promote sound farming practices and keep farmers on the land. The grants help drive new solutions for resolving key challenges facing society by increasing the resilience of farms to climate change and reducing greenhouse gas emissions. AFT’s Ashley Brucker says, “we are helping farmers do things like convert a school bus to a mobile farmers market, access legal support for legacy planning and purchase firefighting equipment to cope with wildfires in a drought-stricken area.” *********************************************************************************** FFA Members Prepare for Careers in Animal Systems Pathways FFA members from across the country this spring traveled to Denver, Colorado, to explore careers in the animal systems industry. The 73 FFA members attended the Next Gen Conference, which began in 2020 and focuses on specific pathways, from animal systems to biotechnology systems. Through the event, members access new ideas, trends and opportunities that connect them directly with industry leaders to explore future career paths. The conference is designed specifically to give FFA members hands-on, industry-relevant experience. Members explored diverse animal operations around Denver and learned how to plan for their future careers. In addition, they learned about marketing, new technologies and unique opportunities in animal systems. An FFA spokesperson says the conference helps “cultivate future leaders in the animal systems pathway through a week of experiential learning, relevant education and networking.” The National FFA Organization is a school-based national youth leadership development organization of more than 850,000 student members. *********************************************************************************** Gas Prices Move Higher, Diesel Lower For the second straight week, the nation's average price of gasoline increased, up eight cents from a week ago to $3.44 per gallon. The national average is up 7.1 cents from a month ago but 87.7 cents per gallon lower than a year ago. The national average diesel price fell 4.1 cents in the last week and stands at $4.30 per gallon, 82.1 cents lower than one year ago. GasBuddy's Patrick De Haan says the diesel price "continues to slowly decline as we see consumption for diesel lighten up." Wholesale gasoline prices continue to increase at a rate typical for this time of year, with the transition to more expensive summer gasoline underway. The most common U.S. gas price encountered by motorists stood at $3.29 per gallon, up 30 cents from last week, while the most common U.S. diesel price stood at $3.99 per gallon, unchanged from last week.
| Rural Advocate News | Tuesday March 14, 2023 |
Tuesday Watch List Markets The U.S. Labor Department's consumer price index for February will be out at 7:30 a.m. CDT Tuesday, another factor in the Federal Reserve's interest rate decisions. Traders will pay attention to the latest weather forecasts and any export sales announcements that might come out. USDA's Livestock, Dairy and Poultry outlook is out at 2 p.m. March grain and oilseed futures contracts expire early Tuesday. Weather A ridge developing in the middle of the country Tuesday will keep conditions mostly dry, but a weak disturbance will provide a few isolated showers to areas of the Southern Plains. Over in the West, a strong area of low pressure will continue to provide portions of the Pacific Northwest and California with heavy rain and snow. This system will work into the Great Basin over the next 24 hours and eventually make it into the Plains by Thursday.
| Rural Advocate News | Monday March 13, 2023 |
Higher Interest Rates Slow the Growth in Farmland Values Farm real estate values increased considerably in 2022 but showed signs of softening during the final months of the year as interest rates rose sharply. Interest rates on farm loans jumped to decade highs alongside increases in the federal funds rate. The Kansas City Fed says while the value of most types of farmland continued to rise, the increase was the slowest since early 2021. Agricultural credit conditions remained strong in the fourth quarter and continued to be bolstered by broad strength in the farm economy throughout 2022. The outlook for agricultural credit conditions looking ahead to the rest of 2023 also remained generally positive, despite some ongoing concerns. Elevated commodity prices continued to support profit opportunities for many producers across the farm sector. However, there are persistent concerns about operating expenses, higher interest rates, and intense drought. Improvement in farm income and credit conditions has softened slightly in recent months. *********************************************************************************** USDA Investing $29 Million in More American-Made Fertilizer Production The USDA announced it received over 350 applications for $3 billion in funding to expand domestic fertilizer production capacity. The applications came from 47 states and two territories for the first two rounds of a new grant program to add innovative domestic fertilizer production capacity. USDA also announced the first $29 million in grant offers under the first round that focused on projects that can come online in the near term. The grants will help independent businesses produce more American-made fertilizer, which will spur competition, give U.S. farmers more choices and better prices, and reduce dependence on several unreliable foreign sources. “I know that increased costs for fertilizer and other inputs have put a strain on farmers and cut into the bottom line,” Vilsack says. “By expanding domestic fertilizer production, we can grow independent local businesses, bring production and jobs to rural communities, and support fairer prices for our farmers.” *********************************************************************************** Bioscience Groups Call For Action on Mexico’s Biotech Corn Ban The National Corn Growers Association and a broad coalition of national and state agriculture and bioscience organizations sent a letter to the White House on Mexico’s GMO corn ban. The groups thanked the Biden administration for beginning technical consultations with Mexico. “We support your request for a consultation with Mexico regarding its treatment of agricultural biotechnology and denying the use of certain crop protection tools to provide a framework and timeline to resolve this issue,” the 62 groups wrote. “We look forward to these consultations beginning promptly.” They also say Mexico’s GMO corn ban draws a non-science based distinction between corn for food and corn for feed and industrial uses and is inconsistent with USMCA obligations. The ag and biotechnology groups reiterated the importance of beginning the legal process to not only resolve the dispute with Mexico but also prevent other countries from following suit. “Send a strong signal on enforcement,” they added. *********************************************************************************** The March Oil Crops Outlook Lowers U.S. Soybean Ending Stocks The USDA’s March Oil Crops Outlook lowered U.S. seasonal ending soybean stocks for the 2022-2023 marketing year by 15 million bushels to a total of 210 million because of higher exports. Soybean exports are raised by 25 million bushels to 2.02 billion bushels, while crush volumes are reduced by 10 million bushels to 2.2 billion bushels. The 2022-2023 global soybean supply is reduced this month due to lower production in Argentina and Uruguay. Argentina’s soybean production is lowered by eight million metric tons to 33 million metric tons on a lower harvested area and yields hit hard by drought. World soybean consumption is down 5.3 million metric tons this month. Global ending stocks were lowered to 100 million metric tons. Through March 2, cumulative marketing year U.S. soybean export inspections surpassed 2021-2022 totals as inspections to China surged and increased for Mexico. February’s export inspections set a record thanks to Brazil’s slow harvest. *********************************************************************************** USDA Announces Cost-Share Assistance for Grain Storage Ag Secretary Tom Vilsack announced that producers in counties affected by eligible disaster events can apply for cost-share assistance through the Emergency Grain Storage Facility Assistance Program. Farmers in Kentucky, Minnesota, South Dakota, Illinois, Indiana, Iowa, Missouri, North Dakota, and Tennessee are eligible for the program. It provides cost-share assistance for constructing new grain storage capacity and drying and handling seeds in order to support the orderly marketing of commodities. “Weather events in 2021 and 2022 in several states caused catastrophic losses to grain storage facilities on family farms as well as large commercial grain elevators, leaving stored grain exposed to the elements and affecting storage and commodity marketing options for many producers,” Vilsack says. “This new program will provide cost-share assistance to help producers address their on-farm storage capacity needs that are necessary for marketing grain.” Eligible natural disasters occurred from December 1, 2021, to August 1, 2022. *********************************************************************************** NPPC Wants Beagle Brigade Act Passed Quickly The National Pork Producers Council applauded the reintroduction of the Beagle Brigade Act of 2023. This legislation would provide congressional authority to the USDA’s National Detector Dog Training Center, which is a vital program in training agricultural canine teams that work daily to prevent foreign animal and plant diseases from entering the U.S. “Safe and reliable food production is critical to the United States’ continued national and economic security,” says Terry Wolters, NPPC President. “As African Swine Fever continues to plague the Dominican Republic and Haiti, strengthening early detection capabilities at our U.S. borders is more important than ever.” The “Beagle Brigade” serves as the first line of defense for early detection at the nation’s ports of entry and is critical for keeping foreign animal diseases out of the country. NPPC led more than 50 agricultural and other organizations in supporting the Beagle Brigade Act’s reintroduction and urges Congress to pass it.
| Rural Advocate News | Monday March 13, 2023 |
Top 5 Things to Watch - Commodity Classic Coverage, Livestock Numbers, Cooler Temps This Week OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 12. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. New equipment coming: Progressive Farmer Senior Editor Dan Miller, who covers the machinery world for us, is expecting continued announcements from some of the major equipment companies. If we say more, then this screen will self-destruct. Watch for continued new-product announcements. 2. Latest livestock numbers: Wednesday we'll have the latest Call the Market column from DTN Livestock Analyst ShayLe Stewart. And Friday is the release of the latest Cattle on Feed report. Watch for Stewart's commentary on that. 3. More news from Orlando: The DTN Crops Team -- Crops Technology Editor Pamela Smith and Crops Editor Jason Jenkins -- will have more wrap-up news on the latest crop products and new ideas from the Commodity Classic last week. Watch for those pieces throughout the week; there was a lot happening in Mickeyville. 4. Cool weather running: With last week's ridge moving up and out to the Atlantic, DTN Ag Meteorologist John Baranick expects another cold front to sweep south. The void will also pull in Pacific air, moderating the expected drop in temperatures. Readers in the West, Northern Plains, and Canadian Prairies will see lower temperatures early in the week, with the moderation not hitting there until late in the week. Baranick reminds us that "below normal" temps do not carry the same bite as we hit mid-March as they did when these roller-coaster patterns kicked off in January. 5. A disaster remembered: Speaking of weather, we'll have a revisit of the infamous "bomb cyclone," which four years ago this week brought flooding, destruction and death to South Dakota, Nebraska, and parts of Iowa, Kansas and Missouri. Our Staff Reporter Russ Quinn, who farms north of Omaha, lived through it and then reported on it in real-time. See his feature full of remembrances and follow-ups.
| Rural Advocate News | Monday March 13, 2023 |
Monday Watch List Markets Back from the weekend with one hour of less sleep, traders will check the latest weather forecasts and pause at 8 a.m. CDT to see if USDA has an export sale to report. The only significant report of the day will be USDA's weekly report of grain export inspections, due out at 10 a.m. Weather High pressure will build across the middle of the country Monday, offering a break in precipitation. A ridge will continue to develop across the West Monday, which will allow for dry conditions to continue through Tuesday for much of the Central U.S.
| Rural Advocate News | Friday March 10, 2023 |
Pork Exports Start 2023 Quickly America’s pork exports finished strong in 2022 and kept going into January. January pork exports were 236,767 metric tons, up 13 percent year-over-year, and export value rose 16 percent to $634 million. Exports to Mexico set a record in 2022 and hit another record in January. Pork exports also were significantly higher in China/Hong Kong, Japan, Canada, and other locations. “While Mexico leads the way, it’s encouraging to see broad-based growth,” says U.S. Meat Export Federation President and CEO Dan Halstrom. “Market diversification is always a big point of emphasis.” Beef exports slowed late in 2022, and that carried into January, when exports fell 15 percent to 100,942 metric tons. The value dropped 32 percent to just over $702 million. While beef exports declined to several major destinations, shipments increased sharply to Mexico, the Dominican Republic, the Philippines, and Africa. “We expect post-COVID foodservice demand to rise this year,” Halstrom says. *********************************************************************************** Farm Bureau Signs MOU on Right to Repair The American Farm Bureau Federation and CNH Industrial brands Case IH and New Holland signed a memorandum of understanding, allowing farmers and ranchers to repair their equipment. The MOU follows a similar agreement Farm Bureau signed with John Deere earlier this year. “Farmers and ranchers are more dependent on technology than ever before,” says Farm Bureau President Zippy Duvall, “so it’s critical they have access to the tools to keep things running on the farm, so the food supply chain keeps running too.” The MOU sets a framework for farmers and independent repair facilities in all 50 states and Puerto Rico to access CNH Industrial brand manuals, tools, product guides, and information to self-diagnose and self-repair machines. The MOU respects intellectual property rights and recognizes the need for safety controls and emission systems don’t get altered. CNH and AFBF will meet semiannually to review the agreement to address any concerns. *********************************************************************************** Bipartisan Reps Reintroduce DAIRY PRIDE Act in the House Representatives from Wisconsin, Pennsylvania, Minnesota, Idaho, and Connecticut introduced the bipartisan DAIRY PRIDE Act. The legislation will prevent non-dairy products from using a dairy label and misaligning nutrient-scant products with the nutritious dairy products produced by American farmers. “Milk comes from a mammal, and it’s that simple,” says Wisconsin Rep Derrick Van Orden, one of the bill’s sponsors. “The nutritional value of whole milk for child development and as an integral part of a healthy diet can’t be overstated.” The Act will require products derived from seeds, plants, algae, and nuts to no longer get mislabeled with milk terms like milk, yogurt, and cheese. Plant-based products have completely different nutritional values, and the Reps say allowing these products to disguise themselves as otherwise is unacceptable to farming communities and the families they feed. The DAIRY PRIDE Act has broad support from a large number of agricultural organizations across the nation. *********************************************************************************** Cattle Inventories Drop in the U.S. and Canada The U.S. Department of Agriculture says all cattle and calves in the U.S. and Canada combined totaled 101 million head on January 1, 2023, down three percent from January 1 of last year. All cows and heifers that have calved inventory totaled 42.9 million head, three percent lower than last year. All cattle and calves in the U.S. as of January 1 totaled 89.3 million head, down three percent from 92.1 million last January 1. All U.S. cows and heifers that have calved were 38.3 million head, down three percent from last year. All cattle and calves in Canada were at 11.3 million head on January 1, down two percent from the 11.5 million head on January 1, 2022. All cows and heifers that have calved inventory was 4.53 million head, two percent lower than last year. All sheep and lambs in the U.S. and Canada totaled 5.87 million head on January 1. *********************************************************************************** NCBA Welcomes Black Vulture Relief Act The National Cattlemen’s Beef Association applauded the Black Vulture Relief Act, introduced by Representatives John Rose (R-TN) and Darren Soto (D-FL). “Cattle producers across the country are coping with extreme input costs and the worst inflation rate in 40 years,” says NCBA Government Affairs Director Sigrid Johannes. “Livestock deaths due to black vultures are a financial loss that no one can afford right now.” The bill would allow cattle producers to “take” (capture, kill, disperse, or transport) black vultures that pose a risk to livestock. The bill also reduces permitting burdens and red tape by instituting a simple report that producers submit once a year detailing the number of black vultures they took. Black Vulture depredation rates have recently increased in the Southeast U.S., surpassing 30 percent in some states like Florida. “The Florida Cattlemen’s Association appreciates this commonsense bill,” says Jim Handley, executive vice president of the association. *********************************************************************************** USSEC Seats New Board of Directors The U.S. Soybean Exports Council chose its 2023-2024 Board of Directors during the organization’s annual meeting prior to the Commodity Classic. The board is made up of 15 members representing various stakeholders from the U.S. soy industry. Four members are from the American Soybean Association, four are from the United Soybean Board, and seven represent trade, industry, and state organizations. “The unique composition of USSEC’s board provides us with exemplary leadership with representation from across the U.S. Soy industry,” says Jim Sutter, USSEC CEO. Stan Born, an ASA director and soybean farmer from Illinois, was elected as USSEC chair for a 12-month term. “I’m honored to have the trust and confidence of the USSEC board to serve as chair,” Born says. “As members of the soy value chain, we are fortunate to have such a strong global team representing our industry in markets around the world.” Lance Rezac was elected vice-chair.
| Rural Advocate News | Friday March 10, 2023 |
Friday Watch List Markets The U.S. Labor Department's will have nonfarm payrolls for February and the unemployment report out at 7:30 a.m. CST Friday morning, numbers of great interest to Fed-watchers. Traders will keep an eye on the latest weather forecasts and watch for any export sale announcement. The U.S. Treasury will report on the February federal budget at 1 p.m. Weather A storm system leaving the Plains will provide scattered snow showers to the Great Lakes and Ohio Valley Friday with areas of heavy rain across the Tennessee Valley and Southeast. Another storm system continues moving east across the West with more heavy precipitation for that region. This system will be the next storm system in the active pattern for the rest of the country over the weekend.
| Rural Advocate News | Thursday March 9, 2023 |
Milk-Pricing Proposal Moves Ahead The National Milk Producers Federation’s Board of Directors unanimously endorsed a proposal to modernize the Federal Milk Marketing Order system at its March meeting. The Federation says the move caps more than two years of discussion and more than 130 meetings on different aspects of the proposal. The plan to reinvigorate the FMMO system that guides milk pricing reflects an industry that’s evolved significantly since the last comprehensive revamp in 2000. “We’re moving forward on a comprehensive FMMO proposal the entire industry can get behind,” says Randy Mooney, chair of the NMPF’s Board of Directors. The proposal includes several changes to the FMMO System, including returning to the “higher-of” Class 1 mover. The federation also proposes discontinuing the use of barrel cheese in the protein component price formula. They also want a new process to ensure make-allowances are reviewed more frequently by requiring USDA to conduct plant-cost studies every two years. *********************************************************************************** March WASDE Lower Corn Export Demand The USDA World Agriculture Supply and Demand Estimates for 2022-2023 U.S. corn calls for lower exports and larger ending stocks. Exports are reduced by 75 million bushels to reflect the poor pace of sales and shipments this year despite relatively competitive U.S. prices. With no other changes from February, ending stocks rose by 75 million bushels. The season-average corn price dropped a dime to $6.60 a bushel. Soybean supply and use changes for 2022-2023 include higher exports, lower crush, and reduced ending stocks compared with February. Exports are up by 25 million to 2.02 billion bushels based on higher-than-expected shipments through February. As higher exports more than offset lower crush, ending stocks dropped 15 million bushels to 210 million, which would be the lowest in seven years. The season-average soybean price is unchanged at $14.30. The 2022-2023 U.S. wheat supply and demand outlook is unchanged from February. The season-average price is $9. *********************************************************************************** USDA Celebrates First National Biobased Products Day USDA celebrated the first National Biobased Products Day on Wednesday to highlight the accomplishments of people and organizations working to improve sustainability. “By setting aside March 8 as National Biobased Products Day, we honor the 20 years of progress the BioPreferred Program has achieved,” says USDA Rural Development Undersecretary Xochitl (so-CHEEL) Torres Small. Congress created the U.S. BioPreferred Program in the 2002 Farm Bill. The program is the federal government’s official advocate and market accelerator for biobased products. USDA congratulated the four winners of the BioPreferred Program’s “Excellence in Procurement Award” in 2022 for their respective agencies” environmental impact by using biobased products and championing farmers in rural America. Winners include the Department of Energy’s Y-12 National Security Complex in Tennessee, Christina Graves of the Forest Service, Brian McCabe of the National Park Service, and Brooke Siegel with the FBI. To learn more about the BioPreferred Program, go to biopreferred.gov. *********************************************************************************** Stockmanship and Stewardship Event Registration is Open Registration is now open for the six Stockmanship and Stewardship regional events that take place in five states this spring and summer, with an additional virtual event in November. During each event, producers can become Beef Quality Assurance certified, network with fellow cattlemen and women, participate in hands-on demonstrations led by animal handling experts, and learn cutting-edge operation techniques. A previous Stockmanship and Stewardship attendee shared, “While I have had experience in most of the topics covered, it was great to hear the speakers talk and give a good overview of industry practices. It was a great event and one that I encourage others to attend.” The event features low-stress handling demonstrations, BQA educational sessions, facility design sessions, and industry updates. The program is sponsored by the National Cattlemen’s Beef Association, Merck Animal Health, and the Beef Checkoff-funded National Beef Quality Assurance program. For more information or to register, go to StockmanshipAndStewardship.org. *********************************************************************************** Producers Respond to New H-2A Wage Rule The U.S. Department of Labor recently announced a final rule to amend H-2A temporary labor certification regulations to better protect agricultural workers. It’s also designed to update the H-2A application and temporary labor certification process. Not everyone in agriculture is happy with the rule. Western Growers Association President and CEO Dave Puglia (POO-glee-ah) says America’s farmers are already stretched to the limit by rising costs and shrinking margins. “With economic blinders on, the administration will now mandate that farmers pay higher wages to H-2A workers and domestic workers in corresponding employment,” he says. “Increasing wages by regulatory order will force farmers to cut back on U.S. plantings and increase their farm operations in Mexico and other countries where the wages are a fraction of the H-2A wage.” He also says while no one wants that to happen, these are entirely foreseeable consequences of “economically myopic” decisions like this. For more information, go to wga.com. *********************************************************************************** Midwest Attorneys General to Sue EPA Over Delayed E15 Rule The Attorneys General from Nebraska and Iowa have notified Environmental Protection Agency Administrator Michael Regan of their intent to file suit over year-round E15. The filing comes after the agency delayed rulemaking on year-round E15 sales in eight Midwestern states. The EPA took over 300 days to issue a proposed rule despite a Clean Air Act requirement to act within 90 days. Iowa attorney general Brenna Bird says EPA needs to follow the law and make E15 gasoline available year-round. “With record-high gas prices, consumers deserve relief when paying at the pump,” Bird says. “The EPA’s failure to respond on time not only deprives hard-working people of a cheaper, cleaner option, it’s also a violation of the Clean Air Act.” The EPA approved the rule for year-round E15 sales in those states but delayed implementation until 2024. The attorneys also called on the agency to issue an emergency waiver for 2023.
| Rural Advocate News | Thursday March 9, 2023 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Traders will keep watch over the latest weather forecasts and any export sales announcement that might occur. Weather A storm system leaving the Rockies will increase precipitation across the Plains and Midwest on Thursday, spreading farther east overnight. Moderate to heavy snowfall amounts are expected out of this storm from Wyoming to Michigan. Another storm system is moving into the West with more heavy precipitation for that region, and the next storm system in the active pattern for the rest of the country over the weekend.
| Rural Advocate News | Wednesday March 8, 2023 |
Farmer Sentiment Drops in February The Purdue University/CME Group Ag Economy Barometer dropped five points to 125 in February. Farmers’ perspectives regarding both current conditions on their farms and their expectations for the future also weakened during the month. The Index of Current Conditions dipped two points to 134, and the Index of Future Expectations declined six points to 121. Several factors are weighing on producers’ minds, including the risk of falling commodity prices, rising interest rates, and uncertainty over the future growth of agricultural exports. The Farm Financial Performance Index dropped seven points to a reading of 86. Despite strong farm income, the February reading of the Farm Capital Investment Index didn’t change much, rising one point to a reading of 43. This month, 72 percent of producers said it’s a bad time to make large investments in their farming operation, while just 15 percent said it’s the right time to make those investments. *********************************************************************************** USDA’s Simplified Direction Loan Application Now Available A new, simplified direct loan application is now available for all producers seeking a direct farm loan from the Farm Service Agency. The new application went from 29 to 13 pages to provide an improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers also have the option to complete an electronic fillable form or prepare a traditional paper application for submission to their local FSA farm loan office. Coupled with the Loan Assistance Tool released in October 2022, the simplified application will provide all loan applicants access to information regarding the application process and assist them with gathering the correct documents before they begin the process. This will help farmers and ranchers submit complete applications and reduce the number of incomplete, rejected, or withdrawn applications. Producers can explore all available options on all FSA loans at fsa.usda.gov or contact their local Service Center. *********************************************************************************** CropLife America Applauds USTR Actions CropLife America applauds the U.S. Trade Representative’s Office for requesting formal technical consultations with the Mexican government under the U.S.-Mexico-Canada agreement. The goal of the consultation is to address a long-standing agricultural technology trade issue. This announcement enforces Mexico’s trade commitments made in the USMCA and addresses concerns voiced by many in the U.S. ag community, including CLA, regarding the decree’s impact on biotechnology traits and pesticides in Mexico. The organization has maintained that Mexico’s regulatory actions regarding biotechnology ignore science- and risk-based regulations and the scientific weight of evidence from regulatory bodies around the world. CLA shares USTR’s concerns and is encouraged by the USTR’s focus on the need for a science-based regulatory approach. “We support the administration’s enforcement of a rules-based trading system for agricultural innovation and encourage USTR to also address regulatory delays and barriers that are impacting pesticide registrations in Mexico,” CLA said in a release. *********************************************************************************** Upper Missouri River Basin Runoff Forecast Below Average The updated 2023 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, continues to be below average. “Despite some improvements in overall basin conditions, we expect 2023 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Basin Water Management Division. “Soil moisture has improved slightly in some areas, but drought conditions still exist across most of the basin.” The 2023 calendar year runoff forecast above Sioux City is 21.5 million acre-feet, 84 percent of the average. The runoff forecast is based on current soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. February runoff in the Missouri River Basin above Sioux City was one million acre-feet, 86 percent of a typical year. System storage is currently 46 million acre-feet, 10.1 million below the top of the carryover multiple-use zone. *********************************************************************************** Undersecretary to Lead Trade Mission to Panama USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead a delegation of 26 agribusinesses and farm organizations to Panama City, Panama, March 19-23. The mission highlights opportunities in Panama and throughout the Central America and Dominican Republic Free Trade Agreement (CAFTA-DR) region. Exports of agricultural products to Panama and CAFTA-DR countries reached a record of $8.8 billion in 2022, up 57 percent from 2018. “I’m excited that my first USDA trade mission is targeting Panama and our CAFTA-DR partners,” Taylor says. “The region provides great potential to the U.S. agriculture sector as consumers across the area clamor for the world-class agricultural and food products grown here in America.” In Panama City, trade mission participants will engage directly with potential buyers, receive in-depth marketing briefings from the Foreign Agricultural Service and industry trade experts, and participate in site visits. “I look forward to connecting buyers and sellers,” Taylor says. *********************************************************************************** NAMI says USDA Label Proposal Will Raise Prices for Consumers The North American Meat Institute says the USDA’s Food Safety and Inspection Service’s latest attempt at proposed rules for a “Product of the USA” label for meat products will not succeed. The organization says labeling meat products will result in trade retaliation from Canada and Mexico, costing American consumers and businesses billions of dollars. “USDA should have considered more than public sentiment on an issue that impacts international trade,” says NAMI President and CEO Julie Anna Potts. “Our members make considerable investments to produce beef, pork, lamb, veal, and poultry products in American facilities and employ hundreds of thousands of U.S. workers.” That means NAMI products should labeled as a “Product of the USA.” At issue is a proposed rule from the Food Safety and Inspection Service that would limit “Product of the USA” claims to just products made from livestock born, raised, harvested, and processed in the continental U.S.
| Rural Advocate News | Wednesday March 8, 2023 |
Wednesday Watch List Markets On Wednesday, Federal Reserve Chairman Jerome Powell returns to Congress for a second day, typically repeating what he said Tuesday. The U.S. Commerce Department will have its report of the January U.S. trade deficit at 7:30 a.m. CST, followed by the Energy Department's weekly inventory report at 9:30 a.m. USDA's WASDE and Crop Production reports are at 11 a.m. and the Federal Reserve's Beige Book is at 1 p.m. Weather A wave of loosely organized showers was moving through the middle of the country from Minnesota to northeast Texas early Wednesday morning. Showers in this area will wane throughout the day, though thunderstorms are likely to develop over northern Texas later in the day. A system in the Rockies will start to exit into the Plains Wednesday night where showers will increase in dramatic fashion going into Thursday.
| Rural Advocate News | Tuesday March 7, 2023 |
USTR Requests Consultations With Mexico, Vilsack Responds The U.S. Trade Representative’s Office Monday requested technical consultations with the Government of Mexico under the U.S.–Mexico–Canada Agreement. The consultations, as part of the USMCA Sanitary and Phytosanitary Measures Chapter, are aimed at Mexico’s ban on genetically modified corn. Trade Representative Katherine Tai says, “Mexico’s policies threaten to disrupt billions of dollars in agricultural trade and they will stifle the innovation that is necessary to tackle the climate crisis and food security challenges if left unaddressed.” Agriculture Secretary Tom Vilsack responded, “These consultations represent the next step in addressing the United States’ concerns with Mexico’s biotechnology policies,” while adding, “We remain firm in our view that Mexico’s current biotechnology trajectory is not grounded in science, which is the foundation of USMCA.” The U.S. government’s intention is that through the consultation process, USTR can reach an outcome that respects each country’s sovereignty and benefits the United States, Mexico, and U.S. agricultural producers and stakeholders. *********************************************************************************** NCGA: USTR Request a Step Closer to USMCA Dispute Panel The request for technical consultation with Mexico by the U.S. Trade Representative’s Office puts the U.S. one step away from a full dispute settlement under the U.S.-Mexico-Canada Agreement. The National Corn Growers Association and affiliated state associations have been leading calls for the Biden administration to act, applauded the development and urged USTR to expedite the process. NCGA President Tom Haag says, "Mexico's position on biotech corn is already creating uncertainty, so we need U.S. officials to move swiftly and do everything it takes to eliminate this trade barrier." A technical consultation will bring leaders from both countries into formal discussions. If this step does not resolve the stalemate, the U.S. can then initiate a dispute settlement under USMCA. Once a dispute settlement is filed, a group of experts are empaneled to hear the case and make final determinations based on the commitments both parties signed as part of the free trade agreement. *********************************************************************************** USDA Proposes New Requirements for the “Product of USA” Label The Department of Agriculture Monday released a proposed rule with new regulatory requirements to the voluntary “Product of USA” label claim. The proposed rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. Agriculture Secretary Tom Vilsack says, “These proposed changes are intended to provide consumers with accurate information to make informed purchasing decisions.” Vilsack announced the proposal at the National Farmers Union annual convention in San Francisco. NFU President Rob Larew says, “This voluntary effort is a strong step and a strong base for permanent and mandatory country of origin label soon.” However, the National Cattlemen’s Beef Association responded, “Simply adding born, raised, and harvested requirements to an already broken label will fail to deliver additional value to cattle producers and it will undercut true voluntary, market-driven labels that benefit cattle producers.” *********************************************************************************** Vilsack Announces New Independent Processors Funding Agriculture Secretary Tom Vilsack Monday announced an $89 million investment to finance the startup and expansion of independent meat processors. USDA also announced the department's initial steps to create a more competitive marketplace for seeds and other agricultural inputs. Vilsack says the investment "will promote competition, support producer income, strengthen the supply chain, and increase economic opportunity in rural communities." USDA is providing $89 million in grants under the Meat and Poultry Intermediary Lending Program to increase available financing for independent processors, alleviate bottlenecks, and create opportunities for small businesses and entrepreneurs in rural communities. The investments are being made under the second round of the program. Nonprofit lenders in seven states will use the funding to establish revolving loan funds to finance the startup, expansion and operation of meat and poultry processors. USDA is making the investments in Alabama, Georgia, Maine, Nebraska, North Dakota, Oklahoma and South Dakota. *********************************************************************************** Farm Bureau Analysis: 2022 Crop Losses Top $21 Billion The American Farm Bureau Federation estimates 2022 crop losses due to weather and climate change at more than $21.4 billion. The AFBF Market Intel analysis shows in 2022, 18 weather and climate disasters, each with damages exceeding $1 billion struck the United States. The National Oceanic and Atmospheric Administration reported that 2022 surpassed 2021 as the third-costliest disaster year event in history, with an estimated $165 billion in total economic losses. In 2022, Texas suffered the most significant hit, with over $6.4 billion in incurred losses primarily made up of $2.9 billion in damages to cotton. More than half of the agricultural losses were effectively protected under existing risk management programs with the remainder highlighting the importance of inclusive protections for growers of all crops in all regions of the nation. AFBF crop loss estimates do not include infrastructure damage, livestock losses, horticulture crop losses or timber losses associated with the selected weather events. *********************************************************************************** Farm Bureau Helps Fight Hunger Through Harvest for All Program Farm families from across the nation donated 25.3 million pounds of food and raised more than $1 million to help fight hunger in 2022 through Farm Bureau's "Harvest for All" program. Combined, the monetary and food donations totaled the equivalent of 31.1 million meals. Criteria for tracking Harvest for All donations included dollars and pounds of food donated by state and county Farm Bureaus, as well as volunteer hours. In addition to raising food and funds, farmers and ranchers tallied 13,827 volunteer hours assisting local hunger groups in 2022. Florida Farm Bureau took top honors for donating the most food in 2022, 18.7 million pounds, and the most volunteer hours at 6,400. Michigan Farm Bureau took top honors for raising the most money in 2022, $372,716. Since Harvest for All was launched, Farm Bureau families have gathered 437 million pounds of food, logged more than 237,000 volunteer hours and raised more than $11 million in donations.
| Rural Advocate News | Tuesday March 7, 2023 |
Tuesday Watch List Markets On Tuesday, Federal Reserve Chairman Jerome Powell addresses Congress and will likely repeat the need for further rate hikes to bring inflation down to the Fed's 2% target level. Traders will check the latest weather forecasts and may pay attention for a possible export sale announcement at 8 a.m. CST, having faith restored by Monday's corn sale. Weather A broad ridge across the West is extending far enough into the Rockies to produce showers in the Plains on Tuesday. Thunderstorms across the Southern Plains could be a bit stronger along the Red River, though chances there are low. Moderate snows are expected across the Northern Plains.
| Rural Advocate News | Monday March 6, 2023 |
Food Prices Drop for 11th Straight Month Global food costs moved lower again for the 11th consecutive month. The Financial Post says while consumers are still spending more for food, prices are at their lowest level in the last 17 months. The UN Food and Agricultural Organization’s Food Price Index dropped 0.6 percent in February, the longest string of lower food prices in 30 years. The index averaged 129.8 points last month, dropping from 130.6 in January. Last month’s drop was driven primarily by cooking oils and dairy. The overall index is down 19 percent from a record set last year when Russia’s invasion of Ukraine disrupted grain exports around the world. The FAO says sugar prices rose last month, while meat and grains were almost identical to the previous month. The Vegetable Oil Price Index dropped almost five points to 135.9 in February, while the dairy index was down 3.6 points, or 2.7 percent, to 131.3. *********************************************************************************** Dairy Coalition Applauds Court Decision on “Gruyere” The National Milk Producers Federation, the U.S. Dairy Export Council, and other industry stakeholders prevailed in their battle to protect generic names in the U.S. The Fourth Circuit Court of Appeals upheld prior court decisions finding the term “gruyere” (groo-YAYR) is a generic term for a type of cheese. The decision should end attempts by Swiss and French groups to take away a common food name through a U.S. certification mark registration. The court said when people enter stores and ask for gruyere, they mean a type of cheese, not a cheese produced in the Gruyere regions of Switzerland and France. The Fourth Circuit found the evidence of that to be so one-sided that there is no genuine issue as to any material fact, and opposers must prevail as a matter of law. The decision reinforces that generic terms like “gruyere” refer to types of food, regardless of where it’s produced. *********************************************************************************** Ag Safety Awareness Week: “Lead the Way in Agriculture” The Agricultural Safety Awareness Week Program is this week, March 6-10. U.S. Agricultural Safety and Health Centers will join Farm Bureaus across the country to promote ag safety this week with the theme of “Lead the Way in Agriculture.” Each day has a different focus, beginning on Monday with Mental Health. Preventative Health Care, Safety Culture, Situational Awareness, and Temperature-Related Safety will be the focus Tuesday-Friday, respectively. “Keeping everyone safe on America’s farms and ranches is so important,” says American Farm Bureau President Zippy Duvall. “We encourage farmers and ranchers to take the time to make safety a priority during this week and throughout the year.” The Agricultural Safety and Awareness Program is part of the Farm Bureau Health and Safety Network of professionals who share an interest in decreasing safety and health risks. Visit the Center’s YouTube channel for new content and fresh ideas about how to stay safe year-round. *********************************************************************************** Vilsack to Keynote Commodity Classic Ag Secretary Tom Vilsack will be the keynote speaker during the General Session at the 2023 Commodity Classic this Tuesday through Saturday in Orlando, Florida. The General Session is this Friday, March 10. The General Session will also include the leaders of the five associations that present the Commodity Classic, including the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers, and the Association of Equipment Manufacturers. Education is a big focus at Commodity Classic. The event offers Learning Centers, What’s New, and other educational sessions, along with additional opportunities for education and events at the Commodity Classic Main Stage. The Classic also features a large three-day trade show, entertainment, and the opportunity to network with thousands of America’s farmers and agriculture industry professionals. Established in 1996, Commodity Classic is the largest farmer-owned, farmer-run trade show event. For more information or to register, go to commodityclassic.com. *********************************************************************************** 2022 was the Third-Costliest Disaster Year in History 2022 will go into the books as the third-costliest year for weather disasters in U.S. history. The estimated total economic losses reached $165 billion. New analysis by American Farm Bureau economists shows extreme weather caused more than $21 billion in crop losses. The impact on American farms and ranches demonstrates the importance of farm bill programs to help rural communities recover from weather-related disasters. The AFBF Market Intel Report says more than $11 billion in losses were covered by existing Risk Management Agency programs as of February 2022. Over $10 billion in losses were not insured through RMA, existed outside of policy coverage levels, or didn’t qualify under an existing risk management program. “It’s not hard to see why programs like crop insurance and disaster coverage are vital to the livelihoods of farmers and ranchers and the overall stability of our country, as a whole,” says AFB President Zippy Duvall. *********************************************************************************** Soybean Export Sales Hit Marketing-Year Low The USDA says export sales of corn and wheat both dropped while soybean sales declined to a marketing-year low during the week ending on February 24. Corn sales to overseas buyers totaled 598,000 metric tons, down 27 percent from the previous week and 48 percent from the prior four-week average. Mexico was the top corn buyer at 207,400 metric tons. Exports for the week dropped three percent to 666,400 tons. Wheat sales were 16 percent lower than the prior week at 284,000 metric tons, 39 percent higher than the same week last year. Japan was the top buyer at almost 71,000 tons. Exports were up 81 percent to 610,000 metric tons. Soybean sales dropped 14 percent week-to-week and 25 percent from the four-week average to 360,700 tons, the lowest since the marketing year began last September. China purchased 218,400 metric tons. Weekly soybean exports dropped 45 percent to 881,000 metric tons.
| Rural Advocate News | Monday March 6, 2023 |
Top 5 Things to Watch - Commodity Classic Hits Orlando, March WASDE is Out OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 5. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. WASDE -- The March Madness of crop predictions -- begins: Wednesday brings the latest World Supply and Demand Estimates (WASDE) report from USDA. We'll have initial numbers in our Flash story just after 11 a.m. CST, followed by updates and analysis through the following half hour. Our analysts are especially watching for bearish higher U.S. ending corn stocks estimates, driven by lower exports and South American production estimates. As always, DTN Lead Analyst Todd Hultman will have an online discussion of the report at 12:30 p.m. CST. 2. No Mickey Mouse reports: Four major commodity groups gather in Orlando, Florida this week for the Commodity Classic, and we'll be there. Watch for fresh reporting on policy issues, award winners and new crop chemicals and machinery. If you're in town, please visit us at the DTN booth to see the latest in our information and decision-making products. Stop by at 11:30 a.m. EST on Thursday we'll hold a panel discussion with leaders from CHS and DTN. Saturday morning (8:30 a.m. EST) DTN Ag Meteorologist John Baranick will present the latest spring and summer forecasts. Hope to see you. 3. No rest for wicked weather: Speaking of Baranick, his favorite word lately is "active." System after system keeps coming ashore on the West Coast and pushing through the central U.S., creating rain, snow and high winds in the process. Each wave pulls down colder air, though "cold" becomes a relative term the deeper we get into March. Expect those active systems to continue through this week and into the next. We've gone from looking at empty riverbanks to now watching for flooding in a number of areas. Stay tuned by checking the Ag Weather Forum blog. 4. Fertilizers and fertility: DTN Staff Reporter Russ Quinn continues his weekly update of fertilizer prices this week. DTN subscribers can view all our fertilizer information in our Markets sections. Quinn will also recap diesel and fertilizer price conversations from our recent Ag Summit Series session held Feb. 28. Watch for those stories throughout the week. 5. Other key reports coming: In addition to WASDE, this week has a number of key reports coming out that traders will watch closely. Monday is USDA's weekly grain export inspections; Tuesday sees the U.S. wholesale trade report from January; Wednesday we'll get the latest DOE energy inventory numbers and January U.S. trade deficit report; Thursday sees USDA weekly export sales and the U.S. jobless claims numbers and markets and we finish the week taking in the latest U.S. nonfarm payrolls and unemployment reports.
| Rural Advocate News | Monday March 6, 2023 |
Monday Watch List Markets Back from the weekend, traders will keep up with the latest weather forecasts, but may overlook export sales announcements as there haven't been any since February 17. An outdated report on U.S. factory orders will be out at 9 a.m. CST, followed by USDA's weekly grain export inspections at 10 a.m. Weather A system moved into the Northern Plains on Sunday and produced areas of moderate to heavy snow, which continues on Monday across northern areas. Other areas will be quieter with a significant differenc
| Rural Advocate News | Friday March 3, 2023 |
USDA Announces First Permanent Chief Diversity and Inclusion Officer The Department of Agriculture Thursday announced L’Tonya Davis as its first Chief Diversity and Inclusion Officer. Davis will lead USDA in its ongoing efforts to improve diversity, equity, inclusion, and accessibility and will oversee the implementation of USDA's first-ever DEIA Strategic Plan. Agriculture Secretary Tom Vilsack says, “Davis has demonstrated a strong commitment to hiring and developing a workforce that reflects the rich and diverse tapestry of America.” Davis will work closely with executive leaders, employees, and staff experts to advance and sustain committed leadership and employee engagement for a high-performing and innovative USDA workforce. Davis joins USDA after serving in the Food and Drug Administration’s Office of Regulatory Affairs. Establishing the first-ever Chief Diversity and Inclusion Officer role has been a top priority for Secretary Vilsack and Deputy Secretary Jewel Bronaugh, who is stepping down from the department. Bronaugh was the first Black woman and woman of color to serve as Deputy Secretary at USDA. *********************************************************************************** Iowa to Request Emergency E15 Waiver for 2023 States seeking year-round E-15 may request an emergency waiver for the 2023 summer driving season. The Environment Protection Agency announced a proposal this week to allow year-round E-15 in states that requested the waiver. However, the proposal delays implementation of the rule until 2024. POET Energy spokesperson Joshua Shields says the proposal left unresolved concerns about access to the renewable fuel blend in 2023. Shields adds, “The lack of near-term certainty underscores the urgent need to ensure E15 sales are not interrupted.” Iowa Governor Kim Reynolds responded, “While long overdue, I am thrilled that the EPA has approved our multi-state bipartisan RVP waiver request that will pave the way for year-round E15 and bring certainty to the industry.” However, regarding the delay, Reynolds, says, “I look forward to requesting another emergency waiver for this year while at the same time asking the courts to require the Administration to grant our request immediately.” *********************************************************************************** USDA: Mexico a top Market for US Exports New data from USDA’s Economic Research Service shows that between fiscal years 2018 and 2022, Mexico accounted for nearly 14 percent of all U.S. agricultural exports. With a total value of $28 billion, Mexico is projected to be the United States’ second largest destination for U.S. agricultural exports in fiscal year 2022, and is forecast to reach 15 percent in 2023. On average, Mexico purchased $6.5 billion in U.S. grains and feeds per year from 2018 to 2022, accounting for 18 percent of the largest export commodity group. Demand for grains and feed has been spurred by the expansion of Mexico’s cattle industry and growing consumption of animal products. However, the report does not consider the future impacts of Mexico's decree banning imports of genetically engineered corn. Meanwhile, between 2018 and 2022, Mexico’s imports of livestock, poultry, and dairy products represented an average of 18 percent of total U.S. exports and accounted for $6.3 billion in sales. *********************************************************************************** AEM Issues Position Paper on Future Emission Regulations The Association of Equipment Manufacturers Thursday announced policy recommendations for future rulemakings impacting emissions or future engine technologies. The organization released a position paper entitled "Clean Air and Low Emissions through Next-Gen Nonroad Equipment.” The paper also details the position of AEM and its members that future regulations should support a reasonable transition to cleaner equipment. AEM Vice President of Construction & Utility John Somers says, “The association and its members want to leverage our considerable experience and expertise to inform regulatory efforts happening both now and in the future.” Engine emissions regulations are among the most important and impactful requirements placed on the nonroad equipment sector, affecting everything from performance, research and development, design, safety and cost. The most recent Tier 4 update drove significant equipment changes, including modernized electronic engines and aftertreatment for many power categories. The Position paper and its recommendations are available on the organization’s website, aem.org. *********************************************************************************** Restaurant Industry Expects Growth to Continue in 2023 The National Restaurant Association's 2023 State of the Restaurant Industry report released this week suggests more growth, labor challenges and rising costs for operators. The report predicts the food service industry will reach $997 billion in sales in 2023, driven in part by higher menu prices. Meanwhile, the food service industry workforce is projected to grow by 500,000 jobs, for total industry employment of 15.5 million by the end of 2023. National Restaurant Association CEO Michelle Korsmo says, "Our hiring rate and wage increases are outpacing the overall private sector, and this year our industry will contribute nearly $1 trillion to the economy." For 70 percent of operators, business conditions have settled into or are on the path to their new version of normal. The report finds 92 percent of operators say the cost of food is a significant issue for their restaurant, and 47 percent of operators expect competition to be more intense than last year. *********************************************************************************** Rural Media Group Launches the Cowgirl Channel The Cowgirl Channel made history as the new television network centered around women in western sports officially launched nationwide on DISH Network 269 and Sling TV. Viewers can now watch The Cowgirl Channel 24 hours a day, seven days a week in high definition as part of DISH Network's "America's Top 120 Package" and on SLING's "Heartland Extra Package." The Cowgirl Channel is the latest television network operated by parent company Rural Media Group, which also owns The Cowboy Channel and RFD-TV. Five years ago, Rural Media Group launched The Cowboy Channel in response to the demand and growth of western sports. Today, The Cowboy Channel is the official network of ProRodeo, home of the National Finals Rodeo, and broadcasts over 600 rodeo performances on the network's linear feed and streaming app. And now, Rural Media Group has expanded its coverage of western sports even further with the launch of The Cowgirl Channel.
| Rural Advocate News | Friday March 3, 2023 |
Friday Watch List Markets There are no significant reports on Friday's docket. USDA has not had a daily export sale announced since February 17 and, after Thursday's dismal export sales report, traders may stop checking in at 8 a.m. to see if anything shows up. The latest weather forecasts, however, do remain a topic of interest. Weather A storm system is moving out of the Plains through the Midwest on Friday and into the Northeast Friday night. The system is producing widespread moderate to heavy rain and snow that will mix in from Missouri to Michigan and across the Northeast with time. Strong to severe thunderstorms will press east through the Tennessee Valley and Southeast and through the Mid-Atlantic as well. Winds are increasing around the eastern half of the country and in some areas significantly so, with gusts over 50 mph in the Tennessee Valley.
| Rural Advocate News | Thursday March 2, 2023 |
Lawmakers Introduce Checkoff Reform Legislation Republican Senator Mike Lee of Utah leads a bipartisan effort to reform agricultural checkoff programs. Lee was joined by Democrats Cory Booker, Kristen Gillibrand and Elizabeth Warren, and Republican Rand Paul, in reintroducing the Opportunities for Fairness in Farming Act. Checkoffs are mandatory Department of Agriculture fees assessed on a per-unit basis that fund boards designed to promote the commodity as a whole. However, Lee says, "Checkoff programs are filled with waste and often abuse those who are forced to contribute to their coffers." Among other things, the bill would prohibit checkoff programs from contracting with any organization that lobbies on agricultural policy. The legislation met mixed reviews from agriculture groups. R-CALF USA CEO Bill Bullard says, “The decades old beef checkoff program is ill-suited to meet the needs of today’s cattle farmers and ranchers.” However, the National Cattlemen’s Beef Association responded to the legislation, “In 2021 cattle producers overwhelmingly denied a referendum to end the Checkoff.” *********************************************************************************** EPA Proposes Removal of Gasoline Volatility Waiver for Select States The Environmental Protection Agency Wednesday announced a proposed rule paving the way for year-round E-15 as a group of state governors requested. The proposal would allow states to remove the 1-psi volatility waiver for gasoline-ethanol blends containing ten percent ethanol in their states. EPA proposes removing the 1-psi waiver in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. EPA proposes an effective date for all states of April 28, 2024. Biofuel groups, however, criticized the implementation date of the proposal. Growth Energy CEO Emily Skor responded, “First and foremost, we need E15 in 2023 so consumers can save money every time they fuel up at the pump.” The National Corn Growers Association supports the governors’ plan and expressed serious concern over the one-year delay in implementation and the market uncertainty the delay creates for E15 in 2023. NCGA President Tom Haag says, “These governors did the right thing, but EPA’s proposal delays this solution.” *********************************************************************************** NCBA Calls Again for Immediate Halt to Brazilian Beef Imports The National Cattlemen’s Beef Association is calling on Secretary of Agriculture Tom Vilsack to immediately half U.S. beef imports from Brazil. The announcement comes as Brazil reported another atypical case of bovine spongiform encephalopathy to the World Animal Organization for Animal Health last week. That report indicated 35 days elapsed between when the case was first identified and the date it was confirmed. NCBA president Todd Wilkinson says, “We have seen Brazil repeatedly fail to meet the 24-hour requirement for reporting of animal diseases.” Wilkinson adds, “We expect USDA to keep the border closed to Brazil until they can demonstrate that they are willing and able to play by the trade rules that govern all other nations.” NCBA sent a letter to USDA, demanding immediate action on this issue. NCBA also supports bipartisan Senate legislation to suspend Brazilian beef imports pending a review of Brazil's standards. *********************************************************************************** Chicken leads U.S. Per Person Availability of Meat The supply of chicken available to eat in the United States continues to outpace beef, according to new food availability data from the USDA’s Economic Research Service. In 2021, 68.1 pounds of chicken per person were available for human consumption, on a boneless, edible basis, compared with 56.2 pounds of beef. The availability of chicken began to increase in the 1940s, overtaking pork availability in 1996 and surpassing beef in 2010 to become the meat most available for U.S. consumption. Since 1980, U.S. chicken availability per person has more than doubled from 32.7 pounds. There were 47.5 pounds of pork available in 2021, after fluctuating between 42.4 and 49.9 pounds per person over the last four decades, according to USDA. Per-person fish and shellfish availability data are available only through 2019, when 19.1 pounds were available per person in the United States, up from the low of eight pounds in 1943. *********************************************************************************** World Pork Expo Set for Milestone 35th Anniversary Celebration The 2023 World Pork Expo returns to the Iowa State Fairgrounds in Des Moines, Iowa, from June 7 through 9. This year marks the 35th anniversary of the annual event focusing on education, innovation and networking within the pork industry. National Pork Producers Council Board President Terry Wolters says, "We're looking forward to celebrating the event's history while continuing to look ahead at the progress the industry continues to make." The event has grown significantly over the last three and a half decades to become the world's largest pork-specific trade show. Last year, more than 10,000 pork producers and ag professionals representing over 400 companies worldwide participated. This year's event is expected to draw even more industry insiders to the more than 300,000 square feet of exhibit space. Registration information will soon be available on worldpork.org for those who plan to attend the 2023 World Pork Expo, June 7-9. *********************************************************************************** Boehringer Ingelheim Animal Health Appoints Scott King to Lead U.S. Cattle Business Boehringer Ingelheim Animal Health Wednesday announced the appointment of Dr. Scott King as the new Executive Director of the U.S. Cattle Business. King says of the appointment, "I am excited to lead the team at Boehringer Ingelheim as we work hand-in-hand with them to prevent and manage conditions that can impact cattle health." King has served as Director of Marketing for the U.S. Cattle Business at Boehringer Ingelheim since 2015. He joined Boehringer Ingelheim in 2014 as Director of Marketing for the U.S. Equine Business and has held various marketing and technical leadership roles at Bayer Animal Health and Land O'Lakes Purina Mills. King is a graduate of the University of Missouri College of Veterinary Medicine and practiced veterinary medicine for ten years. Steve Boren, Vice President of Livestock and Equine at Boehringer Ingelheim, adds, "His extensive knowledge of the cattle industry and background in veterinary medicine will be integral to helping uphold Boehringer Ingelheim’s commitment to whole herd health.”
| Rural Advocate News | Thursday March 2, 2023 |
Thursday Watch List Markets USDA's export sales report will be out at 7:30 a.m. CST, the same time as weekly U.S. jobless claims and updates of fourth quarter productivity and the U.S. Drought Monitor. Discussions begin Thursday at the G20 meeting in India, but don't expect an agreement on Ukraine with Russia, China and India in the room. The U.S. Energy Department's weekly report on natural gas storage is set for 9:30 a.m. after last week's report showed supplies up 22% from a year ago. Weather A storm system is moving out of the southern Rockies and into the Southern Plains on Thursday. Precipitation increased ahead of this system across the Tennessee Valley and Mid-Atlantic Wednesday and will increase from Texas and Oklahoma into these areas again today. Along with the increase in precipitation, a significant severe weather event is expected for later Thursday afternoon and Thursday evening. Strong tornadoes and damaging wind gusts will be likely from northeast Texas to Mississippi and western Tennessee going through the overnight hours.
| Rural Advocate News | Wednesday March 1, 2023 |
USDA Receives Equity Commission Interim Recommendations USDA's Equity Commission presented its 2023 Interim Report to Agriculture Secretary Tom Vilsack Tuesday. The 37-page report and its findings are based on the personal experiences and expertise of its members, their collaborative and in-depth review of USDA's programs and practices, and stakeholder input. Examples of the recommendations include offering new sources of capital to owners of heirs' property and fractionated land, as well as steps to prevent the creation of these types of property to reduce barriers to USDA programs in the future. Arturo S. Rodriguez, co-chair of the Equity Commission and United Farm Workers President Emeritus, says, "The Equity Commission's recommendations address issues that are not new to USDA, but they do require a renewed commitment to improve access to programs and services for all stakeholders Agriculture Secretary Tom Vilsack says, "We're confident the work of the Equity Commission will bolster our efforts to realize lasting change at USDA and are grateful to the members for taking on this work." *********************************************************************************** Study: Ethanol Cuts Gas Price by 77 Cents per Gallon Adding low-cost ethanol to the nation's gasoline supply improves energy security and saves the average American household more than $750 annually. That's according to a new study by energy economists from the University of California-Berkeley. The analysis concluded that "adding ethanol to gasoline decreases the price paid by U.S. drivers at the pump." The researchers estimate the average discount per gallon to be $0.77 between 2019 and 2022, reaching a total savings of $95.1 billion annually for U.S. consumers. The authors of the study attribute much of this benefit to the Renewable Fuel Standard. Renewable Fuels Association President and CEO Geoff Cooper said the study's results come at a critical time for U.S. policymakers. Cooper says, "American consumers would be paying much higher prices at the pump if not for the inclusion of more than 14 billion gallons of low-cost, low-carbon ethanol in our nation's gasoline supply each year," RFA commissioned the new study. *********************************************************************************** Bipartisan DAIRY PRIDE Act Reintroduced Senate lawmakers this week reintroduced the DAIRY PRIDE Act of 2023. The bill is titled The Defending Against Imitations and Replacements of Yogurt, milk, and cheese to Promote Regular Intake of Dairy Everyday Act of 2023. The legislation would require non-dairy products made from nuts, seeds, plants, and algae to no longer be mislabeled with dairy terms such as milk, yogurt or cheese. The reintroduction follows last week's Food and Drug Administration proposal allowing nut, oat, soy, and other non-dairy products to use the name "milk." Senate Democrat Tammy Baldwin of Wisconsin says, "The Biden Administration's guidance that allows non-dairy products to use dairy names is just wrong." Current FDA regulations define dairy products as being from dairy animals. However, last week the FDA released draft guidance allowing plant-based products to continue to use dairy terms despite not containing dairy, nor having the nutritional value of dairy products. *********************************************************************************** USDA Encourages Farmers to Prepare for new Rice Production Program The Department of Agriculture Tuesday previewed plans to provide up to $250 million in assistance to rice farmers. The plans include what steps rice producers can take to be prepared to sign up when the program is released later this spring. The full program and application details will not be available until later this year. But farmers can get prepared to signup, if they qualify for a higher payment limitation. The payment limitation for the program is set by law and is higher if the farmer's average adjusted gross farm income is more than 75 percent of their average adjusted gross income. Rice farmers may visit their local county office to submit the appropriate form and if they qualify for and want to seek the higher payment limit and get part of the paperwork done early. More information will be provided when FSA announces the signup period in the coming weeks. *********************************************************************************** Pandemic Food Away From Home Spending Varied Data from USDA’s Economic Research Service shows food away from home spending varied during the first year of the COVID-19 pandemic. In April 2020, spending at full-service restaurants declined 71 percent compared with April 2019. Spending at fast-food restaurants fell 32 percent, and spending at all other food-away-from-home establishments dropped 41 percent over the same period. Full-service restaurants typically offer food and alcohol to seated customers, which was hard to provide during the pandemic. However, the limited physical interaction with customers made it easier for fast-food establishments to adapt to COVID-19 restrictions, and by the second half of 2020, they managed to recover to pre-pandemic spending levels. Despite efforts by many full-service restaurants to expand takeout and delivery services, these outlets took slightly longer to bounce back, and returned to pre-pandemic spending in March 2021. By December 2021, both full-service and limited-service restaurant spending had fully recovered and were each about 10 percent higher than in December 2019. *********************************************************************************** Farm Bureau Accepting Ag Innovation Challenge Applications The American Farm Bureau Federation, in partnership with Farm Credit, is seeking entrepreneurs to apply online for the 2024 Farm Bureau Ag Innovation Challenge. Now in its 10th year, the national business competition showcases U.S. startup companies developing innovative solutions to challenges faced by America's farmers, ranchers and rural communities. Farm Bureau is offering $165,000 in startup funds throughout the course of the competition, which will culminate in the top 10 semi-finalists competing in a live pitch competition in front of Farm Bureau members, investors and industry representatives at the AFBF Convention in January 2024 in Salt Lake City, Utah. AFBF President Zippy Duvall says, "We're pleased to recognize startup companies that provide solutions to problems facing rural America and support farmers." Applications remain open through May 12, and the ten semi-finalist teams will be announced September 12. Each semi-finalist team will compete to advance to the final round of four teams. Find more information at fb.org/challenge.
| Rural Advocate News | Wednesday March 1, 2023 |
Wednesday Watch List Markets Various manufacturing indices from around the world will be reported overnight, leading to ISM's index of U.S. manufacturing at 9 a.m. CST Wednesday, clues to world economic activity. The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m., including ethanol production. Traders will keep an eye on the latest weather forecasts and South American crop conditions. Weather A system moving from the Northern Plains into the northern Midwest carries areas of mostly snow on Wednesday. The cold front to this system lies across the southeastern Plains through the Tennessee Valley and will light up with showers later Wednesday and into Wednesday night, some of which may be severe, but also carrying potentially heavy rainfall. Another strong system is moving through the southwest with heavy precipitation that will become another big-impact system for the end of the week east of the Rockies
| Rural Advocate News | Tuesday February 28, 2023 |
NACD Releases 2023 Farm Bill Recommendations The National Association of Conservation Districts released policy recommendations for the upcoming 2023 Farm Bill. The NACD’s Farm Bill Task Force has convened more than a dozen times to come up with recommendations that were recently approved by the NACD Board of Directors. Their most important priority is for Congress to keep conservation investments provided by the Inflation Reduction Act in the farm bill conservation programs. This request is critical to addressing the high unmet demand for NRCS conservation programs, which only serve about one in every three eligible producers. To support locally-led conservation efforts, the recommendations also push back against one-size-fits-all policies, the addition of national carve-outs within programs, and limitations on conservation practices. “We will continue to work with a wide range of stakeholders and lawmakers on both sides of the aisle to develop an inclusive farm bill that provides strong support for conservation,” says NACD President Kim LaFleur. *********************************************************************************** FCC Commissioner Speaks Out on the Importance of AM Radio in EVs Nathan Simington, a Commissioner for the Federal Communications Commission, spoke out on the continued importance of AM radio to public safety. He says the issue of continuing to include AM radios in electric vehicles deserves urgent attention. “As electric vehicle adoption increases, we must not leave behind those in rural areas who depend on radio for their news and alerts,” Simington says. He points out that growing up in rural Saskatchewan was like living in a connectivity desert. “Back then, like now, radio was essential for staying connected,” he says. “While some things have changed, not enough has changed to eliminate the need for radio, and the situation is similar in the United States.” He also believes the FCC has a duty to make clear how valuable AM radio is to its listeners. “Further, we should be good stewards of the AM radio band,” he says. “That includes safeguarding AM radio reception.” *********************************************************************************** Veterinarians Help Reignite Push to Strengthen Dog Import Standards The American Veterinary Association-supported Healthy Dog Importation Act would help to prevent the introduction and spread of diseases impacting both animal and human health. The legislation has been reintroduced in both chambers of Congress and would improve importation standards to make sure dogs are in good health when brought into the U.S. “Strengthening our animal health infrastructure by improving the country’s dog import standards is essential to maintaining public health,” says Dr. Lori Teller, AVMA President. “There are over a million dogs imported into the country each year, and we must make sure they’re healthy and not a risk for spreading dangerous diseases.” Senator Tina Smith (D-MN), one of the bill’s sponsors in the Senate, says, “Mitigating the spread of foreign diseases in dogs helps keep domestic and wild animals safe. It will also prevent illnesses and disease outbreaks in people.” Smith also says she’ll continue pushing this bipartisan bill forward. *********************************************************************************** USDA Report Says Farmers Adopting Precision Ag at Different Rates Farmers are adopting precision technologies at different rates. A USDA report says the largest farms are adopting auto-steer guidance technology at significantly higher rates. After sorting farms into five equally-sized groups, the agency found that among farmers who were growing corn in 2016, 73 percent of farms in the largest category adopted guidance at the highest rates. The rates were similar for the largest farms growing other commodities in later years: 82 percent of the largest winter wheat farms in 2017, 68 percent of the largest soybean farms in 2018, and 67 percent of the largest cotton farms in 2019. Adoption rates were smaller among the smallest farms in the country: 10 percent of the smallest corn farms in 2016, 11 percent of the smallest soybean farms in 2018, and seven percent of the smallest winter wheat farms in 2017. However, fifty percent of the smallest cotton farms have adopted the technology. *********************************************************************************** USDA Looking to Expand Conservation Assistance The USDA is seeking applications for projects that will improve its outreach to underserved producers and underserved communities. The agency is looking to expand opportunities to participate in conservation programs and services and opportunities for students to pursue careers in agriculture, natural resources, and related sciences. USDA’s Natural Resources Conservation Service is offering up to $70 million in cooperative agreements with entities for two-year projects that encourage participation in NRCS programs, especially in underserved communities and among urban and small-scale producers. “USDA is committed to removing barriers for underserved producers to all USDA services,” says NRCS Chief Terry Cosby. “The projects funded through this opportunity will better ensure these producers receive the benefits our conservation programs deliver.” The projects should promote the benefits of the NRCS programs through education or demonstrations, develop community conservation partnerships that engage underserved producers, and meet other requirements too. For more information, go to grants.gov. *********************************************************************************** Corn Export Sales Drop Week-to-Week The USDA says corn export sales for the week ending on February 16 dropped while wheat and bean sales rose. Corn sales that week hit 823,200 metric tons, 20 percent lower than the previous week and 30 percent under the previous four-week average. Japan was the biggest buyer at 312,000 metric tons, followed by Mexico and Taiwan. The total would have been higher, but China and Italy both canceled shipments. Exports for the week rose three percent to 687,400 tons. Wheat sales came in at 338,800 metric tons, 62 percent higher than the previous week and 39 percent above the four-week average. Exports hit 338,000 metric tons, a 32 percent drop. Soybean sales rose 20 percent over the prior week at almost 545,000 metric tons, 18 percent below the four-week average. China was the top buyer at 176,200 metric tons. Exports for the week dropped six percent to 1.74 million metric tons.
| Rural Advocate News | Tuesday February 28, 2023 |
Tuesday Watch List Markets DTN's Ag Summit Series begins at 8:30 a.m. CST Tuesday, followed by the Conference Board's index of U.S. consumer confidence at 9 a.m. Traders will keep watch over the latest weather forecasts and pause at 8 a.m. to see if USDA has an export sale to announce, something not seen for the past 10 days. Weather A storm system continues to move through the Northeast with precipitation but the next in the series of storms for the week will exit the Rockies and move through the Northern Plains and Upper Midwest Tuesday and Tuesday night with scattered snow showers. A band of snow should set up along the North Dakota-South Dakota border which may be heavier. Breezy winds continue in West Texas, which continue to rob the region of any topsoil moisture.
| Rural Advocate News | Monday February 27, 2023 |
U.S. Imposes Higher Tariffs on Russian Imports The White House announced actions intended to hold Russia accountable for invading Ukraine. U.S. Trade Representative Katherine Tai says as part of that effort, President Biden announced additional tariff increases on a variety of goods from Russia worth approximately $2.8 billion. The president raised tariffs on most metal and metal products, doubling them from 35 to 70 percent and targeting a crucial revenue-generating sector of the Russian economy. He also increased tariffs on additional Russian products to 35 percent, including chemicals and minerals. These moves are complemented by tariff increases on Russian aluminum. “These actions are carefully calibrated to put economic pressure on Russia while minimizing costs to U.S. consumers,” says Tai. “As the president recently said in Poland, the United States and our Allies and partners will hold accountable those who are responsible for the war.” She also says those actions demonstrate the U.S. resolve in doing precisely that. *********************************************************************************** Food-at-Home Price to Increase Almost Nine Percent USDA’s Economic Research Service publishes its price forecasts in the monthly Food Price Outlook report. The FPO forecasts food-at-home prices will increase by 8.6 percent in 2023, with a prediction interval of 5.6 to 11 percent. Forecasts now include a midpoint and a prediction interval to represent the expected price change and range of likely prices. The prediction intervals vary. They begin wider due to uncertainty at the start of the year and then narrow as forecasts incorporate more months of observed data. In 2023, fresh fruit prices are predicted to experience little change at 0.1 percent with a prediction interval of -5.6 to 6.4 percent. Overall, food prices are expected to grow more slowly in 2023 than they did in 2022 but remain above historical average rates. Food-at-home prices grew 11.4 percent in 2022, the largest annual increase since 1974, compared with a historical average increase of 2.5 percent from 2003-2022. *********************************************************************************** Egg Prices are Projected to Drop 30 Percent This Year The price of eggs is projected to fall dramatically after reaching record-high levels over several months. The USDA says those prices should fall back to typical levels this year, provided the U.S. doesn’t see a rebound in highly pathogenic avian influenza cases in 2023. The Bureau of Labor Statistics says the price of eggs in January was $4.80 a dozen, 150 percent higher than in January of last year. USDA Chief Economist Seth Meyer told the Ag Outlook Forum attendees that wholesale egg prices will drop almost 27 percent in 2023. The agency says the high price of eggs is driven by the historic level of avian flu outbreaks that have killed more than 58 million backyard and commercial chickens and turkeys since last February. The agency says egg production will increase four percent this year to 9.4 billion dozen as the number of egg-laying chickens will also rebound from 2022. *********************************************************************************** Report Says Farm Bill Should Prioritize Ag Research A report produced by the Farm Journal Foundation and the Chicago Council on Global Affairs says the U.S. needs to increase support for agricultural research and development in the next farm bill. The support would help make sure that farmers can keep feeding the world despite the challenges faced by agriculture. New innovations generated from agricultural research at land-grant universities and other public sector institutions can help increase farm productivity and economic growth. Despite that, public investment in agricultural R and D has declined in recent years. The report says the 2023 farm bill is an opportunity to increase funding for agricultural R and D and ensure the U.S. is prepared for the challenges ahead. The USDA’s Economic Research Service says ag research provides one of the highest returns of any public research investment, generating $20 on average for every $1 spent. Public investment is needed to complement private-sector spending. *********************************************************************************** Ethanol Production Surges The Energy Information Administration says ethanol output jumped to the highest level in more than two months while inventories again increased during the week ending on February 17. The EIA report says production rose to an average of 1.029 million barrels a day. That’s up from 1.014 million barrels, on average, during the previous week and is the highest output since December 16. The Midwest saw output increase to an average of 984,000 barrels a day, up from 965,000 barrels during the previous week. That was where all the gains took place. Production in the West Coast and East Coast regions was unchanged from the prior week. Production in the Rocky Mountain and Gulf Coast regions fell an average of 9,000 and 21,000 barrels a day, respectively. Ethanol stockpiles were up again, rising to 25.58 million barrels, up from 25.33 million during the prior week, and the highest level since April 1, 2022. *********************************************************************************** Give FFA Day Raises Record Amount of Support The National FFA Organization was amazed at the amount of support shown during the National Give FFA Day event. They were excited to announce that with the generous support of the FFA community, they helped raise a record-breaking amount of money. A total of 721,506 dollars will go toward benefitting National FFA and 51 FFA associations. “To those who donated on Give FFA Day, we are so grateful for your support,” the organization said in a release. “Your generosity will impact FFA members and teachers across the country.” They also say because the support was so generous, FFA is able to build members’ leadership skills, instill a passion for service, and prepare the next generation for agriculture careers. “Thank you to everyone who stepped up to make the day such a rousing success,” the organization said. For those who didn’t get the chance, go to ffa.org to continue supporting the organization.
| Rural Advocate News | Monday February 27, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and any news. A report on U.S. durable goods orders for January is due out at 7:30 a.m. CST, followed by pending home sales at 9 a.m. and USDA's weekly grain inspections at 10 a.m. Weather A storm system going through the Midwest on Monday morning already produced a round of significant severe weather across the Central and Southern Plains on Sunday, with another round possible from Illinois to Ohio on Monday. In addition, colder temperatures across the northern Midwest and Northeast will create a mix of wintry weather Monday into Monday night, and breezy winds have developed for the middle of the country. Several additional storm systems are expected this week with myriad impacts.
| Rural Advocate News | Friday February 24, 2023 |
USDA Releases Lower Ag Export Forecast for 2023 American agricultural exports in fiscal year 2023 are projected at $184.5 billion, down $5.5 billion from the November forecast. The export forecasts for all major commodity groups are down, with the largest drops projected for corn, sorghum, and soybeans. Corn exports are forecast $1.9 billion lower to $16.6 billion on lower volume. Soybean exports are projected to drop by $800 million to $32 billion on lower U.S. supplies and increased Brazilian competition. Livestock, poultry, and dairy exports are forecast to decrease by $900 million to $40.5 billion as declines in beef, poultry, and dairy exports offset increases in pork exports. U.S. cotton exports are forecast down $100 million to $5.9 billion on lower volumes. Ethanol exports are forecast at $3.6 billion, down $600 million on lower volumes and a reduced demand outlook. China is forecast to remain the largest market for U.S. agricultural exports at $34 billion, unchanged from November. *********************************************************************************** Study Shows Transition to Cage-Free Eggs Comes With Problems A new study funded in part by United Egg Producers and the United Egg Association shows the transition to cage-free eggs will increase costs and reduce profits. It also shows that producers may not be able to make the 2026 deadline. The study says, “Conversion from conventional to cage-free housing is costly for both egg producers and final consumers.” There remains a lot of uncertainty about the extent to which egg producers will be willing and able to continue transitioning to cage-free housing at a rate commensurate with retailers’ cage-free pledges. Roughly 55 percent of consumers surveyed for the study are motivated by price and don’t discriminate between cage and cage-free eggs. Producers surveyed also reveal higher costs and labor requirements associated with cage-free production. Producers are also experiencing challenges in getting financing to convert or build cage-free facilities without longer-term commitments from retailers, particularly as interest rates continue climbing higher. *********************************************************************************** Cyberattack Temporarily Shuts Down Dole Production Food giant Dole says it recently was hit by a cyberattack that was determined to be ransomware. Industrial Cyber says the attack disrupted the company’s operations and resulted in the temporary shutdown of production plants. It temporarily halted the company’s food shipments to stores. A company news release says upon learning of the incident, Dole moved quickly to contain the threat and engaged leading third-party cybersecurity experts who’ve been working with Dole’s internal teams to secure the company’s systems. An internal memo on February 10 told employees that “Dole Food Company is in the midst of a cyber-attack and has subsequently shut down our systems throughout North America.” Two grocery stores in Texas and Mexico contacted by CNN said they hadn’t been able to stock Dole salad kits on their shelves for days. Dole didn’t go into detail about the ransomware hackers’ attack methods but did say the company contacted law enforcement. *********************************************************************************** Mad Cow Disease Found in Brazil Brazil’s agriculture and livestock ministry says beef exports to China are temporarily on hold after a case of mad cow disease was confirmed in one of the northern states called Para. Reuters says the suspension is part of an animal health agreement made between the two countries and likely won’t last long. However, it is a hit to the bottom line for the country’s farmers as China is the top destination for Brazil’s beef exports. Minister Carlos Favaro says, “All measures are being taken immediately at each stage of the investigation, and the matter is being handled with total transparency to guarantee Brazilian and global consumers the recognized quality of our meat.” The ag ministry also says, “The symptomology indicates that it is the atypical form of the disease, which appears spontaneously in nature, causing no risk of dissemination to the herd and human beings.” Para’s agricultural defense agency confirmed the disease case. *********************************************************************************** 2022 Annual Milk Production up 0.1 Percent From 2021 The annual production of milk in the United States during 2022 was 226 billion pounds, 0.1 percent above 2021. Revisions to 2021 production increased the annual total to 35 million pounds. Revised 2022 production was down 158 million pounds from the previous USDA publication. Annual total milk production has increased 12.5 percent since 2013. The average number of milk cows on farms in the United States during 2022 was 9.4 million head, 0.5 percent lower than last year. The average number of milk cows was revised down 2,000 head for 2022. The average annual number of milk cows has increased by 1.9 percent from 2013. In the meantime, milk production in the 24 major dairy-producing states totaled 18.5 billion pounds in January, 1.5 percent higher than in January 2022. Production per cow averaged 2,069 pounds for January, 18 pounds above January 2022. The number of milk cows on farms was 8.93 million head. *********************************************************************************** Biggest U.S. Farms Obtaining More Land USDA’s annual Farms and Land in Farms Report shows the country’s largest farms with sales of $1 million or more operate nearly 26 percent of U.S. farmlands. The agency also says there were 2.003 million farms in the nation during 2022, a drop of 0.5 percentage points from 2012. Around 88,660 farms, or 3.9 percent of the total, had sales of at least $1 million. Ten years ago, three percent of farms made that category. The average size of the largest farms, by sales, was 2,927 acres or 4.6 square miles in 2022. In 2012, farms with $1 million in sales were an average of 2,481 acres in size. USDA says the average farm size for 2022 was 446 acres, up from 445 acres in 2021. The size of farms in the $1 million or more sales class increased. Farms in every other sales class either decreased or remained the same size.
| Rural Advocate News | Friday February 24, 2023 |
Friday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CST, the same time the Personal Consumption Expenditure index for January and U.S. personal income and consumer spending data will also be out, followed by U.S. new home sales for January and the University of Michigan's consumer sentiment index for February at 9 a.m. USDA's monthly cattle on-feed and cold storage reports are due out at 2 p.m. Weather There may be some showers floating around the Plains, Midwest, and Delta on Friday, but most areas will stay dry. Very cold air that has settled into the Northern Plains and Canadian Prairies continues Friday before moderating. The next storm system is moving through California with heavy precipitation and strong winds. This system will move through the Southwest over the next couple of days.
| Rural Advocate News | Thursday February 23, 2023 |
FACA Announces 2023 Farm Bill Priorities The Food and Agriculture Climate Alliance Wednesday released policy recommendations for the 2023 farm bill. Further reducing emissions throughout agricultural and forestry supply chains will require a comprehensive effort involving financial and technical assistance, research investments, proactive response to innovation, public-private partnerships and a commitment to equitable opportunities for all producers. FACA's recommendations, developed by the 23-member steering committee, are divided into six categories: Conservation, risk management and credit, energy, food waste, forestry, livestock and dairy, and research, extension and innovation. FACA's past recommendations have provided guidance to members of Congress and administration officials and have been credited with shaping federal laws and programs. President of the American Farm Bureau Federation, Zippy Duvall, says, "We look forward to working with Congress to strengthen Title I programs, improve risk management tools, and utilize these FACA recommendations to advance our sustainability mission in a manner that respects farmers and ranchers as partners." *********************************************************************************** FDA Announces Draft Guidance for Plant-Based Dairy Imitators The Food and Drug Administration Wednesday announced draft recommendations on the naming of plant-based foods that are marketed and sold as alternatives to milk. The guidance recommends that an alternative milk product that includes the term milk and has a nutrient composition different than milk, include a voluntary nutrient statement that conveys how the product compares with milk. Jim Mulhern, President and CEO of the National Milk Producers Federation, says the announcement "is a step toward labeling integrity for consumers of dairy products." Though Mulhern says the guidance "falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology." Senate Democrat Tammy Baldwin and Idaho Republican Jim Risch, in a joint statement, say, "This misguided rule will hurt America's dairy farmers and our rural communities." Baldwin and Risch announced their intention to reintroduce the DAIRY PRIDE Act, which would require the FDA to issue guidance for nationwide enforcement of mislabeled plant-based products within 90 of implementation. *********************************************************************************** NCGA Announces Caskey as CEO The National Corn Growers Association Wednesday announced Neil Caskey as its new CEO. Caskey, who serves as NCGA's vice president of communications, will begin the role of CEO Monday, February 27. NCGA President Tom Haag says, "Neil's experience in agriculture is extensive, and he is well known as someone who gets the job done well." Caskey has served as NCGA's vice president of communications and industry relations for over four years and spent over a decade promoting agricultural issues as executive vice president at OBP Agency. His professional background also includes work for the American Soybean Association and as a legislative aide for a U.S. member of Congress. Caskey says, "It is quite an honor to lead an organization that I care so much about." Caskey holds a B.A. in political science from the University of Missouri-Columbia and an MBA from Webster University. Former CEO, Jon Doggett, left NCGA at the end of last year. *********************************************************************************** Consumers Expect to Pay More for Groceries A new survey finds consumers expect to pay more for groceries this year. Progressive Grocer reports the 2023 KPMG Winter Consumer Pulse Survey shows consumers anticipate increased prices, but are looking for ways to save money. The Survey shows consumers expect a 15 percent increase in grocery spending this year. Meanwhile, 56 percent of consumers plan to spend more on groceries this year, while nine percent plan to spend less. Consumers cite inflation, an increased tendency to eat at home, larger household sizes and dietary changes as reasons for spending changes. KMPG research also finds 38 percent of consumers plan to pay more for restaurant meals this year, a two percent increase from last year. However, 35 percent of consumers say they plan to spend less on purchases made online this year, yet nearly half of the respondents reported an average increase in household income of 15 percent. *********************************************************************************** USDA Announces $59 Million Investment in Meat Processing Capacity The Department of Agriculture this week announced a $59 million investment to increase independent meat and poultry processing capacity. The funding also seeks to expand market opportunities for farmers and create jobs in rural areas. The investment is part of the Biden administration's Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain. The action plan dedicates resources to expand independent processing capacity. Agriculture Secretary Tom Vilsack says, "USDA will continue to work tirelessly to give farmers and ranchers a fair chance to compete in the marketplace, which in turn helps lower food costs for the American people." USDA is providing the $59 million in grants to five independent processors under the Meat and Poultry Processing Expansion Program. The funding will help build new processing plants, create hundreds of jobs, give local producers and entrepreneurs more options and business opportunities, and give consumers more options at the grocery store. *********************************************************************************** AFA Acquires Magnetic Ag Digital Newsletter Agriculture Future of America has acquired Magnetic Ag - an agriculture-focused digital newsletter distributed through email twice weekly - from Magnetic Ag founder and AFA alumnus, Travis Martin. Since its inception in 2020, Magnetic has grown to serve more than 12,000 active subscribers including agricultural business, technology and policy professionals, alongside agriculture educators, students and farmers. Magnetic is aimed at making agriculture industry news digestible by consolidating news from a variety of industry media into each newsletter edition, making the newsletter a hub for the latest agriculture news. With a casual and catchy writing style, Magnetic shares agricultural business, policy, technology and market news. AFA President and CEO Mark Stewart says, "Adding Magnetic to AFA's offerings helps us further serve the industry by developing transformational leaders who find themselves at various stages of their careers." AFA aims to double readership in the coming year by making the newsletter more accessible to its partners and students.
| Rural Advocate News | Thursday February 23, 2023 |
USDA Forecasts Bigger Crops, Lower Prices for 2023-24 Crops ARLINGTON, Va. (DTN) -- U.S. farmers are forecast to plant 91 million acres of corn, up 2.4 million acres from last year, and produce a 15-billion-bushel crop while soybean acres will hold pat at 87.5 million acres and produce 4.5 billion bushels, according to USDA's initial Outlook on the 2023-24 crops. USDA also forecasts lower corn and soybean prices as production increases as well. USDA released its Grain and Oilseeds Outlook at the opening of its annual Outlook Forum on Thursday in Arlington, Va. CORN USDA forecasts higher corn production for the 2023-24 crop year with 91 million acres planted and a record yield of 181.5 bushels per acre, producing a projected 15.09-billion-bushel crop, about 10% larger than a year ago. If realized, it would be the second-largest crop on record behind the 2016-17 crop year. The higher production is expected to bring down the average farmgate price $1.10 a bushel from last year to $5.60 a bushel. Citing the 181.5 bpa, USDA said the record yield forecast is based on a "weather-adjusted trend assuming normal planting progress and summer growing season weather." Total corn supplies are forecast at 16.38 billion bushels, up about 8% from the 2022-23 crop. Looking at use, feed, seed and industrial use is unchanged at 6.69 billion bushels. Corn use for ethanol is projected at 5.25 billion bushels, "based on expectations of flat motor gasoline consumption." Feed and residual use is projected to rise 6% to 5.6 billion bushels due to higher corn production and expected lower prices during the year. Exports are expected to rise 275 million bushels to 2.2 billion bushels due to "reduced exportable supplies in Ukraine," and modest global trade growth. Ending stocks are forecast to rise 620 million bushels to 1.887 billion bushels, resulting in a stocks-to-use ratio of 13%. SOYBEANS While planted acreage would remain unchanged at 87.5 million acres, USDA forecasts yields will rise 2.5 bushels per acre to 52 bpa. That would boost production 5% to 4.5 billion bushels, "assuming normal growing-season weather." The average farmgate price for soybeans is projected at $12.90 a bushel, down $1.40 a bushel from the 2022-23 crop. Domestic soybean crush is projected to rise to a record 2.31 billion bushels, "supported by meal demand growth and high prices for biofuel feedstocks in the United States." Soybean oil for biofuels is expected to grow 8% to 12.5 billion pounds in 2023-24. USDA cited the driving increase for soybean oil in biofuels that has pushed up U.S. prices and driven down exports. "This trend is expected to continue under current state mandates and the Environmental Protection Agency's proposed rule for 2023 through 2025," citing the EPA Renewable Fuels Standard rules. Soybean exports for 2023-24 are forecast at 2.03 billion bushels, up 35 million bushels from the 2022-23 crop year. With harvest underway in Brazil, USDA cites that South American supplies will be higher this year as the U.S. export season gets underway. "With another large South American harvest expected in early 2024, export competition will likely limit potential gains in U.S. exports in the second half of the marketing year." Soybean ending stocks for 2023-24 are projected at 290 million bushels, up 65 million bushels from the 2023-24 forecast. WHEAT U.S. wheat production is projected to increase 14% for 2023-24 to 1.887 billion bushels on both higher acreage and yield. Total wheat planted acre is projected at 49.5 million acres, up nearly 3.8 million acres from the 2022-23 crop, and the highest since 2016-17. The average farmgate price for wheat is forecast at $8.50 a bushel, down 50 cents a bushel from the 2022-23 crop. The all-wheat yield is projected to increase 6% to 49.2 bpa. Total wheat supply will hit 2.575 billion bushels, up 107 million bushels from last year's crop. Total domestic use is forecast at 1.142 billion bushels, up 17 million bushels. Exports are forecast at 825 million bushels, up 75 million bushels from 2022-23. That puts total use at 1.967 billion bushels, up 67 million bushels from a year ago. All-wheat ending stocks will come in at 608 million bushels, up 40 million bushels from a year ago.
| Rural Advocate News | Thursday February 23, 2023 |
Thursday Watch List Markets U.S. weekly jobless claims, an update of fourth-quarter U.S. GDP and an update of the U.S. Drought Monitor are all set for 7:30 a.m. CST Thursday. The U.S. Energy Department's natural gas storage report will be out at 9:30 a.m., followed by energy inventories at 10 a.m. Traders continue to keep a close watch on the latest weather forecasts. Weather A long-duration winter storm is winding down Thursday, though moderate snow will still occur across portions of the northern Midwest into the Northeast. Winds remain blustery in some areas where the snow fell, causing some blowing and drifting of the snow along with occasional blizzard conditions. Very cold temperatures have settled in briefly across portions of the Plains and Upper Midwest through Friday before moderating.
| Rural Advocate News | Wednesday February 22, 2023 |
USDA: Ethanol Production Rebounds from Pandemic Lows Production and consumption of ethanol as a transportation fuel grew significantly over the last three decades in the United States before plateauing in recent years. The ethanol share of finished motor gasoline has moved concurrently with consumption, leveling off near ten percent in 2022. Steps taken in the spring of 2020 to combat the spread of COVID-19, such as increased remote work and school, and other social distancing efforts, resulted in sharp declines in a variety of ethanol market metrics. For example, from 2017–19, U.S. ethanol production averaged 1.33 billion gallons per month, while consumption averaged 1.18 billion gallons per month. During the pandemic lows, these values fell by 46 percent and nearly 40 percent, respectively, causing the ethanol share of finished motor gasoline to decline to nine percent. More recently, estimates for all three figures have largely recovered and leveled off. However, adoption of hybrid and electric vehicles is expected to put downward pressure on gasoline consumption and dampen prospects for renewed growth in fuel ethanol demand. *********************************************************************************** USDA Invests More than $48.6 Million to Combat Climate Change The Department of Agriculture will invest more than $48.6 million this year through the Joint Chiefs’ Landscape Restoration Partnership. The projects mitigate wildfire risk, improve water quality, restore forest ecosystems, and ultimately contribute to USDA’s efforts to combat climate change. This year, the Forest Service and Natural Resources Conservation Service will invest in projects. Forest Service Chief Randy Moore says, “The need for cross-boundary wildfire risk reduction work as part of our Wildfire Crisis Strategy is more urgent than ever.” The partnership enables the Forest Service and NRCS to collaborate with agricultural producers and forest landowners to invest in conservation and restoration at a large enough scale to make a difference. Working in partnership, and at this scale, helps reduce wildfire threats to communities and critical infrastructure, protect water quality and supply, and improve wildlife habitat for at-risk species. USDA is investing $31.2 million in 25 existing projects and more than $17 million in 14 new projects. *********************************************************************************** Ocean Freight Rates Revert to Pandemic Lows Since the highs of 2021, freight prices have dropped to lows not seen since June 2020, according to a recent analysis by U.S. Wheat Associates. Coupled with a recent break in wheat prices, decreased ocean freight costs have helped turn the tides back in the importers' favor. The Baltic Index price chart of dry bulk freight rates shows the impact on rates from the Russian invasion of Ukraine. On February 6, the Baltic Dry Index hit 621, a level not seen since June 2020. The index has fallen 88 percent from its peak in October 2021. In recent years, dry bulk freight and Chinese economic growth have become interconnected. Vessel supply and demand, port congestion, oil prices, and the ongoing supply chain disruptions will continue to impact the market as economies normalize post-COVID. However, China remains in the driver's seat of global freight, according to U.S. Wheat Associates. The resilience of the Chinese economy will be put to the test as economic activity increases post-COVID. *********************************************************************************** Growth in Organic Market Slowing The organic market has seen continued growth in retail sales in the past decade. However, the pace of growth has slowed, according to USD’s Economic Research Service. U.S. organic retail sales increased by an average of eight percent per year and surpassed $53 billion in 2020. In 2021, sales were $52 billion, which was a six percent annual decline when adjusted for inflation, but a slight increase when not inflation-adjusted. Additionally, the number of certified organic acres operated increased gradually from 3.6 million in 2011 to 4.9 million acres in 2021. The number of certified farms with operating organic acres in the United States nearly doubled over the past decade to 17,400 from about 8,900. Between 2019 and 2021, the number of certified organic farms in the United States increased five percent, while total organic land decreased by 11 percent, driven by a 36 percent decrease in pasture and rangeland. *********************************************************************************** FMI Encourages FDA to Refine Healthy Definition The Food Industry Association recently submitted comments to the Food and Drug Administration regarding the agency's proposed rule to update the definition of the term "healthy." The FDA is seeking the update when the term is used as a nutrient content claim in labeling. FMI Chief Public Policy Officer Jennifer Hatcher says. "We are concerned the proposal is too restrictive in scope and could inadvertently lead to consumers avoiding certain foods that are otherwise part of a healthy eating pattern." The comments submitted to FDA explain some FMI members found that their portfolios have gone from 80-95 percent “healthy”-eligible foods, to between three and seven percent healthy eligible foods under the proposed rule. FMI predicts that when taking into account the entire food supply, fewer than five percent of products would qualify. Hatcher adds, “A definition that only allows an exceedingly small number of foods to bear a healthy claim would be counter-productive to the agency’s goal of improving public health.” *********************************************************************************** Swine Health Center Develops Standard Outbreak Investigation Instrument The Swine Health Information Center this week announced a standardized outbreak investigation instrument. The new instrument is available for download and use from the SHIC website, and a web-based version will be launched this spring. The downloadable version is a fillable form that, upon completion, could be submitted to a program administrator at Iowa State University, the developer of the tool. Or the form could be used for farm/system outbreak investigations without submitting, but every submission will strengthen the confidential database that can help researchers find industry trends. The new, standardized outbreak investigation instrument was built from an existing investigation tool. Expert input and conversation led to changing some terms and creating additions. Dr. Derald Holtkamp of Iowa State University led the development of the instrument. Holtkamp says, “The reason for doing this remains trying to be better prepared to respond to the introduction of transboundary disease.” Visit swinehealth.org to learn more.
| Rural Advocate News | Wednesday February 22, 2023 |
Wednesday Watch List Markets Minutes from the Fed's most recent Open Market Committee meeting will be released at 1 p.m. Wednesday, the only significant report on the docket. Due to this week's four-day schedule, the Energy Department's weekly inventory report is pushed to Thursday. Traders will keep close watch over the latest weather forecasts and any outside news, especially as the one-year anniversary of Russia's invasion of Ukraine approaches. Weather A long-duration winter storm event continues to produce widespread impacts for much of the country on Wednesday. Showers and thunderstorms are developing across the southeastern Plains through the Midwest, some of which may be severe. A narrow band of heavier snow continues in Wisconsin and Michigan this morning but will broaden out during the day, with a risk of freezing rain from Iowa to southern Michigan. The larger part of the storm is in the Rockies and will increase the snowfall across the Northern Plains into the Upper Midwest throughout today and tonight, leading to heavy snowfall amounts. Winds with the system are increasing and will be strong enough to produce blizzard conditions where the heavy snow falls.
| Rural Advocate News | Tuesday February 21, 2023 |
Key Happenings the Newsroom is Tracking for the Week of Feb. 19-25 OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Feb. 19. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. USDA Outlook Conference: The annual USDA Ag Outlook Forum is Feb. 23-24. The event is packed with sessions covering major issues in the ag economy, capped by USDA's official economic prognostications early Friday morning. 2. Early week winter waves: Several storm systems will trek across the U.S. this week. DTN Ag Meteorologist John Baranick says the next round begins in the Pacific Northwest Monday night into Tuesday. It is expected to head into the Great Lakes through Tuesday and into Wednesday, bringing snow to the Northern Plains and Great Lakes areas. 3. Dark anniversary: Feb. 24 is, of course, the first anniversary of Russians invasion into Ukraine; the ongoing war continues to influence the global economy, particularly global food security. Look for both reflections on that anniversary mark, as well as the potential real-time market influences from additional fighting in Ukraine. 4. Latest cattle numbers: USDA will release its latest Cattle on Feed report Friday, and the market will watch closely for continued signs of tight supplies. Watch for our preview analysis on Feb. 23. 5. Presidential thoughts: Trading markets are closed today, Feb. 20, as is the DTN newsroom, to mark the President's Day holiday. This year, as we remember the birthday of George Washington as well as Abraham Lincoln and others, many thoughts are with our 39th president, James Earl Carter Jr. The former peanut farmer from Plains, Georgia, who at 98 is the longest-lived U.S. president, entered into hospice care Feb. 18.
| Rural Advocate News | Tuesday February 21, 2023 |
Mexican Ban on Some Biotech Corn Underway Last week, Mexican officials issued a decree calling for a ban on imports of some biotech corn used for certain purposes. That ban began last Friday. The Mexican government also decreed it would continue to allow imports of biotech corn used as animal feed while exploring substitutes. The National Corn Growers Association expressed serious concerns with the accelerated timeline, noting that the administration has been more than patient with Mexico. “Our U.S. officials are seeking to enforce a rules-based trading system and stand up for farmers,” says NCGA President Tom Haag (HAYG). “The integrity of the USMCA, signed by Mexican President Obrador himself, is at stake.” He also says singling out corn, the number one U.S. ag export to Mexico, and hastening an import ban on numerous food-grade uses makes USMCA a dead letter unless it’s enforced. NCGA says Mexico appears to be doubling down on its original intended ban in 2024. *********************************************************************************** EPA Proposes New Rule for Pesticide Exposure Protection The Environmental Protection Agency announced a proposed rule that would improve and modernize the pesticide Application Exclusion Zone requirements. Those requirements are part of the 2015 Agricultural Worker Protection Standard, and the agency is proposing to reinstate several provisions from that standard. Among the changes, the revised standard includes a new provision requiring agricultural employers to keep workers and all others out of an area called the Application Exclusion Zone. The AEZ is an area surrounding an ongoing pesticide application. A previous rule change limited the AEZ to 25 feet in 2020. However, the proposed rule will change that to 100 feet for fine sprays. The distances will stay at 25 feet for medium or larger sprays when sprayed from a height greater than 12 inches from the soil surface. The rule change would also apply the AEZ beyond an establishment’s boundaries, and when individuals are within easements on a producer’s land. *********************************************************************************** EPA Changes Some Dicamba Cutoff Dates for This Spring The Environmental Protection Agency proposed new restrictions on using over-the-top dicamba herbicides in Illinois, Iowa, Indiana, and South Dakota. The label changes say no spraying on dicamba-tolerant soybeans in Iowa, Illinois, and Indiana after June 12 or the V4 growth stage, whichever comes first. No spraying on DT cotton in Iowa, Illinois, or Indiana after June 12 or first square, whichever happens first. No spraying on DT crops after June 20 in South Dakota. The EPA also said Minnesota’s label requirements remain the same as in 2022. The reaction to the change has not been positive in the soybean industry. Aaron Hager, a University of Illinois weed scientist, told DTN the timing couldn’t have been worse for soybean growers who intend to plant certain varieties. “Most or all seed decisions have been made, and now we have to contend with new cutoffs in the largest soybean states in the U.S.,” he says. *********************************************************************************** State Attorneys General File Lawsuit Over WOTUS Montana Attorney General Austin Knudsen (kuh-NOOD-sen) and attorneys general from 23 other states filed a lawsuit against the Biden administration’s Waters of the U.S. Rule. The group says the EPA’s WOTUS rule “goes beyond the power Congress delegated in the Clean Water Act, raises serious constitutional concerns, and runs roughshod over the Administrative Procedures Act.” Knudsen says, “The administration’s water rule limits the use of land and violates the law and U.S. Constitution. The EPA greatly overstepped its authority by trying to claim jurisdiction over land and water not connected to any navigable water.” The attorneys general say they’re fighting to protect farm and ranching operations, mining and energy workers, and infrastructure and housing projects across Montana and the entire country that will be harmed if this overreaching and unconstitutional rule takes effect. Montana and the other states will motion for a preliminary injunction to stop the rule while it’s under litigation. *********************************************************************************** The Fertilizer Institute Releases Sustainability Report The Fertilizer Institute released new data highlighting industry improvements in sustainability performance in key priority areas, including workforce safety, energy, the environment, and innovation. “The industry is continuously working towards more sustainable operations, including efforts to decarbonize and mitigate environmental impacts,” says TFI President and CEO Corey Rosenbusch. Report highlights include survey participants investing an average of more than $1 billion every year in capital investments to help the industry meet sustainability goals. In 2021, the industry captured 31 percent of all CO2 generated per ton of nutrient produced, an increase of 368 percent over emissions captured in 2013. To reduce the industry’s energy footprint, 39 percent of all energy consumed is generated using waste heat rather than pulling from the electrical grid. Nitrogen producers recycled enough water to fill 1.6 million Olympic-sized swimming pools. “Each step of the supply chain is focused on doing more with fewer resources,” Rosenbusch adds. *********************************************************************************** Growth in Farmland Values Continues Growth in farm real estate values remained strong but showed some signs of easing alongside higher interest rates. The Kansas City Federal Reserve says the average interest rates on farm loans increased from record lows at the beginning of last year to decade highs by December of 2022. Despite the rapid rise in rates, the value of farmland continued to increase, but at a more tempered pace than earlier in the year. The growth in farmland values has softened most for lower-priced land and in states most heavily affected by drought. Looking ahead, a majority of bankers expect higher interest rates to have a negative effect on farm real estate, and some anticipate a decline in values. Farm finances and credit conditions were supported by strong commodity prices in 2022, and the outlook for 2023 remained positive despite some persistent risks. Higher expenses and adverse weather continue to be concerning.
| Rural Advocate News | Tuesday February 21, 2023 |
Tuesday Watch List Markets Back from the three-day weekend, traders will be checking the latest weather forecasts and news. A report on U.S. existing home sales in January is due out at 9 a.m. CST, followed by USDA's weekly grain export inspections at 10 a.m. Weather A conglomeration of upper-level disturbances are combining to make for a long-duration winter storm across the country this week. The lead piece will create some moderate to heavy snow for the Northern Plains and Upper Midwest Tuesday while a piece in the Southwest moves into the Plains overnight with increasing showers and thunderstorms. Winds are on the increase Tuesday, especially in the southwestern Plains where they may gust over 50 mph and be even stronger Wednesday. Meanwhile, the West continues to be pummeled by heavy precipitation and strong winds as well.
| Rural Advocate News | Friday February 17, 2023 |
Partnership to Protect the U.S. from African Swine Fever A new partnership was put in place at the National Association of State Departments of Agriculture Winter Policy Conference. NASDA, the USDA, the National Pork Board, and the National Pork Producers Council are working together to enhance coordination and preparedness to prevent and protect the United States from African swine fever. “When you bring together state, federal, and industry groups with different strengths to take on challenges, you see a united force of resilience on all fronts,” says NASDA CEO Ted McKinney. “This collaboration will lead to better response to outbreaks and better animal health and welfare across the country.” African swine fever hasn’t currently crossed into the U.S. but being prepared to respond and coordinate prevention methods at all levels better ensures the protection of America’s swine herds. “We all play an important role in keeping American agriculture safe and working together enhances our efforts,” says NPPC President Terry Wolters. *********************************************************************************** Positive Reaction to Torres Small Nomination Senate Ag Chair Debbie Stabenow is pleased with the nomination of Xochitl (so-CHEEL) Torres Small to be the new Deputy Secretary of Agriculture at USDA. “As Undersecretary of Rural Development, she gave a voice to the 60 million people who call rural America their home,” she says. “I’ve been impressed with her commitment to addressing challenges in our food supply chain, fighting the climate crisis, and creating good paying jobs in rural America.” The American Farm Bureau Federation also congratulated Torres Small on her nomination. “Her experience with rural America and her time on the House Agriculture Committee give her important perspectives to address the issues facing America’s farmers and ranchers,” says AFB President Zippy Duvall. He also says the organization and its members look forward to working with her to ensure USDA continues to support America’s farmers and their mission to grow safe, affordable food for families across the nation. *********************************************************************************** U.S. Farm Exports to Drop by 12 Percent Over Three Years The USDA projected America’s food and agricultural exports will drop by 12 percent through fiscal year 2026. The erosion will be caused by a global economic slowdown, inflation, higher interest rates, and the strong U.S. dollar. Overall economic conditions are projected to slow U.S. exports quicker than imports, leading to a trade deficit. USDA projections show that exports will drop across the board, but grains and soybeans will get hit the hardest. Reduced export volumes will also mean lower commodity prices. But 2027 is expected to show a rebound in exports. Farm exports were forecast at $190 billion this year, dropping to $166.3 billion in 2026, and then rising to $182.2 billion by 2032, the last year of the ten-year baseline. Imports will also slow down but are expected to recover by 2032. Food and ag imports were forecast at $199.1 billion this year and grow to $200 billion by 2032. *********************************************************************************** USDA Invests $63 Million in High-Speed Internet for Rural Americans Ag Secretary Tom Vilsack says USDA is investing $63 million to bring high-speed internet access to people living and working in rural areas of Illinois, Minnesota, Michigan, and Mississippi. “Investing in high-speed internet is a fundamental part of our partnership with rural communities,” he says. “Connecting rural Americans with reliable internet brings new and innovative ideas to the rest of our country.” The $63 million in grants comes from the third round of funding under the ReConnect Program, in which USDA has invested a total of $1.7 billion. Since the program’s beginning, the agency has invested $3.2 billion to bring high-speed internet access to people in rural communities. The funds will be used for one project in each of the four states. To be eligible for ReConnect Program funding, an applicant must serve an area that lacks access to service speeds of 100 megabits per second downloads and 20 Mbps for uploads. *********************************************************************************** House Ag Chair Comments on CBO Baseline Projections The House Agriculture Committee completed an analysis of the Congressional Budget Office’s farm bill baseline spending estimates. The analysis shows that compared to anticipated mandatory spending under the 2018 Farm Bill, commodity support program support is expected to decrease by 12 percent, while spending on conservation, nutrition, and federal crop insurance are projected to increase by 19 percent, 82 percent, and 26 percent, respectively. Following the projections, House Ag Chair Glenn “GT” Thompson said the CBO baseline underscores what he’s been consistently hearing from producers around the country. “In light of the record-high input costs and volatile markets and weather, improvements to farm policy are necessary and warranted," he says. "Additionally, the roughly 80 percent increase to the baseline for nutrition programs since the last farm bill was enacted, namely due to the Biden Administration’s careless update to the Thrifty Food Plan, furthers the Committee’s obligation to oversight and accountability.” *********************************************************************************** John Deere Continues 80-Year Partnership with FFA John Deere announced a donation of $1 million to the National FFA Organization. The donation will get used to support the growth of future leaders, feed agriculture’s talent pipeline, and honor the organization’s community service efforts. It also builds on the 80-year partnership between John Deere and National FFA. “We are thrilled to continue our partnership with John Deere,” says Molly Ball, president of the National FFA Foundation. “They’ve been unwavering in their support for more than 80 years and continue to see the potential leaders in each one of our members and advisors.” FFA will also be raising funds during Give FFA Day on Thursday, February 23. A donation of any amount from the public will support FFA and agricultural education. It’s a chance to open doors for members to explore their interests and discover fulfilling careers. To get involved or to donate, go to FFA.org on February 23.
| Rural Advocate News | Friday February 17, 2023 |
Friday Watch List Markets There are few government reports other than the Index of Leading Economic Indicators. We will also be watching for any change in South American weather, and any new corn or soybean export sales announced at 8 a.m. We continue to wait for the long-delayed CFTC Commitment of Traders report. Weather A system continues to push off the East Coast on Friday. Much of the hazards associated with the system have ended across the primary growing areas and a quieter day is in store. Temperatures behind the system are largely below-normal though some warmth is returning to the Northern Plains and Canadian Prairies.
| Rural Advocate News | Thursday February 16, 2023 |
Biden to Nominate Xochitl Torres Small as USDA Deputy Secretary President Joe Biden Wednesday announced his intent to nominate Xochitl (So-CHEEL) Torres Small to serve as Deputy Secretary of Agriculture at the Department of Agriculture. The Senate confirmed Torres Small to serve as the Under Secretary for Rural Development on October 7, 2021. Before serving as Undersecretary, Torres Small was a Representative for New Mexico's second congressional district, the fifth largest district in the country. As a United States Representative, Torres Small served as a member of the House Agriculture Committee. Agriculture Secretary Tom Vilsack says of the announcement, "Her expertise will further USDA's mission to advance equity and opportunity in and for rural America," adding, "I am fully confident in Under Secretary Torres Small's ability to excel in this essential role at the Department." Upon the conclusion of Deputy Secretary Jewel Bronaugh’s service with USDA, Kevin Shea, APHIS Administrator and a career public servant with more than 40 years at USDA, will serve as Acting Deputy Secretary. *********************************************************************************** Still time to respond to the 2022 Census of Agriculture Farmers and ranchers still have time to be counted in the 2022 Census of Agriculture, according to USDA’s National Agricultural Statistics Service. Although the deadline for submitting the ag census just passed, NASS will continue to accept completed census questionnaires through the spring to ensure all farmers and ranchers take advantage of the opportunity to be represented in the widely used data. NASS Administrator Hubert Hamer says, "We want all producers to use their voices to help shape the future of American agriculture." NASS will continue to follow up with producers through the spring with mailings, phone calls, and personal visits. Farmers and ranchers are encouraged to complete their ag census online at agcounts.usda.gov or by mail as soon as possible. Federal law mandates that everyone who received the 2022 Census of Agriculture questionnaire complete and return it. The same law requires NASS to keep all submissions confidential. NASS will release the results of the ag census in early 2024. *********************************************************************************** Wheat Product Inflation Outpaced Food Price Inflation in 2022 Consumer prices for wheat-based products were up substantially in 2022 compared to 2021, as indicated by the Consumer Price Index. USDA's Economic Research Service reports that the prices of various wheat products were up more than ten percent from 2021. The increase outpaced the inflation rate in the broader "all food" category, which was up 9.9 percent, more than double the average increase of the previous decade. The average price level across the cereals and bakery products category was up 13 percent in 2022, well above the previous year's increase of 2.3 percent and more than three times as large as any year in the past decade. Flour prices and prepared flour mixes were nearly 19 percent higher in 2022, far exceeding the average from the previous decade. Commodity prices for wheat were elevated in 2021 and 2022, but the increase in prices for wheat-based consumer products did not fully appear until 2022. *********************************************************************************** USGC Launches Corn Sustainability Assurance Protocol The U.S. Grains Council formally launched its Corn Sustainability Assurance Protocol and Sustainable Corn Exports web platform Wednesday. The launch is part of the 20th International Marketing Conference and 63rd Annual Membership Meeting in Savannah, Georgia. The CSAP is a way for U.S. corn producers to provide insights into their sustainable farming practices, continuing to strengthen global sales by highlighting their alignment with increasingly climate-focused markets. The Sustainable Corn Exports web platform complements the CSAP by making it operational. Through the SCE, U.S. corn buyers can issue shipment-specific “Records of Sustainability” to allow overseas corn importers to easily determine and document the compliance of U.S. corn shipments with local sustainability requirements. USGC President and CEO Ryan LeGrand says, “The CSAP is a recognition of farmers’ extraordinary socioeconomic importance, and a way to further improve the appeal of their products with end-users around the world.” *********************************************************************************** Pork Checkoff Reports 2022 Exports Exports of pork and pork products surpassed $7.6 billion and 2.6 million metric tons last year. Those exports added $61.26 to the value of each hog marketed and represented 27.5 percent of production, according to the Pork Checkoff. Pork exports finished 2022 on a decidedly upward trajectory as December shipments reached 244,718 metric tons, up 13 percent year-over-year and the second largest of 2022, slightly below November. The year-end export data was a decrease compared to 2021, which was a record year, of 8.5 percent in volume and five percent in value. December exports also trended higher year-over-year to China/Hong Kong, the Dominican Republic, the Philippines and Australia, and set a value record in Central America. The Mexican market is the shining star and leading volume and value destination for U.S. Pork in 2022, with a volume increase of ten percent at 959.7 metric tons and a value increase of 21 percent at $2,034 billion. *********************************************************************************** John Deere Continues 80-year FFA Partnership with $1 Million Donation Building on 80 years of partnership, John Deere announced a donation of $1 million to the National FFA Organization. The donation will support the growth of future leaders, feed agriculture's talent pipeline, and honor the organization's community service efforts. John Deere is the longest-running sponsor of the National FFA Organization and continues to advocate for FFA, its members, and advisors. National FFA Foundation President Molly Ball says, "For more than 80 years, they've been unwavering in their support and continue to see the potential leaders in each one of our members and our advisors.” In addition to supporting the organization financially, John Deere also has many employees who are former FFA members or supporters of the organization. As a result, they have one of the country's largest FFA Alumni & Supporters chapters. The chapter will be involved during FFA Week, offering members opportunities to participate in activities promoting FFA and supporting local chapters.
| Rural Advocate News | Thursday February 16, 2023 |
Thursday Watch List Markets DTN will be watching the initial and continuing jobless claims, producer price index and housing starts, as well as export sales for corn and soybeans, and any weather changes for South America. Weather A system continues to push northeast near the Ohio River on Thursday. A band of snow continues from Nebraska to Michigan while periods of thunderstorms develop near and east of the Mississippi River. Some of these storms could be severe with tornadoes and strong winds.
| Rural Advocate News | Wednesday February 15, 2023 |
Consumer Price Index Increases The Consumer Price Index rose 0.5 percent in January on a seasonally adjusted basis, after increasing 0.1 percent in December, the U.S. Bureau of Labor Statistics reported Tuesday. Over the last 12 months, the all-items index increased 6.4 percent before seasonal adjustment. The food index increased 0.5 percent in January, and the food at home index rose 0.4 percent over the month. Four of the six major grocery store food group indexes increased over the month. The index for other food at home rose 0.7 percent in January. The index for meats, poultry, fish, and eggs increased 0.7 percent over the month, as the index for eggs rose 8.5 percent. The index for cereals and bakery products rose 1.0 percent over the month, while the index for nonalcoholic beverages increased 0.4 percent in January. In contrast, the fruits and vegetables index fell 0.5 percent over the month, with the fresh vegetables index declining 2.3 percent. The index for dairy and related products was unchanged in January. *********************************************************************************** New Decree by Mexico Allows for Some GM Corn Imports Mexico officials issued a new decree this week calling for a ban on imports of biotech corn used for certain purposes, effective immediately. The decree also indicated the Mexican government would continue to allow imports of biotech corn used as animal feed while exploring substitutes. Once substitutes are established to satisfy supply needs, all GM corn will be banned. The National Corn Growers Association expressed serious concern with the accelerated implementation timeline. NCGA President Tom Haag says, "Singling out corn – our number one ag export to Mexico – and hastening an import ban on numerous food-grade uses makes USMCA a dead letter unless it's enforced." NCGA continues to call on the Biden administration to initiate a U.S.-Mexico-Canada Agreement dispute settlement panel regarding the issue. The ban, according to NCGA, would be catastrophic for American corn growers as well as the Mexican people, who depend on corn as a major staple of their food supply. *********************************************************************************** States Considering Grocery Tax Relief Lawmakers in several states are considering tax relief for consumers at the grocery store. Progressive Grocer reports many starts that charge a grocery tax are working to extend, end or change the charges as a form of inflation relief. Mississippi, home to the highest grocery tax in the nation of seven percent, recently proposed a bill to slash the tax rate in half. A poll of Mississippi consumers found 68 percent favor suspending the grocery tax. Meanwhile, Tennessee Governor Bill Lee has considered another grocery tax holiday following a four-week suspension last year. Lee says, "We should do that again this year, but let's extend it to three consecutive months." Earlier this month, Oklahoma Governor Kevin Stitt proposed to halt the state grocery tax of 4.5 percent. Meanwhile, Missouri lawmakers are considering removal of the one percent grocery tax in the state. Progressive Grocery reports other states are looking at pushing the decision back to municipal governments. *********************************************************************************** Deliveries of Caloric Sweeteners Rising Total caloric sweetener deliveries—an indicator of sweetener consumption in the United States—rose by one percent in 2021 to 127.4 pounds per capita, according to USDA’s Economic Research Service. Annual growth in per capita sweetener deliveries had not been observed since 2014 amid the backdrop of a long-term declining trend that started after peaking at 153.7 pounds in 1999. Growth in 2021 was driven by an increase in refined sugar deliveries per capita, the largest component, which were up 1.9 percent in 2021 at 69.8 pounds and the highest since 1995. The growth countered the 1.2 percent decrease in per capita high-fructose corn syrup deliveries to 39.5 pounds. High-fructose corn syrup deliveries, the other major component, have been steadily decreasing since topping out at 65.9 pounds in 1999, driving the long-term decline in total sweetener deliveries. While per capita deliveries of other caloric sweeteners increased by 2.4 percent in 2021, the volumes have been relatively small, historically hovering at 20 pounds. *********************************************************************************** US Tractor Sales Start 2023 Lower U.S. ag tractor sales finished January 2023 in the negative, while all segments of ag equipment grew in Canada, according to the latest data from the Association of Equipment Manufacturers. Total U.S. ag tractor unit sales fell for January in all segments except one, with 100-plus horsepower two-wheel-drive tractors growing 22.8 percent. U.S. combine sales, however, continued its growth streak, climbing 132.7 percent year-over-year. In Canada, combine harvesters led sales again, up 179.6 percent, moving 137 units in January. Overall unit sales in tractors finished the month up seven percent. Curt Blades of AEM says, "Most of the trends we're seeing in this month's report continue what we saw throughout most of 2022." Blades adds, "However, the industry-wide growth we see in Canada this month is a pleasant sight, and we hope that trends continue and expands to the U.S. market." *********************************************************************************** USDA: Al Gore to Keynote Agriculture Innovation Mission for Climate Summit The Department of Agriculture Tuesday announced Former Vice Preside Al Gore as the opening keynote speaker for the Agriculture Innovation Mission for Climate Summit. The AIM for Climate Summit is scheduled for May 8-10 this year, in Washington, D.C. USDA says the summit will bring together partners to increase and accelerate investment in and support for climate-smart agriculture and food systems innovation. Agriculture Secretary Tom Vilsack says of Gore, "He has been on the forefront of the climate crisis for more than 40 years and is a leader in the international response to combating climate change." Launched at COP26 in 2021, AIM for Climate is an initiative co-led by the United Arab Emirates and the United States that seeks to enable global partnerships and solutions at the intersection of agriculture and climate change. The deadline to submit proposals for these activities is Thursday, February 24. For more details on how to apply, visit the AIM for Climate Summit website.
| Rural Advocate News | Wednesday February 15, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department's retail sales report for January is due out at 7:30 a.m. CST, followed by the Federal Reserve's report of industrial production in January at 8:15 a.m. The U.S. Energy Department's weekly report of energy inventories will be released at 9:30 a.m. and includes ethanol production. Traders continue to monitor the latest weather forecasts. Weather Showers continue to move through the northern Midwest on Wednesday with some stronger winds across the region that are producing blowing snow and some blizzard conditions in the Upper Midwest. A storm system in the Four Corners area will move through the Southern Plains throughout the day. On the northern side of the track, moderate to heavy snow will develop from Colorado through much of Kansas and southern Nebraska. Strong to severe thunderstorms will develop over southern Texas into the Lower Mississippi Valley later in the day.
| Rural Advocate News | Tuesday February 14, 2023 |
USDA Unveils Investments for Addressing Water Supply Challenges for Producers in the West The Department of Agriculture Monday announced new investments and strategies to help farmers and ranchers conserve water, address climate change and build drought resilience in the West. The effort is through the Western Water and Working Lands Framework for Conservation Action to address key water and land management challenges across 17 Western States. The framework includes guidelines for identifying vulnerable agricultural landscapes and 13 strategies to help NRCS state leaders, water resource managers, and producers respond to priority challenges. Guided by this new framework, the WaterSMART Initiative will invest $25 million in three new priority areas and 37 existing priority areas, assisting communities and producers in the West. NRCS Chief Terry Cosby says, “USDA is utilizing this framework and all available tools to deliver assistance that the severity of the water supply challenges in the West demand.” From 2020 to 2022, more than $410 million of annual conservation assistance NRCS provided to producers helped address drought in the West. *********************************************************************************** Biden Administration Announces IRA Funding for Climate-Smart Agriculture Agriculture Secretary Tom Vilsack Monday announced funding for agricultural producers and forest landowners to participate in voluntary conservation programs and adopt climate-smart practices. The Inflation Reduction Act provided an additional $19.5 billion over five years for climate-smart agriculture through several USDA Natural Resources Conservation Service programs. NRCS is making available $850 million in fiscal year 2023 for its oversubscribed conservation programs: the Environmental Quality Incentives Program, Conservation Stewardship Program, Agricultural Conservation Easement Program and Regional Conservation Partnership Program. Secretary Vilsack says, "We know that agriculture plays a critical role in the nation's effort to address climate change." The Inflation Reduction Act funding includes an additional $8.45 billion for EQIP, $4.95 billion for RCPP, $3.25 billion for CSP, and $1.4 billion for ACEP. The increased funding levels begin in fiscal year 2023 and rapidly build over four years. The additional investments are estimated to help hundreds of thousands of farmers and ranchers apply conservation to millions of acres of land. *********************************************************************************** USDA Accepting Applications for Trade Mission to Japan USDA’s Foreign Agricultural Service is accepting applications from exporters of U.S. farm and food products for a two-city trade mission to Japan, June 5-8. The trade mission offers U.S. agribusinesses the potential to increase or expand their sales to Japan, one of the United States’ top five agricultural export markets. U.S. exports of agricultural products to Japan exceeded $14.6 billion in 2022. FAS Administrator Daniel B. Whitley says, “This trade mission will help many U.S. agribusinesses establish new business connections with their Japanese counterparts and further expand U.S. agricultural exports to this key Asian market.” Trade mission participants will travel to Tokyo and Osaka, connecting with potential customers and learning first-hand from government and industry leaders about local market conditions. Participants will also visit local retail stores and food manufacturers to round out the program. Applications are due by February 27. Those interested in participating in the trade mission should visit USDA’s FAS website, fas.usda.gov. *********************************************************************************** NCGA: Higher Renewable Fuel Volumes Good Security, Economy and Environment The National Corn Growers Association says higher renewable fuel volumes over the next three years would go a long way in improving energy security. Additionally, NCGA says higher volumes would help lower gas prices and reduce greenhouse gas emissions, according to recent comments submitted by NCGA to the Environmental Protection Agency. The Renewable Fuel Standard requires that U.S. transportation fuel contain a minimum volume of renewable fuel each year. NCGA’s comments were in response to EPA’s proposed volume requirements for 2023, 2024 and 2025. NCGA President Tom Haag says, “NCGA supports EPA’s proposal of annual increases in volumes, including an implied conventional biofuel volume of 15.25 billion gallons, and recognition that ethanol plays a critical role in cutting GHG emissions and our energy security.” NCGA also noted that renewable fuel adds more than 20 billion gallons to the nation’s fuel supply annually, lowering consumer costs, creating rural jobs and reducing greenhouse gas emissions by more than 1 billion metric tons since the RFS was enacted. *********************************************************************************** New Report Predicts Crop Pest and Pathogen Risks Patter Ag Monday released its new Predictive Ag Report. The report can help corn and soybean farmers make better-informed decisions about managing impactful pests and pathogens, according to the company. Specifically, the report provides information about corn rootworm and sudden death syndrome. Pattern Ag operates the world's largest soil metagenomics database, with more than 200 billion DNA reads. The Predictive Ag Report is an anonymized, aggregated analysis of the Pattern Ag data. Available in print or digital form, the report predicts pest and pathogen risks 12 months in advance with more than 90 percent accuracy. This information can help agronomists and farmers make better-informed pest management decisions when selecting seed varieties or crop protection inputs. Pattern Ag plans to make the Predictive Ag Report available annually to help corn and soybean farmers offset economic losses caused by yield-impacting diseases. Farmers can receive a copy of the report by visiting Pattern.ag. *********************************************************************************** Fuel Prices Decline Again, Demand Increases The nation's average gas declined for the second straight week, dropping 7.3 cents from a week ago to $3.37 per gallon. The national average is up 10.9 cents from a month ago and 10.2 cents per gallon lower than a year ago. The national average diesel price fell 7.3 cents last week and stands at $4.52 per gallon. GasBuddy's Patrick De Haan says, “While diesel prices likely have a long way to fall as inventories continue to improve, gasoline prices in some areas have gone up in the last weeks as the transition to summer gasoline is just around the corner.” GasBuddy data shows that gasoline demand has risen for the third straight week, a trend that will likely continue as spring arrives. Also, refinery maintenance season will soon be in full force, likely putting upward pressure on prices. On average, gasoline prices rise between 35 and 85 cents per gallon between March and Memorial Day.
| Rural Advocate News | Tuesday February 14, 2023 |
Tuesday Watch List Markets The U.S. Labor Department's consumer price index for January is set for 7:30 a.m. CST Tuesday, putting attention back on the likelihood of more rate hikes ahead. Traders will check the latest weather forecasts and pause for a possible export sale announcement at 8 a.m. USDA's Livestock, Dairy and Poultry outlook will be out at 2 p.m. Weather A system that developed across the Central and Southern Plains during the overnight will lift northeast today, providing widespread rainfall from northern Texas into Wisconsin. Rainfall with this system could approach up to one inch in areas. Meanwhile, above average temperatures will persist across the Upper Midwest, Great Lakes, and Upper Mississippi Valley today, with temperatures 10-20 degrees above normal.
| Rural Advocate News | Monday February 13, 2023 |
Key Happenings the Newsroom is Tracking for the Week of Feb. 12-18 Here are the Top 5 things the DTN Newsroom is tracking for the week of Feb. 12. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. Loading up for Louisville: DTN will have several team members at the National Farm Machinery Show in Louisville. Watch for equipment and other updates from the show floor by our Progressive Farmer Senior Editor Dan Miller. We'll also be hosting a series of workshops on site. Ag Meteorologist John Baranick will discuss the latest spring and summer forecast, and Lead Analyst Todd Hultman will give his long-range outlook on the markets. Also, next week Progressive Farmer Senior Editor Joel Reichenberger will be reporting from the World Ag Expo in Tulare, California. 2. Tale of two storms: We'll be watching a pair of storm systems rolling across the U.S. during the week, each bringing the chance of snow and hazardous conditions, as well as short-lived cold snaps in northern areas. 3. Summit Series kick-off: DTN followers are familiar with our industry-leading DTN Ag Summit, historically held in December. They'll also likely know we moved to a totally virtual event in 2022 to allow more access to the thought-provoking speakers and presentations. The next step in that is our Ag Summit Series, which will feature several one-day virtual events throughout the year, culminating in the multi-day DTN Ag Summit in December. Our initial Series event, scheduled for Feb. 28, is "Get Set for Spring." 4. Reports to watch: DTN's commodity analysts team will be watching for further market reaction to crop conditions in South America as well as the potential for yet more escalation in the war in Ukraine. We're also tracking USDA grain export inspections reports on Monday, Tuesday's Consumer Price Index tallies, and Friday's release of the U.S. index of leading economic indicators. 5. And a birthday to note: We're marking the 137th anniversary of Progressive Farmer Magazine, which was Feb. 10 -- a feat we're all pretty proud of around here. If you haven't seen February's "The Art of Planting" issue, with a focus on getting that planter ready for spring.
| Rural Advocate News | Monday February 13, 2023 |
Another Record Year for Farm Exports The American agriculture sector posted its best export year ever in 2022. USDA says international sales of America’s farm and food products reached $196 billion. Final trade data from the U.S. Commerce Department showed U.S. ag exports increased 11 percent, or $19.5 billion, from the previous record set in 2021. The value of sales increased in all of America’s top ten ag export markets, including China, Mexico, Canada, Japan, the European Union, South Korea, Taiwan, the Philippines, Columbia, and Vietnam. Sales in seven of the ten countries set new records. The top U.S. commodity exports in 2022 were soybeans, corn, beef, dairy, cotton, and tree nuts. International sales of many products, including soybeans, cotton, dairy, beef, ethanol, poultry, soybean meal, distilled spirits, and distillers’ grains, all reached record values. “Overall, there were 30 markets where U.S. exports exceeded $1 billion in 2022, up from 27 in 2021,” says Ag Secretary Tom Vilsack. *********************************************************************************** Chicago Fed: 2022 Farmland Values Jumped 12 Percent The Federal Reserve Bank of Chicago released its quarterly “Ag Letter,” showing that the district saw a strong annual increase of 12 percent in farmland values during 2022. The Fed says although the result may seem like a letdown after the even larger increase in 2021, last year’s annual gain was the second-largest in the past ten years. During the final quarter of 2022, Illinois, Indiana, Iowa, and Wisconsin still had double-digit year-over-year increases in their agricultural land values. But Indiana was the only District state to have an increase larger than the fourth quarter of 2021. Stronger agricultural credit conditions for the District also contributed to farmers’ optimism. The share of the District’s farm loan portfolio assessed as having “major” or “severe” repayment problems was 1.2 percent in the fourth quarter of last year, lower than the share reported in any final quarter since data collection began in 1998. *********************************************************************************** Senators Ask President Biden to Address Brazil’s Tariff on U.S. Ethanol Senators Amy Klobuchar of Minnesota and Chuck Grassley of Iowa sent a letter to President Biden urging him to use an upcoming meeting with Brazil’s president to discuss the country’s tax on U.S. ethanol imports. The letter comes after Brazil’s Foreign Trade Chamber reinstated an import tariff on American ethanol shipped to Brazil. The new 16 percent tariff rate, which will increase to 18 percent in 2024, is a sharp departure from the zero percent tariff rate previously shared between the two nations. “Our American ethanol industry should not be subject to prohibitive tariff and non-tariff barriers while Brazilian ethanol producers enjoy duty-free access to our market and biodiesel programs,” the senators said in the letter. “We believe this imbalance in tariffs and access to Brazil’s biofuels program is unwarranted and unfair, and we urge you to discuss this issue with the president directly.” Eight other senators signed on to the letter. *********************************************************************************** Hurricane Ian Caused Over $1 billion in Damages A University of Florida report says Hurricane Ian caused just over $1 billion in agricultural production losses. The biggest hits were to the citrus industry, vegetable growers, and melon producers. The new report from the Institute of Food and Agricultural Sciences set the estimated overall production losses at $1.03 billion. That number includes $247.1 million in damages for citrus growers, $204.6 million for vegetable and melon growers, and $195.4 million for the nursery and greenhouse industries. “The main takeaway is that there was a very significant production loss,” says Christa Court, the director of the IFAS Economic Impact Analysis Program. “These are estimates, but some of the crops aren’t at their final harvest stage.” As a result, she also says it remains to be seen what actually happens when they get to that final harvest. The report also estimates that field and row crops sustained $130.2 million in production losses from the hurricane. *********************************************************************************** The University of Minnesota Progressing on ASF Research University of Minnesota researchers are at the forefront of successful efforts to work on the African Swine Fever virus. They’re developing and validating a surrogate virus for ASF that will help develop effective mitigation strategies to control the virus and keep it from entering North America. African Swine Fever has devastated pig populations and pork production in countries around the world. The lab is one of only a handful of facilities in the U.S. to have access to the highly contagious ASF virus, and its work represents a major breakthrough in research efforts. In addition to working directly on the African Swine Fever Virus, the surrogate virus is strikingly similar to ASF in terms of its structure and stability. It can be safely used in field studies to help scientists understand more about how the virus is transmitted in real-world conditions and what strategies are effective to prevent its spread. *********************************************************************************** U.S. Wants Science From Mexico on GMO Corn Ban Doug McKalip, the new agriculture trade boss in the U.S. Trade Representative’s Office, says he’s given Mexico until February 14 to explain the science behind the country’s planned ban on GMO corn imports. Market Screener says the response will help the agency decide the next steps to resolve the long-running disagreement over Mexico’s biotechnology policies when it comes to agriculture. The next steps could include escalating the dispute settlement process under the USMCA. If it continues, the dispute threatens to disrupt the billions of dollars worth of corn trade between the United States and Mexico. McKalip says Mexico rejected 14 agricultural product traits that were submitted to them, and they didn’t provide any justification. “We want to make sure that they do the science, show their work, and make decisions based upon risk assessments,” he says. U.S. officials recently warned Mexican officials that America may take formal steps under USMCA.
| Rural Advocate News | Monday February 13, 2023 |
Monday Watch List Markets Back from the weekend, traders will follow up news concerning Friday's close call of Russian missiles near NATO territory and any related events in Ukraine, as well as take a look at the latest weather forecasts. USDA's weekly report of grain export inspections is due at 10 a.m. CST. Financial markets may turn quiet Monday afternoon, ahead of Tuesday consumer price index for January. Weather A system will develop across the Central and Southern Plains Monday into Monday night, providing widespread rainfall from northern Texas into southern Nebraska. Rainfall with this system will generally remain light, but isolated areas across north-central Texas and south-central Oklahoma could see up to a half inch of rain through Monday night. Meanwhile, above average temperatures will persist across the Northern Plains and Upper Midwest today, with temperatures 10-15 degrees above normal.
| Rural Advocate News | Friday February 10, 2023 |
Senators Reintroduce Bill to Defend Cattle Producers Senators Jon Tester, Chuck Grassley, and Mike Rounds reintroduced their “Meat Packing Special Investigator Act” to fight consolidation and enforce the national anti-trust laws. The bill would create the “Office of the Special Investigator for Competition Matters” within the USDA. The office would be made up of a team of investigators that have subpoena power and would be responsible for targeting and preventing anti-competitive practices among large players in the meat and poultry industries. “Anti-competitive behavior in the meat packing industry hurts both consumers and producers,” Rounds says. “Unfortunately, packer concentration in the beef industry today is more consolidated than it was when the Packers and Stockyards Act was first signed into law over 100 years ago.” Only four companies operate 18 of the top 20 beef slaughter facilities in the country. “It’s time we beef up the available tools to protect farm families and folks at the meat counter,” said Grassley. *********************************************************************************** Beef Exports Set Records in 2022, Pork Finishes Strong American beef exports set records for both volume and value in 2022. Despite slowing toward the end of the year, beef exports reached 1.47 million metric tons, two percent above the previous high in 2021. Export value climbed to a record $11.68 billion, 10 percent higher than in 2021 and 40 percent above the previous five-year average. “Last year was a groundbreaking year for American beef’s international presence, with global demand stronger than I’ve seen in all my years,” says Dan Halstrom, President and CEO of the U.S. Meat Export Federation. Pork exports finished lower year-over-year, but the export value was the third-largest on-record. Pork exports were trending higher as December shipments reached 244,718 metric tons, up 13 percent year-over-year and the second-largest of 2022. Higher December numbers pushed 2022 exports to 2.67 million metric tons, 8.5 percent below the previous year. Export value dropped five percent to $7.68 billion. *********************************************************************************** AFBF Responds to Falling Farm Income Report While American families are dealing with record-high grocery prices, farm families can expect to see a drop in income during 2023. American Farm Bureau Federation economists analyzed the Farm Income Forecast in their latest Market Intel Report, noting that income will fall 16 percent this year while costs will rise over four percent. “The farm income forecast is a stark reminder that American farmers and ranchers aren’t reaping benefits from higher grocery store prices,” says AFBF President Zippy Duvall. “While some commodity prices are rising, farmers are being hit by circumstances beyond their control, which is why the farm bill is so important and must get passed this year.” Adding to the challenges are rising interest rates and farm-sector debt that will increase by $31.9 billion to a record $535 billion. “Farm bill programs enable farmers to manage the risk and weather the challenges to continue feeding America’s families,” Duvall adds. *********************************************************************************** Officials to Reintroduce Bill to Expand and Strengthen Local Meat Processing Representatives Chellie Pingree of Maine and Jim Baird of Indiana, along with Senators John Thune of South Dakota and Sherrod Brown of Ohio, plan to reintroduce legislation to support small meat and poultry processors. The “Strengthening Local Processors Act” will diversify and make U.S. meat processing more resilient by giving local livestock producers more options. “One of the top concerns from livestock producers is difficulty in accessing USDA processing facilities,” Pingree says. “Their livelihoods depend on having somewhere to take their animals, but their options are severely limited in the current system.” The legislation would create a competitive grant program for small and very small establishments, state-inspected facilities, custom-exempt facilities, or new small-scale slaughter facilities to help increase processing capacity and grow resiliency. It will also create two new grant programs for meat processing workforce training. “This legislation will bolster local production and provide education and training,” Brown says. *********************************************************************************** Brazil Ties U.S. as Top Corn Exporter The USDA’s Foreign Agricultural Service says Brazil’s 2022-2023 corn exports from October through September of last year are forecast to equal those of the U.S. at 51 million tons. Brazil has seen expanding production and strong exports in the second half of its 2021-2022 marketing year. Brazil’s corn exports have exceeded those of the U.S. only one time, in the drought year of 20112-2013. Since October 2022, Brazil has exported about 25 million tons of corn, far more than the same period in any previous year. U.S. corn exports are off to a slow start. Production in 2022-2023 was smaller than initially expected, and logistical concerns on the Mississippi River made things difficult. In the last several months, Brazil has stepped in to fill some of the gap left by Argentina and Ukraine in supplying the world’s corn. But current export bids for U.S. corn are lower than Argentina and Brazil. *********************************************************************************** NFU Hosting College Conference on Cooperatives The National Farmers Union will host the College Conference on Cooperatives in Minneapolis, Minnesota, February 16-19. During the three days, participants will hear from experts in the field of cooperatives, participate in interactive learning activities and workshops, and tour co-ops in the Twin Cities. The event attracts students from across the country and is beneficial to those new to co-ops, as well as those with some previous co-op education. “NFU history is rooted in the cooperative movement, and our future is too,” says NFU President Rob Larew. “The college is a glowing example of the value Farmers Union provides to our members and their communities.” Participants will hear from a variety of speakers from local and national co-ops. The keynote luncheon will feature an address from Megan Rock, the Chief Sustainability Officer and Vice President of Sustainability and Innovation with CHS Inc. Interested students can find out more at nfu.org.
| Rural Advocate News | Friday February 10, 2023 |
Friday Watch List Markets The University of Michigan's index of U.S. consumer sentiment is set for 9 a.m. CST Friday, followed by the U.S. Treasury's report on the January federal budget. Traders will continue to monitor the latest weather forecasts and pay attention to news from outside markets. Weather The cold front to a system this week has hung up in the Southeast and will continue to produce showers on Friday. Outside of some spotty showers going through the Northeast, the rest of the country will be dry. It is a little colder than in previous days, but still rather mild for most areas of the country for mid-February.
| Rural Advocate News | Thursday February 9, 2023 |
USDA Releases February WASDE Report The Department of Agriculture Released the February World Agricultural Supply and Demand Report Wednesday. This month's 2022/23 U.S. corn outlook is for lower corn used for ethanol and larger ending stocks. Corn used for ethanol is reduced 25 million bushels. The season-average corn price received by producers was unchanged at $6.70 per bushel. The soybean outlook projects lower soybean crush and higher ending stocks. Soybean crush is forecast at 2.23 billion bushels, down 15 million from last month on lower domestic soybean meal disappearance and a higher soybean meal extraction rate. The season-average soybean price for 2022/23 is forecast at $14.30 per bushel, up 10 cents from last month. The supply and demand outlook for wheat is largely unchanged this month, with minor revisions to domestic use and ending stocks. The season-average farm price is forecast $0.10 per bushel lower at $9.00, based on prices received to date and expectations for cash prices for the remainder of 2022/23. *********************************************************************************** USDA: Electric Vehicles Force Ethanol Demand Lower A new report from USDA's Economic Research Service suggests ethanol demand may decline with the rise of electric vehicles. The Global Demand for Fuel Ethanol Through 2030 report suggests that global gasoline demand is expected to stagnate over the next decade, leaving changes in blend rates as the main determinant for future changes in fuel ethanol demand. After seeing strong growth for several years, U.S. ethanol-based demand for corn has plateaued over the last decade at about 5 billion bushels, or roughly 40 percent of U.S. corn production. Recently, demand for transportation fuels was reduced by the COVID-19 pandemic. Though these markets largely recovered, moving forward, increased adoption of hybrid or electric vehicles and continued fuel efficiency gains will decrease domestic gasoline consumption, which could decrease domestic fuel ethanol demand. These impacts could result in additional unutilized U.S. ethanol production capacity. The 114-page study is available on the Economic Research Service website, ers.usda.gov. *********************************************************************************** Below Average Runoff Continues for Upper Missouri River Basin The updated 2023 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, continues to be below average. January runoff in the Missouri River Basin above Sioux City was 1.1 million acre-feet, 134 percent of average. Runoff was above average due to warmer-than-normal temperatures in the upper basin resulting in some snowmelt runoff. Precipitation in January was below normal for most of the upper basin except for southern South Dakota, which saw above-normal precipitation. The 2023 calendar year runoff forecast above Sioux City is 21.1-million-acre feet, 82 percent of average. The runoff forecast is based on current soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. At the start of the 2023 runoff season, which typically begins around March 1, the total volume of water stored in the Missouri River Mainstem Reservoir System is expected to be 46.0 million-acre-feet, 10.1 million below the top of the carryover multiple-use zone. *********************************************************************************** NAEDA Launches Membership Engagement Platform The North American Equipment Dealers Association recently announced the launch of its new members-only dealer engagement platform, NAEDA Community. The social and communications platform will provide a central place for dealers to connect, collaborate, learn, and share. NAEDA was formed in 2022 with the recent merger of the Equipment Dealers Association, the Midwest-SouthEastern Equipment Dealers Association, the United Equipment Dealers Association and the Western Equipment Dealers Association. With this merger now firmly in place, NAEDA is looking to enhance its communications efforts with its 4000+ dealer members across North America. NAEDA CEO Kim Rominger says, “We are confident this exciting communications tool will drive engagement, help us promote our programs and services and improve the member experience with our association." NAEDA members can find the community at www.naedacommunity.com. Dealers are encouraged to share the NAEDA community with the rest of their organization so they can have the opportunity to sign up and stay connected. *********************************************************************************** ARS Scientists Improve Nutrients and add Value to Rice Crop Rice, already the primary staple for half the world’s population, is getting a makeover from a research team in New Orleans, Louisiana. The results are a more healthful grain and many potential new products. The team, based in the Agricultural Research Service’s Southern Regional Research Center, is making rice a more valuable commodity by developing new technologies that capitalize on the grain’s natural health benefits. Research chemist Stephen Boue says, "We're interested in processing treatments that enhance resistant starch and other bioactive components." Studies are underway to determine Bioactive compound's role in the prevention of cancer, heart disease, and other diseases. One such development is a rice variety that is more beneficial to human health. Rice contains 76–78 percent starch, and cooked rice typically contains one or two percent of starch that resists digestion, but the newer rice varieties have eight to ten percent resistant starch, or more. Resistant starch is not digested in the small intestine; rather, it passes through to the large intestine, where it ferments and produces beneficial metabolites. *********************************************************************************** Price of Chicken Wings Easing in Time for the Big Games Retail prices for chicken wings have been trending lower in recent months and in time for national sporting events such as the upcoming Super Bowl and the college basketball championship tournaments. Previously, a combination of limited supplies and strong demand led to a historic runup in wholesale and retail prices. Wholesale chicken wing prices reached a peak of $3.25 per pound in late May 2021, but retail prices continued to climb. At the start of the 2022 March Madness basketball tournament, the national average retail feature price was estimated at $4.29 per pound. Nearly a year later and just ahead of the 2023 Super Bowl and basketball tournament, the national average feature price is down nearly $1.70 per pound to $2.62, according to USDA’s Economic Research Service. The average wholesale price in December 2022 was 89 cents per pound, down more than $2.50 per pound from the 2021 peak.
| Rural Advocate News | Thursday February 9, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. At 9:30 a.m., the U.S. Energy Department will release its weekly report of natural gas storage. Traders will continue to keep an eye on South American weather and will pause at 8 a.m. to see if USDA has a new export sale. Outside markets continue to monitor corporate earnings season. Weather A storm system moving through the Midwest is bringing a wide band of precipitation through the region on Thursday, including a wintry mix on the backside that will lead to some moderate snow accumulation from northern Missouri through southern Wisconsin. Winds are increasing around the system as well as out in the Plains where an upper-level trough is moving in behind the system, bringing somewhat cooler air. Southeastern areas will see a cold front hang up with more showers continuing there as well.
| Rural Advocate News | Wednesday February 8, 2023 |
Farm Sector Profits Forecast to Fall in 2023 USDA's Economic Research Service released the February Farm Income Forecast Tuesday. Net farm income, a broad measure of profits, is forecast at $136.9 billion in calendar year 2023, a decrease of $25.9 billion, or 15.9 percent, relative to 2022. After adjusting for inflation, net farm income is forecast to decrease $30.5 billion, or 18.2 percent, in 2023. Despite the expected decline, net farm income in 2023 would be 26.6 percent above its 20-year average of $108.1 billion in inflation-adjusted dollars. Net cash farm income is forecast at $150.6 billion in 2023, a decrease of $39.4 billion, or 20.7 percent, relative to 2022. Cash receipts from the sale of agricultural commodities are forecast to decrease by $23.6 billion from a forecast record high of $543.4 billion in 2022 to $519.9 billion in 2023. Also contributing to the forecast of lower income in 2023 are lower direct Government payments and higher production expenses. Average net cash farm income for farm businesses is forecast to decrease 17.7 percent from 2022 to $92,400 per farm in 2023. *********************************************************************************** Improvement in Farmer Sentiment Carries Over into 2023 The Purdue University-CME Group Ag Economy Barometer Index rose again in January, to a reading of 130, four points above its 2022 year-end index value. The January survey results also pushed the index 34 percent above its 2022 low point, which occurred last June. The barometer's modest rise in January was primarily attributable to better expectations for the future as the Future Expectations Index rose five points to 127 while the Index of Current Conditions, with a value of 136, changed little compared to December. The Financial Performance Index dropped to 93 this month, down from 109 in December, but that primarily reflects producers' being asked to look ahead to 2023 and compare it to 2022 rather than comparing 2022 to 2021. Of the 400 respondents, 22 percent expect to have a larger farm operating loan than in 2022, which was down somewhat from last January when 27 percent of respondents expected to have a larger operating loan. *********************************************************************************** Record Cattle Prices Possible in 2023 USDA’s January 1 cattle inventory report places the total number of cattle and calves at 89.3 million head, consistent with trade expectations for a three percent decline from a year ago. The decline comes as cattle producers face a fourth consecutive year of contraction within the cattle cycle. That’s approaching inventory lows last seen in 2014 and 2015, at the start of the current cycle, when producers began rebuilding following the drought in 2012. Beef production is anticipated to be 6.5 percent lower in 2023 than last year. University of Illinois Economist Jason Franken suggested that all things considered, prices in 2023 are likely to exceed those of the last couple of years. Current conditions are even bringing about speculation on the possibility of exceeding record prices last set in the 4th quarter of 2014. Franken says that seems feasible for fat cattle, which are already trading around $156 per hundredweight. *********************************************************************************** House Agriculture Democrats Announce Subcommittee Leaders The top Democrat on the House Agriculture Committee announced the ranking subcommittee members Tuesday. David Scott of Georgia is the ranking member of the Committee during this session of Congress, after serving as chair in the Democrat majority in the last session. Scott announced Ohio’s Shontel Brown as the ranking member of the Subcommittee on General Farm Commodities, Risk Management, and Credit. Oregon's Andrea Salinas will serve as the top Democrat on the Subcommittee on Forestry, and Virginia's Abigail Spanberger is the ranking member of the Subcommittee on Conservation, Research, and Biotechnology. Meanwhile, Connecticut's Jahana Hayes will be the top Democrat on the Subcommittee on Nutrition, Foreign Agriculture, and Horticulture, and California’s Jim Costa assumes the same role on the Subcommittee on Livestock, Dairy, and Poultry. Finally, Yadiro Caraveo of Colorado will serve as the ranking member of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development. *********************************************************************************** Vilsack Visiting North Carolina This Week Following Tuesday's State of the Union Address, Agriculture Secretary Tom Vilsack is visiting North Carolina Wednesday and Thursday. Vilsack is hosting a series of events "underlining how the Biden-Harris Administration is delivering on its promises to grow the economy from the bottom up and the middle out by investing in rural communities." Vilsack visits Greensboro Wednesday to host a panel discussion highlighting the major investment being made by USDA to expand markets for America's climate-smart commodities. During the visit, Secretary Vilsack will also visit an agricultural facility and see firsthand some of the innovative, cutting-edge work that will be supported in the area by this investment. On Thursday, Secretary Vilsack will visit Raleigh, where he will host a panel discussion underlining the significant and transformative investments made by USDA to bolster infrastructure in rural North Carolinian communities. Investing in essential infrastructure like high-speed broadband, water infrastructure, and more is a pillar of USDA's efforts to create a "circular economy" in rural North Carolina and beyond. *********************************************************************************** USDA Developing New Ways to Track COVID in Wild and Domestic Animals Scientists with USDA’s Agricultural Research Service are developing new tests to identify and track the COVID virus in wild and domestic animals. Funded by the American Rescue Plan, USDA’s Animal and Plant Health Inspection Service is implementing $300 million to conduct monitoring and surveillance of susceptible animals for the COVID virus. Through the initiative, ARS, in partnership with APHIS, is conducting five research projects to improve its understanding of the virus and to help APHIS accomplish its goal of building an early warning system to potentially prevent or limit the next zoonotic disease outbreak or global pandemic. Two of the projects call for developing easy-to-use field tests to quickly identify COVID infection in wildlife and domestic animals. Currently, all official testing of animals for COVID requires sending samples to certified laboratories and can take a week or more to provide answers. This may be too long to prevent early spread of infection.
| Rural Advocate News | Wednesday February 8, 2023 |
Wednesday Watch List Markets The U.S. Energy Department will release its weekly inventory report at 9:30 a.m. CST, including ethanol production. At 11 a.m., USDA releases its WASDE report with this month's attention largely on South American production estimates. Traders will keep watch over the latest weather forecasts and other outside news. Weather A storm continues to build over Texas early Wednesday morning. The storm center should push northeast into the Midwest later in the day Wednesday. Widespread precipitation in Texas will translate northeast with the storm throughout the day, bringing some heavy amounts and potential for severe weather into the Delta as well. Some snow will mix in on the northern side of the track as the band gets into the Midwest from eastern Kansas into Iowa overnight. Strong winds will start to develop near the low center in the Midwest and Delta tonight into Thursday as well.
| Rural Advocate News | Tuesday February 7, 2023 |
USDA Forecasts 2023 Net Farm Income to Fall 16% From 2022 But Remain Above 20-Year Average USDA's Economic Research Service expects 2023 farm incomes to decline nearly 16% compared to 2022 due to lower cash receipts, smaller government payments and higher production expenses. On Tuesday, the agency forecast total net farm income at $136.9 billion for the 2023 calendar year. After adjusting for inflation, it'd be the fifth-highest net farm income since 2002. Net cash income, which doesn't include economic depreciation, changes in inventories and the cost of operator dwellings, is forecast to decline nearly 21% relative to 2022, to $150.6 billion. Matt Bennett, an Illinois farmer and co-founder of brokerage and consulting firm AgMarket.Net, said he doesn't know what the market's going to do in 2023. "What I do know is this is the most expensive corn crop the U.S. farmer will have ever put in the ground," he told DTN on the sidelines of AgMarket.Net's Farming for Profit, Not Price conference. "We run that risk that if the market ends up turning us out, we could be in a situation where we could be underwater even with phenomenal yields." He shared similar projections from the University of Illinois Farmdoc team, which called for an average return of $72 per acre of corn grown on high-productivity Illinois soil. While that's significantly lower than the last two years' $300-plus-per-acre returns, it's significantly better than what farmers saw from 2017 to 2019. For farmers, it's important to consider their crop insurance and marketing strategies carefully in 2023, adding that there are ways to lock in more than $72 per acre in profit right now using various strategies. "A person needs to make sure they're not making marketing decisions about 2023 based on how much money they made in 2021 and '22," Bennett said. "Look at 2023 as a standalone year." CASH RECEIPTS Overall cash receipts are expected to decline by $23.6 billion, or 4.3%, from 2022. USDA said cash receipts for crops, particularly corn and soybeans, are expected to contribute $8.9 billion to the decline, while lower animal and animal product receipts are expected to account for $14.7 billion, following lower prices for milk, eggs, broilers and hogs. USDA says there are two factors that influence the change in cash receipts from year to year: changes in prices and changes in quantities. "In 2023, falling prices are expected to account for most of the decline in cash receipts," the agency states. PRODUCTION EXPENSES Farm sector production expenses, which include operator dwellings, are expected to increase by $18.2 billion from 2022 to $459.5 billion in 2023. While that sets a record in nominal dollars, it remains below 2014's record high when adjusted for inflation. "Most of the production expense categories are projected to remain above their 2021 levels in 2023, in both nominal and inflation-adjusted dollars," USDA said. Feed costs remain the biggest line item at $72.7 billion. Although that's $3.9 billion less than 2022, it comes on the heels of an $11.3 billion increase in the prior year. Fertilizer, lime and soil conditioners are the second-largest expenses category at $42.2 billion, just shy of 2022's record high of $42.5 billion. USDA notes considerable increases in farmers' interest expenses, up more than 22% from the year before, as well as labor costs, which are expected to grow 7% from 2022. Fuel and rent expenses are expected to decline in 2023. Fuel expenses are projected to fall nearly 15% to $3 billion due to lower U.S. Energy Information Agency forecast diesel prices. USDA says net rent is expected to decline $1.6 billion, or 8.2%. "If realized, this decline would be the first reduction in net rent since 2018 and, in part, reflects the forecast decline in net income." GOVERNMENT PAYMENTS At $10.2 billion, government payments are anticipated to be 34.4% lower than 2022 due to lower supplemental ad hoc disaster assistance. These payments include farm program payments, such as the Agricultural Risk Coverage (ARC) program and Price Loss Coverage (PLC) program but exclude USDA loans and insurance indemnity payments made by the Federal Crop Insurance Corporation. USDA noted that government payments hit a record high of $45.6 billion in calendar year 2020, before declining to $25.9 billion in 2021 and $15.6 billion in 2022. Much of this is due to lower payments from COVID-19-era programs, such as the Coronavirus Food Assistance Program (CFAP), the Paycheck Protection Program, the Emergency Relief Program and the Emergency Livestock Relief Program. Conservation program payments are expected to total $4 billion in 2023, up nearly half a million dollars from the previous year. Farm bill commodity program payments under ARC and PLC are expected to decline more than 81% from 2022 to $303.4 million due to higher commodity prices.
| Rural Advocate News | Tuesday February 7, 2023 |
Senators Urge USDA to Address Avian Flu Immediately A group of Senators urges the Department of Agriculture's Animal and Plant Health Inspection Service to take swift action to address the ongoing avian influenza outbreak. The lawmakers ask Agriculture Secretary Tom Vilsack to quickly use funds provided by Congress in the Fiscal Year 2023 Agriculture Appropriations bill. Led by Senator Tammy Baldwin, a Wisconsin Democrat, the lawmakers say, "it is imperative the agency quickly deploy additional resources and work with the states in improving biosecurity measures within the avian supply chain, including the disinfection of sites and the testing and quarantining of affected flocks." As of January 31, 2023, APHIS confirmed avian flu had been found in 745 flocks in 47 states, and affected over 58 million birds, directly contributing to rising egg prices. In the Fiscal Year 2023 Omnibus Appropriations Act, Congress provided an increase in annual funding to address the avian influenza outbreak, including over $64 million for improving avian health, and updated guidance on proactively mitigating the spread of disease. *********************************************************************************** Lawmakers Introduce Rural Internet Improvement Act A bipartisan group of Senators recently introduced legislation to merge USDA broadband programs. New Mexico Democrat Ben Ray Luján and South Dakota Republican John Thune reintroduced the Rural Internet Improvement Act. The legislation would streamline and bolster USDA Rural Development broadband programs and ensure their funding is targeted to rural areas that need it the most. Senator Thune says, "Our bipartisan legislation would help bridge the digital divide by improving USDA's ReConnect Program to ensure its funding goes to truly unserved areas.” The Rural Internet Improvement Act would: merge and codify the popular Rural e-Connectivity Pilot Program, or ReConnect program, with USDA’s traditional broadband loan and grant program. The legislation would also ensure ReConnect funding is going to areas most in need of reliable broadband service by limiting funding to areas where at least 90 percent of households lack access to broadband service. Finally, the bill would Improve coordination between USDA and the Federal Communications Commission on broadband programs. *********************************************************************************** Cow-calf Producers with Larger Paddocks Rotate Cattle Less Frequently USDA’s Economic Research Service reports that as average paddock size increases, farmers and ranchers tend to rotate their cattle less frequently. Rotational grazing systems rotate animals among a series of paddocks, or fenced pasture areas, allowing forage to recover before returning the cattle to graze in that spot again. A key decision for ranchers that affects forage growth is the number of rotations for a given number of paddocks. A large portion, 84 percent, of operations with small paddocks of 19 acres or less, rotated their cattle so that each paddock had four or more rotations per year. Intensive rotational grazing systems use an average grazing period of 14 or fewer days per paddock. In contrast, researchers found that about 52 percent of operations using large paddocks of 40 acres or more rotated cattle four or more times per year. The pattern of smaller paddocks and more rotations was even more evident for basic rotational grazing operations, which use an average grazing period longer than 14 days. *********************************************************************************** Bayer, Kimitec, Partner on Commercializing Biologicals Bayer and Kimitec announced a new strategic partnership focused on accelerating the development and commercialization of biological crop protection solutions and biostimulants. As part of a global agreement, both companies will become key partners to advance and establish biological solutions derived from natural sources: crop protection products that address pests, diseases and weeds, as well as biostimulants to promote plant growth. Kimitec operates Europe's largest biotechnological innovation hub with 15 years of experience in researching and discovering natural molecules and compounds for agriculture. By leveraging Bayer's product development expertise with Kimitec's proven discovery capabilities, biological product development will be accelerated to build integrated crop management solutions that can scale and develop through Bayer's global infrastructure backbone. This includes field testing, product support and commercialization. Dr. Robert Reiter, Head of R&D for Bayer's Crop Science division, says, “Bayer is committed to providing growers with the benefits of biological solutions as part of an integrated crop management system.” *********************************************************************************** Students to Celebrate Agriculture and Leadership Around the Country This month, FFA members around the country will celebrate agriculture and FFA during National FFA Week. Whether through service projects or community gatherings, National FFA Week is a time for FFA members to raise awareness about the National FFA Organization's role in developing future leaders and the importance of agricultural education. National FFA Week always runs from Saturday to Saturday and encompasses February 22, George Washington's birthday. This year, the week kicks off on February 18 and culminates on Saturday, February 25. The National FFA Board of Directors designated the weeklong tradition, which began in 1948, to recognize Washington's legacy as an agriculturist and farmer. A group of young farmers founded FFA in 1928, and the organization has been influencing generations that agriculture is more than planting and harvesting — it involves science, business and more. National FFA Week is a time for FFA members to share agriculture with their fellow students and communities. *********************************************************************************** Fuel Prices Decline for the First Time in 2023 For the first time in 2023, the nation's average gas price posted a weekly drop, falling 4.4 cents from a week ago to $3.44 per gallon. The national average is up 17.5 cents from a month ago and 1.7 cents per gallon higher than a year ago. The national average diesel price fell 5.2 cents last week and stands at $4.60 per gallon. Still, GasBuddy reports U.S. retail gasoline demand rose 2.2 percent last week. GasBuddy’s Patrick De Haan says, “While the decline in both gasoline and diesel prices is terrific, it’s not unusual to see prices falling in February, which tends to be the month with some of the lowest gasoline prices of the year thanks to seasonally weak demand.” For diesel, De Haan says we’re likely to see more declines, and potentially much more significant ones in the weeks ahead as imports of distillate have accelerated, leading to a sell-off.
| Rural Advocate News | Tuesday February 7, 2023 |
Tuesday Watch List Markets At 7:30 a.m. CST Tuesday, the U.S. Census Bureau will display the trade deficit for December and provide USDA with export data to be released later Tuesday morning. At 8 a.m., Statistics Canada's Stocks of Principal Field Crops for December 31 will be out. Later Tuesday, Federal Reserve Chairman Jerome Powell speaks to the Economic Club of Washington and may offer more clues for what the Fed is planning. Trading in grains may turn quiet at some point as traders await USDA's WASDE report on Wednesday. Weather A storm system is forming along a boundary in eastern Texas on Tuesday, with increasing precipitation in the region throughout the day. Another system is passing through the Midwest and may bring some showers there, but most of the rest of the country will be rather dry and mild.
| Rural Advocate News | Monday February 6, 2023 |
FAO Food Price Index Continues to Decline The February FAO Food Price Index averaged 131.2 points in January 2023, down 1.1 points, or 0.8 percent, from December, marking the 10th consecutive monthly decline. With this latest decline, the index has fallen 28.6 points, 17.9 percent, from its peak in March 2022. The Cereal Price Index averaged 147.4 points in January, up fractionally from December and 6.7 points above its level one year ago. The Vegetable Oil Price Index averaged 140.4 points in January, down 2.9 percent month-on-month and nearly 25 percent below its level a year ago. The Dairy Price Index averaged 136.2 points in January, down 1.4 percent from December, hitting its lowest level in 12 months. The decline in January reflected lower international prices of butter and milk powders. The Meat Price Index averaged 113.6 points in January, down marginally in December, continuing the decline for the seventh consecutive month, but it still stood 1.3 percent above its year-earlier level. Finally, the Sugar Price Index averaged 115.8 points in January, down 1.1 percent from December. *********************************************************************************** Food Dollar’s Property Income Share Remained at Historic High in 2021 In 2021, the average dollar spent by U.S. consumers on domestically produced food returned 39.4 cents as property income. Property income is income received by owners of capital assets such as land, equipment, and intellectual property after they pay for inputs, labor, and output taxes. The 39.4 cents as property income marked a 0.3-cent increase from a revised 2020 estimate of 39.1 cents and the second year in a row in which property income's share of the food dollar set a record high for USDA Economic Research Service's Food Dollar Series. The share of the food dollar that compensates labor through salaries and benefits was 50.3 cents in 2021, a 1.2-cent decrease from 2020. The remaining food dollar shares were each at 5.1 cents for output taxes and imports, which include imported ingredients and other inputs needed for domestic food production. Annual shifts in the primary factor shares of the food dollar may occur for a variety of reasons, according to USDA. *********************************************************************************** USDA Announces Steps to Improve Child Health through Nutritious School Meals Agriculture Secretary Tom Vilsack Friday announced major initiatives that support and enhance the health of America's children through nutritious school meals. At the USDA Conversation on Healthy School Meals Roundtable, Vilsack says, “Our commitment to the school meal programs comes from a common goal we all share – keeping kids healthy and helping them reach their full potential.” USDA supports efforts to enhance the health and quality of life of America’s children by proposing gradual updates to science-based nutrition standards in school meals, recognizing school districts that have gone above and beyond in nutritional quality, and assisting small and rural school districts in improving the nutritional quality of school meals. Vilsack shared proposed updates to the school meal standards to reflect the latest nutrition science. These updates focus on a few targeted areas that will support even healthier meals for kids on a timeline that reflects critical input from school nutrition professionals, public health experts, industry, and parents. *********************************************************************************** House Ag Committee Announces Subcommittee Chairs House Agriculture Chairman Glenn GT Thompson recently announced subcommittee Chairs and jurisdictions for the 118th Congress. The Pennsylvania Republican says of the subcommittee chairs, “Their expertise and partnership are essential to fulfilling this Committee’s mandate of delivering certainty and prosperity to American agriculture and its entire value chain. Representative Austin Scott of Georgia will serve as the Vice Chair of the Full Committee, and chair of the General Farm Commodities, Risk Management, and Credit Subcommittee. California's Dough LaMalfa will chair the Subcommittee on Forestry, and Indiana's Jim Baird is chair of the Subcommittee on Conservation, Research, and Biotechnology. Meanwhile, Minnesota's Brad Finstad was appointed Chair of the Subcommittee on Nutrition, Foreign Agriculture, and Horticulture. Finally, Tracey Mann of Kansas was appointed chair of the Livestock Subcommittee, and South Dakota's Dusty Johnson is Chair of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development. *********************************************************************************** Grassley, Fischer, Wyden, Tester Reintroduce Cattle Market Reform Bill Senator Chuck Grassley and a bipartisan group of Senators last week introduced the bipartisan Cattle Price Discovery and Transparency Act of 2023. Joining Grassley was fellow Republican Deb Fischer of Nebraska, and Democrats Ron Wyden of Oregon and Jon Tester of Montana. The lawmakers say the legislation would restore transparency and accountability in the cattle market by establishing regional cash minimums and equipping producers with more market information, including permanently authorizing a cattle contract library. Grassley says, "It's past time for Congress to stand with independent cattle producers and put an end to the cozy relationship between large meat packers and big cattle feedlots." The legislation requires the creation of 5-7 regions encompassing the entire continental U.S., and then establish minimum levels of fed cattle purchases made through an approved pricing mechanism. The bill would also establish a maximum penalty for covered packers of $90,000 for mandatory minimum violations. The legislation also creates a publicly available library of marketing contracts. *********************************************************************************** USDA Launches Rural Data Gateway USDA Rural Development Under Secretary Xochitl Torres Small Friday unveiled the Rural Data Gateway. The effort is a new resource to make the Department's data for rural projects easier to access for its partners and people living in rural communities. The Rural Data Gateway will help USDA better target resources to those who need them most in rural places. It also will help the Department be a stronger partner to rural people, entrepreneurs, government officials and other stakeholders. Torres Small says, “The Rural Data Gateway will highlight places where USDA has expanded access to capital for people in rural communities who need it most.” The Gateway also showcases USDA Rural Development’s investments that have helped rural people lower their energy costs, and buy, repair, build and rent affordable places to call home. The Rural Data Gateway supports USDA’s mission to expand public access to Federal government data as required by the Open, Public, Electronic, and Necessary Government Data Act of 2018.
| Rural Advocate News | Monday February 6, 2023 |
Top 5 Things to Watch - Key Happenings the Newsroom Is Tracking for the Week of Feb. 5-11 OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Feb. 5. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. February WASDE report: It's grain report week, and we'll have both a preview on Monday, Feb. 6, and then immediate reporting on the February World Agricultural Supply and Demand Estimates (WASDE). DTN Lead Analyst Todd Hultman's preview will be up Monday to kick off the week. We'll begin coverage of Wednesday's (Feb. 8) report around 11:00 a.m. CST, immediately after the report is released by USDA. As usual, we'll update our report story throughout the morning with additional analysis and details. Hultman's monthly WASDE Webinar begins at 12:30 p.m. 2. South American Crop: We're continuing to watch weather conditions and crop reports from South America, as those near-term updates will likely not be fully accounted for in the WASDE report. To keep up with DTN Ag Meteorologist John Baranick's global weather outlook, 3. Fertilizer continues to trend lower: We're now a month into the downtrend in fertilizer prices, especially most forms of nitrogen. DTN Staff Reporter Russ Quinn, who leads our fertilizer pricing and outlook coverage, reported this past week that overall nitrogen fertilizer cash prices were 9% lower than the previous month. Watch for the latest numbers Feb. 8. DTN paid subscribers can also find details on fertilizer prices in our fuels and fertilizers areas of our products. 4. River levels still a concern: Despite some precipitation across the Mississippi River valley, the heavy amounts stayed in the South and haven't lifted low water conditions in the nation's biggest water highway. Levels at St. Louis are still at -2 feet, or 2 feet below the "zero gauge" standard. Flood stage in St. Louis is +30 feet. The river level at Memphis has been around +14 feet; the flood stage there is +34 feet. 5. Cattle markets still chewing on herd size: While the week will be a quiet one for cattle reports, DTN Livestock Analyst ShayLe Stewart will continue to watch the market's response to the latest beef cow herd numbers being the lowest since records began more than 50 years ago. WASDE corn demand numbers will also be responding to those new herd size numbers.
| Rural Advocate News | Monday February 6, 2023 |
Monday Watch List Markets The U.S. Labor Department will release nonfarm payrolls for January and the monthly unemployment report at 7:30 a.m. CST, Friday's main attractions. Traders will watch over the latest weather forecasts and pause at 8 a.m. to see if USDA has an export sale announcement. Weather A burst of arctic air with the polar vortex continues in the Midwest where some lake-effect snows are occurring. A front is finally being pushed out of the Southeast where showers continue for the day. While eastern areas are getting colder, the Plains are getting warmer as a ridge of high pressure spreads eastward. The next system is moving into the West Coast, which will have implications east of the Rockies for next week.
| Rural Advocate News | Friday February 3, 2023 |
CattleFax Forecast for Producer Profitability in 2023 The CattleFax Outlook Seminar at the annual Cattle Industry Convention in New Orleans dug into expert market and weather analysis for the coming year. Prices and profitability will again favor cattle producers in 2023. The cattle industry came into the year with the smallest cattle supply since 2015, as drought caused the industry to dig deeper into the supply of feeder cattle and calves. While drought relief is up in the air, improvements are also expected to translate to moderating feed costs, especially in the second half of this year. Combined with increased cattle prices, producers, especially the cow-calf operators, will continue to see improvement in margins for the next several years. Kevin Good, Vice President of Industry Relations for CattleFax, says U.S. beef cow cattle inventories are down 1.5 million head from cycle highs. “Drought improvement and higher cattle prices should slow beef cow culling through this year,” Good says. *********************************************************************************** Brazil Reinstates Ethanol Import Tariff Brazil’s Foreign Trade Chamber reinstated the 18 percent import tariff on ethanol, making U.S. imports less price competitive in the country. The recent zero percent import tariff got put in place last year by Brazil’s former president to help fight rising inflation. The current administration let the zero percent tariff expire on February 1. SP Global says the 18 percent import tax will protect Brazil’s domestic ethanol producers, especially those in the north and northeast regions. Multiple sources say the move reduces competitively-priced ethanol imported from abroad. The Ministry of Agriculture and Livestock said in an official statement that the increased import tax will also have a minimal impact on the end-user in Brazil. Last year, Brazil imported 312 million liters of ethanol, and the U.S. supplied 65 percent of total ethanol imports. Brazil extended the current exemption for federal taxes on fuel for the first 60 days of 2023. *********************************************************************************** Study Finds Consumers Want Protein Source Transparency Merck Animal Health announced the results of its first-ever consumer transparency research study. It finds that two-thirds of consumers say transparency in animal protein is extremely or very important. The study focused on consumers’ growing interest in transparency and its importance in purchasing decisions and brand trust. Two-thirds of the survey respondents say transparency in animal proteins is extremely or very important and the reasons are personal, with health and nutrition topping that list. Also, 86 percent of consumers who said transparency is important also ranked traceability as extremely or very important, and 40 percent of those consumers want to know where the livestock comes from. More than 50 percent of the respondents said they were willing to pay a five percent premium for transparency on the label and want more information than ever about how their food is grown and raised to make informed decisions at the grocery store. *********************************************************************************** Legislation Designed to Protect U.S. Ag from Foreign Adversaries The bipartisan Promoting Agriculture Safeguards and Security (PASS) Act was introduced in both congressional chambers. It will protect U.S. national security by preventing foreign adversaries from taking any ownership or control of agricultural land and businesses in the United States. The bill will also ensure the USDA is fully involved in reviewing any acquisition of American companies by foreign adversaries that could affect the agricultural sector. Specifically, China, Russia, Iran, and North Korea are prohibited from buying agricultural land and companies in the U.S. It also adds the Ag Secretary as a standing member of the U.S. Committee on Foreign Investment. Congressman Rick Crawford, a co-sponsor, says, “Reports of entities ultimately controlled by the Chinese Communist Party buying American farmland and agricultural companies validate the need for a more proactive posture in protecting our agriculture sector from foreign threats.” Congressman Jim Costa says protecting the food supply is a national security issue. *********************************************************************************** NPPC Reacts to First Senate Ag Farm Bill Hearing The National Pork Producers Council applauded the first farm bill hearing in the 118th Congress. The organization is pleased the Senate Ag Committee is taking up issues important to the pork industry. In 2021, the U.S. exported 8.1 billion dollars worth of pork to more than 100 countries, which increased the average value of each pig marketed by nearly 63 dollars. Those exports also support more than 10,000 jobs in America. “Congress must provide strong investments in both the Market Access Program (MAP) and the Foreign Market Development Program,” the NPPC said in a statement. “A wide swath of U.S. agricultural companies have utilized these export promotion programs, generating a net return of almost 25 dollars for every dollar spent and creating 225,800 full-and-part-time jobs across the U.S. economy.” The NPPC is also looking forward to working with members of Congress while developing a farm bill that benefits producers and every American. *********************************************************************************** NCBA Picks the Beef Advocate of the Year Tucker Brown, a Texas beef producer, is the National Cattlemen’s Beef Association’s 2022 Advocate of the Year. The award recognizes Brown for his creative use of storytelling across social media platforms, along with continuing his family’s legacy as a sixth-generation cattle rancher. Brown says his farm gate is always open, and he doesn’t hesitate to answer hard questions about the beef industry. “Our goal is to help consumers understand where their food comes from and develop a deeper trust in us,” he says. Brown creates social media content that bridges the gap between consumers and producers, reaching millions of people. He has more than 176,000 followers on TikTok and 52,000 followers on Instagram. On average, Brown gets a combined five-to-six million views per month on his videos and uses his influence to show what it’s like to raise beef. “I think it’s more important than ever to tell our story,” he says.
| Rural Advocate News | Friday February 3, 2023 |
Friday Watch List Markets The U.S. Labor Department will release nonfarm payrolls for January and the monthly unemployment report at 7:30 a.m. CST, Friday's main attractions. Traders will watch over the latest weather forecasts and pause at 8 a.m. to see if USDA has an export sale announcement. Weather A burst of arctic air with the polar vortex continues in the Midwest where some lake-effect snows are occurring. A front is finally being pushed out of the Southeast where showers continue for the day. While eastern areas are getting colder, the Plains are getting warmer as a ridge of high pressure spreads eastward. The next system is moving into the West Coast, which will have implications east of the Rockies for next week.
| Rural Advocate News | Thursday February 2, 2023 |
NCGA Shares Potential Consequences of Mexican Corn Ban Corn growers told Congressional members and their staffs they must hold the line over Mexico’s proposed ban on imports of GMO corn. During a congressional briefing, members of the National Corn Growers Association said if that ban takes effect, it will block most U.S. corn imports into Mexico and be a significant blow to the American economy. Mexico’s president plans to implement a decree banning biotech corn from coming into Mexico in early 2024. The vast majority of U.S. corn is biotech. “This decree would cut most American growers off from what has historically been our largest export market,” says NCGA President Tom Haag (Hayg). “That’s why U.S. officials must continue to ensure that Mexico lives up to its commitments under the U.S.-Mexico-Canada Agreement.” NCGA hosted the congressional briefing on the one-year mark from the decree’s effective date. The ban would cause the U.S. economy to lose $73.8 billion over ten years. *********************************************************************************** Senate Bill Would Improve the Conservation Reserve Program Senators John Thune of South Dakota and Minnesota’s Amy Klobuchar reintroduced the Conservation Reserve Program Improvement Act. A Republican and Democrat, respectively, the bill bolsters the CRP by improving access to grazing, maximizing enrollment options for producers, and addressing implementation issues following the 2018 Farm Bill. “After hearing from South Dakotans, it’s clear that we need to keep working to ensure that CRP continues to be an effective option for producers and landowners,” Thune says. Among the improvements, the bill would increase the CRP annual payment limitation from $50,000, established in 1985, to $125,000 to account for inflationary and rising land value pressures and provide more enrollment options. “The Conservation Reserve Program helps equip our farmers with tools to conserve and improve soil, water quality, and wildlife habitat,” Klobuchar says. “This bipartisan legislation makes commonsense improvements to the CRP that will strengthen conservation practices and boost enrollment in this vital program. *********************************************************************************** New Venture to Develop SAS Using Ethanol United Airlines formed a joint venture to develop and then commercialize a Sustainable Aviation Fuel technology using ethanol as the feedstock. United Airlines, Tallgrass, and Green Plains will invest up to a combined $50 million in the venture. The venture is called Blue Blade Technology and will produce up to 135 million gallons of ethanol-based SAS annually. Green Car Congress Dot Com says if the technology is successful, Blue Blade will begin building a pilot facility in 2024, followed by a full-scale facility that could begin operating in 2028. The agreement could provide enough sustainable aviation fuel to fly more than 50,000 flights every year between United’s hub airports in Chicago and Denver. If the technology is commercialized, the location of Blue Blade’s first plant would allow easier access to low-carbon feedstock from Green Plains’ Midwest ethanol production facilities. The technology will eventually work with any alcohol-based feedstock as a fuel source. *********************************************************************************** Report Shows Strong Demand Continuing for U.S. Beef The National Cattlemen’s Beef Association released its “Today’s Beef Consumer” report, and it shows beef demand continues to remain strong. Despite various challenges faced by the industry, consumers have repeatedly stated that they will continue buying beef in both the retail and foodservice settings. Compiling research from last year, the report shows more than two-thirds of consumers reportedly eat beef on a weekly basis or even more than that. Inflation is top-of-mind when shopping for food, and more than three-quarters of consumers reported an increase in the price of food, whether at retail or foodservice. While it was no surprise that beef sales at foodservice dropped sharply in 2020 and 2021, sales in 2022 rebounded in both volume and dollars, surpassing the pre-pandemic levels of 2019. During COVID, consumers were forced to cook from home, and many continue to do so as a way to stretch dollars and combat inflation. *********************************************************************************** NCBA Announces Policy Priorities The National Cattlemen’s Beef Association released its policy priorities for 2023. The priorities focus on advancing animal disease preparedness, protecting voluntary conservation programs, and defending producers from regulatory overreach. “Our focus is helping to create opportunity for America’s cattle producers and fighting to make sure the federal government does not damage our industry,” says NCBA President-Elect Todd Wilkinson. “One of the biggest opportunities to help cattle producers in the coming year is passing the 2023 Farm Bill with continued investment in our national vaccine bank to protect the U.S. cattle herd.” Other priorities include protecting and funding EQIP, CSP, and other voluntary conservation programs that incentivize science-based, active management of natural resources. NCBA also wants to protect the cattle industry from regulatory attacks under the Waters of the United States, the Endangered Species Act, emissions reporting, and more. “We’re laser-focused on reducing the risk of a potential foreign animal disease,” Wilkinson adds. *********************************************************************************** Americans Will Eat 1.45 Billion Chicken Wings During the Super Bowl The National Chicken Council released its annual Chicken Wing Report, projecting Americans will eat a record-breaking 1.45 billion chicken wings during Super Bowl weekend. The figure represents an increase of two percent from last year’s report, the equivalent of 84 million more wings than in 2022. NCC Spokesperson Tom Super says, “The two main reasons for the increase are more favorable prices and more people getting back to normal and gathering for the Big Game, whether at home or a bar or restaurant.” Despite inflation, both wholesale and retail wing prices are down double digits from a year ago, according to USDA, and consumers are seeing a lot more features and promotions. That many wings laid end-to-end would stretch from Arrowhead Stadium in Kansas City to Lincoln Financial Field in Philadelphia about 62 times. It would also give four wings each to every man, woman, and child in the United States.
| Rural Advocate News | Thursday February 2, 2023 |
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, a report on fourth-quarter U.S. productivity and an update of the U.S. Drought Monitor. The U.S. Energy Department's natural gas storage report is at 9:30 a.m. Traders remain interested in the latest weather reports, especially from South America and in any news of an export sale. Weather A stalled front continues to be active across the south with rounds of showers on Thursday. It is still cold enough for a mix of freezing rain, sleet, and some snow in these areas. Across the north, the last arctic cold blast is moving into the North-Central U.S. The cold will be intense but only for a day or so. The cold will slide over to the Northeast tonight and cold air over the Great Lakes will induce lake-effect snows. Those should be as brief as the cold air that moves through.
| Rural Advocate News | Wednesday February 1, 2023 |
USTR Announces Dispute Settlement Panel Request with Canada U.S. Trade Representative Katherine Tai Tuesday announced the second dispute settlement panel under the U.S.-Mexico-Canada Agreement regarding Canada’s dairy tariff-rate quota allocation measures. The United States is challenging Canada’s revised dairy TRQ allocation measures that use a market-share approach for determining TRQ allocations. Through these measures, Canada undermines the market access it agreed to provide in the USMCA, according to USTR. Ambassador Tai says, “Although the United States won a previous USMCA dispute on Canada’s dairy TRQ allocation policies, the Canadian government’s revised measures have not fixed the problem.” National Milk Producers Federation president and CEO Jim Mulhern responded, "USTR's action is an important step in righting this wrong and sending a message that the U.S. will fight violations of trade deals in Canada and wherever else they may be committed." If the panel confirms that Canada has violated its obligations under USMCA, the U.S. would be granted the right to impose retaliatory duties. *********************************************************************************** USDA Launches Pilot Cattle Contracts Library The Department of Agriculture Tuesday launched the Cattle Contract Library pilot program. USDA says the pilot library will provide new disclosure to the industry and public regarding the key terms, conditions, and volumes under which cattle are contracted. The Consolidated Appropriations Act of 2022 directed USDA to create a pilot library to increase market transparency for cattle producers. The library will have the same look and feel as the working library model developed and shared with stakeholders last year but will now be populated with information from active contracts. The initial release of the library will allow users to browse a range of terms and information contained in active contracts used to purchase fed cattle. National Cattlemen's Beef Association Government Affairs Government Affairs Tanner Beymer responded, “We have been looking forward to the launch of the Cattle Contract Library pilot program and will review the product to determine if its current format provides value to cattle producers.” *********************************************************************************** FDA Proposes Redesign of Human Foods Program The Food and Drug Administration Tuesday proposed a redesign of the Human Foods Program to enhance coordinated prevention and response activities. The proposal includes a transformative vision for the Office of Regulatory Affairs, FDA's field-based operations. The proposed structures for both groups will have clear priorities focused on protecting and promoting a safe, nutritious U.S. food supply that more quickly adapts to an ever-changing and evolving environment, according to USDA. The proposed structures for both groups will have clear priorities focused on protecting and promoting a safe, nutritious U.S. food supply that more quickly adapts to an ever-changing and evolving environment. Creating a Human Foods Program under a single leader who reports directly to the Commissioner unifies and elevates the program while removing redundancies. The Center for Food Safety and Applied Nutrition, Office of Food Policy and Response, and certain functions of ORA will be unified into a newly envisioned organization called the Human Foods Program. *********************************************************************************** Ukraine’s Exports Recover Under Black Sea Grain Initiative USDA's Economic Research Service reports Ukraine's corn and wheat exports have almost returned to seasonal-average levels since the summer of 2022. The change follows the Black Sea Grain Initiative to reopen the Black Sea shipping routes. Russia's invasion of Ukraine in February 2022 led to elevated security risks and infrastructure damage, causing Ukraine's seaports to be almost completely cut off from March through July. As global exportable supplies diminished, international wheat export prices spiked. Signed in July 2022, the Black Sea agreement enabled the safe passage of Ukraine grain exports through three ports. That and ample corn and wheat stocks allowed Ukraine to export a larger combined volume of the two crops than the five-year average in September and October. The Black Sea Grain Initiative has increased the opportunities for Ukrainian grain to leave the country and has relieved some price pressures internationally, but uncertainty remains as the agreement is set to expire in mid-March 2023 and may not be extended. *********************************************************************************** Six of Seven States Agree on Colorado Water Management Six states that rely on water from the Colorado River Basin recently reached an agreement regarding a model to drastically cut water use in the basin. Colorado, New Mexico, Utah, Wyoming, Arizona, and Nevada, "did exactly what we needed," according to Colorado Senator Michael Bennet. However, the agreement doesn't include California, the largest water user from the basin, which plans to release its own water use plan. In a letter to the Bureau of Reclamation, the six states admitted, "Over the past twenty-plus years, there is simply far less water flowing into the Colorado River system than the amount that leaves it, and that we have effectively run out of storage to deplete.” The states asked the Bureau of Reclamation to review their proposal as it seeks drought mitigation guidelines. Bennet says California not joining the effort was disappointing, adding, “For too long, the other six states, and particularly the Upper Basin, have carried the burden of this historic drought.” *********************************************************************************** Commodity Classic Registration up 28% Farmers across the country are getting excited for the 2023 Commodity Classic, which has just announced registration is up 28 percent over last year's event in New Orleans. The 2023 Commodity Classic will be held March 9-11 in Orlando. Attendee surveys indicate that networking with other farmers is one of the top reasons producers enjoy Commodity Classic. Hallway conversations and in-person connections are an important part of the educational experience at Commodity Classic, as farmers share their knowledge, passion, and insight with colleagues from across the nation. 2023 Commodity Classic co-chair George Goblish of Minnesota says, “Thousands of America’s best farmers from across the nation love Commodity Classic because we share a passion for agriculture, a thirst for knowledge, and we’re all interested in how we can make our farms more profitable.” The 2023 Commodity Classic includes a lineup of educational sessions, inspiring speakers, a trade show, entertainment, and a range of technology, innovation, and agronomic information. Discover more at CommodityClassic.com.
| Rural Advocate News | Wednesday February 1, 2023 |
Wednesday Watch List Markets Wednesday is the first of February, the day the ground hog is expected to come out and raise the federal funds rate by another quarter-percent. The Federal Reserve will make the ceremony official at 1 p.m. CST. Before that, there will be several manufacturing indices reported from around the world and the U.S. will get its turn at 9 a.m. At 9:30 a.m., the U.S. Energy Department releases its weekly report of energy inventories, including ethanol production. South American weather and crop conditions continue to get a lot of trader attention. Weather A stalled front across the South and Southeast remains active on Wednesday with periods of showers from Texas and Oklahoma eastward. It remains cold enough on the northern end for a mix of freezing rain, sleet, and maybe some snow from Texas and Oklahoma into the Tennessee Valley. Temperatures farther north are still cold, but higher than yesterday for most areas.
| Rural Advocate News | Tuesday January 31, 2023 |
Senate Ag Leaders Urge USTR to Hold Canada Accountable Under USMCA Leaders of the Senate Agriculture Committee urge the U.S. Trade Representative to hold Canada accountable under the U.S.-Mexico-Canada Agreement. Senators Debbie Stabenow, a Michigan Democrat, and John Boozman, an Arkansas Republican, say Canada is obligated by USMCA to provide market access to American dairy farmers. Despite numerous rounds of consultation and an initial dispute settlement panel ruling in January 2022, Canada continues to reserve parts of its tariff-rate quota allocations for domestic processors, undermining importers' market access. In a letter to Ambassador Katherine Tai, the Senators call on USTR to initiate a second dispute settlement panel to hold Canada accountable to its market access obligations to American dairy farmers. There has been no improvement in Canada's TRQ administration despite the USTR’s continued engagement. The Senators write, “To bring Canada into compliance with its commitments to U.S. dairy producers, we urge USTR to move forward with a second dispute settlement case to implement USMCA’s dairy provisions fully and properly to increase U.S. dairy market access.” *********************************************************************************** 2022 Census of Agriculture Deadline Nears The deadline to respond to the 2022 Census of Agriculture is next week. USDA's National Agri Statistics Service says farmers and ranchers must respond by February 6 online or through the mail. NASS Administrator Hubert Hamer says, "By participating in the 2022 Census of Agriculture, producers show the value and importance of American agriculture." Last month, NASS mailed the Census of Agriculture questionnaires to every known ag producer in the U.S. and Puerto Rico. Conducted just once every five years, the ag census provides a complete account of the nation's farms and ranches and the people who operate them. Responding to the Census of Agriculture is required by federal law, and law requires NASS to keep all individual operations' information confidential, use the data for statistical purposes only, and publish the data in aggregate form to prevent disclosing the identity of any individual producer or farm operation. Producers can respond online at agcounts.usda.gov. *********************************************************************************** USDA Announces $2.7 Billion in Rural Electric Infrastructure Funding Agriculture Secretary Tom Vilsack Monday announced a $2.7 billion investment to help 64 electric cooperatives and utilities. The funding from the Department of Agriculture will help the cooperatives expand and modernize the nation’s rural electric grid and increase grid security. Vilsack says, “This funding will help rural cooperatives and utilities invest in changes that make our energy more efficient, more reliable, and more affordable.” The loans include $613 million to help rural utilities and cooperatives install and upgrade smart grid technologies. Smart grid can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas, in addition to improving grid security and reliability. Nearly half of the awards will help finance infrastructure improvements in underserved communities. USDA's Electric Loan Program can help finance wind, solar and natural gas plants, as well as improvements to produce cleaner energy from coal-fired plants. In the coming months, USDA will announce additional energy infrastructure financing. *********************************************************************************** State Attorneys General Seek Year-Round E-15 Last week, Iowa Attorney General Brenna Bird led a bipartisan coalition of seven Attorneys General urging the Biden Administration to follow the law and allow the sale of year-round E-15. Federal law permits Governors to request that the EPA issue the regulations allowing E15 and requires the EPA to issue the regulations within 90 days. The sale of E15 has been restricted during the summer peak-driving months due to an outdated provision of the Clean Air Act. Iowa Governor Kim Reynolds led a bipartisan coalition of Governors making the request on April 22, 2022, but the EPA still has not issued the regulation as required by law. Earlier this month, Governor Reynolds, again wrote to the Biden Administration reiterating her request that the mandatory regulations be issued in response to their request. Attorney General Bird and the Attorneys General of Illinois, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin signed the letter to the White House and the Environmental Protection Agency. *********************************************************************************** American Dairy Coalition Sets 2023 Policy Priorities American Dairy Coalition, a grassroots dairy farmer-led organization with diverse geographic representation, recently announced federal policy priorities and an action plan for 2023. American Dairy Coalition CEO Laurie Fischer says, “Our ongoing efforts have been focused on raising awareness of short- and long-term challenges.” One key short-term priority is to see the Class I milk price 'mover' returned to its previous 'higher of' formula in the 2023 Farm Bill. For the long-term, the coalition seeks a national Farm Bill hearing on the sustainability of Federal Milk Marketing Orders. Fischer says, “The systemic issues of declining fluid milk sales and declining FMMO participation create instability and uncertainty for dairy farmers.” ADC also supports restoring whole milk in federal nutrition programs like National School Lunch and Breakfast Programs and WIC. This includes exempting nutrient-dense foods like whole milk from the fat limits the Dietary Guidelines impose on nutrition programs and dairy checkoff promotions. *********************************************************************************** Rotational Grazing Adoption Varies by Region Data published Monday by USDA’s Economic Research Service shows rotational grazing adoption varies by region. Rotational grazing is a management practice in which livestock are cycled through multiple fenced grazing areas to manage forage production, forage quality, animal health, and environmental quality. In a recent study, USDA researchers found the highest rate of total rotational grazing adoption, at 49 percent of operations, in the Northern Plains and Western Corn Belt region. The lowest participation level, at 25 percent, were operations in the Southern Plains region. Basic rotational grazing was more common than intensive rotational grazing in all but one region. USDA says the exception was the Appalachian region, where 25 percent of cow-calf operations used intensive rotational grazing, and 22 percent used basic rotational grazing. Major drivers for regional differences in adoption could include varying forage types, which may respond better to rotational grazing than others, and differing climates.
| Rural Advocate News | Tuesday January 31, 2023 |
Tuesday Watch List Markets At 7:30 a.m. CST Tuesday, the U.S. Labor Department will release its employment cost index for the fourth quarter, a factor for the Fed to consider in this week's meeting. At 9 a.m., the Conference Board's index of U.S. consumer confidence will be out, followed by USDA's Jan. 1 cattle inventory at 2 p.m., anticipating a 3% or 4% annual decline. Weather A sharp cold front remains across the southern states on Tuesday, which will continue to be active. Showers are already moving through this morning and more will develop later today from Texas and Oklahoma eastward to Virginia and points south. Behind the front it is very cold with another day of well below-normal temperatures. The cold will cause another day of freezing rain, snow, and sleet accumulation in some areas of the South-Central states.
| Rural Advocate News | Monday January 30, 2023 |
Senators Ask White House for Enforcement Actions on USMCA The top members of the Senate’s Finance Committee sent a letter to the White House asking the administration to pursue enforcement action against Canada and Mexico under the USMCA. Inside Trade says they’re concerned about areas where Canada and Mexico aren’t complying with the agreement’s rules, especially around energy and agriculture. Ron Wyden and Mike Crapo (CRAY-po), the top Democrat and Republican on the committee, sent the letter saying, “The Office of the USTR must continue pursuing full implementation and, where necessary, robust enforcement of the U.S.-Mexico-Canada Agreement.” They also noted that the pact’s full potential remains unrealized. Wyden and Crapo highlighted the current dispute with Mexico over its policy regarding GMO corn imports, as well as Canadian failure to comply with the rules regarding tariff-rate quotas on dairy products. The U.S. recently requested dispute-settlement consultations for a third time regarding Canada’s dairy policy. U.S. and Mexican discussions recently continued last week. *********************************************************************************** Reaction to Bronaugh’s Decision to Step Down from USDA Post USDA Deputy Secretary Jewell Bronaugh announced she’ll be leaving her post at the end of February. American Farm Bureau Federation President Zippy Duvall says his organization has enjoyed working with the deputy secretary for the last two years of her tenure with the agency. “We want to thank her for her service to America’s farmers and ranchers,” Duvall says. “She has long been someone who understands the needs of farmers and rural communities. We’ve appreciated her leadership and wish her all the best in her future endeavors.” House Ag Committee Ranking Democrat David Scott congratulated Bronaugh on a job well done. “Deputy Secretary Bronaugh’s time at the department was historic, serving as the first African American woman in the role,” Scott says. “During her time as Deputy, she uplifted American agriculture and our rural communities, something she’s long done throughout her career.” Scott also says she’s a champion for U.S. food and agriculture. *********************************************************************************** Organic Produce Sales Up Three Percent, Volume Down Four Percent Organic fresh produce sales grew by three percent last year while total volume dropped by 3.7 percent. The Organic Produce Network says total sales topped $9.4 billion for the year. The 2022 Organic Produce Performance Report says the fresh berry category was the top organic produce category with more than 16 percent of organic fresh produce dollars in 2022. Fresh berry sales topped $1.6 billion for the year, with organic packed salads a close second at $1.55 billion. Total fresh produce sales gained 7.3 percent in dollars during the year but dropped 1.3 percent in volume from the prior year. During 2022, 13 of the top 20 organic produce categories by total sales posted increases in dollars, with organic onions generating the largest increase at 15.4 percent. That increase was followed by cucumbers, potatoes, and avocados. Organic performance in 2022 was consistent across the nation as dollars grew and volume declined. *********************************************************************************** Energy Department Allocates $118 Million to Biofuel Projects Late last week, the Department of Energy announced $118 million in funding to help expand U.S. biofuel production. Growth Energy CEO Emily Skor says the funds will undoubtedly accelerate the innovations taking place at U.S. ethanol plants. “It will open many new opportunities for low-cost, low-carbon energy,” Skor says. She also points out that the president himself has said there will be no achieving the goal of net zero by 2050 without biofuels, and the announcement shows that the DOE is committed to that mission. “We are excited to see new technologies scaled up with these funds, particularly the work underway at Marquis, Inc., a Growth Energy member that received $8 million for a project that combines CO2 with low-carbon hydrogen to create a new production stream of extra-low-carbon ethanol.” A project like that will end up slashing carbon emissions by at least 70 percent or more compared to petroleum-based alternatives. *********************************************************************************** U.S. Wants WTO Dispute System Fixed by 2024 The U.S. is currently in a third round of talks to redo the World Trade Organization’s trade dispute arbitration system. The U.S. Ambassador to the WTO told Reuters that America wants it to be fully up and running by the end of 2024. The WTO’s appeals bench rules on top disputes among nations. It’s been out of service for two years due to U.S. appointment blockages put in place during the Trump Administration. The current administration has resisted calls by WTO members to approve the appointments and has been leading the negotiations on how to redo the dispute system. Asked if it was even possible to revive the Appellate Body, Deputy U.S. Trade Representative Maria Pagan didn’t say no. “It needs a lot of revamping,” she says. The U.S. has criticized the WTO’s alleged overreach and lengthy processes, and it strongly contested some of the WTO’s recent rulings against America. *********************************************************************************** Corn Sales to Overseas Buyers Drops 20 Percent The U.S. Department of Agriculture says export sales of corn fell in the seven days that ended on January 19, while soybean and wheat sales improved. During the week, corn sales to overseas buyers totaled 910,400 metric tons, a 20 percent drop week-to-week but up 46 percent over the prior four-week average. Mexico was the biggest buyer at 407,000 metric tons, followed by Columbia. Exports for the week came in at 912,000 metric tons, up 28 percent from the previous week. Soybean sales rose 16 percent week-to-week and 53 percent from the average to 1.15 million metric tons. China bought more than 940,000 metric tons, with the Netherlands a distant second at 67,100 tons. Exports for the week hit 1.9 million metric tons, down eight percent from the previous week. Wheat sales were up six percent over the prior week and 84 percent from the previous four-week average. Exports dropped 15 percent.
| Rural Advocate News | Monday January 30, 2023 |
Monday Watch List Markets Back from the weekend, traders will be paying close attention to South America's weather reports and forecasts and any outside news that might have occurred. There will also be interest in how cold temperatures got in the southwestern Plains. USDA's weekly report on export inspections is due out at 10 a.m. CST. Traders are also aware the Fed is expected to raise the federal funds target by 0.25% on Wednesday. Weather Very cold air in association with an arm of the polar vortex continues to settle into much of the Plains and western half of the Midwest Monday. The cold threatens livestock and any exposed wheat. The front is hung up from Texas to the Ohio Valley and periods of showers will develop along and behind the front over the next few days as it slowly sinks farther southeast this week. That will induce some wintry mix of freezing rain and snow across the Southern Plains up into the eastern Midwest over the next 24 hours.
| Rural Advocate News | Friday January 27, 2023 |
Agriculture Deputy Secretary Jewel Bronaugh to Step Down Agriculture Deputy Secretary Jewel Bronaugh announced Thursday her intention to step away from her role at USDA. Bronaugh says, “It is with mixed emotions that today I am announcing that I will step away from my role as Deputy Secretary in the coming weeks so I can spend more time with my family.” President Biden nominated Bronaugh to USDA in January of 2021 and was confirmed by the Senate in May of that year. Bronaugh, in 2018 was appointed as the Virginia Department of Agriculture and Consumer Services Commissioner. She previously served as the Virginia State Executive Director for the USDA Farm Service Agency during the Obama administration. She was the first Black woman to hold the second-in-command position at USDA. Bronaugh thanked Secretary Tom Vilsack for his support, adding, “I now look forward to taking some time off to spend more quality time with my mom, husband and four children." *********************************************************************************** Retail Food Price Inflation in 2022 Surpassed 2021 Rates Food-at-home prices increased by 11.4 percent in 2022, more than three times the rate in 2021 of 3.5 percent, according to USDA’s Economic Research Service. The increase was also much faster than the two percent historical annual average from 2002 to 2021. All food categories except beef and veal grew faster in 2022 than in 2021. In 2022, price increases surpassed ten percent for food at home and for nine food categories. Egg prices grew at the fastest rate ,2.2 percent, after an outbreak of highly pathogenic avian influenza throughout 2022. Prices for fats and oils increased by 18.5 percent, largely because of higher dairy and oilseed prices. Prices also rose for poultry, 14.6 percent, and other meats, 14.2 percent. Elevated prices for wholesale flour and eggs contributed to a 13.0-percent price increase for cereals and bakery products. Prices for beef and veal, fresh vegetables and fresh fruits rose more slowly, but all categories exceeded their historical averages. *********************************************************************************** Report: Brazil Soybean Crop up 18% From Last Year Industry Economists expect the harvest of a large soybean crop in Brazil in the next 30 to 45 days. AgResource predicts USDA and others will be forced to raise Brazilian soybean production estimates by one million to three million tons, or 37 million to 110 million bushels. A crop of at least 150 million tons versus 129.5 million last year is guaranteed, according to their research. AgResource's final yield estimate in Mato Grosso, by far the country's largest producing state, is 60.3 bushels per acre after revisiting possible harvest losses and disease pressure. This is eight bushels per acre more than Brazil’s CONAB current forecast. There will be yield loss in the far south of Brazil, but yield gains in Mato Grosso and surrounding states will more than offset any yield hit. Harvest losses will likely result from new incurable diseases. But there is very little doubt a massive Brazilian soybean crop will be available to the global marketplace in the coming weeks. *********************************************************************************** Research Identifies $400 Million in Unrealized Soybean Value A new partnership aims to increase soybean flower and pod retention. This unrealized value could bring $50 per acre or $400 million in economic return for U.S. soybean farmers, according to the United Soybean Board. The collaborative focus will test how heat and drought impact flower bud retention. Flower production dictates the final pod number and, ultimately, yield in soybeans. The Atlantic Soybean Council, Mid-South Soybean Board, North Central Soybean Research Program, Southern Soybean Research Program and United Soybean Board all agree this is a priority issue impacting the entire industry. Although flower retention is a leading cause of soybean yield loss in the U.S., no organized effort exists to address it. Farmers experience about 30 percent of flower loss under favorable conditions and up to 80 percent under drought and heat stress. Texas Tech University, in collaboration with Kansas State University, the University of Missouri and the University of Tennessee, will lead the research on this national effort. *********************************************************************************** First All-Steel Swine Barns to Provide Improved Efficiency and Animal Health A new sow complex is now under construction featuring the first prefabricated steel swine barns in the United States. Compared to traditional wood structures, the steel buildings are designed to offer a more biosecure, flame-retardant and energy-efficient environment for pigs, while also being more durable and faster to build. The 12,000-head sow facility is scheduled for completion this summer in South Dakota. The steel building package, designed by C-Lines, is being provided by AP, AGCO’s swine equipment brand. AP dealer Ag Property Solutions is constructing the barns, which will be managed by Pipestone Management. The all-steel buildings offer increased construction speed and efficiency, increased building strength, energy efficiency, better biosecurity, along with being easily transported as a prefabricated structure. The new facility is the largest sow complex ever constructed by Ag Property Solutions, with a footprint of up to 55 acres. It includes a 187,500-square-foot farrowing barn and gilt developer unit and a 225,000-square-foot gestation barn that incorporate the steel panels. *********************************************************************************** FFA to Participate in the Advancing Racial Equity Community of Practice Initiative The National FFA Organization Thursday announced its participation in a new community of practice with other nonprofit organizations focused on advancing racial equity. Over the next six months, leaders in the National FFA Organization will work with The Bridgespan Group to strengthen their approach to advancing racial equity internally and externally. The Advancing Racial Equity Community of Practice, led by The Bridgespan Group, is funded by the Walmart Foundation. The funding will assist in supporting FFA to collaborate with others to share best practices and learnings on their work to prioritize equity. National FFA CEO Scott Stump says, “By partnering with other nonprofits through this initiative, we can expand our capacity to seek and promote inclusion and diversity in our membership.” FFA is participating in the cohort alongside nine organizations: American Red Cross, Center for the Future of Arizona, Education Design Lab, Goodwill Industries International, National Voluntary Organizations Active in Disaster, Team Rubicon, The Recycling Partnership, Winrock International, and World Wildlife Fund.
| Rural Advocate News | Friday January 27, 2023 |
Friday Watch List Markets The U.S. index of personal consumption expenditures will be out at 7:30 a.m. CST Friday, an indicator of inflation watched by the Fed. The University of Michigan's index of consumer sentiment follows at 9 a.m. Traders will continue to watch the latest weather forecasts, especially in South America. Weather A clipper system moving through the Upper Midwest is dragging a cold front through the North-Central U.S. Friday. Breezy winds continue near the storm center in the Upper Midwest. Cold air over Canada will gradually fill in behind the front later in the day, resulting in well-below normal temperatures for the weekend. In addition to the cold, the front will be bringing scattered snows, some of which may be heavier near the northern Rockies and also near the South Dakota-Nebraska border through Friday night.
| Rural Advocate News | Thursday January 26, 2023 |
Senate Ag Plans Hearings on Farm Bill Trade and Horticulture Titles The leadership of the Senate Agriculture Committee Wednesday announced a set of farm bill hearings. Senators Debbie Stabenow and John Boozman will hold the first hearing on February 1, titled. "Farm Bill 2023: Trade and Horticulture." The hearings will focus on the trade and horticulture titles of the farm bill. The first hearing will include testimony from USDA's Alexis Taylor, Jenny Lester Moffitt, and USAID's Sarah Charles. In a joint statement, Stabenow and Boozman say, "This is the first of many hearings the Committee has planned as we gear up for the 2023 Farm Bill," adding, "We are both looking forward to a collaborative process, working with all Senators to deliver a strong Farm Bill." The duo announced three other upcoming hearings: February 9 on Commodity Programs, Crop Insurance and Credit, February 16 on Nutrition Programs, and March 1 on Conservation and Forestry Programs. All hearings will be held in the committee’s hearing room. *********************************************************************************** Lawsuit Against FDA Targets Antibiotics Use in Livestock Public health advocacy groups filed a lawsuit against the Food and Drug Administration this week. The groups say the lawsuit challenges the refusal to phase out unnecessary uses of antibiotics in animal agriculture. The groups include the Alliance of Nurses for Healthy Environments, the Natural Resources Defense Council, Food Animal Concerns Trust, Public Citizen and Earthjustice. They allege that approximately two-thirds of medically important antibiotics sold in the U.S. are for use in food-producing animals and are often administered to healthy animals to compensate for the higher risk of infections typically caused by cramped, unsanitary or stressful conditions. The lawsuit claims that the misuse of these medicines has contributed to the rise and spread of antibiotic-resistant bacteria. Steven Roach of Food Animal Concerns Trust says, "The FDA has allowed giant meat companies to habitually overuse antibiotics putting everyone's health at risk," adding, "This is absolutely unnecessary as animals raised under healthy conditions do not need routine antibiotics." *********************************************************************************** Substantial Consolidation in Retail Food Market Since 1990 The U.S. food retail sector experienced substantial consolidation over the last three decades, according to data from USDA’s Economic Research Service. Market concentration, as measured by the Herfindahl-Hirschman Index, is a measure of the extent to which market shares are concentrated between firms of the retail food sector at the national, state, metropolitan statistical area, and county levels. The analysis includes all establishments with a significant portion of food sales that are likely substitutes for each other: supermarkets and other grocery and warehouse clubs and supercenters. Although the national market is less concentrated than the average State level, according to the HHI, national market concentration increased substantially between 1990 and 2019 at 458 percent. In comparison, average county-level market concentration has remained relatively constant over the past 30 years, increasing only 94 percent. While national measures provide information about larger trends, trends in localized markets are likely more relevant for consumers, food-retail competitors, and policymakers, according to USDA. *********************************************************************************** Organic Farmers Association Applauds Additional Assistance for Dairy Farmers The Organic Farmers Association welcomes this week's announcement of emergency financial relief to organic dairy farmers by the Department of Agriculture. The association has called on lawmakers and the Biden administration to help offset the high cost of production. USDA's Farm Service Agency fulfilled the mandate on time, announcing plans to distribute funding on Monday, January 23. The newly announced Organic Dairy Marketing Assistance Program will be administered by USDA's Farm Service Agency and will cover up to 75 percent of projected 2023 marketing costs for eligible organic dairy producers - targeting small and mid-sized operations. Organic Farmers Association Executive Director Kate Mendenhall says, "We applaud Congress for prioritizing family farms in crisis and prioritizing this emergency relief." New York organic dairy farmer Liz Bawden adds, "Organic dairies have had a very difficult two years, and this relief funding will hopefully make it to dairies in time to keep them in business." *********************************************************************************** World Food Prize Names Branstad as President The World Food Prize Foundation announces this week that former U.S. Ambassador to China Terry Branstad will join the organization as its President. World Food Prize Foundation Chair Paul Schickler says, "We are excited to bring on a leader with both global vision and strong roots in agriculture.” Branstad was Iowa's longest-serving governor and holds the record as the longest-serving governor in the history of the United States. He held the office of Governor of Iowa from 1983 until 1999, and then again from 2011 until 2017, when he was appointed U.S. Ambassador to China. He is a partner with the Branstad Churchill Group, LLC. The World Food Prize is presented each year in Iowa to an individual for their achievements in improving the quality, quantity, and availability of food in the world. The $250,000 award is presented each October in a ceremony at the Iowa State Capitol that attracts global leaders and participants. *********************************************************************************** Consumer Brands Association Supports New Trucking Legislation The Consumer Brands Association endorsed a new, bipartisan bill, this week. The Safer Highways and Increased Performance for Interstate Trucking Act, or "SHIP IT Act," would boost trucking capacity, improve supply chain efficiency and keep costs down for consumers. The SHIP IT Act was introduced by U.S. Representatives Dusty Johnson, a South Dakota Republican, and Jim Costa, a California Democrat. The legislation aims to address supply chain pinch points by increasing shipping capacity, lessening burdens on truck drivers and providing incentives to recruit and retain new drivers. The bill also modernizes the emergency use of certain vehicle waivers, offers workforce grants for truck drivers, simplifies the commercial driver's license process and tackles truck parking concerns. Consumer Brands vice president of supply chain Tom Madrecki says, “Ultimately, each step to enhance our supply chains with the latest tools and technologies available will ensure operations run as seamlessly as possible despite future disruptions.”
| Rural Advocate News | Thursday January 26, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, the same time as U.S. weekly jobs claims, the first estimate of fourth quarter U.S. GDP, December durable goods orders and an update of the U.S. Drought Monitor. December new home sales are out at 9 a.m., followed by U.S. natural gas storage at 9:30 a.m. Weather remains a big part of trader focus every day and export sales announcements have become more active lately. Weather Light snow continues behind a system across the eastern Midwest and Northeast Thursday. But the bigger story is a clipper system in the Canadian Prairies that will dive into northern Minnesota by Thursday evening. The system will bring scattered showers through both the Canadian Prairies and North-Central U.S. along with strong winds. Initially, temperatures will rise, but a strong cold front will pass down through the Canadian Prairies Thursday night and into the Northern Plains on Friday when temperatures will drop significantly.
| Rural Advocate News | Wednesday January 25, 2023 |
NCBA Sues Biden Administration to Overturn Lesser Prairie Chicken Listing The National Cattlemen’s Beef Association recently filed a Notice of Intent to sue the Department of the Interior and the U.S. Fish and Wildlife Service. NCBA is planning the lawsuit over the listing of the lesser prairie chicken under the Endangered Species Act. NCBA Associate Director of Government Affairs Sigrid Johannes says, “The lesser prairie chicken only survives today because of the voluntary conservation efforts of ranchers,” adding, “There are numerous places where this listing goes seriously wrong and we are defending cattle producers against this overreaching, unscientific rule.” The listing was previously set to take effect at the end of January, but thanks to pressure on the Biden administration from NCBA and our allies in Congress, the rule was delayed by 60 days. The listing will now take effect on March 27, 2023, and the states included in the species’ range are Kansas, Texas, Oklahoma, New Mexico, and Colorado. *********************************************************************************** Corn Growers Praise Biden Officials for Stance on Biotech Corn The National Corn Growers Association praised the Biden administration for issuing an official rejection of a recent proposed compromise from Mexico on biotech corn imports into the country. The development came during a meeting between Mexican officials and U.S. Department of Agriculture’s Secretary of Trade and Foreign Agricultural Affairs Alexis Taylor and the Office of the U.S. Trade Representative’s chief ag negotiator Doug McKalip. In a statement that came after the meeting, USTR and USDA said the changes offered by Mexico “are not sufficient and Mexico’s proposed approach, which is not grounded in science, still threatens to disrupt billions of dollars in bilateral agricultural trade, cause serious economic harm to U.S. farmers and Mexican livestock producers, and stifle important innovations needed to help producers respond to pressing climate and food security challenges.” NCGA President Tom Haag responded, “This is significant development and good news for corn growers.” Mexico announced in late 2020 a decree banning biotech corn into the country, beginning in early 2024. *********************************************************************************** Biden Again Nominates Dean and Schlanger to USDA President Joe Biden again nominated Margo Schlanger and Stacy Dean to politically appointed positions at the Department of Agriculture. Biden nominated Schlanger to serve as Assistant Secretary for Civil Rights and Dean as Undersecretary for Food, Nutrition, and Consumer Services. Both were nominated by the President to USDA during the last Congress but were not confirmed by the Senate. Agriculture Secretary Tom Vilsack says Dean’s commitment during her time at USDA and throughout her career “makes her the ideal person to serve as Under Secretary for FNCS.” Throughout her life and career, Schlanger has devoted herself to civil rights and to public service. At the Department of Homeland Security. Vilsack says, “Schlanger would be able to continue her commitment to public service and civil rights as we at USDA continually seek to fairly and equitably serve our employees and customers.” The nominations of Schlanger and Dean were part of a slate of political appointees announced this week by the White House. *********************************************************************************** Cattle Accounted for Largest Portion of US Animal Receipts in 2021 U.S. farm cash receipts from animals and animal products totaled $195.8 billion in 2021, led by receipts for cattle and calves at $72.9 billion, or 37 percent. USDA’s Economic Research Service reports that poultry and egg products made up the next largest share of 2021 cash receipts at $46.1 billion, or 24 percent, followed by dairy at $41.8 billion, or 21 percent, hogs at $28.0 billion or 14 percent, and other animals and animal products at $7.0 billion, at four percent. As part of its Farm Income and Wealth Statistics data product, in late August or early September each year, the Economic Research Service releases estimates of the prior year’s farm sector cash receipts from agricultural commodity sales. The data provided includes cash receipt estimates by type of commodity, which can help in understanding the U.S. farm sector. The estimates may be revised as new information becomes available. *********************************************************************************** IFEEDER Releases Materials to Support Industry Sustainability Progress The Institute for Feed Education and Research Tuesday released its Animal Food Industry Sustainability Toolkit. The toolkit is intended to drive continuous improvement in the full feed value chain. The Institute also shared its definition for “sustainability,” grounding the public charity’s next steps on its multifaceted Sustainability Road Map project. IFEEDER defined “sustainability” for the U.S. animal food industry as “defined and managed by each individual organization to deliver measurable, continuous improvements on the impacts related to people, planet and governance that are most important to them and their stakeholders.” Lara Moody, IFEEDER executive director, says, “We have provided an ‘on ramp’ for the industry to help achieve leadership buy-in and employee engagement so that sustainability becomes part of their corporate cultures and shapes future business decisions.” The toolkit materials, which are supported by 18 months of research and development, are grouped into three stages: people, planet and governance. The toolkit is free for AFIA members and IFEEDER donors at ifeeder.org. *********************************************************************************** New Guide Helps Farms, Rural Small Businesses Go Solar Solar United Neighbors Tuesday released a new guide to help farmers and rural small business owners apply for a key federal grant and loan. The guide will make it easier for rural Americans to install solar energy at their property. The comprehensive guide takes applicants step-by-step through the Rural Energy for America Program, or REAP, application process. The REAP program has been so popular that funding for the grants has not been able to meet the demand. The Inflation Reduction Act, passed last year, quadrupled REAP funding over the next ten years. Farmers and rural small business owners can receive loan guarantees of up to 75 percent of total eligible project costs through REAP. They can receive grants for up to 40 percent of the total project cost. Solar United Neighbors is hosting a free webinar February 2 to educate attendees about the REAP program and what steps they need to take to apply. Learn more at solarunitedneighbors.org.
| Rural Advocate News | Wednesday January 25, 2023 |
Wednesday Watch List Markets The Bank of Canada is expected to raise its interest rate by a quarter-percent early Wednesday, a prelude to a rate hike, expected from the Federal Reserve on February 1. The U.S. Energy Department's weekly report of energy inventories is set for 9:30 a.m. CST, including ethanol production. Traders continue to keep tabs on the latest weather forecasts and will watch for a possible export sale announcement at 8 a.m. Weather A strong storm system that brought widespread precipitation to the Southern Plains on Tuesday continues toward the Northeast on Wednesday. A band of moderate to heavy snow has developed on the north side of the track, along and north of the Ohio River, while a line of showers and thunderstorms will move through the Southeast, some of which may be severe. Winds in the Southeast are fairly strong as well with gusts increasing into the 35-45 mph range in some areas.
| Rural Advocate News | Tuesday January 24, 2023 |
USDA Announces Additional Assistance for Dairy Farmers The USDA announced additional assistance for U.S. dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program. The agency also announced a new Organic Dairy Marketing Assistance Program. The moves will help USDA better support small- and medium-sized dairy operations that weathered COVID and now face other challenges. “USDA is announcing a second set of payments totaling almost $100 million to close out the $350 million commitment under the pandemic assistance program,” says USDA Undersecretary for Marketing and Regulatory Programs Jenny Moffitt. “The funds will be released through partnerships with dairy handlers and cooperatives to deliver the payments.” USDA will also be releasing new assistance targeted to small- and medium-sized organic dairy farmers. The goal will be to help those producers with anticipated marketing costs as they face a variety of challenges from weather to supply-chain challenges. For more information on USDA assistance, go to farmers.gov. *********************************************************************************** USDA Accepting Applications for Netherlands Trade Mission The USDA’s Foreign Agriculture Service is accepting applications from U.S. exporters for its first-ever agricultural trade mission to Amsterdam, Netherlands, April 17-20. “Agribusiness producers, exporters, and growers in the U.S. may find the Netherlands to be a perfect gateway into Europe,” says FAS Administrator Daniel Whitley. “Participants will explore exporting opportunities in this mature market, which continues to grow, and meet potential buyers in surrounding regional markets.” U.S. ag and related exports to the Netherlands reached $3.4 billion in 2021, making it the tenth-largest global market. During the trade mission, U.S. participants will meet with buyers from the Netherlands, Iceland, Norway, Sweden, Finland, Denmark, Belgium, and Germany. For companies interested in expanding sales in the Netherlands and the other markets, export opportunities include oilseeds, fats, vegetables, oils, grains, pulses, and many other exports. The deadline to apply for the Netherlands trade mission is Thursday, January 26. For information, go to fas.usda.gov. *********************************************************************************** Alltech Shares Global Feed Production Survey Alltech released its 2023 Agri-Food Outlook today, highlighting global feed production survey data. Despite significant challenges that hit the entire supply chain, global feed production remained steady in 2022 at 1.266 billion metric tons. That’s a decrease of only one-half of one percent from 2021’s estimates. The top feed-producing countries during the past year were China at number one with 260.7 million metric tons, the U.S. in second at 240.4 MMT, and Brazil a distant third with 81.9 million. Together, the top ten feed-producing countries produced 64 percent of the total world production. Half the world’s feed consumption is concentrated in four areas, including China, the U.S., Brazil, and India. Vietnam jumped ahead of Argentina and Germany into the top ten in feed tonnage. Russia overtook Spain, which reported a significant reduction in feed production. Feed production increased in several regions, including Latin America, North America, and the Oceania countries. *********************************************************************************** Farm Futures 2023 Planting Survey Results A survey from Farm Futures shows the 2023 acreage battle is ongoing. However, there could be a surprise when it comes to the total number of corn and soybean acres. A surge in projected wheat acres and costly inputs will likely limit any expansion of corn and soybean acres. About 70 percent of the respondents said they were locked in on 2023 acreage decisions by late December. Farm Futures says corn and soybean plantings will increase only minimally compared to past projections due in large part to shrinking profit margins for both corn and soybeans. The survey shows that 90.5 million acres of corn and 88.9 million acres of soybeans will get planted in the spring. Soaring costs of inputs likely mean more wheat acres as wheat typically requires less nitrogen. Anhydrous ammonia retailed for about $1,400 per ton last fall, so many farmers opted for less nitrogen-intensive crops for 2023 plantings. *********************************************************************************** Argentina Rain Forecast too Late to Save Crops Hot and dry weather continues to damage crops in Argentina and southern Brazil. Last week was the third-hottest and the overall driest third week in January in more than 30 years for the main soybean-growing regions in Argentina. The drought stress has combined with extremely hot temperatures to significantly drop the expected corn and soybean yields in Argentina. Agriculture Dot Com says more rain is in the forecast during the coming weeks, but the bad news is that the rains are too late to help crops. Brazil saw near-normal precipitation during the last week in Mato Grosso, the top-producing state in Brazil. However, hot and dry conditions continue to damage expected yields in southern Brazil. Dryness is expected to stick around in southern Brazil, and this week may become one of the hottest and driest weeks in more than 30 years in Rio Grande do Sul near the southern border. *********************************************************************************** U.S. Cattle on Feed Down Three Percent Cattle and calves on feed for the slaughter market in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.7 million on January 1. The inventory was three percent below January 1 of last year. That inventory included 7.03 million steers and steer calves, down four percent from the previous year. That group accounted for 60 percent of the total inventory. Heifers and heifer calves accounted for 4.65 million head, down one percent from 2022. Placements in feedlots during December totaled 1.8 million head, eight percent below 2021. Net placements were 1.75 million head. During December, placements of cattle and calves under 600 pounds were 435,000 head, 600-699 pounds were 435,000, 700-799 hit 415,000 head, and 800-899 pounds were 304,000 head. Marketings of fed cattle during December totaled 1.74 million head, six percent below last year. Other disappearances totaled 54,000 head in December, unchanged from 2021.
| Rural Advocate News | Tuesday January 24, 2023 |
Tuesday Watch List Markets There are no significant reports on Tuesday's docket, but judging from Monday's selling in grains, traders will remain focused on the latest weather reports and forecasts. Traders will also pause at 8 a.m. CST to see if USDA has another export sale to report after announcing 7.1 million bushels of soybeans to unknown destinations Monday. Outside markets may be an influence Tuesday with several big names expecting earning reports. Weather A strong storm is developing over Texas on Tuesday and will press northeast through Tuesday night, headed toward Memphis by early Wednesday morning. A batch of scattered showers and thunderstorms is developing with the system, including some moderate to heavy snow across the Texas Panhandle. That snow will extend up through Missouri later in the day and set up along and north of the Ohio River tonight. To the south, thunderstorms will produce moderate to heavy rain and have some potential for severe weather close to the Gulf of Mexico.
| Rural Advocate News | Monday January 23, 2023 |
Farm Group Wants Investigation Into Egg Prices A U.S. farm group is asking the Federal Trade Commission to look into the high prices of eggs and possible price gouging. Farm Action is a farmer-led advocacy organization that sent a letter to FTC Chair Lina Khan to share their concerns over “apparent price gouging.” They point out that Americans are paying more than ever for an important household staple. The USDA says a recent record outbreak of highly pathogenic avian influenza is the reason for the high prices. The group says the nation’s top antitrust regulator must look into the record-high profits of the nation’s top egg company. Cal-Maine Foods controls 20 percent of the retail egg market and reported a quarterly sales increase of 110 percent. Gross profits are 600 percent higher than the same time last year. The company says avian flu is driving up prices. However, Cal-Maine had no positive flu tests on any of its farms. *********************************************************************************** CoBank: Dairy Industry Eager for FMMO Reform America’s dairy producers and processors are closely watching discussions about the next farm bill and looking for reforms to Federal Milk Marketing Orders. CoBank says the industry feels that current FMMOs don’t reflect today’s market environment, and the consequences could be drastic. Make allowances are an important part of the orders that haven’t been updated since 2008 and were based on data from as far back as 2006. Make allowances estimate dairy processors’ costs of converting milk into dairy products. Many of those production costs, including labor and energy, have risen dramatically since make allowances were updated 15 years ago. While the current make allowances have stayed the same since 2008, prices for industrial power rose 64 percent, and labor costs in dairy manufacturing climbed 48 percent. While industrial natural gas prices have fallen 11 percent, they’ve been highly volatile during that time. Failing to update them could hinder future dairy industry growth. *********************************************************************************** Fertilizer Institute Names 2023 4R Advocates The Fertilizer Institute selected three farmers and their fertilizer retailers as 4R advocates. They’re being recognized for their commitment to implementing fertilizer management practices that incorporate the principles of 4R Nutrient Stewardship and have demonstrated economic and environmental benefits. Now in its 12th year, the 4R Advocate Program demonstrates the in-field successes of implementing 4R practices based on the right source, rate, time, and placement of fertilizer. “While 4R Nutrient Stewardship is a priority for the fertilizer industry, it’s also a tangible solution for thousands of farmers across America who are seeking fertilizer application practices that have a real-world impact on their bottom lines and their land,” says TFI president and CEO Corey Rosenbusch. The 2023 class of advocates represent 13,770 acres across three states and grow corn, soybeans, sugar beets, and other crops. In 2021, the fertilizer industry committed to putting 70 million acres of cropland under 4R management by 2030. *********************************************************************************** Clean Fuels Conference Begins Monday Clean Fuels Alliance America will kick off the Clean Fuels Conference on Monday, January 23 (today) at the Tampa Convention Center in Tampa, Florida. The event runs through Thursday and will likely draw more than 725 registered participants, including agricultural interests, clean fuel producers, marketers, end users, and more. It’s the 20th annual industry conference formerly known as the National Biodiesel Conference and Expo. This is the first-ever Clean Fuels Conference. “Companies know consumers want to feel better about their purchases,” says Clean Fuels CEO Donnell Rehagen. “Low-carbon transportation fuels in planes, trains, ships, and trucks will have to be the focus of their efforts.” The theme of this year’s conference is “United As One.” It’s designed to highlight the industry’s commitment to bringing together stakeholders to build a sustainable transportation future. The clean fuels industry set a goal of producing six billion gallons a year of sustainable fuels by 2030. *********************************************************************************** Lamb Board Releases New Strategic Plan The American Lamb Board released its fiscal year 2022 Annual Report to inform Mandatory Lamb Checkoff stakeholders of its work to mitigate outside forces and challenges and take advantage of opportunities ahead. “Even though many challenges were out of our control, it’s critical that we keep driving forward as hard as we can to promote American lamb and the U.S. sheep industry,” says ALB chair Peter Camino. ALB has also identified three primary goals as it turns to FY 2023. The first is to continue to grow consumer demand for American lamb. The second is to prioritize research and education efforts to improve product quality and consistency, increase productivity, and grow the year-round supply of lamb. The board also wants to expand the awareness, understanding, engagement, and involvement of stakeholders in the American Lamb Checkoff. “As the American lamb industry looks to the future, there are several areas of opportunity,” Camino says. *********************************************************************************** 2025 Dietary Guidelines Advisory Committee Announced The USDA and the Department of Health and Humans Services announced the appointment of 20 nationally recognized scientists to serve on the 2025 Dietary Guidelines Advisory Committee. The Committee will review the current body of science on key nutrition topics and develop a scientific report that includes its independent assessment of the evidence and recommendations for USDA and HHS as they develop the Dietary Guidelines for Americans. The dietary guidelines serve as the foundation for national nutrition programs, standards, and education. In addition, they provide health professionals with guidance and resources to assist the public in choosing an overall healthy diet that works for them. “Diet-related diseases are on the rise across all age groups, and we must rise to the challenge by providing nutrition guidance that people from all walks of life can tailor to meet their needs,” says USDA Secretary Tom Vilsack. “This will help Americans achieve better nutritional habits.
| Rural Advocate News | Monday January 23, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts, especially for Argentina where drought-stricken crops have increased chances for rain. Traders may pause at 8 a.m. CST to see if USDA has an export sale to announce and will check USDA's weekly report of export inspections at 10 a.m. Weather Another strong storm system is moving through the Four Corners area early Monday morning. That system will move into Texas tonight and head through the Northeast for Tuesday and Wednesday. Widespread precipitation will occur in Texas and Oklahoma tonight, including some moderate to heavy snow.
| Rural Advocate News | Monday January 23, 2023 |
Top 5 Things to Watch - Key Happenings the Newsroom is Tracking for the Week of Jan. 22-28 1. Altered reality of wheat. As DTN Lead Analyst Todd Hultman discussed in Friday's Todd's Take, there's a growing disconnect between supply and demand forces and the actual price of wheat. With continued low soil moisture in major parts of the U.S. breadbasket, continued war in the Black Sea area, and already low wheat stocks, Hultman expects current $7-$8 cash wheat prices (based on DTN's national cash index) to get a reality check at some point. 2. Clipper blockers hang in there, for now. Our weather team is watching two trough systems work their way through Texas to the Northeast, bringing additional moisture to the central and eastern portions of the country. Depending on where your farm is, the first of those systems might be there as you read this. The second should be right behind it early in the week. Both include a band of snow, so winter is far from gone. But for some time now frigid cold weather has been absent. Unfortunately, chances for the next arctic blast will probably come late next week as the pattern allows cold air to come down from Canada. 3. Fueling around: Deep winter can be time to refill fuel tanks drained by the last of harvest, but global diesel market conditions have put the squeeze on those plans. DTN Ag Business Editor Katie Dehlinger will gather the latest experts' thoughts on near- to medium-term fuel prices. Watch for her story by mid-week. 4. Laws and orders: We'll be watching a number of courtroom-related actions this week. These include the latest on a number of suits filed against the EPA over waters of the United States (WOTUS) regulations. The meat packing industry also will likely be in the courtroom news. Watch for stories on the complaint filed with the Securities and Exchange Commission that meat packer JBS isn't meeting carbon emissions goals. We'll also be looking into the recent mass of advertisements on social media platforms for cattlemen to join the price-fixing suits against Big Four meat packers. R-CALF USA filed the first suit in 2019, and the number of groups and food companies filing similar claims against the packers has grown in recent months. Along with that, advertisements from law firms offering to represent producers in any class action settlements are popping up like volunteer wheat after a grain cart spill. Legal experts say producers should not need representation; we'll get into the details. 5. Winter meetings pick up: We'll have DTN staff at several events this week. DTN Ag Policy Editor Chris Clayton will be in Kansas, looking in to the growing town versus farm water availability issues, and also attending the No-Till on The Plains Winter Conference, Jan. 23-25 in Wichita. Watch for his reporting from the Sunflower State. DTN Lead Analyst Todd Hultman will be at the Sioux Falls Farm Show in South Dakota, giving his latest market outlook on Jan. 25-27.
| Rural Advocate News | Friday January 20, 2023 |
Groups File Legal Challenges to New WOTUS Rule Groups representing agriculture, infrastructure, housing, and petroleum filed a legal challenge to the new Waters of the U.S. Rule. “The Biden Administration’s WOTUS definition is an attack on farmers and ranchers, and we’ll be fighting back in court,” says Mary-Thomas Hart, chief counsel for the National Cattlemen’s Beef Association. “The rule removes longstanding exclusions for small and isolated water features on farms and ranches and adds to the regulatory burden farmers already face.” Non-agriculture groups in the lawsuit include the American Petroleum Institute, the Associated General Contractors of America, and many others. “The new rule creates uncertainty for farmers and ranchers even if they’re miles from the nearest navigable water,” says Farm Bureau President Zippy Duvall. “We believe a judge will see these regulations exceed the scope of the Clean Water Act.” A Supreme Court decision in Sackett v. EPA could require the EPA to start over again on defining WOTUS. *********************************************************************************** Rebound Continues in Farm Lending Farm lending activity continued to gradually increase along with further growth in loan sizes. The Kansas City Federal Reserve says the average size of non-real estate farm loans was about 20 percent higher than a year ago and drove an increase in lending volumes for the fourth straight quarter. Average interest rates on farm loans rose sharply alongside higher benchmark rates and reached a ten-year high, putting additional upward pressure on financing costs. The outlook for farm finances remained favorable alongside elevated commodity prices, but increased interest rates, challenging weather, and high production costs remain key concerns. Higher expenses contributed to a rebound in lending last year, but strong income and liquidity likely limited the financing needs of many producers. Looking ahead, elevated operating expenses could put additional upward pressure on loan demand. Lending activity was seven percent higher than last year. Production expenses have increased by 15 percent since 2020. *********************************************************************************** NCBA Statement on USDA’s Proposed Traceability Rule National Cattlemen’s Beef Association President-Elect Todd Wilkinson released a statement on the USDA’s proposed rule on electronic identification for transporting cattle over state lines. “As USDA has worked toward a nationally significant traceability program, NCBA has engaged with industry stakeholders and USDA to ensure that cattle producers are represented and protected,” says Wilkinson, who also chairs the NCBA Traceability Working Group. “Any program must allow maximum flexibility and privacy while minimizing costs for producers and any industry disruptions.” NCBA also says foot-and-mouth disease outbreaks around the world continue to result in disruptions to commerce and depopulate livestock. That means immediate action is needed. “NCBA is committed to working with USDA to ensure workable solutions are identified and implemented,” Wilkinson says. The organization also says that cattle producers can be confident that any finished product will protect the nation’s livestock herd. The NCBA is continuing to review the proposed rule in its entirety. *********************************************************************************** USDA Investing Funds to Reduce Wildfire Risk Ag Secretary Tom Vilsack announced his agency is expanding efforts to reduce the risk of wildfires in the western U.S. Funds will be invested to directly protect at-risk communities and critical infrastructure in 11 additional landscapes in Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington. “It’s no longer a matter of if a wildfire will threaten many western communities, it’s a matter of when,” Vilsack says. “This announcement means over $490 million will be used to restore national forests, including the restoration of resilient old-growth forest conditions.” The Forest Service announced its original ten landscape project areas last year. Combined with the additional announcement this week, that represents a total USDA investment of $930 million across 45 million acres. The work spans 134 of the 250 highest-risk fire sheds identified in the Wildfire Crisis Strategy and will mitigate the wildfire risk for around 200 communities in the western United States. *********************************************************************************** January Beige Book Contains Observations on the Ag Economy The Federal Reserve Board released its January 2023 Beige Book Update, which summarizes current economic conditions in each district. The summary includes agricultural conditions in several districts. The Fed in Atlanta said ag conditions were little changed from the previous report but did note Florida citrus yields were down notably due to Hurricane Ian. The Chicago Fed says after a strong year in the district, agricultural income will be lower in 2023 but still see solid returns. The St. Louis branch says inflation-adjusted farm incomes are near a 50-year high and leading to optimism for this year despite rising input costs. The Minneapolis Fed says ag conditions were stable as farm incomes and working capital remained strong heading into this year. Ag conditions in the San Francisco district remained in generally weak condition. Dollar sales were up but down in volume. Rainfall continued to improve soil moisture in the Dallas Fed’s district. *********************************************************************************** Avoiding Antibiotic Resistance on the Dairy Farm Antibiotic use in dairy animals is just to help the animal overcome illness. Mark van der List, a vet with Boehringer-Ingelheim, says the challenge is to help them overcome the sickness without furthering resistance and allowing antibiotic residue into food products. He says it’s important to work with a veterinarian who knows your herd as well as they do. Other tips include following label directions carefully. Producers need to mark and separate all treated animals. Every employee should be easily able to identify any treated animals. Make sure to keep detailed records of all treatments given to each animal in the herd. It’s also important to remove all doubt by making the protocol for treating animals as airtight as possible. “Dairy producers take the responsibility for antibiotic stewardship seriously,” van der List says. “While many already have strong measures in place, it’s always a good idea to fine-tune existing protocols.”
| Rural Advocate News | Friday January 20, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, followed by U.S. existing home sales for December at 9 a.m. and USDA's cattle on-feed report for January 1 at 2 p.m. Traders continue to closely watch the latest weather forecasts, especially for Argentina where crop ratings fell even lower Thursday. The market will also check for a possible export sale announcement from USDA at 8 a.m. Weather As a system continues to push off the East Coast early Friday, some lake-effect snows will continue over the Great Lakes throughout the day. Another system is working its way through the Four Corners area and will move out into Texas tonight and Saturday. In response, widespread precipitation is expected to develop, including a band of moderate to heavy snow across Colorado and Kansas, bringing in much-need moisture for the longstanding drought. Mild temperatures continue across most areas east of the Rockies.
| Rural Advocate News | Thursday January 19, 2023 |
USDA Seeks Comment on Proposal to Strengthen Animal Disease Traceability USDA's Animal and Plant Health Inspection Service proposes to amend animal disease traceability regulations and require electronic identification for interstate movement of certain cattle and bison. APHIS is also proposing to revise and clarify record requirements. The changes would strengthen the Nation's ability to quickly respond to significant animal disease outbreaks, according to USDA. Animal disease traceability, or knowing where diseased and at-risk animals are, where they've been, and when, is important to ensuring a rapid response when animal disease events occur. Rapid traceability in a disease outbreak could help ranchers and farmers return to selling their products more quickly, limit how long farms are quarantined, and keep more animals from getting sick. The proposed rule would require official eartags to be visually and electronically readable for official use for interstate movement of certain cattle and bison. A comment period on the proposal through the Federal Register is open through March 22, 2023. *********************************************************************************** USDA Publishes Strengthening Organic Enforcement Final Rule USDA’s National Organic Program Wednesday published the Strengthening Organic Enforcement final rule. The update to USDA organic regulations strengthens oversight and enforcement of the production, handling, and sale of organic products. The final rule implements 2018 Farm Bill mandates, responds to industry requests for updates to the USDA organic regulations, and addresses National Organic Standards Board recommendations. USDA Undersecretary for Marketing and Regulatory Programs, Jenny Lester Moffitt, says, "Protecting and growing the organic sector and the trusted USDA organic seal is a key part of the USDA Food Systems Transformation initiative." The Strengthening Organic Enforcement rule is the biggest update to the organic regulations since the original Act in 1990, providing a significant increase in oversight and enforcement authority to reinforce the trust of consumers, farmers, and those transitioning to organic production, according to USDA. Organic stakeholders affected by the rule will have one year from the effective date of the rule to comply with the changes. *********************************************************************************** EPA Posts Revised WOTUS to Federal Register The Environmental Protection Agency and Army Corps of Engineers published the revised Waters of the U.S. rule in the Federal Register Wednesday. The publication means the revised rule will go into effect on March 20, 2023. EPA and the Army Corps announced the rule at the end of 2022, which will replace the Navigable Waters Protection Rule. At the time, American Farm Bureau Federation President Zippy Duvall commented, “EPA has doubled down on the old significant nexus test, creating more complicated regulations that will impose a quagmire of regulatory uncertainty.” The rule comes as agriculture awaits a Supreme Court decision in the Sacketts vs. EPA case, which could send WOTUS back to the drawing board. However, the Sackett case is not focused on the new rule. AFBF General Counsel Travis Cushman says, “you would probably need to have a new challenge to that rule," based on the Sackett Supreme Court decision. *********************************************************************************** December Producer Price Index Declines The Producer Price Index for final demand declined 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported Wednesday. The index measures the average change over time in the selling prices received by domestic producers for their output. Final demand prices advanced 0.2 percent in November and 0.4 percent in October. The index for final demand increased 6.2 percent in 2022 after rising 10.0 percent in 2021. Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December, up 4.6 percent in 2022, following a seven percent rise in 2021. Nearly half of the December decrease for final demand goods can be traced to a 13.4-percent decline in prices for gasoline. The indexes for diesel fuel, jet fuel, fresh and dry vegetables, canned, cooked, smoked, or prepared poultry, and basic organic chemicals also fell. In contrast, prices for carbon steel scrap increased 8.3 percent. The indexes for chicken eggs and for electric power also moved higher. *********************************************************************************** Horticultural Products Drive Total U.S. Agricultural Import Growth The value of U.S. agricultural imports grew an average of four percent a year between fiscal years 2012 and 2022, according to USDA’s Economic Research Service. Total U.S. agricultural imports rose from $139 billion to $194 billion, with growth concentrated in select commodity groups. Horticultural products grew at a rate of six percent a year and, at $97.2 billion in value in 2022, accounted for 65 percent of the total growth in imports. Within the horticultural group, fresh fruits were the largest contributor at $17.9 billion, growing at an annual rate of nine percent over the period and accounting for 15 percent of total import growth. Key commodities in the fresh fruit group include avocados, berries, and citrus, which the United States imports mostly from Latin American countries. Demand for horticultural products has largely been driven by consumer desire for year-round supply, changing consumer preferences, and foreign production that is increasingly competitive with domestically grown produce. *********************************************************************************** IDFA Names Mike Brown as Chief Economist The International Dairy Foods Association this week named Mike Brown as chief economist. Brown has a long and distinguished career in the dairy industry, most recently leading the milk and dairy procurement team for The Kroger Co. as director of dairy supply chain. Brown is a recognized expert on milk pricing policy and has worked for both farmer-owned cooperatives and proprietary businesses, all of which are current IDFA members. IDFA President and CEO Michael Dykes says, “We are confident that with Mike Brown as IDFA’s chief economist, our approach to the future will ensure the domestic and global competitiveness of the U.S. industry.” IDFA also announced that it has engaged in consulting agreements with three policy and legal experts to support dairy policy and pricing efforts led by Carlin and Brown. They are Chip English, Steven J. Rosenbaum, and former U.S. Representative Collin Peterson. The additions come as the dairy industry expects a Federal Milk Marketing Order reform effort this year.
| Rural Advocate News | Thursday January 19, 2023 |
Thursday Watch List Markets U.S. weekly jobless claims, December U.S. housing starts and an update of the U.S. Drought Monitor will all be out at 7:30 a.m. CST Thursday. The U.S. Energy Department's natural gas storage report will attract interest at 9:30 a.m., now that gas prices are near $3.00 and will be followed by weekly energy inventories, including ethanol production at 10 a.m. USDA's monthly Livestock, Dairy and Poultry outlook is set for 2 p.m. Weather A strong winter storm that brought heavy snow to portions of the Central Plains and Midwest and heavy rain farther south continues east on Thursday, with more of the precipitation focused on the Midwest into the Northeast going into Friday. Another system is moving through the West, which will emerge in the Southern Plains on Friday. Even behind the current system, temperatures for most areas are above normal for this time of year.
| Rural Advocate News | Wednesday January 18, 2023 |
US, EU Sign Tariff Rate Quota Agreement U.S. and European Union trade leaders Tuesday signed the U.S. – EU Tariff Rate Quota Agreement. The agreement, once implemented, will enable the United States to preserve its existing access to the EU market for various agricultural commodities following the United Kingdom's exit from the EU on January 1, 2021. The new Tariff Rate Quota allocations are based on the historic pattern of agricultural exports to the 27 European Union Member States. The agreement will restore favorable market access for multiple U.S. agricultural products, including for U.S. rice, almonds, wheat, and corn, according to the U.S. Trade Representative's Office. In the first eleven months of 2022, the United States exported $11.1 billion worth of agricultural goods to the European Union. Trade Representative Katherine Tai, Sweden's Permanent Representative to the European Union, Ambassador Mikael Lindvall, and European Commission Deputy Director General for Agriculture and Rural Development, Michael Scannell, signed the agreement. *********************************************************************************** House Ag Committee Republicans Set Roster House Agriculture Committee Republicans started the week by announcing the committee’s Roster for the 118th Congress. Glenn GT Thompson of Pennsylvania serves as the chair of the committee. The roster features 12 new members, which includes returning member Frank Lucas of Oklahoma. Lucas previously chaired the committee from 2011 – 2015. Lucas led the committee during the development of the 2014 Farm Bill. Other notable new members include John Duarte of California and Mark Alford of Missouri. Duarte was the subject of a high-profile lawsuit filed by the Environmental Protection Agency under the Clean Water Act. The dispute ended in 2017 with Duarte agreeing to pay a civil penalty and preserve and restore streams and wetlands on his farm. Alford, a new member of Congress, ended a career as a Kansas City area news anchor to run for Congress. Additionally, 15 members return to the committee after serving in the previous Congress. *********************************************************************************** NASDA Sets 2023 Policy Priorities Press The National Association of State Departments of Agriculture Tuesday announced the organization’s primary policy focus for 2023. NASDA members, the state commissioners, secretaries and directors of agriculture, hand-selected seven issues to focus on. The issues include the 2023 Farm Bill, which NASDA says must remain unified, securing a commitment to American agriculture and the critical food and nutritional assistance programs for those who need it most. As for environmental regulations, NASDA supports the science-based and comprehensive regulatory framework the Federal Insecticide, Fungicide, and Rodenticide Act provides to ensure environmental and public health protection. Regarding the recently published “waters of the U.S.” rule, NASDA will continue to impress the role of states in regulating non-navigable waters. Other priorities include food production and the supply chain, food safety, animal health, international trade and workforce development. NASDA CEO Ted McKinney says, “We believe these are the areas where state departments of agriculture are uniquely positioned to lead impact and direct policymaking solutions this year.” *********************************************************************************** Rural Job Growth Shifting to High-skill Workers Over the last two decades, the strongest rural job gains were in smaller industries that tend to employ high-skill workers. USDA Economic Research Service reports the highest growth was in the real estate industry. Also showing rapid growth was the administrative services industry, which includes office administration, facilities support, business support services, security services, conventions and trade shows, and waste management and treatment. Other rural industries that grew over the past two decades were health care and social assistance; professional, scientific, and technical services; educational services; and finance and insurance. The growth of these industries represented a shift in rural production toward industries that employ higher shares of high-skill workers. Consistent with this shift, the percent of rural college-educated workers increased from 21.5 percent in 2012 to 23.8 percent in 2019. However, these rates have remained lower than the share of college-educated urban workers, at 38 percent in 2019. *********************************************************************************** House Ag Chair to Keynote Plant Based Product Council Conference House Agriculture Chairman Glenn GT Thompson will keynote the inaugural Plant Based Products Council Annual Conference in March. The Pennsylvania Republican will share remarks on Congress’ priorities for the 2023 Farm Bill, growing the bioeconomy, rural economic development, and fostering innovation in agriculture. PBPC Executive Director Jessica Bowman says, “We are excited to convene Chairman Thompson and other policy and industry leaders to drive this industry forward.” PBPC2023 will take place at the JW Marriott in Washington, D.C., from Monday, March 27, to Wednesday, March 29, 2023. The association's inaugural conference will explore the innovations, business models, and policies influencing the entire lifecycle of bioproducts in support of a robust circular economy. Attendees will hear from and network with industry leaders, policymakers, brands, and experts through panels, keynotes, networking sessions, and more. Learn more about the Plant Based Products Council and its inaugural annual conference at www.pbpc.com. *********************************************************************************** USDA Introduces an E-Application for the 1890 National Scholars Program The Department of Agriculture Tuesday unveiled a new e-application for the USDA/1890 National Scholars Program. The program aims to encourage students at 1890s institutions to pursue food and agriculture career paths. For the first time, the new e-application for the USDA/1890 National Scholars Program allows young people around the country to complete and submit their applications online. The program is administered through USDA’s Office of Partnerships and Public Engagement. The USDA/1890 National Scholars Program is a partnership between USDA and the country’s 19 historically Black land-grant universities that were established in 1890. USDA partners with these 1890 universities to provide scholarship recipients with full tuition, fees, books, room, and board. Scholarship recipients attend one of the 1890 land-grant universities, and pursue degrees in agriculture, food, natural resource sciences, or related academic disciplines. The scholarship also includes work experience at USDA. The application deadline is Wednesday, March 15, 2023. For more information, contact 1890init@usda.gov.
| Rural Advocate News | Wednesday January 18, 2023 |
Wednesday Watch List Markets A report on U.S. retail sales for December is due out at 7:30 a.m. CST, followed by December U.S. industrial production at 8:15 a.m. The Federal Reserve's monthly Beige Book is set for release at 1 p.m. and weekly energy inventories are pushed to Thursday morning, due the the holiday schedule. Traders will keep close watch on the latest weather forecasts, especially for South America, and for any news of an export sale. Weather A storm system that has moved into western Kansas is producing a band of heavy snow across portions of Colorado and Nebraska early Wednesday morning, along with scattered showers farther south and across Missouri and Arkansas along and ahead of a cold front. The heavy snow will spread northeast throughout the day and night, through Iowa, southern Minnesota, and Wisconsin. Heavy snowfall amounts of 6-12" are expected in this band, with potential for some heavier amounts in some places. Farther south along the cold front, severe weather will be possible, most likely this afternoon near the Lower Mississippi River Valley.
| Rural Advocate News | Tuesday January 17, 2023 |
NASDA Conducts Vietnam Trade Mission National Association of State Departments of Agriculture members and leadership traveled to Vietnam last week. The delegation embarked on the organization's first trade mission to explore global emerging markets through the Department of Agriculture Emerging Markets Program. NASDA President and Wyoming Department of Agriculture Director Doug Miyamoto, Washington State Department of Agriculture Director Derek Sandison, Delaware Secretary of Agriculture Michael Scuse, Texas Department of Agriculture Assistant Commissioner Dan Hunter and NASDA CEO Ted McKinney participated in the mission. The delegation explored trading opportunities and educated Vietnamese agricultural, government and business leaders on American agriculture and markets. NASDA was recently awarded $925,000 from USDA to promote exports of U.S. agricultural products to developing countries with strong growth potential, including Vietnam. NASDA will also conduct trade missions to Thailand, Indonesia and Kenya in 2023. NASDA is a nonpartisan, nonprofit association that represents the elected and appointed commissioners, secretaries and directors of the departments of agriculture in all 50 states and four U.S. territories. *********************************************************************************** Grassley Intends to Reintroduce Farm Credit for Americans Act Senator Chuck Grassley last week announced he intends to reintroduce the Farm Credit for Americans Act. The legislation bans the federal government from allowing foreign individuals to obtain credit and financial services through the Farm Credit System. The Iowa Republican wrote the legislation with Senator Sherrod Brown, an Ohio Democrat. Specifically, the legislation prevents the Farm Credit Administration from underwriting foreign buyers seeking to purchase U.S. farmland. It would amend the 1971 Farm Credit Act to ensure foreign nationals can’t obtain financing through federal government-backed financial institutions to purchase American farmland. Grassley says, “Young and beginning farmers here at home should not be squeezed out or compete with foreign investors subsidized by the American taxpayer.” According to the USDA, foreign ownership of U.S. farm acres increased 60 percent between 2009 and 2019. Increasingly, young and beginning farmers are competing with institutional investors, such as pension funds, endowments and even professional athletes who are diversifying their financial portfolios with prime farmland. *********************************************************************************** RMA to Host Crop Insurance Workshop for Specialty Crops, Organics Farmers in Iowa can attend a USDA's Risk Management Agency workshop to learn more about crop insurance options, including those designed for agricultural producers who grow specialty and organic crops. RMA will host the free in-person workshops Tuesday, January 24, in Davenport, Iowa. A morning and afternoon session is scheduled, and both have virtual options for producers outside the state or those who can't make it to the in-person event. The workshops will cover the ins and outs of the Whole-Farm Revenue Protection and Micro Farm programs, which are great insurance options for specialty crop, organic, urban, and other producers with diverse operations. RMA subject matter experts will provide an in-depth look at these policies. The events will include RMA Administrator Marcia Bunger and other RMA experts. Participants will have the opportunity to ask questions and get answers in real-time. The Risk Management Agency will hold another round of workshops next month in Michigan. *********************************************************************************** CHS Inc. and Cargill to expand TEMCO operations to include the Texas Gulf CHS Inc. and Cargill recently announced the intent to expand the scope of their joint venture, TEMCO LLC, by adding the Cargill-owned export grain terminal in Houston, Texas. The addition of the Houston terminal will expand the joint venture's export capabilities, providing shipping access for grains, oilseeds and byproducts through the port of Houston. TEMCO currently operates three facilities in the Pacific Northwest. The three facilities distribute grain to global markets, primarily located in the Asia-Pacific region. Through TEMCO, both companies look forward to building on 24 years of successful partnership to expand global grain market access for U.S. farmers to help meet the increasing global need for food. The Houston terminal is located approximately 40 miles inland from the Gulf of Mexico via Galveston Bay. With six million bushels of storage and capacity for 350 rail cars, the facility handles up to 250 million bushels annually. The terminal receives both trucks and railcars with a variety of commodities for global export. *********************************************************************************** Smithfield Foods Donates 35,000 Pounds of Food to Support Kentucky Smithfield Foods, Inc. has donated 35,000 pounds of food, equal to 140,000 servings, to help feed victims of the severe winter weather that recently engulfed Eastern Kentucky. Smithfield delivered the food products to Mercy Chefs, which is currently stationed in Hazel Green, Kentucky, to provide disaster relief for local residents. The Portsmouth, Virginia-based nonprofit travels to disaster zones across the U.S. to serve free chef-prepared, restaurant-quality hot meals to local residents, volunteers and first responders. Smithfield products donated to this relief effort include lunch meat, bacon, fully cooked boneless ham, hickory smoked ham and smoked spiral sliced ham. The extreme winter weather in Eastern Kentucky left many residents with frozen pipes and entire towns without potable water. Mercy Chefs expects to cook 2,000-3,000 hot meals per day for residents in the area. To make a donation or find out how to volunteer locally, visit MercyChefs.com/easternky. *********************************************************************************** Cumberland Introduces Scout Robot Cumberland, AGCO’s poultry production equipment brand, is introducing Scout, the world’s first ceiling-suspended robot system. The system continuously monitors broiler chickens and their poultry house environments to increase animal welfare as well as farm productivity. Scott Becker, director of North America sales for Cumberland, says, “With Scout, producers can achieve better feed conversion, early disease detection and fine-tuning of climate control, resulting in reduced mortality and less condemnation numbers.” The advanced robot uses a complete set of sensors to map key indicators that impact bird health and performance, including thermal comfort, air quality, light intensity, sound levels and bird distribution. Scout also classifies excrement for early disease detection 24 to 48 hours before producers may become aware of an issue. In addition, the technology identifies dead birds. Monitoring information is available to producers 24/7 from any device, including daily and weekly reports with maps of their entire house.
| Rural Advocate News | Tuesday January 17, 2023 |
Tuesday Watch List Markets Back from a three-day weekend, traders may still be pondering the many new estimates USDA set out last Thursday. News over the weekend and the latest weather forecasts, especially anything pertaining to South America, will be reviewed. There are no significant reports on Tuesday's docket other than USDA's weekly grain export inspections at 10 a.m. CST. Weather A system was moving through the Great Lakes early Tuesday with scattered showers arcing through the Mid-Atlantic and Southeast as well. This system continues to push east throughout the day. Another will be right on its heels as it moves from the Four Corners into the Central Plains tonight. A band of heavy snow is expected to develop over northeast Colorado through Nebraska and into the Upper Midwest tonight through Wednesday, along with scattered showers and thunderstorms for southwest Kansas down through west Texas. The precipitation over the southwestern Plains will be most welcome as the region remains in severe drought. It remains very warm across most of the country during the statistically coldest week of the year.
| Rural Advocate News | Friday January 13, 2023 |
USDA Releases January WASDE Report USDA released the latest World Agricultural Supply and Demand report Thursday. This month's U.S. corn outlook calls for reduced production, food, seed, and industrial use, feed and residual use, exports, and ending stocks. Corn production is estimated at 13.730 billion bushels, down 200 million. Exports were reduced 150 million bushels to 1.925 billion, reflecting the slow pace of shipments through December, and the lowest level of outstanding sales as of early January since the 2019/20 marketing year. The season-average corn price received by producers is unchanged at $6.70 per bushel. Soybean production is estimated at 4.276 billion bushels, down 69 million, led by reductions for Missouri, Indiana, Illinois, and Kansas. The soybean export forecast was reduced 55 million bushels to 2.0 billion. The U.S. season-average soybean price is projected at $14.20 per bushel, up 20 cents. The outlook this month calls for increased supplies, larger domestic use, unchanged exports, and lower ending stocks. The season-average farm price is unchanged at $9.10 per bushel. *********************************************************************************** Total Household Income up for Commercial Farms From 2015 to 2021, the median total household income for commercial U.S. farms rose an estimated 16 percent, to $278,339 from $238,994. Commercial farms earn more than $350,000 gross cash farm income regardless of the principal operator’s occupation. USDA’s Economic Research Service reports that in 2021, the median total household income for commercial farms remained above the median income of $75,201 for all U.S. households. Farm households rely on a combination of on-farm and off-farm sources of income. On-farm income is determined by farm costs and returns that vary from year to year, and in any given year, a majority of farm households report negative farm income. Off-farm sources—including wages, nonfarm business earnings, dividends, and transfers—are the main contributor to household income for most farm households. Because households operating commercial farms rely mostly on on-farm sources of income, they experience the largest shocks in household income when farm sector income rises or falls. *********************************************************************************** USDA Accepting Applications for Netherlands Trade Mission USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for its first-ever regional agricultural trade mission to Amsterdam, Netherlands, April 17 – 20, 2023. FAS Administrator Daniel Whitley says, “Participants will explore exporting opportunities in this mature market, which continues to grow, and meet potential buyers in surrounding regional markets.” U.S. agricultural and related exports, including fishery and forestry products, to the Netherlands totaled $3.4 billion in 2021, ranking it the U.S.’s 10th largest market globally. During the trade mission, U.S. participants will meet with buyers from the Netherlands, Iceland, Norway, Sweden, Finland, Denmark, and neighboring Belgium and Germany. Participants will conduct business-to-business meetings with potential buyers, receive market briefings from FAS and trade experts, and participate in site visits and other networking activities while in the Netherlands. The deadline to apply for the Netherlands trade mission is Thursday, January 26. Information about the trade mission and how to apply is available on the USDA FAS website. *********************************************************************************** USA Rice Calls House Ways and Means Chair Smith an Ally Earlier this week, Representative Jason Smith was tapped to lead the powerful House Committee on Ways and Means. The Missouri Republican will lead the oldest committee in the U.S. Congress, which is the principal tax-writing body in the House of Representatives. The committee oversees not only taxes and revenue generation, but also tariffs and reciprocal trade agreements for the United States. USA Rice member and Missouri farmer Zach Worrell says, “Congressman Smith has long been a friend of Missouri agriculture and especially Missouri rice,” adding, “We are looking forward to having a rice industry ally lead this committee to advocate for U.S. rice on a global scale on the many trade issues we face.” Tax policy continues to be an important issue for rice farmers and rice-related businesses looking to pass operations onto the next generation. Smith is a farmer, businessman, and former state legislator, and is currently serving his sixth term representing Missouri’s 8th Congressional District. *********************************************************************************** Thank You Farmers Project Donations Surpass $4 Million Culver's Thank You Farmers Project has now eclipsed $4 million raised since its creation in 2013. Through initiatives organized by Culver's on a systemwide level and the fundraising efforts of local restaurants throughout 2022, the program raised $750,000 toward its mission of advocating for the positive impact agriculture has on the world. Proceeds raised through the Thank You Farmers Project directly support those actively bringing positive change to the agriculture industry. These beneficiaries include groups making a difference with agriculture efforts in Culver's local communities as well as national organizations working to advance the industry on a broader scale, like the National FFA Organization and U.S. Farmers and Ranchers in Action. Alison Demmer, Culver's marketing and public relations manager, says, “We were so proud to see our guests join in this mission with us in 2022, and we look forward to supporting agriculture together through the Thank You Farmers Project long into the future." *********************************************************************************** Commodity Classic Registration Ends January 20 Only a few days remain to take advantage of early registration discounts for the 2023 Commodity Classic to be held March 9-11 in Orlando. Friday, January 20, 2023, is the last day the early registration discount will be in effect. Commodity Classic 2023 co-chair George Goblish says, “Going to Commodity Classic is an investment in any grower’s operation.” Registration fees vary depending on the number of days attended. Full registration covers all three days of the event, and one-day registrations are also available. Members of the National Corn Growers Association, American Soybean Association, National Sorghum Producers, National Association of Wheat Growers, and the Association of Equipment Manufacturers receive additional discounts on registration. All registration and housing reservations should be made online at CommodityClassic.com. The 2023 Commodity Classic will be held at the Orange County Convention Center West Concourse in Orlando, Florida. The convention center will house all Commodity Classic events.
| Rural Advocate News | Friday January 13, 2023 |
Friday Watch List Markets On Friday the 13th, the University of Michigan's index of U.S. consumer sentiment is due out at 9 a.m. CST and several Federal Reserve officials are speaking around the country. Traders will keep tabs on the latest weather forecasts, especially in South America and will still be influenced by data from Thursday's USDA reports. January futures contracts in the soy complex are set to expire early Friday. Weather A system leaving the East Coast and another along the West Coast will produce scattered showers on Friday. Some relatively cold air moving over the Great Lakes will produce a bit of lake-effect snow as well. Temperatures remain mild for the coldest time of the year outside of the Southeast, even after a cold front moved through this week.
| Rural Advocate News | Thursday January 12, 2023 |
Equipment Sales Mixed in 2022 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. *********************************************************************************** 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.
| Rural Advocate News | Thursday January 12, 2023 |
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.
| Rural Advocate News | Wednesday January 11, 2023 |
Vilsack: No Compromise with Mexico on GMO Corn After a speech at the American Farm Bureau’s annual convention, Ag Secretary Tom Vilsack said there will be no compromise when it comes to the Mexican corn situation. The U.S. won’t back down or compromise on its stance against Mexico’s plan to ban imports of genetically modified yellow corn. Vilsack says the American government is supposed to reply by January 15 to Mexico’s proposal to delay the ban until 2025. U.S. Trade Representative Katherine Tai has spoken to her Mexican counterpart about the dispute. Speaking to reporters at the AFBF convention, Vilsack said that if Mexico doesn’t agree to withdraw its import ban, the White House will then push the USMCA on trade rules. Vilsack told Mexico’s President Lopez Obrador that he won’t be able to find enough non-GMO corn to import and feed the country’s livestock sector. The larger issue is about a trading system with “less friction,” not more friction. *********************************************************************************** Major U.S. Ag Groups Testify on Proposed 2023-2025 RVOs The Environmental Protection Agency held a virtual public hearing this week on its proposed Renewable Volume Obligation blending requirements under the Renewable Fuel Standard for 2023-2025. A number of the nation’s leading agriculture organizations and supporters testified during the hearing. Tom Haag, President of the National Corn Growers Association, said during testimony that they support the growth trajectory in the EPA proposal, but biofuels can contribute even more. Geoff Cooper of the Renewable Fuels Association says, “The proposed ‘Set” rule establishes a firm foundation for the future of the RFS and creates a pathway to sustainable growth in the use of low-carbon fuels.” Brooke Coleman, executive director of the Advanced Biofuels Business Council, says they appreciate EPA’s commitment to setting a multiyear RVO, curtailing Small Refiner Exemptions, and establishing reasonable growth across all categories of biofuels. “However, EPA left some tools on the shelf for promoting innovation in cellulosic biofuel,” Coleman said. *********************************************************************************** Biodiesel Group Unhappy with EPA Proposal on RVOs Clean Fuels Alliance America members testified during the Environmental Protection Agency’s “Public Hearing on RFS Standards for 2023-2025 and Other Changes.” Staff members expressed frustration with the proposed volumes for biomass-based diesel because they don’t match the volumes that are already in the market and don’t account for expected growth in capacity and feedstocks. “This proposed rule significantly undercounts existing biomass-based diesel production and fails to provide growth for investments the industry has already made in additional capacity, including for sustainable aviation fuel,” Clean Fuels CEO Donnell Rehagen said during testimony. “Clean Fuels is once again frustrated that EPA has the wherewithal needed to determine current production, the knowledge of the investments being made, and the resources to accurately determine feedstock availability, and yet proposes a no-growth scenario,” says Kurt Kovarik, Vice President of Federal Affairs. Rehagen also said EPA committed to promoting homegrown fuels but failed to follow through. *********************************************************************************** Farm Bureau Recognizes Young Farmer and Rancher Competition Winners The American Farm Bureau Federation recognized the winners of the Young Farmers and Ranchers Achievement Award, Discussion Meet, and Excellence in Agriculture Competitions. Young farmers and ranchers competed for the awards by demonstrating knowledge, achievement, and commitment to promoting agriculture. Daniel and Carla Trantham of Alabama won the Achievement Award, which recognizes young farmers and ranchers excelling in their farming and ranching operations and exhibiting superior leadership abilities. Mike Hannewald of Ohio won the Discussion Meet, which simulates a committee meeting in which active participation is required. Participants are evaluated on their ability to exchange ideas and information on a predetermined topic. Stacie Anderson of Ohio won the Excellence in Agriculture Award, which recognizes young farmers and ranchers who don’t derive the majority of their income from an agricultural operation, but who actively contribute and grow through their involvement in agriculture, leadership ability, and participation in Farm Bureau and other organizations. *********************************************************************************** NCC Releases Most Comprehensive Guidelines for Poultry Care The National Chicken Council developed the NCC Broiler Welfare Guidelines and Audit Checklist in 1999. The goal was to help poultry producers show consumers that all of the birds were being treated with respect and properly cared for during their lives. NCC recently published its 2023 update of the NCC Broiler Welfare Guidelines, which are more robust than ever before and include new parameters to improve bird welfare. The new guidelines include identifying Key Welfare Indicators like paw/footpad health, gait scoring, effective processing parameters, and minimizing leg and wing injuries. It also includes whistleblower protection, an additional focus on training programs for proper handling, a more streamlined tool for ease of auditing, and an increased focus on bird behavior, objective measures, and welfare outcomes. “With this certification, consumers can feel confident that when buying and eating chicken, the birds were well-cared for,” says Dr. Ashley Peterson, senior VP of scientific and regulatory affairs. ************************************************************************************ Center Hosts Thai Retailers and Marketers to Boost Exports A group of six cheese retailers and cheese marketing specialists from Thailand will visit the Center for Dairy Research at the University of Wisconsin in Madison on January 18-20. It’s part of a two-week program to learn about gourmet cheeses. The program, funded through a Cochran Fellowship Program Grant from the USDA’s Foreign Agricultural Service, will also involve visiting dairy farms, cheese factories, specialty cheese shops, large retail grocery chains, restaurants, and bars. The visit focuses on training and networking, helping the Thai build relationships with manufacturers, companies, distributors, and government partners. The overall objective of the program is to ultimately expand U.S. cheese exports to Thailand. Some of the activities at the Center include cheese tastings and evaluations, demonstrating activities like Swiss cheese and specialty/artisan cheese making, and lectures on the basics of cheese science and the cheesemaking process. The proposal and itinerary for the visit were first announced in February 2022.
| Rural Advocate News | Wednesday January 11, 2023 |
Wednesday Market Watch Markets The U.S. Energy Department will have its weekly inventory report at 9:30 a.m. CST Wednesday, including an update of ethanol production, previously reported at 844,000 barrels per day. Traders will keep an eye on KC wheat after prices broke below their December low Tuesday, check the latest weather forecasts and see if USDA has an export sales announcement at 8 a.m. Trading in grains may turn quiet ahead of Thursday's USDA reports. Weather A two-part storm is moving through the country Wednesday. The first piece is producing a mix of snow and freezing rain across Minnesota and Wisconsin that will push eastward and may expand showers into the Ohio Valley later in the day. The second, larger storm is pressing through the central Rockies and will exit into the Plains later in the day. This storm will start to produce scattered showers in Colorado, Kansas, and Nebraska this afternoon, with snow or rain changing to snow and a couple of inches of accumulation. The storm will miss most of the Southern Plains, but winds will increase as the cold front moves through, which is a major fire risk for this are in deep drought. Temperatures remain above normal for most of the country.
| Rural Advocate News | Tuesday January 10, 2023 |
Farm Bureau Signs MOU on Right to Repair The American Farm Bureau and John Deere signed a memorandum of understanding that ensures farmers’ and ranchers’ rights to repair their own equipment. The MOU, signed at the AFBF annual convention, is the culmination of several years of discussions between AFBF and John Deere. “This addresses a long-running issue for farmers and ranchers when it comes to accessing tools, information, and resources while protecting John Deere’s intellectual property rights and ensuring safety,” says AFBF President Zippy Duvall. “Farmers must have the freedom to choose where equipment is repaired or repair it themselves to help control costs.” David Gilmore of John Deere says the agreement reaffirms Deere’s commitment to making sure its customers have the diagnostic tools they need. The MOU creates a mechanism to address farmer concerns. John Deere commits to engaging with farmers and dealers to resolve issues when they arise and will meet with AFBF yearly to evaluate progress. *********************************************************************************** USDA Announces Major Program Improvements, Progress, and Investments Ag Secretary Tom Vilsack announced several major developments at the USDA that will help benefit farmers and ranchers across the nation. Speaking at the AFBF annual convention in Puerto Rico, Vilsack said they want to provide all farmers with the opportunities they need to continue farming, build and maintain their competitive edge, and access more, new, and better markets. He says USDA is moving forward with the Fertilizer Production Expansion Program and published comments on the importance of increased competition. The agency is also improving risk protection for beginning, veteran, limited resource, and minority producers. USDA is also investing more than $12 million to expand independent meat and poultry processing capacity in Ohio, Michigan, and Minnesota. There are new programs coming to fill the gaps in the 2020-2021 Natural Disaster Assistance and the 2020 Pandemic Assistance Programs. “By working together, we can ensure that American agriculture remains resilient,” Vilsack says. *********************************************************************************** CNH Workers Say No to Proposed Contract United Auto Workers at Case New Holland Plants in Burlington, Iowa, and Racine (ray-SEEN), Wisconsin, voted down a contract proposal on Saturday night that would have ended a strike. The president of UAW Local 807 says 45 percent voted yes, and 55 percent voted no to the offer. Internal meetings are ongoing among union members to see what the process is going to look like going forward. The union went on strike against the agriculture manufacturer on May 2 of last year. On May 19, 2022, CNH presented the union with what it called a “final, all-encompassing, comprehensive offer.” However, union members didn’t vote on this deal because union leaders didn’t feel it covered the cost of inflation. A spokesperson for CNH Industrial says the company is disappointed to learn that its recently negotiated and improved “Last, Best, and Final Offer” was not approved in the ratification vote by the union. *********************************************************************************** Poll Shows Voters Support Ethanol and RFS, Oppose EV Mandates A new survey of registered voters shows significant support for ethanol and the Renewable Fuel Standard while revealing opposition to banning liquid fuels or mandating electric vehicles. Morning Consult conducted the survey for the Renewable Fuels Association. “As the new Congress settles in and considers the future of our nation’s energy policy, these polling results demonstrate that Americans strongly support the expanded use of lower-cost, lower-carbon renewable fuels like ethanol,” says RFA President Geoff Cooper. According to the survey, almost 55 percent of the respondents support the Renewable Fuel Standard, while only 15 percent expressed opposition to the program. Meanwhile, 64 percent of respondents have a favorable opinion of ethanol, while just 18 percent said unfavorable. Half the respondents said they weren’t interested in purchasing or leasing an electric vehicle in the next three years, while 42 percent expressed interest. Sixty-six percent oppose banning the sale of liquid-fueled engines in cars. *********************************************************************************** Forum will Reaffirm Beef Industry’s Commitment to Sustainability Cattle producers are committed to protecting environmental resources, supporting communities, and creating an economically viable future through effective management practices. The “Beef Sustainability Forum” coming up on Thursday, February 2, in New Orleans, Louisiana, will help highlight the industry’s sustainability efforts. The panel discussion will be moderated by Collin Woodall, CEO of the National Cattlemen’s Beef Association. “Sustainability continues to be a top priority for NCBA and is an issue at the forefront of the entire beef industry,” says Josh White, senior executive director of producer education and sustainability with the NCBA. “This special event will include cattle producers and industry leaders from various sectors discussing strategies that improve sustainability, and how those efforts can enhance sustainability for the entire industry.” It’s a part of the annual Cattle Industry Convention and NCBA Trade show, the oldest and largest convention in the cattle business. For more information and to register, go to convention.ncba.org. *********************************************************************************** Farm Bureau Chooses Farm Dog of the Year Contest Winner The American Farm Bureau Federation picked the 2023 winner of the Farm Bureau Dog of the Year Award. Her name is “Tough,” and she’s a Border Collie owned by Denny and Donna Ashcraft of the Kansas Farm Bureau. “Farmers and ranchers love what they do, but it can be stressful, even on the best days,” says AFB President Zippy Duvall. “Farm dogs play a dual role as working dogs and companions to farm families, and that can help ease the burden.” The contest celebrates farm dogs that work alongside farmers and ranchers as they produce nutritious food for families and pets across America. Tough, the grand prize winner is 14 years old and has been with the Ashcraft family since the age of two. Tough injured her spinal cord and was paralyzed for a week when she was seven years old. The Border Collie recovered and spends her days working livestock.
| Rural Advocate News | Tuesday January 10, 2023 |
Tuesday Watch List Markets On Tuesday, Federal Reserve Chairman Jerome Powell is scheduled to speak in Sweden, otherwise there are no significant events on Tuesday's docket. Two days ahead of the next WASDE report, trading may be quiet and traders will be watching the latest weather forecasts, as well as any developing news. Weather A two-part system is moving through the West on Tuesday. The leading wave will move along the U.S.-Canada border tonight with some showers across the northern tier of the country. The second part will continue to pound California, the southern Great Basin, and the Central Rockies with even more precipitation and a chance for a few severe thunderstorms. Otherwise it remains quite warm by January standards across the country.
| Rural Advocate News | Monday January 9, 2023 |
Food Prices Drop in December but 2022 till Significantly Higher than 2021 The United Nations Food and Agricultural Organization’s Food Price Index dropped during December, but 2022 food prices were 18 percent higher than in 2021. The December index averaged 132.4 points, 2.6 points below November, the ninth-straight monthly decline. The December drop was driven by a steep decline in the international vegetable oil price and declining cereal and meat prices. However, that was counterbalanced by rising prices in sugar and dairy. For 2022, the index averaged 143.7 points, 18 points or 14.3 percent higher than the 2021 index. The Vegetable Oil Price Index averaged 144 points in December, down more than 10 points from November and its lowest level since February 2021. The Cereal Price Index averaged 147.3 points during December, down 2.9 points from November but was almost seven points higher than December 2021. The December dairy index was up 1.5 points, and the sugar index was 2.8 points higher. *********************************************************************************** Vilsack in Puerto Rico and Will Address AFBF Convention Ag Secretary Tom Vilsack will be in Puerto Rico on January 9 and 10 and speak at the American Farm Bureau Federation’s Annual Convention. He’ll also engage in a series of events involving the USDA’s commitment to fostering economic development, supporting disaster recovery, increasing the island’s resilience against future storms, supporting disaster recovery, and creating new market opportunities for the country’s producers. At various events throughout the trip, Vilsack will be joined by Puerto Rico’s Resident Commissioner, Secretary of Agriculture, Secretary of Economic Development and Commerce, as well as various elected officials. He’ll also hold discussions with local officials, producers, and stakeholders about USDA efforts to support the country’s rural communities, climate-smart agriculture, disaster assistance, and other issues important to Puerto Rico’s population. He’ll also meet with Puerto Rico’s Governor to talk about USDA and the Puerto Rican government’s efforts to collaborate on supporting the island’s producers and rural communities. *********************************************************************************** Report Shows Global Biofuel Demand to Increase Over 20 Percent by 2027 The International Energy Agency released its Renewables 2022 Analysis Report in December, and it shows a growing global demand for biofuels. Renewables 2022 includes extensive analysis of the renewable energy sector, including developments and trends for transportation. “In this most recent IEA report, total global biofuel demand is estimated to increase more than 20 percent between 2020 and 2027,” says Isabelle Ausdal, manager of global ethanol policy and economics with the U.S. Grains Council. “World ethanol consumption is projected to rise in an accelerated case scenario.” She also says this reinforces the U.S. industry’s recognition of ethanol’s importance as a tool for countries to accelerate their greenhouse gas emissions reductions and underscores the importance of scaling up technologies like carbon capture, utilization, and storage to reach net zero carbon intensity. The report details increasingly ambitious energy targets in the European Union, growth in ethanol consumption in Brazil, and biofuel blending in India. *********************************************************************************** World’s First Honeybee Vaccine Gets Approved Pollinators are a big part of success in world agriculture. The USDA granted a conditional license for a vaccine to protect the country’s honeybees from foulbrood disease. Earth Dot Com says the bacterial infection weakens and kills honeybee colonies and has no treatment. The vaccine was developed by Dalan Animal Health and brings hope for a weapon against a disease that regularly ravages colonies that are highly important to food pollination. In parts of the U.S., the foulbrood disease has been found in over a quarter of honeybee hives. Beekeepers typically destroy and burn infected colonies and administer antibiotics to stop the further spread of the disease. The vaccine works by incorporating some of the bacteria into the royal jelly fed to the queen by worker bees. After ingesting the jelly, the queen will gain some of the vaccine in her ovaries and developing bee larvae will have immunity to foulbrood. *********************************************************************************** USDA Reports Shows Increasing Use of Cover Crops Cover crops are an increasingly popular management practice among many U.S. farmers. The goal is to provide seasonal living cover between their primary commodity cash crops. Farmers plant those cover crops in the fall to provide winter cover for soil that otherwise would be bare. The USDA’s Agricultural Resource Management Survey says over the past ten years, fall cover crop adoption has continued to grow. On fields growing corn for grain, 0.6 percent of the acreage used a fall cover crop before the 2010 crop. By 2016, 5.5 percent of the corn-for-grain acreage had a preceding fall cover, and by 2021, 7.9 percent of corn-for-grain acreage followed a fall cover crop. This represents a 44 percent increase in fall cover crop adoption on corn-for-grain fields between 2016 and 2021. The growth in the adoption of cover crops on cotton fields is similar, with a 46 percent increase between 2015 and 2019. *********************************************************************************** Ethanol Production Hits Lowest Level Since 2020 The Energy Information Administration says ethanol output dropped to the lowest level in more than two years, while inventories were down slightly during the last week of 2022. Production dropped to an average of 844,000 barrels per day. That’s down from 963,000 barrels a day, on average, during the previous week and the lowest level since the week ending on June 12, 2022. Losses were broad-based across all regions but one in the U.S. The Midwest, which produces the most ethanol in the country, saw its output plunge to an average of 794,000 barrels a day from 906,000 a week earlier. That’s the lowest since the seven days ending on May 29, 2020. Production on the East and West Coasts each dropped an average of 3,000 barrels a day from the prior week. The only increase in ethanol production came in the Gulf Coast region. Inventories were down slightly at 24.44 million barrels.
| Rural Advocate News | Monday January 9, 2023 |
Monday Watch List Markets Traders return from the weekend checking the latest weather forecasts, especially in South America and surveying the news. USDA's weekly report of export inspections is due out at 10 a.m. CST and is the only significant report of the day. Weather The West stays active on Monday with another system moving through California, bringing heavy precipitation to a lot of areas, including the Central Valley and Sierras for building snowpack as drought conditions are turning around. East of the Rockies it will be a quiet day with rather mild temperatures for January.
| Rural Advocate News | Friday January 6, 2023 |
Senate Ag Chair Not Running for Reelection in 2024 Senate Ag Committee Chair Debbie Stabenow of Michigan announced she won’t be running for reelection in 2024. “Inspired by a new generation of leaders, I’ve decided to pass the torch in the U.S. Senate,” Stabenow says in a statement. “I’m incredibly grateful for the trust the people of Michigan have placed in me.” The four-term senator says a big part of her decision was stepping aside to make room for new voices. Between now and 2024, Stabenow says she’ll concentrate on passing a new farm bill before she retires. “The farm bill determines our nation’s food and agriculture policies,” she says. “It’s also a key to protecting our land and water and creating jobs in rural and urban communities.” Stabenow has played a big role in several farm bills. Her decision will increase pressure to pass a new farm bill while she’s in office rather than extending the current legislation. *********************************************************************************** Farmers National Company Releases Final Year Land Sales Report Farmers National Company says land market momentum that began late in 2021 only picked up the pace into 2022. Competition for high-quality cropland resulted in both record sales and overall increases in land values. Strong demand in all of the country’s regions brought significant opportunities to landowners interested in capitalizing on the current land market. In most cases, landowners selling property experienced never-before-seen values for their farmland. The final results set records in several states and increased year-to-year values between 20 and 34 percent in the Corn Belt. Farmers National says the traditional local farmer-operators are the successful buyers of land in 75 percent of their transactions. “We’re seeing a true supply-demand scenario,” says Paul Shadegg, senior vice president of real estate operations. “There are simply more buyers willing to bid on the limited amount of land coming to market.” Commodity markets are the main driver in higher land values. *********************************************************************************** USDA Investments to Strengthen the U.S. Meat Supply Chain USDA Secretary Tom Vilsack announced an investment of $9.6 million across the country and taking several other steps to help farmers, ranchers, processors, and rural businesses diversify the meat supply. “We’re putting the needs of farmers, ranchers, and consumers at the forefront of our work to strengthen the resiliency of America’s food supply chain while promoting competition,” he says. “USDA is working on an approach to coordinate ways to deliver more opportunities and fairer prices for producers.” He also says the goal is to give people access to healthier foods, eliminate bottlenecks in the food supply chain, and ultimately lower prices for consumers. Vilsack announced a total of 25 new investments to increase independent meat processing capacity. The investments include 23 value-added Producer Grant Program awards totaling $3.9 million to help producer-owned companies process and market new products. USDA is also investing $5.7 million in two companies to support food processing infrastructure. *********************************************************************************** Union Taking CNH’s Last Offer to Striking Workers for Saturday Vote The United Auto Workers announced in a news release that they’ve decided to bring CNH Industrial’s “last, best, and final offer” to its striking workers for a vote. Farm Equipment Magazine says the workers are expected to vote on Saturday, January 7. However, Ag Equipment Intelligence reached out to CNH Industrial for comment but did not hear back. In 2021, when 10,000 John Deere employees went on strike, Deere referred to its third offer to the union as its “last, best, and final offer,” which James Cooney of Rutgers University said at the time that “this could signify Deere is at an impasse in negotiations. “That’s not an agreement with the company when saying, “Hey, this is our last, best, and final offer,’” Cooney says. “A union may take that back to the membership, but, on the other hand, it may choose not to, especially if it’s perceived as a threat.” *********************************************************************************** Winter Wheat 2023-2024 Planting Estimates on January 12 The National Agricultural Statistics Service will publish the first official estimate of the 2023-2024 winter wheat crop planted area on January 12. U.S. Wheat Associates and America’s wheat-importing customers will be watching trade estimates before the report is issued. Wheat analyst Jeffry McPike says his group expects a planted area forecast of 35.7 million acres. If realized, that’s a seven percent increase over NASS’s final 2022 estimate. The Economic Research Service has documented a general downward trend in America’s wheat plantings during the last two decades due in part to lower returns, changes in government programs, and increased competition in global wheat markets. However, at planting time in 2022, the relatively high prices for hard red winter, soft red winter, and white winter wheat all provided an incentive to plant more wheat. Pre-report predictions range between 34-36 million acres, higher than the 2022 final NASS crop estimate of 33.27 million acres. *********************************************************************************** Wheat Country is Still Very Dry Kansas, the country’s biggest hard-red winter wheat producer, is still very dry. USDA data says topsoil moisture in the state was little changed from January 1 through the end of November 2022. About 43 percent of the state was very short on topsoil moisture and 26 percent was listed short on January 1. Twenty-nine percent of the state had adequate topsoil moisture and only two percent had a surplus. That compares with 48 percent very short, 25 percent short, 26 percent adequate, and just one percent held surplus moisture on November 29, the last time the government issued a crop progress report. Oklahoma, the country’s number two HRW producer, only saw .16 inches of rainfall in the panhandle during December. Topsoil and subsoil moisture was listed as “mostly adequate to short.” Arkansas, one of the country’s key soft-red winter wheat growers, saw moisture conditions improve with 60 percent surplus topsoil moisture.
| Rural Advocate News | Friday January 6, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Friday, the same time the Labor Department will release nonfarm payrolls and the U.S. unemployment rate for December. A report on U.S. factory orders for November is set for 9 a.m. Traders will keep an eye on the latest weather forecasts and outside markets, which have been a bearish influence this week. Weather A system that brought heavy rain and snow to the country this week is finally leaving through the Northeast on Friday. Most of the country east of the Rockies is quieter today. But a system moving through the Rockies will exit into the Central Plains tonight and produce some showers into Saturday. Showers will likely to be rather weak except around the Gulf Coast where thunderstorms will be possible over the weekend.
| Rural Advocate News | Thursday January 5, 2023 |
United States and Taiwan to Hold Trade Negotiations This Month The United States and Taiwan will hold an in-person negotiating round for the U.S.-Taiwan Initiative on 21st-Century Trade in Taipei. The negotiations are under the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. The next round of talks is scheduled for January 14-17. The U.S. Trade Representative’s Office will lead the U.S. delegation through Assistant United States Trade Representative Terry McCartin and include representatives from several other U.S. government agencies. The negotiation process started in June 2022, launching the U.S.-Taiwan Initiative on 21st-Century Trade. The initiative is intended to develop concrete ways to deepen the economic and trade relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses, including through new trade agreements. The two sides last met in November, holding two days of discussion in New York. *********************************************************************************** USDA Announces Conservation Stewardship Program The next deadline for Conservation Stewardship Program applications to be considered for funding this year is February 10, 2023. Through CSP, USDA’s Natural Resources Conservation Service helps farmers, ranchers and forest landowners earn payments for expanding conservation activities while maintaining agricultural production on their land. CSP also encourages the adoption of new technologies and management techniques. Changes in the 2018 Farm Bill authorize NRCS to accept new CSP enrollments from 2020‒2023 and makes additional improvements to the program. NRCS now enrolls eligible, high-ranking applications based on dollars rather than acres. Higher payment rates are available under the 2018 Farm Bill for certain conservation activities, including cover crops and resource-conserving crop rotations. NRCS now provides specific support for organic and for transitioning to organic production activities through CSP. While applications are accepted throughout the year, interested producers should submit applications to their local NRCS office by the deadline to ensure they are considered for 2023 funding. *********************************************************************************** Esteban Sworn-in as USDA Undersecretary for Food Safety Agriculture Secretary Tom Vilsack welcomed the swearing-in of Jose Emilio Esteban as the Undersecretary for Food Safety at the Department of Agriculture. Vilsack says, “Dr. Esteban has a long and well-documented commitment to food safety and public health.” Esteban was appointed Chief Scientist of the USDA Food Safety and Inspection Service in August 2018. Esteban joined the Office of Public Health Science at FSIS in 2002. In 2008, he was appointed as the FSIS Science Advisor for Laboratory Services, where he harmonized the operation of all three FSIS laboratories. Before joining FSIS, Esteban worked in several positions at the Centers for Disease Control and Prevention. Esteban received his Doctorate in Veterinary Medicine from Mexico’s National University. Vilsack adds, “I am confident that Dr. Esteban’s leadership and experience is the right combination to advance our commitment to maintaining public health and reducing foodborne illness.” *********************************************************************************** Bureau of Land Management Seeks Input on Solar Energy Program The Bureau of Land Management this week announced a public meeting to solicit feedback on utility-scale solar energy planning. The Bureau of Land Management is considering updates to its 2012 Western Solar Plan that included six southwestern states—Arizona, California, Colorado, Nevada, New Mexico, and Utah. BLM is seeking comments on expanding its solar planning to include five more states: Idaho, Montana, Oregon, Washington, and Wyoming. The first meeting, scheduled January 18 in Sacramento, California, is one of a series being held in January and February in various western states. BLM Director Tracy Stone-Manning says, "The BLM is committed to expanding renewable energy development on public lands." The public comment period will remain open for 15 days after the last public scoping meeting, or February 6, whichever is later. The Notice of Intent to update the BLM's 2012 solar programmatic environmental impact statement was published in the Federal Register on December 8, 2022. Learn more about the meetings at www.blm.gov. *********************************************************************************** Clean Fuels welcomes Eight New Members As interest in low-carbon fuels gains momentum, Clean Fuels Alliance America continues to grow stronger and more diverse by adding new members. As Clean Fuels prepares for the Clean Fuels Conference in Tampa later this month, the association welcomes eight new companies that joined the association the last year. Clean Fuels CEO Donnell Rehagen says, "The addition of these members demonstrates the value they see in being part of our trade association and the ongoing expansion of this industry." The list of new members includes DSM - a purpose-led science-based global company specializing in human and animal health and nutrition solutions. DSM's purpose is to create brighter lives for all. Another new member is the National Oilheat Research Alliance, authorized by Congress in 2000 to provide funding that would allow the oil heat industry to provide more efficient and more reliable heat and hot water to American Consumers. *********************************************************************************** AM/FM Radio in Vehicles: A Pay to Play Feature? At the Consumer Electronics Show this week, Steve Koenig of the Consumer Technology Association showcased new potential trends to the media before the start of the show. One potential trend, according to Koenig, is automakers charging extra for AM/FM radios in cars. Koenig says automakers may move to a Features as a Service offering for AM/FM radios, allowing automakers to enable or disable features based on whether the car owner is paying for the services. Automakers claim AM radio signals face electromagnetic interference generated from electric cars. Radio Ink reports, "Automotive companies are salivating at the opportunity to capitalize on car features as services that will be subscription based.” In December, Senator Ed Markey, A Massachusetts Democrat, urged automakers to maintain free broadcast radio in future electric vehicles. Markey said, “AM/FM broadcast radio remains the most dependable, cost-free, and accessible communication mechanism for public officials to communicate with the public during times of emergency.”
| Rural Advocate News | Thursday January 5, 2023 |
Thursday Watch List Markets At 7:30 a.m. CST Thursday, reports on U.S. weekly jobless claims and the U.S. trade deficit for November will be out, along with an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly natural gas storage report is set for 9:30 a.m., followed by weekly energy inventories at 10 a.m., including ethanol production. At some point Thursday morning, USDA will also provide export data from the Census Bureau for November. Weather A low-pressure center continues to spin across the Midwest with areas of light snow falling throughout the day. It's much quieter elsewhere east of the Rockies with generally mild temperatures for this time of year. A system moved into California and will spread showers throughout the West on Thursday, though will be weaker as it moves through the rest of the country Friday through the weekend.
| Rural Advocate News | Wednesday January 4, 2023 |
Farmer Sentiment Rebounds at Year End on Stronger 2022 Income Producer sentiment improved sharply in December as the Purdue University-CME Group Ag Economy Barometer Index reading of 126 was 24 points higher than a month earlier. Although U.S. farmers were more positive regarding both the current situation and the future, the biggest improvement was in their assessment of current conditions. The Current Conditions Index reached 135, 37 points higher than in November, while the Future Expectations Index hit 122, 18 points above a month earlier. The improvement in current sentiment was motivated by producers' stronger perception of current financial conditions on their farms as the Farm Financial Performance Index climbed 18 points above the prior month's reading to reach 109, which was the only time in 2022 that the index was above 100. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated monthly from 400 U.S. agricultural producers' responses to a telephone survey. This month's survey was conducted from December 5-9, 2022. *********************************************************************************** World’s First Agri-Focused Satellite Launches The first of seven satellites for agriculture launched into space Tuesday by SpaceX. Built by Dragonfly Aerospace, the satellite is part of the Transporter-6 mission for customer EOS Data Analytics. The remaining six satellites of the constellation will be deployed over the next three years. The EOS Data Analytics project is the world's first agriculture-focused satellite constellation providing the industry with high-quality data to support efficient and sustainable practices. Images obtained from Dragonfly's EOS SAT-1 will deliver information for harvest monitoring, application mapping, seasonal planning and assessments that analyze information such as soil moisture, yield prediction and biomass levels. The data will support growers with reducing carbon dioxide emissions and help them to develop sustainable agricultural methods. The company says the information will have important environmental benefits for the planet and help prevent natural habitats from being diminished for crop growth and maintain biodiversity. *********************************************************************************** NCGA Expresses Disappointment in EPA WOTUS Rule The National Corn Growers Association Tuesday expressed disappointment regarding the final Waters of the United States rule under the Clean Water Act. The Environmental Protection Agency and Army Corps of Engineers released the final rule on December 30. NCGA says the rule was released as the U.S. Supreme Court prepares to decide a case, Sackett vs. EPA, which will provide more clarity on the issue. NCGA President Tom Haag says, "The Court's ruling could negate major elements of this WOTUS rule and will create even more uncertainty for farmers.” NCGA submitted comments to EPA and encouraged corn growers to do the same as the rule was being considered. The group also participated in regional hearings held by EPA. Haag says that as farmers, “we are the ones who will feel the impact of this rule,” adding, “Yet, it appears that our comments fell on deaf ears.” *********************************************************************************** NMPF: WOTUS Unclear and Overly Complicated National Milk Producers Federation President and CEO Jim Mulhern calls the new Waters of the U.S. Rule "cumbersome, unclear and overly complicated." NMPF released the response Tuesday following the end-of-year announcement of the WOTUS final rule by the Environmental Protection Agency last week. The organization says that because the EPA's most recent iteration fails to resolve a 50-year struggle to define a water body subject to federal regulation under the Clean Water Act, NMPF members will face continued uncertainty as they attempt to comprehend and comply with unclear regulations. Mulhern says it's important to note that EPA's latest iteration is not a complete return to the unworkable rule adopted in 2015. Depending on the outcome of the Sackett case this spring, Mulhern adds, "it may be time for Congress to step in in a bipartisan manner to provide clarity regarding which bodies of water are under the jurisdiction of the Clean Water Act." *********************************************************************************** NOAA Proposes Seafood Import Monitoring Expansion The National Oceanic and Atmospheric Administration last week announced a proposed rule to expand the Seafood Import Monitoring Program. The risk-based program is for targeted species of seafood imported into the United States. NOAA says expanding the program would increase the number of species included in the program from approximately 1,100 individual species to approximately 1,600 individual species. The program currently establishes reporting and recordkeeping requirements for nearly half of all U.S. seafood imports to combat illegal, unreported and unregulated fishing and misrepresented seafood from entering U.S. commerce. The proposed expansion includes red snapper and tuna, to include all species in the snapper family and additional tunas, to minimize the risk of mislabeling and product substitution that is used to bypass requirements. In addition, the rule proposes to add cuttlefish and squid, eels, octopus, queen conch and Caribbean spiny lobster to the program. The rule also proposes to make additional modifications and improvements. *********************************************************************************** Arctic Blast Jolts Gas Prices Higher For the first time in two months, the nation's average gas price increased, rising 12.3 cents from a week ago to $3.17 per gallon. The national average is down 22.5 cents from a month ago and 9.5 cents per gallon lower than a year ago. The national average diesel price fell 1.4 cents in the last week and stands at $4.67 per gallon. GasBuddy's Patrick De Haan says, "Extremely cold weather led to many refinery issues, shutting down over a million barrels of refining capacity, pushing wholesale prices up." While the jump at the pump will likely be temporary as most refiners get back online after cold-weather-related issues, some regions, like the Rockies, may see more price increases than others. Additionally, China's reopening plans inspired markets that global oil demand will start to recover, as China's nearly three-year Covid-zero policies appear to be coming to an end.
| Rural Advocate News | Wednesday January 4, 2023 |
Wednesday Watch List Markets The Institute of Supply Management's index of U.S. manufacturing for December is set for 9 a.m. CST Wednesday. Minutes from the latest Federal Reserve meeting will be out at 1 p.m. As usual, traders will check the latest weather forecasts, watch for any news of an export sale and likely be wary after Tuesday's sell-off in commodities. Weather A storm system continues to spin up around the Upper Midwest with continued light to moderate snow Wednesday. Meanwhile, the cold front will push eastward with a band or two of scattered showers from around the Appalachians eastward. Some additional severe weather will possible across the Southeast, a continuation of strong storms from Tuesday. Meanwhile, another storm will move into the West Coast.
| Rural Advocate News | Tuesday January 3, 2023 |
EPA Finalizes WOTUS Definition The Environmental Protection Agency and the Army Corps of Engineers announced a final rule establishing the definition of “Waters of the United States.” They say the rule reduces uncertainty from consistently changing regulatory definitions, protects people’s health, and supports economic opportunity. The final rule restores essential water protections that were in place before 2015 under the Clean Water Act for traditional navigable waters, the territorial seas, interstate waters, and the upstream water resources that significantly affect those waters. “Following extensive stakeholder engagement, EPA is delivering a durable definition of WOTUS that safeguards our nation’s waters, strengthens economic opportunity, and protects people’s health,” says EPA Administrator Michael Regan. “It also provides greater certainty for farmers, ranchers, and landowners.” Michael Connor, Assistant Secretary of the Army for Civil Works, says, “This definition provides clarity long desired by farmers, industry, environmental groups, and other stakeholders. It also allows for more effective rule implementation.” *********************************************************************************** Group Reacts to New WOTUS Rule The National Cattlemen’s Beef Association responded to the newly-Published Waters of the U.S. Rule. The group says farmers and ranchers have dealt with the whiplash of shifting WOTUS definitions for far too long. “While the new rule retains longstanding exclusions for certain agricultural features, it still creates new uncertainty for farmers, ranchers, and landowners,” says NCBA Chief Counsel Mary-Thomas Hart. NCBA previously asked the Environmental Protection Agency to retain agricultural exclusions for small, isolated, and temporary water features that commonly appear on farms and ranches. The new rule fails to clearly exempt isolated and ephemeral features from federal jurisdiction and relies on “case-by-case” determinations to assess whether a feature is federally regulated. Hart says the timing of the rule couldn’t be worse as the Supreme Court is currently considering Sackett v. EPA, which would provide much-needed clarity to the WOTUS definition. “Today’s rule seeks to directly preempt the Supreme Court,” she says. *********************************************************************************** Two Selected for AFBF Top Honors The American Farm Bureau Federation will present its highest honors to former Executive Vice President Dale Moore and former North Carolina Farm Bureau President Larry Wooten. The two will receive the Distinguished Service Award and the Farm Bureau Founders Award, respectively, during the 2023 AFBF annual convention in Puerto Rico. Farm Bureau established the Distinguished Service Award to honor individuals who’ve devoted their careers to serving the interest of American agriculture. The Founders Award is presented in recognition of outstanding achievements and work in the interest of Farm Bureau. Moore, a Kansas native, has been a champion of agriculture in the public and private sectors for more than 40 years. Wooten’s Farm Bureau career spans more than 50 years, peaking when he was elected president of the NCFB in 1999, a position he held until 2019. The American Farm Bureau’s annual convention is January 6-11 in San Juan, Puerto Rico. *********************************************************************************** Ethanol Production Hits Lowest Level in Two Months The Energy Information Administration says ethanol production plunged in the seven days that ended on December 23 to the lowest level in more than two months while inventories rose. Output during the week averaged 963,000 barrels a day, down from 1.029 million barrels a week earlier. The EIA report says that’s the lowest level since the week ending on October 7. The Midwest produces the most ethanol in the country and saw production drop to 906,000 barrels a day, on average, down from 975,000 the previous week. The Midwest drop was the entire loss during the week as production on the East Coast and in the Rocky Mountain regions was steady. West Coast output rose by an average of 1,000 barrels a day to 9,000 for the week. Ethanol stockpiles during the week rose to 24.63 million barrels. That’s the highest level of inventory since the seven days ending on April 8. *********************************************************************************** Taylor Sworn In as USDA Undersecretary Ag Secretary Tom Vilsack is pleased that Alexis Taylor was finally sworn in last week as the U.S. Department of Agriculture’s Undersecretary for Trade and Foreign Agricultural Affairs. Vilsack says Taylor has had a deep-rooted and impressive career working on matters related to agriculture, trade, and enhancing as many export opportunities as possible for America’s farmers and ranchers. “She’s not only spent her career serving the American people through her work in American agricultural and trade policy but also as a veteran of the U.S. Army,” Vilsack says. “I am confident Alexis is the right person to lead as we continue to address global food security challenges, promote American exports to new and existing markets across the globe, and strengthen trade relationships with our partners.” The secretary also looks forward to working with Taylor to help the agency better serve farmers and ranchers and link America’s agriculture producers to expanded global opportunities. *********************************************************************************** Important Ag Provisions in the Omnibus Bill President Biden signed the omnibus spending package into law that diverts a government shutdown and keeps it running until September 30, 2023. The bill with more than 4,000 pages contains many notable items important to U.S. farmers and ranchers. The bill includes $3.7 billion in disaster funding for crop and livestock losses due to drought and other problems in 2022. There is $350 million allocated for rice producer payments to compensate for the drop in revenue this year, as well as $100 million provided for payments to cotton merchandisers as a result of losses related to COVID or supply chain disruptions. Livestock Mandatory Reporting is extended until September 30, 2023. It also includes price transparency as the USDA and the Justice Department are to analyze issues regarding transparent meat pricing and price discovery for cattle producers. Raw or processed chicken imported from China can’t be used in the federal school lunch program.
| Rural Advocate News | Tuesday January 3, 2023 |
Tuesday Watch List Markets Back from a three-day weekend and starting a new year, traders will get familiar with the latest weather forecasts and any news from over the New Year weekend. Many will pause at 8 a.m. CST to see if USDA has an export sale announcement and check in on USDA's weekly report of export inspections at 10 a.m. CST. Weather A stronger winter storm has moved into the middle of the country for Tuesday. A band of wintry mix has developed from Nebraska into the Upper Midwest and will drop some heavy snow throughout the day as well as areas of significant freezing rain. Farther south, the cold front to the system will bring risks for severe thunderstorms from the Lower Mississippi River to the southern Appalachians. The rest of the Midwest continues to see areas of rain, being heavier along the Ohio River.
| Rural Advocate News | Friday December 30, 2022 |
U.S. Beef Exports to East Asia on a Record Pace The USDA’s Foreign Agricultural Service released a report titled “U.S. Beef Exports to East Asia on a Record Pace.” Despite economic uncertainties brought on by COVID, continued global supply chain challenges, and a competitive global beef market, American exports to East Asia were outstanding in the first half of 2022 in terms of value and volume. The report says, “During the first three quarters of 2022, U.S. beef exports to East Asia, including Korea, Japan, China/Hong Kong, and Taiwan, were a record $6.6 billion.” That’s a 22 percent increase on a value basis from last year’s exports worth $5.4 billion. “On a volume basis, the exports were up 6.4 percent,” the report says. “Despite surging food prices in recent months, higher-volume shipments indicate a continued demand for beef products.” It also shows that East Asia’s relatively stable middle class has high disposable income and is willing to absorb the rising costs. *********************************************************************************** What 2023 Will Mean for Ethanol Margins America’s ethanol industry saw its production margins get weaker late in 2022. MarketWatch says the ethanol industry outlook will depend on multiple factors. Margins have recently dropped below the same time last year. Iowa State University’s Center for Agricultural and Rural Development says the average return over operating costs at a typical dry-mill ethanol plant was 34.64 cents per gallon. That’s over one dollar lower than the same time last year when the center put the average margin at $1.38 per gallon. The university says the average ethanol price in Iowa was at $2.44 a gallon, 85 cents lower year to year, while the average price of corn was $6.82 a bushel, about $1.10 higher than a year ago. Some of the key issues for the U.S. ethanol industry to watch include Renewable Volume Obligations (RVOs), Carbon Capture Projects, the future of Small Refinery Exemptions, and fewer limits on E15 sales. *********************************************************************************** Baby Formula Imports Face Tariffs Again in 2023 Baby formula imports into the U.S. will be subject to tariffs again in 2023 as the exemptions implemented during a nationwide shortage are scheduled to expire. Reuters says the shortage began during supply chain issues brought on by COVID, and those issues began to get worse in February of this year. During that month, the biggest U.S. supplier recalled some products and closed down a manufacturing plant after reporting bacterial infections. Responding to the crisis, American health regulators relaxed import policies, and President Biden invoked the Cold War-era Defense Production Act to rebuild lagging supplies. Congress made the tariff waivers temporary as part of a deal to pass the measure quickly. Last August, Walmart and Target Corporation, two of the nation’s biggest retailers, said supplies of baby formula were improving. The maker of the biggest brand in the market, Enfamil, says formula shortages will likely persist until the spring of 2023. *********************************************************************************** USDA Invests Over $9 Million in Bioproduct Development USDA is investing $9.5 million to support the scale-up of sustainable bioproduct manufacturing in the U.S. Three projects are getting funded through the National Institute of Food and Agriculture’s Bioproduct Pilot Program. The program presents an opportunity to spur economic activity in the nation’s rural areas while lowering commercialization risks associated with bringing biobased products to market. “Adopting a more circular economy ensures that wealth and other economic benefits in the form of jobs and other opportunities are created, and stay, in rural communities,” says Ag Secretary Tom Vilsack. “We must support and incentivize practices like these because that’s what consumers want, and what farmers and our planet need.” The Pilot Program’s exploration into bioproducts accelerates USDA’s efforts to develop circular bio-economies, where agricultural resources are harvested, consumed, and regenerated in a sustainable manner. NIFA says each of the recommended projects can help bridge the gap between invention and the marketplace. *********************************************************************************** The Second Annual Ag Transporters Conference is in March Transportation Go! is a conference for soybean, grain, and other transportation issues in the Upper Midwest. It will take place March 15-16, 2023, in Omaha, Nebraska. It’s the second annual transportation conference after a successful debut event in Milwaukee earlier this year. “This is an active conference, not a passive one,” says Eric Wenberg, executive director of the Specialty Soya and Grains Alliance, which organizes and hosts the event. “We encourage discussion and expect real dialogue to take place during every segment of the agenda.” He also says there are many challenges in agricultural transportation, and this conference brings together smart and experienced people from different avenues of the supply chain into the same room to take on those challenges together. Omaha, a key ag transportation hub, will bring together the industry’s top stakeholders, from boots-on-the-ground commodity growers to traders and shippers of specialty field crops. For more information, go to transportationgo.com. *********************************************************************************** American Lamb Growers Looking Ahead to 2023 Trends The “2023 Meat Trends to Watch Report” says understanding the overarching trends in American meat consumption can help keep meat in the mix. “There are challenges ahead for the lamb industry, but there are also opportunities ahead,” says Peter Camino, American Lamb Board Chair. “But the entire industry will need to make changes to improve our competitiveness and profitability.” The report covers trends like economic pressures at the meat case, noting that while many are seeking less expensive cuts at the meat case, others are more open to experimenting in the kitchen. Others may also trade up at the counter instead of dining out. The report also covers sustainability, noting that it’s critical for products and businesses to talk to customers about their sustainability efforts. Other important topics in the report include health and wellness, convenience, and technology. The ALB is closely watching these trends and how they influence consumers.
| Rural Advocate News | Friday December 30, 2022 |
Friday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Friday, the only significant report of the day. Friday is a full day of trading, ahead of a three-day weekend for celebrating the New Year. Traders will keep up with the latest weather forecasts and watch for a possible export sales announcement at 8 a.m. CST. Weather A cold front will be moving slowly east from the Delta to the eastern Midwest on Friday. A band of showers and some thunderstorms has formed along the front, which will move into the Southeast and toward the Appalachians tonight. Some minor flooding may occur over the South as the rain moves through. Somewhat cooler temperatures are filling in behind the front back to the Rockies, but most areas are still above normal for this time of year.
| Rural Advocate News | Thursday December 29, 2022 |
USDA Economist Not Worried About Potential Ag Trade Deficit USDA is forecasting an agricultural trade deficit in 2023. While deficits have happened in the past, the agency has never forecast one in advance until this year. The agency says ag exports are projected to reach $190 billion next year, but imports are projected to rise to $199 billion. Seth Meyer, chief economist with USDA, says an ag trade deficit isn’t a major cause for concern. “I’m of the opinion that having both rising exports and imports is a good thing,’ he says. “Farmers can sell their products at a good price while consumers can shop for what they want.” Ag exports are forecast to set another record during the fiscal year 2022 at $196.4 billion. If realized, that number would top the previous record of $177 billion in 2021. American exports currently face major pressure from the strong dollar value making U.S. products more expensive in the world’s markets. *********************************************************************************** Egg Prices Double During the Past Year Eggs are more expensive than they were last year. Marketplace says the Bureau of Labor Statistics reports the price of a dozen Grade A eggs jumped from $1.82 last year to almost $3.60 in 2022. While part of the increase is due to the rising price of chicken feed, the real culprit is highly pathogenic avian influenza. It’s infected more than 57 million hens this year, starting in the spring and continuing to flare up through the rest of 2022. “Spring was the first time we had egg prices spike,” says Daniel Sumer, an ag economics professor at the University of California-Davis. He says eggs are a staple for many people and can’t be cut back on when the price rises. When prices go up, people tend to buy them anyway. “That drives the price higher and higher,” he says. “And that has to happen because the supplies are more limited.” *********************************************************************************** Omnibus Bill Included Pesticide Registration Improvement Act The recently-passed omnibus spending legislation contained the reauthorization of the Pesticide Registration Improvement Act, something important to CropLife America. The organization says it will strengthen and improve the Environmental Protection Agency’s pesticide registration process. The EPA’s scientists work diligently to comply with the multiple laws that govern pesticide registration, but, in recent years, the agency has fewer available scientists to do that work,” says Chris Novak, President of CLA. “The reauthorization of PRIA is a first step in improving the efficiency of the pesticide registration process and in providing more certainty for farmers, consumers, and CropLife’s member companies that EPA will meet its statutory obligations.” PRIA provides critically needed resources for the EPA’s Office of Pesticide Programs. The increased funding coupled with a variety of process and technology improvements, will allow EPA to increase staffing and better meet pesticide registration timeframes to give farmers the tools they need to manage pests. *********************************************************************************** Pork Leadership Institute Announces Class of 2023 The National Pork Producers Council and the National Pork Board are proud to announce that 19 pork producers from across the country have been selected for the Pork Leadership Institute’s class of 2023. Each year, the organizations select a leading group of producers to participate in the PLI program. Staff in both the NPPC and NPB work together with state pork association executives and field reps to identify key individuals from across America. The comprehensive, year-long process consists of five sessions that include learning about the federal legislative and regulatory processes, the importance of international trade, the roles of the national and state pork associations, and modern-day issues facing producers. “PLI is vital to the success of pork producers because it develops knowledgeable industry ambassadors and future leaders,” says NPPC CEO Bryan Humphreys. They also go through comprehensive media and communications training to become effective grassroots advocates for the pork industry. *********************************************************************************** CFTC Fines CHS Hedging $6.5 million in Fraud Case The Commodity Futures Trading Commission fined CHS Hedging of Inver Grove Heights, Minnesota, $6.5 million for anti-money laundering, risk management, recordkeeping, and supervision violations. The company also has to undertake certain remedial measures relating to the violations. CHS reportedly accepted millions of dollars in margin payments from a rancher in Washington without adequately investigating the customer’s source of funds or reporting suspicious activity. The scheme ran from 2017 through 2020. The Washington rancher involved in the case pled guilty to criminal fraud charges and was sentenced to 11 years in prison. A CFTC report says the violations are primarily the result of failing to implement an adequate anti-money laundering program, particularly as it applied to the futures and options trading account controlled by the Washington rancher. “The Commodity Exchange Act requires companies like CHS Hedging to have and actually implement adequate money laundering and risk management procedures,” says Acting Enforcement Director Gretchen Lowe. *********************************************************************************** USDA Says Seasonal Worker Numbers Jumped in 2021 It’s well known that American agricultural employers who anticipate a shortage of domestic workers can fill seasonal farm jobs with temporary foreign workers through the H-2A Visa Program. The Department of Labor officially certified approximately 317,000 temporary jobs in fiscal year 2021 under the H-2A program. That number was more than six times the number of jobs certified in 2005. Only about 80 percent of the certified jobs in 2021 resulted in the issuance of a visa. The program has grown partly in response to current U.S. domestic workers finding jobs outside of American agriculture and a drop in newly arrived immigrants looking for farm jobs in the U.S. Six states accounted for about half of the H-2A jobs that were filled in 2021, including Florida, Georgia, Washington, California, North Carolina, and Louisiana. Nationally, the average H-2A contract offered 24 weeks of employment and 39.3 hours per week at $13 per hour.
| Rural Advocate News | Wednesday December 28, 2022 |
UFW Assigns Blame for Lack of Immigration Action United Farm Worker leadership laid the blame for a lack of action in Washington on immigration at the feet of the Republican Party and the American Farm Bureau Federation. The Senate decided not to include worker immigration legislation in the fiscal year 2023 omnibus appropriations bill. The omnibus passed the House last week and is on the way to President Biden’s desk for his signature. “It’s a bitter disappointment for farm workers across the country who have earned the right to legal status through the sweat of their brow,” says UFW President Teresa Romero. She also called it unsurprising, saying that leaders of both groups want to keep farm workers living in fear and uncertainty. “They know that an undocumented workforce is easier to intimidate and exploit,” she says. Farm Bureau says the legislation will lead to wild swings in wage rates beyond the reach of many farmers and ranchers. *********************************************************************************** NACD Applauds Conservation Investments in Omnibus The National Association of Conservation Districts is grateful the fiscal year 2023 omnibus appropriations bill passed the House last week and was sent to the White House for signing. They say the agreement supports voluntary, locally-led conservation efforts across the country by providing strong funding for critical conservation programs and initiatives. The package includes no cuts to mandatory spending for USDA farm bill conservation programs like EQIP, CSP, RCPP, and CRP. It also has $941 million for Natural Resources Conservation Service Operations, including more than $800 million for Conservation Technical Assistance. That’s a $40 million increase compared to the 2022 funding level. The funding supports the work of conservation districts and other local partners to help producers assess resource needs, develop conservation plans, and implement effective conservation practices. There’s also $925 million for the NRCS Emergency Watershed Protection Program, of which $75 million goes to Watershed Protection and Flood Prevention Operations. *********************************************************************************** U.S. Hog Numbers are Two Percent Below Last Year The U.S. inventory of all hogs and pigs on December 1 was 73.1 million head. The recent Hog and Pig Report says that’s down from December 1 of last year and one percent lower than September 1, 2022. The breeding inventory was 6.15 million head, up slightly from last year and slightly higher than the prior quarter. Market hog inventory was 67 million head on December 1, down two percent from 2021 and one percent lower than last quarter in 2022. The September-November 2022 pig crop, at 33.7 million head, was one percent lower than in 2021. Sows farrowing during this period totaled three million head, down one percent from 2021. The sows that farrowed during the quarter represented 49 percent of the breeding herd. Hog producers intend to have 2.95 million sows farrow during the December-February quarter, up one percent from the actual farrowings during the same period a year earlier. *********************************************************************************** Report Shows Price Increases for Different Food Types A new USDA report shows retail food prices increased 8.9 percent in the first seven months of this year. That increase is higher than the rate over the same period last year and 2020. All 13 food categories in the USDA report experienced faster price increases so far in 2022, compared with the same period last year and historical average price increases through July. All food categories saw price increases of at least four percent during the first seven months of 2022. Three food category prices increased by more than 10 percent: eggs at 21 percent, fats and oils were up 13 percent, and poultry rose 12 percent. Inflationary pressures differ by category. For example, eggs and poultry prices are currently much higher than their historical average because of an outbreak of highly pathogenic avian influenza. Fresh vegetables increased the least of all categories in the first seven months of this year. *********************************************************************************** China Pushes for Ag Tech Progress President Xi (Zhee) Jinping is pushing for China to accelerate efforts to achieve self-reliance in agriculture technology. Farm Doc Policy News says China’s president identified seed development and core equipment among the areas he’d like the country to focus on. The central leadership had said in 2020 that the country’s seed industry was a weak link in its food chain and need to make more and better use of science and technology to turn that sector around. China is also expected to end the year with historically-low soymeal carryover stocks, which should increase its dependence on imported soybeans next year. Unfortunately for U.S. producers, Brazil’s soybeans, which get processed in China to make livestock feed, are currently more attractive than U.S. soybeans for February shipments. The news is considered positive for Brazilian farmers as some of them could begin harvesting their 2023 soybeans in as little as a week. *********************************************************************************** Ag’s Share of Total Export Value Hits New High The total value of U.S. exports has grown at an average annual rate of six percent since 2002, reaching a record high of $1.4 trillion in fiscal year 2021. Agriculture’s share of total U.S. exports has steadily increased between fiscal years 2002 and 2021. The value of America’s agricultural product exports rose by an average of 11 percent annually, exceeding the overall rate of increase for total U.S. exports. In 2021, ag exports accounted for 12 percent of the total value, up from nine percent in 2002. Growth in agricultural exports has largely been resilient to market shocks like COVID-19. Even as total U.S. exports fell by 12 percent during the onset of COVID in 2020, ag exports remained steady on the strength of surging shipments of soybeans, corn, and pork to China. Ag exports surged 23 percent to $172 billion in 2021. The export forecast is a record $196 billion in 2022.
| Rural Advocate News | Wednesday December 28, 2022 |
Wednesday Watch List Markets On Wednesday, an index of U.S. pending home sales for November will be out at 9 a.m. CST, the only report of the day. The U.S. Energy Department's weekly inventory report is pushed to Thursday during this four-day week. Traders will keep close watch over the latest weather forecasts, check for a possible export sales announcement at 8 a.m. CST and keep an eye on outside markets. Weather Warmer, Pacific air continues to flood the country east of the Rockies and is supplanting the arctic blast from last week. That is opening the door for more storm systems to move through the country. One is moving through the Intermountain West on Wednesday and will emerge into the Plains tonight where showers will develop going into Thursday. Winds continue to increase ahead of this system Wednesday, with some wind advisories posted for the Southern Plains.
| Rural Advocate News | Tuesday December 27, 2022 |
Senate Confirms McKalip, Esteban The Senate approved the nominations of Doug McKalip as the chief agricultural negotiator with the U.S. Trade Representative’s Office and Jose Esteban as USDA Undersecretary for Food Safety. Senate Ag Chair Debbie Stabenow says the nominees waited three months for a long-overdue floor vote. “Doug McKalip has proven he’s ready for the essential task of growing new markets abroad and protecting our producers from unfair trade practices,” she says. During a confirmation hearing earlier this year, McKalip said, “It will be my duty to break down trade barriers to American food and ag exports.” He’ll also press trading partners to live up to existing agreements. As the undersecretary for food safety, Esteban will be the agency’s leader on issues ranging from preventing food-borne illnesses to the regulation of cell-cultured meat that’s now near commercialization. Ranking Senate Ag Committee Member John Boozman (BOZE-man) says Esteban brings years of experience to a crucial USDA position. *********************************************************************************** Ag Groups Applaud McKalip, Esteban Confirmations America’s leading agriculture groups applauded the Senate confirming Doug McKalip as the new Chief Agricultural Negotiator. The U.S. Grains Council says McKalip, “combines extensive international experience and almost 30 years of government service at USDA to help advance trade priorities and open up global markets.” American Farm Bureau President Zippy Duvall says McKalip has proven to be more than qualified for the position because of his experience. U.S. Meat Export Federation President Dan Halstrom says filling McKalip’s position was essential as the U.S. is currently engaged in negotiations with several key trading partners. NCBA’s Vice President of Government Affairs Ethan Lane says Jose Esteban’s new role in food safety is essential for ensuring consumer confidence in the U.S. beef industry. The National Milk Producers Federation and the U.S. Dairy Export Council applaud the Senate’s confirmation. “This move ensures dairy farmers will be at the negotiating table,” says NMFP CEO Jim Mulhern. *********************************************************************************** Egg Prices Hit Record Levels Egg prices are hitting record levels. Free Republic Dot Com says the surge in price is being driven by an avian-influenza outbreak that’s killed tens of millions of chickens and turkeys in the U.S. this year. Wholesale prices of Midwest large eggs hit a record of $5.36 a dozen this month. Retail egg prices are rising faster than any other items in American supermarkets in 2022. Egg prices are up 30 percent from January through early December compared to the same period last year and are outpacing overall food and beverage prices. Some suppliers are predicting potential price relief by February or Mach, but cold weather could slow production in the near term. Highly Pathogenic Avian Influenza has led to the death of 58 million birds, making it the deadliest outbreak in U.S. history. USDA says entire flocks have to be destroyed after an infection is confirmed to limit potential spread. *********************************************************************************** Democrats Don’t Make Changes in House Leadership Democrats in the U.S. House of Representatives aren’t making any changes to their leaders on the Agriculture and Education and Labor Committees, even after losing a majority. Representatives David Scott of Georgia and Bobby Scott of Virginia won positions as ranking members of the Agriculture and Education and Labor Committees, respectively, after being chairs in the previous Congress. “I’m very pleased to get elected by my friends and Democratic colleagues to serve as a ranking member of the House Agriculture Committee for the next Congress,” Scott says. “I believe we have accomplished important groundwork leading up to the 2023 Farm Bill, and I’m looking forward to doing our best to meet the needs of producers and consumers in this important legislation.” The House Education and Labor Committee has jurisdiction over child nutrition programs, and Bobby Scott says governing should be about “improving the lives of people from all walks of life.” *********************************************************************************** AFBF: Risk Management Tools a Farm Bill Priority During volatility in the markets, managing risk remains a priority for farmers and ranchers. New analysis from the American Farm Bureau Federation examines several farm bill risk management tools included in Title 1 and explains the impact and importance to farmers. The analysis provides a historical perspective, including changes made in the 2018 Farm Bill to reauthorize and strengthen the PLC and ARC price and revenue programs. These programs were created in the 2014 Farm Bill to provide shallow-loss risk management coverage. AFB Economist Shelby Myers says that one factor remains consistent as farmers and ranchers faced unprecedented circumstances in recent years, and that’s the need for a variety of risk management options. Programs like ARC and PLC have to fit farmers’ and ranchers’ unique situations. Risk management tools like these are vital to farmers and ranchers being able to mitigate the unpredictable nature of farming. To read the report, go to fb.org. *********************************************************************************** Smithfield Donates 30,000 Pounds of Food Smithfield Foods donated 30,000 pounds of protein, enough for 120,000 servings, to the Foodbank of Southeastern Virginia and the Eastern Shore to help fight food insecurity during the holidays. The donation includes hams, bacon, lunch meat, and smoked sausage and is part of Smithfield’s Helping Hungry Homes Program. “Providing for the needs of our neighbors is a year-round job,” says Christopher Tan, President and CEO of the Foodbank of Southeastern Virginia and the Eastern Shore. “A large gift is especially meaningful at this time of year when families should be celebrating the holiday season, not worrying about finding food to put on their tables.” Smithfield has donated hundreds of millions of protein servings to food banks, disaster relief efforts, and community outreach programs in all 50 states. “The holiday season can be stressful, and no one should worry about their next meal,” says Jonathan Toms, senior community development manager for Smithfield.
| Rural Advocate News | Tuesday December 27, 2022 |
Monday Watch List Markets Back from the Christmas holiday, traders will catch up on the latest weather forecasts and any news that broke over the three-day weekend. USDA's weekly grain export inspections will be released at 10 a.m. CST and don't be surprised if numbers are low, given last week's bitter cold temperatures and pre-holiday mood. Traders will also watch to see if USDA has an export sales announcement at 8 a.m. CST. Weather The visit from the polar vortex over the Christmas holiday is short-lived as warmer temperatures that built up over the West are spreading eastward this week. In spite of the surge in temperatures, precipitation will be limited to the West on Tuesday. Highs: 10s/20s northern Canadian Prairies; 20s/30s Midwest; 30s/40s Pacific Northwest, Northern Plains, Delta; 40s/60s Central and Southern Plains, Southeast.
| Rural Advocate News | Friday December 23, 2022 |
Senate Confirms Alexis Taylor to USDA Post The Senate voted to confirm Alexis Taylor as the new USDA Undersecretary for Trade and Foreign Affairs. Taylor, the former director of Oregon’s Department of Agriculture, is the new top agricultural trade official with the agency. Food Business News says she’ll be responsible for overseeing international negotiations related to agricultural trade, developing America’s trade policies, promoting U.S. agriculture overseas, and opening up new markets for American commodities. At a nomination hearing in September, Taylor said her top priorities would be working with the U.S. Trade Representative on a path toward country-of-origin labeling that would be compliant with World Trade Organization rules. She also intends to hold Canada and Mexico to their commitments under the USMCA and will expand export markets for dairy and other farm products within the Indo-Pacific Economic Framework. She’ll also be involved in food safety issues by working to contain highly pathogenic avian influenza cases without market disruption. *********************************************************************************** Group Says Congress Failed Farmers, Farmworkers, and American Consumers Congress failed to include immigration solutions in the omnibus package and the American Business Immigration Coalition Action group isn’t happy with that. Coalition Executive Director Rebecca Shi (she) says they regret that this Congress failed to show the courage needed to advance immigration solutions for farmer workers and farmers, for Dreamers, the U.S. economy, and consumers. “There is a reason why Congress remains one of the most unpopular institutions in our nation,” Shi says. “At the end of the day, Republicans still prefer to complain about the border than to compromise on solutions, and Democrats have much higher priorities than standing up for hardworking immigrants.” The group says America’s farmers are struggling to find the amount of workers they need to stay in business, driving record-high food inflation. Bringing two million dreamers out of the shadows would create more than 1.4 million jobs for Americans and $46 billion in economic spending. *********************************************************************************** New Report Lays Out Priorities for U.S. Dairy Reform A new report from the American Farm Bureau Federation lays out priorities, principles, and recommendations for reforming dairy policy. A Farm Bureau Working Group explored options for strengthening the dairy industry through the 2023 Farm Bill and modernizing the current Federal Milk Marketing Order. Some of the priorities for FMMO reform include returning the Class 1 mover to a “higher-of” formula, increasing the Class 1 differentials to reflect changes in the marketplace, and making cost surveys mandatory and have them audited by USDA, and several others. “America’s dairy farmers continue to meet the challenges of growing demand for milk products, even while the number of dairy farmers in the U.S. continues to shrink,” says AFB President Zippy Duvall. “These recommendations convey the needs of dairy farmers across the country.” Farm Bureau also says the report gives guidance to USDA as it prepares for future hearings on modernizing the FMMO system. *********************************************************************************** Groups Respond Positively to Taylor Confirmation The Senate confirmed Alexis Taylor as USDA Undersecretary for Trade and Foreign Agricultural Affairs, and U.S. ag groups reacted positively. “Alexis has a strong background in agriculture from growing up on a farm in Iowa and has a deep knowledge of trade issues,” says the U.S. Grains Council. American Farm Bureau Federation President Zippy Duvall says, “Trade is critically important to U.S. agriculture, and she’ll be a strong advocate on the world stage and a capable leader for USDA staff.” U.S. Meat Export Federation President and CEO Dan Halstrom says Taylor will be a “tremendous asset to USDA and a champion for U.S. agriculture.” The American Soybean Association also reacted positively to the announcement. Stephen Censky, ASA CEO, says, “Alexis has a depth of knowledge about agricultural trade and public policy that will serve her well in this post.” Groups like NCBA and the National Milk Producers Federation welcomed the nomination. *********************************************************************************** U.S. Agencies Partner to Promote Global Food Safety The USDA, U.S. Agency for International Development, and the Food and Drug Administration launched the Food Safety for Food Security Partnership, also known as FS4FS. The initiative includes a $15 million investment over the next few years to support the availability and trade of safe food products to reduce poverty, hunger, and malnutrition in low- and middle-income countries. Foreign Ag Service Administrator Daniel Whitley says the initiative developed after the U.S.-African leaders summit, where many African heads of state asked for help in developing science-based measures and standards for food safety. “Through the new partnership, we will work together to address those needs, which are vital to ensuring greater access to safe and nutritious foods across Africa,” Whitley says. The agencies will also work to build on the success of Feed the Future and work with countries around the world to increase access to safe and nutritious foods and unlock trade opportunities. *********************************************************************************** China is World’s Number One in Ag Research and Development Public agricultural research and development funding has trended lower in the United States during the last several decades. However, a USDA report shows several of America’s top trading partners have increased their funding. The EU’s expenditures have grown since 2000, as have the funding pools in India and Brazil. But no country has experienced as rapid an increase in funding as China, which became the largest funder of agricultural R & D after 2011, surpassing the European Union. As recently as 2015, China was spending more than $10 billion yearly on agricultural R & D. That level was roughly twice what the U.S. spent in 2015 and nearly quintupled China’s own R & D spending in 2000. With China a major importer of U.S. agricultural goods and Brazil a competitor to the U.S. in global corn and soybean markets, these developments could have a significant impact on America’s export competitiveness.
| Rural Advocate News | Friday December 23, 2022 |
Friday Watch List Markets In spite of being the last day of trading before Christmas, Friday has several reports on the docket and will be a normal trading session. The U.S. Commerce Department reports on U.S. personal incomes and consumer spending for November at 7:30 a.m. CST, the same time as a report on U.S. durable goods is out. At 9 a.m., the University of Michigan's report on consumer sentiment in December is due along with a report on U.S. new home sales for November. At 2 p.m., USDA will release cattle on-feed and the quarterly inventory of hogs and pigs, both for December 1. After the Christmas holiday, trading for grain and livestock futures will start again Tuesday morning at 8:30 a.m. CST. Weather A strong arctic front has passed through most of the country, with only the Northeast yet to go. Temperatures have fallen to significantly low values Friday morning and will continue to be frigid through the weekend. Winds remain high across much of the country, creating blowing snow and blizzard conditions harsh for travel, and dangerous windchills for humans and livestock. Precipitation is moving off to the East Coast, though lake-effect snows will wind up during the day. Snow is falling in the Pacific Northwest as well, a sign of a more active pattern for the West to close out 2022.
| Rural Advocate News | Thursday December 22, 2022 |
Sustainable Ag Coalition Supports Omnibus, Looks Into Ag Provisions The National Sustainable Agriculture Coalition says it supports the 2023 omnibus appropriations bill. It’s also looked into several agricultural provisions included in the bill. The coalition says the bill includes $242 billion for discretionary programs funded annually and mandatory programs like the Supplemental Nutrition Assistance Program. NSAC is pleased to see higher investments in a couple of key programs, including a $5 million increase for the Sustainable Agriculture Research and Education Program, and a more than $40 million increase for Conservation Technical Assistance. The coalition is also pleased to see expanded support for the Farm to School Grant Program, which will see a $2 million boost in its allocation, now at $14 million. NSAC Interim Policy Director Mike Lavender says, “The bill includes several key funding increases, though by and large maintains level funding for many programs.” They’re hopeful the bill gets to the president’s desk for signature as soon as possible. *********************************************************************************** U.S. Dairy Applauds USTR Actions Against Canada’s Dairy Practices The National Milk Producers Federation and U.S. Dairy Export Council applaud U.S. Trade Representative Katherine Tai’s actions under USMCA regarding Canada’s dairy market. Tai is filing a new request for dispute settlement consultations with Canada in order to expand the scope of the second USMCA dairy dispute to include additional elements necessary to ensure Canada complies with its trade agreement obligations. “We thank USTR and USDA for their diligence in working to ensure that American dairy producers have the market access promised under USMCA,” says Jim Mulhern, president and CEO of NMPF. “Canada continues to flagrantly flout its obligations, so the U.S. government needs to be ready with retaliatory measures.” Krysta Harden, president and CEO of USDEC, says it’s deeply unfortunate that Canada refuses to honor the full terms of the agreement. “USMCA is a fair deal that was thoroughly negotiated and agreed to by the Canadian government,” she says. *********************************************************************************** Wheat Industry Rail Shippers Welcome STB Rulings on Rate Disputes The U.S. Surface Transportation Board has put more streamlined processes in place for rail rate disputes that may benefit agricultural shippers. The STB established a voluntary arbitration program and a new procedure for rate challenges, known as the Final Offer Rate Review. Wheat farmers and the grain trade rely heavily on rail to transport wheat to export terminals, but rates for hauling wheat are often higher than for other crops. The U.S. Wheat Associates’ Working Transportation Group is pleased that the STB recognizes rail shippers need new and innovative ways to engage railroads on rate concerns. “These rulings are a welcome sign that rail customers like wheat farmers are being heard,” says Charlie Vogel, working group chair. “The voluntary arbitration program and the FORR process will help give smaller shippers a greater ability to challenge rail rates.” STB Chair Martin Oberman says they wanted to make smaller rail disputes reasonable and less time-consuming. *********************************************************************************** U.S. Egg Production Down Five Percent in November American egg production totaled 8.87 billion in November, down five percent from the same time last year. Production included 7.62 billion table eggs and 1.25 billion hatching eggs, of which 1.16 billion were broiler-type and 92.1 million were egg-type. The average number of layers in November totaled 375 million, down four percent from last year. November egg production per 100 layers was 2,369 eggs, slightly lower than last November. Total layers in the U.S. on December 1 totaled 374 million, five percent lower than last year. The layers consisted of 308 million layers producing table or market-type eggs, 62 million layers were broiler-type hatching eggs, and 3.74 million layers producing egg-type hatching eggs. Egg-type chicks hatched during November reached 46.5 million, up two percent from the previous November. Broiler-type chicks hatched during November totaled 810 million, one percent higher than in November 2021. Leading breeders placed 7.68 million broiler-type pullet chicks in November. *********************************************************************************** National Ag Day Essay Contest Looking for Entries Ahead of National Ag Day on March 21, 2023, the Agriculture Council of America is hosting an essay contest. The theme for the year is Growing a Climate for Tomorrow: How American Agriculture Does it Every Day. The essay contest is divided into two categories, either a written essay or a video essay. Both are national competitions and both winners get $1,000. The contest is open to students currently in grades 9 through 12. They must be a U.S. citizen and attend school in the U.S. The National Ag Day Program encourages every American to understand how food and fiber products are produced. It also teaches people to appreciate the role that agriculture plays in providing safe, abundant and affordable food products. The deadline for submitting entries in the essay contest is February 15, 2023. Go to agday.org for more information on contest rules, entry forms, or National Ag Day 2023. *********************************************************************************** USDA Says Dairy Exports Hit Record Levels USDA’s Foreign Agricultural Service released its biannual report on America’s dairy exports. The report found that U.S. dairy exports are setting records this year in terms of value. The report covers January through October and says this increase was driven by strong prices for dairy products. Overall values are up 25 percent. Whey exports led the way with a 37 percent increase since last year. USDA says the increase in export value didn’t necessarily coincide with an increase in export volume. In fact, nonfat dry milk export volume dropped eight percent while the value went up by 27 percent. Ice cream and dry whole milk and cream saw a decrease in export volume by one and two percent, respectively. On average, volumes rose by five percent. Butter and milk fat were the only categories where volume growth outpaced growth in value. Volume increased 43 percent while the value rose 30 percent.
| Rural Advocate News | Thursday December 22, 2022 |
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 and updates of third-quarter U.S. GDP and the U.S. Drought Monitor. The Conference Board's U.S. index of leading indicators from November will be out at 9 a.m., but weather will get most of the day's attention with bone-chilling temperatures and snow fanning out across the central U.S. Traders will also keep an eye on South American forecasts. Weather An arm of the polar vortex is sweeping through the middle of the country on Thursday. Very cold temperatures are filling in behind a cold front, which is producing a band of snow as well. Winds behind the front are intense and areas that have snow cover will see blizzard conditions developing. The southwestern Plains may see cold damage on wheat over the next couple of mornings while livestock are at extreme risk.
| Rural Advocate News | Wednesday December 21, 2022 |
Omnibus Includes Growing Climate Solutions Act, SUSTAINS Act The National Milk Producers Federation commended Congress for including the Growing Climate Solutions Act and the SUSTAINS Act in its final fiscal year 2023 budget package. The measures will help dairy farmers seek additional sustainability opportunities as they work to fulfill the dairy sector’s voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050. NMPF president and CEO Jim Mulhern says, “Environmental markets and conservation programs have the potential to meaningfully assist dairy producers as they work to meet their 2050 environmental stewardship goals.” The Growing Climate Solutions Act would enable USDA to register technical service providers that help farmers implement stewardship practices that can generate credits on environmental markets. The SUSTAINS Act would allow private sector funds to supplement existing funding for farm bill conservation programs, which are continuously oversubscribed. The Senate will vote on the omnibus appropriations bill this week which also includes $40 billion in disaster funding. *********************************************************************************** US Requests New USMCA Dispute Consultations on Canadian Dairy TRQ Policies United States Trade Representative Katherine Tai Tuesday announced that the United States is requesting new dispute settlement consultations with Canada under the United States – Mexico – Canada Agreement. The request is over Canada’s dairy tariff-rate quota, or TRQ, allocation measures. Since initiating consultations with Canada in May 2022, the United States has identified additional aspects of Canada's measures that appear to be inconsistent with Canada's obligations under the USMCA, and U.S. concerns have only increased. With this new request, the United States expands its challenge of Canada’s dairy TRQ allocation measures to include Canada’s use of a market-share approach for determining TRQ allocations. Agriculture Secretary Tom Vilsack says, “Canada remains in violation of its commitments under the USMCA by not removing its trade restrictions on American dairy producers.” In January 2022, a USMCA dispute settlement panel found Canada’s dairy TRQ allocation measures to be inconsistent with Canada’s USMCA obligations. *********************************************************************************** USDA and USTR Seek New Trade Advisory Committee Members The Department of Agriculture and the Office of the U.S. Trade Representative are accepting applications for new members to serve on agricultural trade advisory committees. Members of the Agricultural Policy Advisory Committee advise the administration on implementing and enforcing existing U.S. trade agreements, negotiation of new agreements, and other trade policy matters. Members of the six Agricultural Technical Advisory Committees, or ATACs, provide technical advice and guidance on international trade issues that affect specific agricultural commodity sectors. The ATACs focus on trade in animals and animal products, fruits and vegetables, grains, feed, oilseeds, and planting seeds, processed foods, sweeteners and sweetener products, tobacco, cotton, and peanuts. Applicants must have expertise in U.S. agriculture and experience in international trade to be considered for committee membership. Application instructions are available at fas.usda.gov. Applications must be received by 5 p.m. ET on January 31, 2023. *********************************************************************************** USDA Invests $9.5M to Develop New Bioproducts from Agricultural Commodities The Department of Agriculture Tuesday announced an investment of $9.5 million to support the scale-up of sustainable bioproduct manufacturing in the United States. Three successful projects are funded through USDA’s National Institute of Food and Agriculture’s Bioproduct Pilot Program, which funds research and development of value-added products from agricultural commodities. Authorized and funded by the Infrastructure Investment and Jobs Act, the Bioproduct Pilot Program presents a unique opportunity to spur economic activity in the nation’s rural areas while lowering commercialization risks associated with bringing biobased products to market. The program’s exploration into bioproducts accelerates USDA’s efforts to develop circular bioeconomies, where agricultural resources are harvested, consumed, and regenerated sustainably. This pilot program also supports the objectives outlined in President Biden's recent Executive Order on Advancing Biotechnology and Biomanufacturing for a Sustainable, Safe, and Secure American Bioeconomy. The three awardees are Virginia Polytechnic Institute and State University, the University of Illinois Urbana-Champaign, and Soylei Innovations of Ames, Iowa. *********************************************************************************** USDA: Vegetable Prices Spike in 2022 Fresh-market vegetable crops in California, Florida, and Mexico were hit with a variety of inclement weather this summer and fall. The adverse weather reduced supplies and contributed to higher shipping-point prices, according to a USDA Economic Research Service report. Shipping-point prices for fresh vegetables are expected to remain above seasonal norms until new or replanted fields are harvested in late December or early January. While retail prices for all food rose at the quickest year-over-year pace since 1979, up about ten percent, retail fresh vegetable prices, as measured by the Consumer Price Index, rose six percent during the first three quarters of 2022. Driven primarily by rising transport costs and higher prices for key items such as potatoes, onions, and lettuce, when complete this year, the Consumer Price Index for fresh vegetables will likely present the largest year-to-year gain since an 11 percent surge in 1998. *********************************************************************************** Study Shows Soybean Oil for Biofuels Has Limited Impact on Overall Food Prices A new study shows U.S.-grown soybeans are well suited for people looking to cook, fuel up or find other sustainable solutions. The United Soybean Board partnered with Purdue University to evaluate whether the increased use of soybean oil in biofuels has contributed to the rising retail prices of food products for consumers. One key element missing from this equation is that only one-fifth of the soybean is oil, most of the soybean is meal used as a high-quality protein in animal diets. This expanded crush for oil to meet biofuel demand creates increased availability for meal, driving down the price of animal protein products. Jayson Lusk of Purdue University says, “What we found, after assessing the impact of rising soybean oil demand on prices at the grocery store, was little change to the Consumer Price Index.” While the increased demand for biofuels pushed up retail prices for oil between 0.16 percent and 4.41 percent, retail animal product prices declined between -0.01 percent and -0.16 percent.
| Rural Advocate News | Wednesday December 21, 2022 |
Wednesday Watch List Markets Wednesday is the first official day of winter and it will definitely feel like winter for anyone in the northern U.S. There are reports of U.S. consumer confidence in December and U.S. existing home sales in November at 9 a.m. CST, followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. Traders continue to closely watch the latest weather forecasts, especially for Argentina. Weather A significant low pressure system is pushing into the central U.S. Wednesday, and it will continue to bring snow to much of the north central U.S. into Wednesday night. Accompanying the snow will be very cold temperatures extending from the Northern Plains into the central Plains and Upper Midwest. Wind gusts up to 40-50 mph will also accompany the snowfall, creating blizzard conditions and dangerously cold wind chills.
| Rural Advocate News | Tuesday December 20, 2022 |
2022 Census of Agriculture Underway The Department of Agriculture Last week mailed the 2022 Census of Agriculture paper questionnaires to all known agriculture producers across the nation and Puerto Rico. Producers in the states received their survey codes last month with an invitation to respond online. Any producer who has yet to respond online now has the option to complete the ag census at agcounts.usda.gov or by mail. Producers who have already responded online do not need to respond again. The deadline for response is February 6, 2023. USDA National Agricultural Statistics Service Administrator Hubert Hamer says, “We know producers are busy, which is why NASS worked to make responding to the ag census more convenient than ever before.” The Census of Agriculture remains the nation’s only comprehensive and impartial agriculture data for every state, county, and U.S. territory. Responding to the Census of Agriculture is required by law, and the same law requires NASS to keep all information confidential. *********************************************************************************** Mexico Offers Amendments to Biotech Decree The U.S. Trade Representative’s Office and the Department of Agriculture are evaluating proposed amendments to Mexico’s decree to ban the use and purchase of biotech commodities. In a joint statement, USTR Katherine Tai and Agriculture Secretary Tom Vilsack say, “We agreed to review their proposal closely and follow up with questions or concerns in short order,” adding, “There is a joint recognition that time is of the essence and we must determine a path forward soon.” The two officials met with a delegation of senior Mexican Government officials in Washington, D.C. late last week. On the same day, a group of more than 20 farm-state Senators urged USTR and USDA to take action against Mexico’s proposal to ban U.S. genetically-engineered corn. The Senators write, “It would be detrimental to food security in Mexico, hurt U.S. agricultural sustainability, and stifle future agricultural technology innovations that would benefit both nations.” *********************************************************************************** Iowa State University Cover Crop Report A new report from the Iowa State University Center for Agricultural and Rural Development summarizes five years of data on Iowa farmers' use of cover crops. The survey was administered to farmers who visited local conservation field offices and received technical assistance related to cover crops. The more than 3,000 responses shed light on Iowa farmers' rationale and motivations to use cover crops, the timing of planting and termination, the types and extent of varieties used, and farmers' preferred information sources. The most prevalent types of operations using cover crops were farms producing row crops and cattle, and farms producing row crops but no livestock. Most respondents seeded cover crops on erodible land, and only on a portion of their fields. The stated motivations to use cover crops reported by at least two-thirds of the respondents include preventing soil erosion, building soil organic matter, improving soil health, and improving/protecting water quality. *********************************************************************************** Applications Open for Women in Food & Agriculture Mentorship Program Alltech recently announced Applications are now open for the Women in Food & Agriculture Mentorship Program. Now in its third year, the free-to-join program matches applicants based on their preferences, which can include gender of mentor, areas of expertise, language and industry sector, and offers opportunities for women in food and agriculture to develop meaningful industry connections. Alltech President and CEO Mark Lyons says, “We view our involvement in the Women in Food & Agriculture mentorship program as an investment not only in the lives of women but in the future of agriculture.” Women in Food & Agriculture is looking for mentors of any gender who have at least one year of experience in the food and ag sector. During matching, the organization will ensure all mentors have more work experience than mentees, so this should not be a barrier to mentors applying. For more information and to apply to be a mentor or mentee, visit wfa-initiative.com *********************************************************************************** Angus Foundation to host 150 Years of Angus Celebration The Angus Foundation will host a 150 Years of Angus Celebration on January 6 at Cattlemen's Congress in Oklahoma City. In 1873, George Grant settled in Victoria, Kansas, with four Angus bulls from Scotland. The evening of Angus fellowship will feature door prizes and auction items to benefit the Foundation's mission, food and refreshments and the announcement of the 2023 Angus Herdsman of the Year. Jaclyn Boester, Angus Foundation executive director, says, "We're proud of the Angus legacy built over the past 150 years, and we know through the work of the Foundation and our supporters, the future looks just as promising." The evening's auction will feature several exciting lots, including a Two-Night Wine Country Getaway for Six and a Live Oak Plantation Experience and Quail Hunt. Funds raised through the auction will benefit the Angus Fund, which provides unrestricted support for the Foundation's mission of furthering Angus education, youth and research. For more information, visit www.AngusFoundation.org. *********************************************************************************** Fuel Price Decline Continues, But End in Sight The nation's average gas price declined again last week, falling 11.9 cents to $3.09 per gallon. The national average is down 57.1 cents from a month ago and 20 cents per gallon from a year ago. The national average diesel price fell 14.1 cents last week, reaching $4.77 per gallon. Overall, the price for a gallon of gasoline is down nearly $2 compared to six months ago, but oil prices may put an end to the declines soon. GasBuddy’s Patrick De Haan says, “While the decline should take the national average under $3 per gallon in the next week or so, it is soon likely to fade as oil prices have held in the $70 per barrel range.” After reaching as low as $72 per barrel, West Texas Intermediate crude oil has seen a slight rally on China’s reopening plans. However, De Haan says diesel prices could fall another 50 cents or more in the weeks ahead.
| Rural Advocate News | Tuesday December 20, 2022 |
Tuesday Watch List Markets A report on U.S. housing starts for November is set for 7:30 a.m. CST Tuesday, the only significant report on the day's docket. Traders will keep watch on the latest weather forecasts and any outside news that emerges. Traders will also pause at 8 a.m. to see if USDA has an export sale to announce. Weather While a very cold airmass still remains across the Canadian Prairies and the north central U.S. Tuesday, a significant low pressure system is developing in the northern Rockies and will push east throughout the day, eventually reaching the northwest plains later Tuesday night. Meanwhile, a disturbance bringing rain showers across the southern Mississippi Valley will continue pushing east into the Southeast throughout Tuesday.
| Rural Advocate News | Monday December 19, 2022 |
Group Supports Modernizing H-2A Visa Program The American Business Coalition Immigration Action group applauded the Senate introduction of the Affordable and Safe Food Act. The legislation would modernize the nation’s farm guest worker H-2A visa program by opening it up to more farmers. “ABIC Action fully endorses this bill and is so grateful for the leadership of Senator Michael Bennet in introducing the legislation,” says ABIC executive director Rebecca Shi (she). The bill would make visas available for year-round work in the dairy industry and other agricultural sectors, put a down payment on border security with mandatory e-verify, stabilize wages for farmers, and create legal protections and a pathway to citizenship for undocumented decade-plus farm workers. Senator Bennet says the cost of farm labor has gone up almost 50 percent over the past decade, much higher than wage costs in other sectors of the economy. The bill would save farmers $23 billion over the next 12 years. *********************************************************************************** EPA: New Biofuel Mandates Will Boost GHG in Short Term The Environmental Protection Agency’s proposed changes to the nation’s biofuel blending mandates through 2025 will cause a short-term increase in greenhouse gas emissions. However, agency documents also say the changes will yield long-term reductions. The new proposal will add to greenhouse gas emissions over the next three years by between 81 million and 266 million tons. A Reuters review of the documents says the rise will come from new tiling for corn, soy, and other plantings that release carbon from the soil. EPA’s GHG calculator says that’s the climate equivalent of driving 17 million and 57 million vehicles for one year. However, EPA also projects those emissions will be more than offset in the long term due to reduced tailpipe emissions and other factors. Those figures are assuming biofuel volume mandates don’t change after 2025. EPA says the proposal would reduce GHGs by between 128 million and 1.6 billion metric tons. *********************************************************************************** Groups Argue in Court to Preserve Chlorpyrifos A total of 20 agricultural groups argued before the Eighth Circuit Court of Appeals in Washington, D.C., about chlorpyrifos. Specifically, they asked the court to reinstate chlorpyrifos tolerances that the Environmental Protection Agency has found safe. EPA revoked those safe tolerances, which effectively ended agriculture’s chance to use an important pesticide. The decision has inflicted enormous costs on thousands of American farmers and undermined their ability to protect their crops from potentially devastating insect pests. The groups say EPA revoked the safety tolerances despite finding on multiple occasions that at least 11 high-benefit crop uses could be safely maintained. American Soybean Association President Daryl Cates says, “Farmers rely on regulators following the law. Congress wrote the pesticide laws that way to provide growers access to the tools they need to be successful and ensure those tools can be used safely.” The groups are hopeful for a ruling in the coming months. *********************************************************************************** NASDA Receives Large USDA Grant From FAS Emerging Markets Program The National Association of State Departments of Agriculture was awarded a USDA grant worth $925,000 through the Foreign Agricultural Services’ Emerging Markets Program. The EMP helps organizations promote exports of agricultural products to developing countries with strong growth potential. “We are excited for NASDA members to engage in critical discussions to support global market development and strengthen bilateral trade relationships,” says NASDA CEO Ted McKinney. The group will use the funding to conduct market research in emerging markets in Southeast Asia and Africa. NASDA will also organize outbound trade missions for state department of agriculture leaders to learn about the markets and engage in discussions with relevant parties in each country. “Our members understand how important it is to spread the message about the value and quality of U.S. products and the benefits of innovation around the world,” McKinney says. “The first step in earning trading partners is establishing open communication.” *********************************************************************************** Iowa Farmland Prices Jump Again Iowa State University’s annual Land Value Survey shows farmland values are averaging $11,411 an acre in 2022, a 17 percent rise from last year. ISU says farmers have a lot more cash on hand, and supply chain issues led to a shortage of equipment, so the money typically spent on equipment is now getting used to buy land. The survey included responses from land appraisers, farm managers, and lenders. Seventy percent of the people surveyed said land values were “too high” or “way too high.” However, 48 percent of the participants also expect prices to be higher a year from now. About 28 percent expect lower land values next year, and 24 percent expect prices to hold steady. The survey began in 1941, and the 2022 farmland value of $11,411 per acre is the highest in history. When adjusted for inflation, this year’s value comes in at $8,716 an acre. *********************************************************************************** Commodity Sales to Overseas Buyers Surge USDA says sales of grains and soybeans climbed week-to-week during the week ending on December 8. Soybean sales took a healthy jump to 2.94 million metric tons, up from 1.72 million the week before. Sales surged as China bought 1.25 million metric tons, and another unnamed country purchased 1.03 million metric tons. However, exports for the week fell to 1.85 million metric tons, down from 2.25 million tons the week before. Corn sales totaled 958,900 metric tons, a sharp jump from 692,000 during the previous week. Guatemala was the top buyer at 196,400 metric tons, and Mexico bought almost 171,000 metric tons. Export sales for the week hit 591,000 metric tons, down from a little over 900,000 tons the previous week. Wheat sales rose to 469,000 metric tons, a sharp rise from 190,000 during the previous week. Exports were reported at 255,900 metric tons, down slightly from the previous week.
| Rural Advocate News | Monday December 19, 2022 |
Monday Watch List Markets Back from the weekend and getting close to Christmas, USDA's weekly report of export inspections at 10 a.m. CST is the only item on Monday's docket. Trading may be slower than normal this week, but changing weather forecasts, outside market concerns and the constant threat of Russian mischief will keep us all paying attention. Weather A very cold airmass will remain across the Canadian Prairies into the north central U.S. Monday. Meanwhile, a two-part system will provide rain showers and a few thunderstorms across the south central U.S. with snow showers across the north.
| Rural Advocate News | Friday December 16, 2022 |
USDA Invests in Infrastructure to Combat Climate Change in Rural America Agriculture Secretary Tom Vilsack Thursday announced USDA is investing $285 million in critical infrastructure. The investment seeks to lower energy costs, expand access to clean energy for people across rural America, and combat climate change. USDA is also making an additional $300 million available under the Rural Energy for America Program, including $250 million through the Inflation Reduction Act, to spur further investment. Vilsack says, "People in rural America are on the front lines of climate change, and our communities deserve investments that will strengthen our Country's resilience." USDA is making 844 investments through the Rural Energy for America Program. The program helps farmers purchase and install renewable energy systems and make energy efficiency improvements. USDA also announced that it will make $300 million available under the Rural Energy for America Program to expand renewable energy and support energy-efficiency projects. The deadline to apply for grants is March 31, 2023. Applications for technical assistance grants are due January 31, 2023. Applications for loan guarantees are accepted year-round. *********************************************************************************** Bennet, Newhouse, Introduce Last Minute Farm Labor Bill In a last-minute effort to get H-2A reform finished before Congress adjourns, lawmakers have introduced a new bill. Senator Michael Bennet, a Democrat from Colorado and Representative Dan Newhouse, a Washington state Republican, introduced the Affordable and Secure Food Act Thursday. The legislation will reform the H-2A Temporary Agricultural Worker program by expanding H-2A visas to year-round jobs for the first time, modernizing the application process, creating more wage certainty, and ensuring critical protections for farm workers. Senator Bennet says, “This plan is broadly supported by farmers, by labor, by immigration advocates, and business,” adding, “There is no reason that we shouldn’t get this done.” Representative Newhouse says, “let’s stop waiting, and start acting,” and “reform our broken immigration laws.” The legislation reflects years of close input from farmers and ranchers, agricultural workers, and labor organizations, and would establish a program for agriculture workers, along with their spouses and minor children, to earn legal status. *********************************************************************************** USDA Releases 2021 Organics Data USDA’s National Agricultural Statistics Service Thursday released the results of the 2021 Organic Survey. The survey shows total sales of $11.2 billion in organic products, an increase of $1.28 billion, or 13 percent, from 2019. There were 17,445 certified organic farms, a five percent increase from 2019. California continued to lead the nation in certified organic sales with $3.55 billion, which is 32 percent of the U.S. total. It also led all states with more than 3,000 certified farms and 813,700 certified acres. Washington, Pennsylvania, Texas, and Oregon, round out the top five states for value of organic sales. Marketing practices in the certified organic farming sector showed that $2.02 billion in organic products were sold directly to retail markets, institutions, and local/regional food hubs. Another $310 million in organic products were sold directly to consumers. The value of processed or value-added products such as jam, wine, cheese, and meat, accounted for $707 million. *********************************************************************************** McKinsey & Company Release Global Farmer Survey Results Despite economic disturbances, high crop prices are giving farmers around the world cause for cautious optimism, according to a new survey. Global consultancy McKinsey & Company this week released the results of its global survey of 5,500 farmers from nine countries. Seventy percent of farmers expect profits to remain stable or increase - the result of higher crop prices driving profitability in the next two years. Consequently, farmers are being inspired to invest in new products that are focused on yield increase and crop protection. Despite an uncertain future with supply chains impacted by geopolitical conflicts, farmers are facing the changes head on, innovating in new areas and adopting new strategies. Vasanth Ganesan, Partner at McKinsey, says, “Products and services should be tailored and personalized for growers, to stimulate uptake and provide farmers access to yield-driving technologies and greater cost-efficiencies. McKinsey & Company is a global management consulting firm in more than 130 cities and 65 countries. *********************************************************************************** CHS Releases 2022 Sustainability Report CHS recently released the 2022 CHS Sustainability Report, describing the company's approach to sustainability and highlighting some of its sustainability initiatives. The actions taken by CHS will help the company reduce its impact on the planet, respond to opportunities related to enhanced sustainability and continue to build a better future for the farmers and ranchers who own the cooperative system. In 2022, CHS added Megan Rock as vice president, sustainability and innovation and chief sustainability officer. CHS will place an emphasis on helping owners, and other stakeholders understand the company's approach to environmental, social, and corporate governance reporting, including providing definitions and interpretations in the 2022 CHS Sustainability Report. The company is also exploring technologies that impact supply chain automation, real-time soil sensing and traceability in row crops as part of its sustainability efforts. For an in-depth look into the 2022 CHS Sustainability Report, visit chsinc.com/sustainability. *********************************************************************************** “Yellowstone” Creator to Speak at Annual Cattle Industry Convention Taylor Sheridan will speak during the Opening General Session of the 2023 Cattle Industry Convention & NCBA Trade Show in New Orleans on February 1. Sheridan will join NCBA President Don Schiefelbein, a Minnesota cattle producer, for a conversation about ranch life. Sheridan says, “My passion for the ranching lifestyle has inspired me to write stories that are rich in history, led by complex characters, and focus on family dynamics.” Sheridan is an Academy Award®-nominated writer and actor as well as a member of the Texas Cowboy Hall of Fame. A Texas native himself, Sheridan excels in the Western horse performance industry as an avid supporter and competitor in reining and cutting. He also owns and operates two Texas ranches, including the legendary 6666 or Four Sixes Ranch, a 2015 Environmental Stewardship Award Program regional winner, and Bosque Ranch. Sheridan recently launched Four Sixes® Ranch Brand Beef which retails beef sourced from 6666 and a network of ranches.
| Rural Advocate News | Friday December 16, 2022 |
Friday Watch List Markets There are no significant reports on Friday's docket, but traders will pay attention to the latest weather forecasts, pause at 8 a.m. CST to see if USDA has an export announcement and will keep an eye on outside markets and any news from Ukraine. Livestock traders have to wait for USDA's cattle on-feed and quarterly hogs and pigs inventory reports, due out next Friday after the market close, just in front of the Christmas weekend. Weather While our large winter storm continues to wind down slowly, snow will fall in bands across northern areas of the country throughout the day. Winds are still elevated behind the system, mostly across the Plains, where blizzard conditions continue.
| Rural Advocate News | Thursday December 15, 2022 |
Corn Growers Call on Biden to Set Quick, Firm Timeline with Mexico Leaders of state corn groups and the National Corn Growers Association called on President Biden to take additional steps to address the pending decree by Mexico that would block imports of biotech corn. A letter sent to the President Wednesday encouraged Biden to raise the issue during upcoming trade talks and to file a dispute under the United States-Mexico-Canada Agreement if Mexico doesn't act expeditiously to withdraw the decree. The leaders say, "Corn farmers are right now in the process of making planting decisions for next spring, and any additional uncertainty in the market affects their ability to appropriately respond to multiple market signals." Mexico's Foreign Secretary Marcelo Ebrard plans to visit Washington this week to discuss the issue ahead of a planned meeting on trade between Biden, President Andrés Manuel López Obrador and Prime Minister Justin Trudeau in early January. The state corn grower leaders urged Biden to raise the issue at the meeting. *********************************************************************************** CoBank Releases 2023 Year Ahead Report The U.S. economy still has considerable momentum and is not currently on the verge of recession., according to CoBank's 2023 Year Ahead report. However, economists have never been more pessimistic, and there are legitimate reasons for concern. Over the past half-century, inflation above five percent has never been tamed without incurring a recession. Dan Kowalski, vice president of CoBank's Knowledge Exchange, says, "As financial conditions continue to tighten, we expect the U.S. economy will steadily soften through the first half of 2023." After two years defined by a strong economic rebound from the pandemic, the global economy will sputter in 2023. Despite the global pandemic and a steady barrage of disruptive challenges, the U.S. agricultural economy has fared quite well for the last three years. However, in 2023 producers and related industries will begin to show financial strains. A relentless series of adversities, including skyrocketing production costs, steeply higher interest rates and weakening demand, will increasingly pressure farm income and margins. *********************************************************************************** Counties with Continuous High Poverty Since 1960 Largely Rural Fresh data from USDA’s Economic Research Service shows counties with continuous high poverty since 1960 are largely rural. In 1960, 78 percent of U.S. counties had poverty rates of 20 percent or more. Among them, 28 percent continued to have high poverty through 1980. After enactment of the Economic Opportunity Act of 1964, commonly known as the War on Poverty initiatives, many counties reported reduced poverty rates. Between 1980 and 2019, poverty rates were relatively stable, mainly fluctuating with cyclical changes in the macroeconomy. As of 2019, there were 304 counties—13 percent of the counties with high poverty in 1960—that consistently had poverty rates of 20 percent or more over the last 60 years. The majority—264 counties—are rural counties and are clustered in the Appalachian States; the Black Belt in the South; the Mississippi Delta; the Ozarks region of Missouri, Arkansas, Oklahoma, and southeast Kansas; the Southwest; and in counties with large American Indian and Alaska Native populations. *********************************************************************************** New Project Allows Cotton Farmers to participate in Carbon Markets A new collaboration offers southern cotton growers the chance to participate in carbon markets. The Ecosystem Services Market Consortium, US Cotton Trust Protocol, Manulife Investment Management, and Forum for the Future announced the effort Wednesday. The collaboration launched an Eco-Harvest pilot project in Alabama, Arkansas, Texas, and Tennessee. The project will work with cotton farmers to generate high-quality carbon and greenhouse gas credits on more than 2,300 acres. Cotton producers targeted for enrollment include those implementing conservation practices such as nutrient management, reduced tillage, and cover crops. Once producers are enrolled in ESMC’s Eco-Harvest program, ESMC quantifies credits and arranges third-party credit verification by a global certification body. Corporate buyers can purchase these verified credits to help meet their supply chain sustainability targets. Participating farmers, who may be new to private voluntary ecosystem markets linked to conservation practice adoption, will develop knowledge on and the ability to participate in markets. Learn more about the program at ecosystemservicesmarket.org. *********************************************************************************** USDA Invests Additional $10M to Support Community Food Projects USDA’s National Institute of Food and Agriculture Wednesday announced an investment of nearly $10 million through the Community Food Projects Competitive Grants Program. The funding, made possible through the American Rescue Plan Act, bolsters USDA’s food and nutrition security efforts. Specifically, the funding promotes the self-reliance of communities in providing for the unique food needs of their community members. Community food projects support small to medium farmers, producers and processors in urban, rural, tribal and insular areas. The program provides communities a voice in food system decisions and supports local food markets to fully benefit the community, increase food and nutrition security and stimulate local economies. The program funds projects that meet the food needs of low-income individuals through food distribution, community outreach or improved food access. The funds will be invested in 29 Community Foods Projects from fiscal year 2022 Request for Applications submissions that were highly ranked but could not be funded at the time due to budget constraints. *********************************************************************************** NOAA Announces Funding for Fish Habitats Across U.S. NOAA Fisheries Wednesday announced $105 million in funding for 36 new fish passage projects under the Bipartisan Infrastructure Law. The announcement includes significant funding to implement fish passage projects that meet tribal priorities and build tribal organizational capacity to support their role as stewards of tribal resources. Through the funding, NOAA prioritized projects that demonstrate a broad base of stakeholder and community support. Selected projects will span the full range of fish passage types, including dam removals, fish ladders, culvert improvements and in-stream fish passage improvements. NOAA says 15 of the projects, encompassing more than $26.3 million in funding, will be led by tribal applicants for fish passage. Fish passage is about improving access for fish to the habitats they need or reconnecting access to historic habitat blocked by humans. Migratory fish like salmon require access to high-quality rearing and spawning habitats, and unimpeded migratory corridors, to be successful and resilient.
| Rural Advocate News | Thursday December 15, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, a report of U.S. retail sales in November and an update of the U.S. Drought Monitor. At 9:15 a.m., the Federal Reserve's report on U.S. industrial production for November will be out, followed by the U.S. Energy Department's report of natural gas storage at 9:30 a.m. and the November soybean crush report from the National Oilseeds Processors later Thursday morning. Traders will keep watch over the latest weather forecasts and outside market behavior after Wednesday's half-percent rate hike from the Federal Reserve. Weather A slow-moving, strong storm system continues to produce widespread weather impacts to the country on Thursday. Heavy snow is falling in bursts across the Upper Midwest and Dakotas and a line of precipitation is moving through the Eastern Seaboard. Winds are still high on the backside of the system across the Northern Plains, producing blizzard conditions. Colder air is filling in behind the cold front through most of the country.
| Rural Advocate News | Wednesday December 14, 2022 |
November Combine Harvesters, Four Wheel Drive Tractor Sales Grow Combine harvester sales remained positive in November, as did four-wheel drive tractor sales in both the U.S. and Canada. However, the latest data from the Association of Equipment Manufacturers says total tractor sales fell in both countries. Total U.S. ag equipment unit sales fell overall though the largest units grew in sales. November’s total farm tractor sales fell 21 percent compared to 2021, with the under-40 horsepower segment seeing the biggest drop at 28 percent. U.S. self-propelled combine sales in November grew 8.3 percent to 314 units sold. Combine sales are one of two positive segments this year, up 15.7 percent year-to-date. The other growing segment in 2022 is the 100-plus horsepower segment, up 6.2 percent during November and 13.3 percent higher year-to-date. Combine harvesters and 4WD tractors were the only higher segments in Canada. “While total sales are down, the larger equipment continues to be strong,” says Curt Blades of AEM. *********************************************************************************** Lower Soybean Oil Demand Means Higher Ending Stocks The current 2022-2023 U.S. soybean balance sheet remains unchanged for now as export and crush volumes are in line with current forecasts. Although soybean meal is off to the projected start, the same can’t be said for soybean oil. Abysmal export volumes and commitments have resulted in a lower soybean oil export forecast for the current marketing year, dropping by 200 million pounds to 1.1 million pounds. Total commitments were down 90 percent on December 1. The U.S. Environmental Protection Agency released its renewable fuel obligation targets for 2023-2025, which included a slight bump in the biomass-based diesel mandate during the first year. The EPA also approved and finalized a pathway for canola oil used in renewable diesel production. As a result, America’s soybean and canola oil balance sheets are changed to nearly offset the expected impacts on domestic use. Ultimately, the soybean oil ending stocks forecast got raised to 1.9 billion pounds. *********************************************************************************** Vegetable Prices Up 40 Percent Americans are paying up to 40 percent more for their vegetables than in 2021, and drought is a big reason for the price hike. A new report from Daily Mail says the increase is due, in large part, to states that grow fresh produce getting hit with water cuts because of droughts and storms destroying some crops as well. For example, Arizona produces 90 percent of the leafy greens in the U.S. and experienced its worst drought in 1,200 years. Water levels in the Colorado River are dramatically low, cutting down on the amount of water available to farmers. No relief is coming for Arizona’s farmers as officials will cut Arizona’s water intake from the Colorado River by 21 percent starting on January 1, 2023. The nation’s top agricultural state, California, is also getting hurt by severe drought. The biggest increase was a 38 percent jump in the price of fresh and dry vegetables. *********************************************************************************** Officials Want Support for Organic Poultry and Dairy Producers Senator Tammy Baldwin and Representatives Jared Huffman and Chellie Pingree led 25 colleagues in a bipartisan, bicameral letter asking Ag Secretary Tom Vilsack for immediate assistance for organic poultry and dairy producers. “We’re writing on behalf of the organic and poultry sectors to request emergency relief in response to skyrocketing feed costs that are impacting the future viability of this industry,” the letter says. “The situation is dire and requires your immediate response.” International trade challenges specific to the organic sector, persistent drought, and the lack of a stable domestic supply of certified organic feed combined to create a dire economic situation for organic livestock farmers for the past two years. They also point out that year-over-year price spikes in the cost of feedstuffs are now creating unsustainable circumstances that could lead to further farm closures, reduced competition, and ultimately limit consumer choice. If not addressed, the impact could be devastating. *********************************************************************************** CNH Industrial Opening Electrification R and D Center in Michigan CNH Industrial recently announced it has opened a new technical center in Detroit, Michigan. The center is designed to support the company’s growing innovation in electrification. It will also enhance CNH Industrial’s technology capabilities. “This new center underlines our commitment to growing our electric vehicle and subsystem profile and marks another milestone for us,” CNH says in a statement. “This allows us to become more customer-focused and build mission-fit electrified drivetrains and high voltage systems.” The new site in Detroit will complement and partner with the company’s existing electrification site in Italy. The sites will work together to advance the company’s position in alternative types of propulsion built on more than 15 years of R and D experience. “As an employer, we are investing in talented and motivated people who augment our in-house electrification capabilities,” says Kevin Barr, Chief Human Resource Officer. “Our talent will change agriculture in the years ahead.” *********************************************************************************** Weekly Export Inspection Numbers Drop USDA says inspections of soybeans and grain for overseas delivery all fell in the seven days ending on December 8. Soybean assessments came in at 1.84 million metric tons, down from over two million tons the prior week. That’s still better than the 1.75 million reported during the same week last year. Corn inspections also fell, dropping to 505,000 metric tons. That number was down from almost 825,000 the previous week. That corn number was also below the total from the same time last year of 930,000 metric tons. Wheat inspections totaled just 218,500 metric tons, down from more than 341,000 the week before and 269,000 during the same week last year. Since the start of the marketing year, USDA has inspected 7.15 million metric tons of corn for export, 23.4 million metric tons of soybeans, and 11.1 million metric tons of wheat. The wheat marketing year began on June 1.
| Rural Advocate News | Wednesday December 14, 2022 |
Wednesday Watch List Markets At 9:30 a.m. CST Wednesday, the U.S. Energy Department will release its weekly report of energy inventories, including ethanol productions. At 1 p.m., the Federal Reserve will conclude its two-day meeting and is expected to increase the federal funds target by a half-percent. Traders will be watching for any comments from the Fed, the latest weather forecasts and for any sign of export sales. Weather In the midst of a strong storm system, continued heavy snow and blizzard conditions are occurring over the Northern Plains while a band of precipitation arcs through the Midwest and down into the Lower Mississippi Valley. Additional precipitation is forming over eastern Texas as another low pressure center develops on a strong cold front near the Mississippi River later today. That low will move northeast and through the Midwest with additional precipitation and risks for severe weather across the Gulf Coast.
| Rural Advocate News | Tuesday December 13, 2022 |
FACA Congratulates Additional Recipients of Climate-Smart Pilot Project Funding The Food and Agriculture Climate Alliance Monday congratulated the second group of organizations selected to receive funding through USDA’s Partnerships for Climate-Smart Commodities Program. Agriculture Secretary Tom Vilsack announced the additional funding of $325 million for 71 projects under the second funding pool of the effort. USDA received more than 1,000 proposals between two funding pools requesting more than $20 billion in funds. The announcement brings the total investment from both funding pools to more than $3.1 billion for 141 tentatively selected projects. The projects will provide meaningful opportunities for small and underserved producers to participate in innovative climate programs, according to FACA. One of FACA’s key tenets is ensuring federal climate programs offer equitable opportunities for all farmers, ranchers and forest owners. FACA supports a voluntary, incentive-based approach to advance the deployment of climate-smart practices on working lands. FACA consists of organizations representing farmers, agribusinesses, manufacturers, the food and innovation sector, state governments, sportsmen, and environmental advocates. *********************************************************************************** USDA Accepting Applications for Panama Agribusiness Trade Mission USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for a regional trade mission to Panama from March 19-23, 2023. FAS Administrator Daniel Whitley says, "This is a perfect time to increase U.S. agricultural and food exports to Central America." USDA staff and regional experts will provide in-depth market briefings while in the country. The agency will also arrange targeted business meetings with potential customers from Panama, a bilateral Free Trade Agreement partner, and buyers from countries in the multilateral Central America and Dominican Republic Free Trade Agreement. The region offers strong capabilities in logistics, distribution, processing, cold chain, and more. Strong opportunities exist for exporters across many industries, including poultry, pork, dairy, beer and wine, snack foods and health foods. This will be the first USDA Agribusiness Trade Mission in 2023. The deadline to apply for the CAFTA-DR trade mission is Friday, December 30. Complete information is available at fas.usda.gov/. *********************************************************************************** FTC: Tractor Supply Company Must Sell Some Orscheln Stores The Federal Trade Commission recently finalized a consent order settling Tractor Supply Company’s acquisition of rival chain Orscheln (ORR-shlin) Farm and Home LLC. Following a public comment period, the FTC determined the acquisition would have harmed competition among farm stores in the Midwest and South. The consent order imposes a number of requirements, including that Tractor Supply divest some Orscheln stores, as well as Orscheln’s corporate offices and Missouri distribution center, to Bomgaars )BOM-gars), an Iowa-based farm store chain, and other stores to Buchheit (buck-eyet), another chain with farm stores in Missouri and Illinois. Tractor Supply Company announced it closed the Orscheln Farm and Home acquisition in October in a deal valued at $320 million. The consent agreement also requires that for a period of three years, the companies buying the divested farm stores must obtain prior approval from the FTC before selling any of the Orscheln stores they acquired. *********************************************************************************** Alltech ONE Conference Embarks on a World Tour in 2023 Alltech is transforming its annual Alltech ONE Conference in 2023 into a series of international events. The events will invite collaboration on the greatest challenges facing the agri-food industry. Instead of welcoming the world to Alltech's home in Lexington, Kentucky, as it has for the past 38 years, the Alltech ONE World Tour will bring the ideas and inspiration of the ONE Conference to communities throughout the world. Stops are planned in Brazil, Canada, Hungary, Indonesia, Ireland, Italy, the Middle East, the Philippines, Singapore, Spain, the United States and Vietnam. Additional stops are expected to be announced in 2023. Alltech President and CEO Dr. Mark Lyons says, "As our customers and partners continue to face many challenges and uncertainties, we determined that 2023 would be dedicated to meeting them in their market." Alltech will welcome the international conference back to Kentucky in 2024, and the company will release more details about the 2023 tour in the coming weeks. *********************************************************************************** Portland to Replace Petroleum Diesel Sales with Biodiesel Portland, Oregon’s city council recently voted to phase out petroleum diesel sales and replace the product with biofuels. The policy focuses on diesel fuel, phasing in requirements for cleaner, renewable fuels, with the goal of achieving 99 percent renewable blend of all diesel fuel sales in Portland by 2030. The rulemaking process and the interim rule allows flexibility to adjust the policy based on real market conditions. While renewable fuel producers are confident that supply will be available in Oregon by 2026, the rollout timeline was extended to 2030 in response to concerns from local industry about supply and cost. City leaders say the efforts reduce dependence on nonrenewable fossil fuels by increasing the required percentage of renewable fuels blended with petroleum diesel. The standard only applies to retailers of diesel fuel located within the city of Portland. Replacing petroleum diesel at the pump is one of the 43 priority actions listed in the Portland Climate Emergency Workplan. *********************************************************************************** Weekly Fuel Prices: Diesel Declines Outpace Gas The nation's average gas price declined for the fifth consecutive week, down 14.4 cents from a week ago to $3.21 per gallon. The national average is down 56.5 cents from a month ago and 11.0 cents per gallon lower than a year ago. The national average price of diesel has fell 14.9 cents in the last week and stands at $4.91 per gallon. GasBuddy's Patrick De Haan says, “We remain on schedule to see the national average gas price fall below $3 by Christmas, with diesel set to fall 50 cents to $1 per gallon over the next six weeks or so.” The keystone XL Pipeline shutdown, De Haan adds, is not expected to impact fuel prices, for now. Under the weight of economic concerns, a possible surge in COVID cases as China works towards re-opening, and a changed psyche that OPEC+ is over-producing, oil prices fell last week to their lowest in nearly a year.
| Rural Advocate News | Tuesday December 13, 2022 |
Tuesday Watch List Markets Just as the Federal Reserve begins its two-day meeting Tuesday, we will all get to see the U.S. Labor Department's report of November consumer prices at 7:30 a.m. CST. The report probably won't stop the Fed from raising rates by a half-percent on Wednesday, as is expected, but it could offer a clue for future decisions. Traders will continue to keep close watch on the latest weather forecasts, any export news and events in Ukraine. Weather A very strong storm system is moving through the Plains Tuesday morning. A line of showers and thunderstorms are creating some severe weather across Texas, which will likely get into Louisiana and adjacent areas this afternoon. Farther north, heavy snow is picking up from Colorado to South Dakota and will expand into Montana, North Dakota, and Minnesota later Tuesday and Tuesday night. Winds are also strong across much of the middle of the country, creating blowing dust in dry areas of the Plains and a blizzard in the heavy snow across the north.
| Rural Advocate News | Monday December 12, 2022 |
USDA Releases December WASDE Report, Corn Exports Drop The December World Ag Supply and Demand Estimates report says the 2022-2023 corn outlook is for lower exports and greater ending stocks. Exports dropped by 75 million bushels as export competition and high U.S. corn prices have slowed sales and shipments. Corn ending stocks grew by 75 million bushels. The season-average corn price dropped ten cents to $6.70 a bushel. Soybean supply and use projections are unchanged from November. Because of the recent EPA proposal on RVOs, soybean oil used for biofuels dropped by 200 million pounds. Oil exports are also at historic lows through November. The season-average soybean price is unchanged at $14.00 per bushel. The December wheat supply and use outlook is unchanged from last month. Global wheat consumption is lowered by 1.6 million tons, mainly on lower feed and residual use by the EU and Ukraine. The season-average farm price is down by ten cents to $9.10 a bushel. *********************************************************************************** Representatives Send Letter to USTR on Mexico’s Upcoming Corn Ban Twenty-four members of the House of Representatives Ways and Means Committee sent a letter to U.S. Trade Representative Katherine Tai about Mexico. They want a resolution to a lingering trade dispute with Mexico over biotech corn imports. “We’ve been working closely with Congress on this issue, and it’s inspiring to see congressional champions faithfully taking up the mantle,” says National Corn Growers Association President Tom Haag. “These members are now looking to Ambassador Tai to uphold the integrity of USMCA.” The letter is the latest development and response from U.S. officials as the ag community braces for a fallout if Mexico follows through on its promise to ban biotech corn shipments in early 2024. Ninety percent of U.S. corn is biotech corn. Ag Secretary Tom Vilsack traveled to Mexico City and met with Mexican President Lopez Obrador, saying the U.S. would consider all options, including formal steps to enforce the terms of USMCA. *********************************************************************************** Beef Agreement Between U.S., Japan Officially Set for January 1, 2023 U.S. Trade Rep Katherine Tai and Japan’s Ambassador to the U.S. confirmed that amendments to the beef safeguard trigger level under the U.S.-Japan Trade Agreement will trigger on January 1, 2023. The letters confirmed both countries completed their procedures to put the protocol in place. “The new beef safeguard agreement will ensure that America’s farmers and ranchers can continue to meet Japan’s strong demand for high-quality U.S. beef,” says Tai. “I’m grateful to leaders and stakeholders in both countries for their dedication and ingenuity, which were important in reaching this outcome.” The new protocol amends the beef safeguard trigger level with a new three-trigger safeguard mechanism. The new amendment allows U.S. beef exporters to more reliably meet Japan’s growing demand for high-quality beef, provides more predictability, and reduces the probability that safeguard duties would get imposed on U.S. beef. All three criteria must be met to impose a tariff on U.S. beef. *********************************************************************************** FCA Issues Latest Report on the Ag Economy The Farm Credit Administration received a quarterly report on economic issues affecting U.S. agriculture and an update on the performance of the Farm Credit System. Inflation and rising interest rates continue to be major economic issues despite a recent slowdown in inflation. Consumer reaction to inflation, higher interest rates, and the labor market will be key drivers for the economy in 2023. Input costs will be important for farmers next year. Volatility in the price of natural gas will continue to be passed on through fertilizer prices. Supply chain difficulties persist with agricultural equipment, leading to high prices and long waits for new equipment and replacement parts. Through the first nine months of 2022, the Farm Credit System reported favorable financial results, including continued loan growth, increased earnings, and robust capital levels despite some decline in the System’s capital-to-asset ratio. Portfolios remained strong despite challenging operating conditions in certain sectors and regions. *********************************************************************************** ASA, Cotton Growers Present Oral Arguments in Dicamba Case The American Soybean Association and the Plains Cotton Growers, Incorporated, presented oral arguments before the D.C. Circuit Court of Appeals last Thursday. It’s a part of the case of the American Soybean Association versus the EPA. The two groups urged the court to clarify jurisdictional rules under FIFRA and to require the Environmental Protection Agency to use the best available science when evaluating dicamba pesticide registrations and potential impacts to species protected by the Endangered Species Act. The groups filed the lawsuit against EPA in November 2020 on the five-year registration for the use of dicamba on dicamba-tolerant soybeans and cotton. Growers argued EPA’s flawed approach led the agency to impose arbitrary and overly burdensome buffers and application cutoff dates. The groups are asking the court to remand portions of the registration back to the EPA for reconsideration with the direction to use the science and data available to the agency. *********************************************************************************** NSP Announces Winners in its Sorghum Yield Contest National Sorghum Producers announced the winners of the 2022 Sorghum Yield Contest. This year’s Bin Buster Award winners are Brant and Amy Peterson of Winsome Farms in Kansas. They had the top yield in the contest at 245.8 bushels per acre. “National Sorghum Producers congratulates the winners of the 2022 Sorghum Yield Contest,” says NSP Board of Directors Chair Craig Meeker. “Despite a challenging growing season, there are impressive top-end yields scattered across the nation. We congratulate the winners and look forward to recognizing them during the 2023 Commodity Classic in Orlando, Florida.” Meeker says the results of this year’s contest show just how resilient sorghum can be. “The Bin Buster yield is six times the 2022 national average yield this year and one of the top ten yields on record in the contest.” While the drought had a significant impact on many sorghum growers, Meeker says they’re very proud of the results.
| Rural Advocate News | Monday December 12, 2022 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts, especially for South America, and still digesting the few changes from Friday's WASDE report. USDA's weekly report of export inspections will be out at 10 a.m. CST and will likely show more soybean movement. The U.S. Treasury reports on the federal budget for November at 1 p.m. Weather A major winter storm system will move out of the Rockies and into the Plains on Monday. Winds will increase ahead of the system, bringing a lot of moisture northward for the system to work with. Widespread precipitation is expected in the middle of the country by late afternoon or evening, including heavy snow and some ice to the north and potential for severe storms along a cold front in the Central and Southern Plains. Temperatures are well above normal for a lot of the country but will be falling below normal as the system moves eastward through the rest of the week.
| Rural Advocate News | Friday December 9, 2022 |
Vilsack to Announce Second Round of Climate-Smart Commodities Investments Agriculture Secretary Tom Vilsack travels to Alabama Monday to announce the second round of investments of the Partnerships for Climate-Smart Commodities funding. Projects from the second funding pool will emphasize the enrollment of small farming and ranching operations, including underserved producers, as well as measurement, monitoring, reporting and verification activities developed at minority-serving institutions. The investment in projects nationwide will expand markets for climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production and provide direct, meaningful benefits to production agriculture, according to USDA. In September, Vilsack announced USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. USDA first announced details of the Partnerships for Climate-Smart Commodities opportunity in February 2022. The 70 projects announced in September are from the first funding pool, which included proposals seeking funds ranging from $5 million to $100 million. *********************************************************************************** AFBF: Labor Challenges Increase Farm Economy Pressures Labor demands continue to tax the bottom lines of farmers and ranchers, with rising wage rates and record usage of the H-2A visa program. The American Farm Bureau Federation says meaningful reforms to the federal government's guest worker program must be a priority for Congress by the end of the year. AFBF and more than 350 other food and farm organizations that are part of the Ag Workforce Coalition sent a letter urging the Senate to pass legislation to address the nation's agricultural workforce challenges this year. The House of Representatives passed a farm labor reform bill, but the legislation needs improvements according to the coalition. The letter states, “The country cannot afford for the Senate to miss this opportunity to provide stability to both farmers and farmworkers.” Recent analysis from AFBF economists indicates that costs associated with farm labor will add to the ever-expanding list of factors straining the farm economy in 2023. *********************************************************************************** October Pork Exports Largest in 16 Months; Beef Exports Already Top $10 Billion October exports of U.S. pork were the largest in more than a year, and beef export volume also increased from a year ago, according to the U.S. Meat Export Federation. U.S. beef exports are on a record pace in 2022 and have already exceeded $10 billion. Pork exports reached 238,190 metric tons in October, up five percent from a year ago and the largest since June 2021. Pork export value increased 13 percent to $697.3 million, the highest since May 2021. For January through October, pork exports were 12 percent below last year at 2.18 million metric tons, valued at $6.26 billion. October beef exports totaled 125,466 metric tons, up eight percent from a year ago. Export value was $929.8 million, down three percent from the large total reported in October 2021. In the first ten months of 2022, beef export value increased 18 percent from last year's record pace to reach $10.05 billion. *********************************************************************************** Lawmakers Introduce Consumer and Fuel Retailer Choice Act of 2022 The prospect of permanent, nationwide availability of the E15 ethanol blend moves closer with new House legislation, according to the Renewable Fuels Association. Representatives Angie Craig, a Minnesota Democrat, and Adrian Smith, a Nebraska Republican, this week introduced the Consumer and Fuel Retailer Choice Act of 2022. RFA President and CEO Geoff Cooper says the legislation will “finally remove a burdensome and nonsensical barrier to the broader deployment of cleaner, more affordable fuels.” Specifically, the legislation would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. It also would supersede an effort by Midwest state governors to make regulatory changes that would assure the availability of E15 sales year-round in their states. In November, RFA and the American Petroleum Institute led a broad coalition that called on Congress to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations. *********************************************************************************** Caloric Sweetener Availability Dropped 17% Last Two Decades In 2021, the number of caloric sweeteners available for consumption in the United States was 17 percent less than in 1999, falling to 127.3 pounds per person from 153.6 pounds. According to the USDA Economic Research Service's Food Availability Data System, a reduction in the availability of total corn sweeteners contributed to the drop. The availability of corn sweeteners fell from a peak of 85.7 pounds per person in 1999 to 55.3 pounds in 2021. Shifting preferences among consumers and food manufacturers, high corn prices, and competition with refined cane and beet sugars and other caloric sweeteners contributed to the decline. The availability of refined cane and beet sugars fell from 102.3 pounds per person in 1972 to 60.0 pounds in 1986 and remained relatively flat for the next two and a half decades. Refined sugar availability began to rise in 2010, surpassing corn sweeteners in 2011 and reaching 69.7 pounds per person in 2021. *********************************************************************************** National No-Tillage Conference Returns to St. Louis For the ninth time in its 31-year history, the annual National No-Tillage Conference is returning to St. Louis. Hosted by No-Till Farmer, the event will be held January 10-13 at the Hyatt Regency St. Louis Arch Hotel in St. Louis, Missouri. The content covers myriad topics in no-till, including equipment, cover crops, intercropping, economic analyses, soil analysis, fertilizing methods and more. Among the experts presenting are the highest-yielding farmers on the planet, including legendary no-tillers Russell Hedrick of North Carolina, David Hula of Virginia, Randy Dowdy of Georgia, Ray Archuleta of Missouri, and more. The program includes 14 general sessions, 45 roundtables and 23 classroom sessions. The National No-Tillage Conference provides practical tips, and information farmers need to run a more successful and profitable no-till operation. You can learn more about the event and register online at www.no-tillfarmer.com. Organizers say the event delivers insightful learning and unlimited networking with the best of the no-till community.
| Rural Advocate News | Friday December 9, 2022 |
Friday Watch List Markets The U.S. Labor Department will report on producer prices at 7:30 a.m. CST Friday, an important report that will influence Fed policy in the days ahead. The University of Michigan's index of U.S. consumer sentiment for early December is set for 9 a.m. Traders of course, will keep close watch over the latest weather forecasts and will also stop to take in USDA's WASDE and Crop Production reports, due out at 11 a.m. Weather A compact storm system is moving through the Midwest on Friday, producing a band of mixed precipitation and some moderate snow. The system will continue to track eastward through the region throughout the day, weakening as it moves into the Appalachians. At the same time, a lingering front across the South continues to see showers Friday morning that should continue as well. Friday night, a small disturbance will build on that front across the Southern Plains with more enhanced showers and thunderstorms going into the weekend.
| Rural Advocate News | Thursday December 8, 2022 |
Top House Ag Republican Wants Enhanced Safety Net The top Republican on the House Ag Committee wants a stronger safety net for U.S. farmers. Pennsylvania Republican Glenn Thompson wants Congress to strengthen crop insurance and farm subsidy programs so producers don’t have to rely on stop-gap federal aid to survive challenges like trade wars, natural disasters, and COVID-19. “The need for a reliable farm safety net is paramount,” says Thompson. He will likely become the committee chair in January when Republicans gain a slim majority in the House. Agriculture Dot Com says almost 80 percent of federal agriculture funding has moved through bailout programs since 2018. Farm groups want higher reference prices, a factor in calculating subsidy payments, and more protection under the federal crop insurance program. Some industry experts say a status-quo farm bill is possible because of the small majorities in the House and Senate and a potential lack of new funding sources for the farm bill. *********************************************************************************** Bunge Expecting Big Jump in Renewable Diesel Production The U.S. is about to more than double its production capacity for renewable diesel. Reuters says that prediction comes from Greg Heckman, the CEO of Bunge, who says the country’s production capacity should hit five billion gallons by 2024. Heckman recently said his company hasn’t changed its own capacity plans after the recent RFS blending requirements didn’t increase as much as the industry expected. “Demand is up,” he says. “It’s sure not affecting us as we’ve been making plans for the long term.” Bunge formed a joint venture with Chevron in 2021 and announced plans to expand processing capacity by 2024 at Bunge’s soy-crushing facilities in Illinois and Louisiana. Those beans can be used to produce soy-based biodiesel. Other companies like JP Morgan say the EPA’s proposal on biofuel blending requirements calls for a “surprisingly low amount of growth,” and they worry about an oversupply of biodiesel without large enough mandates. *********************************************************************************** Consider Corn Challenge Winner Almost Ready for Commercialization ExoPolymer, Inc. won the Consider Corn Challenge 2 Contest and has taken its idea one step closer to commercialization. The new partnership with CP Kelco will help the company scale up the production of a new polysaccharide-based polymer. It’s domestically-produced by microbial fermentation using corn sugar as a feedstock. “We’re thrilled to see a previous Consider Corn Challenge winner, Derek Wells and ExoPolymer, continue to reach key milestones and get closer to commercializing their ideas,” says NCGA Director of Market Development Sarah McKay. “This is our hope for all winners and is the goal of the contest.” NCGA also says it wants to highlight some of the great research going on using corn as an industrial feedstock, which in turn increases corn demand. If all 15 winners of the Consider Corn Challenges reached full commercialization with products available in the marketplace, that could be an additional 3.4 billion bushels of new corn demand. *********************************************************************************** USDA Investing $981 Million to Expand Market Opportunities Ag Secretary Tom Vilsack announced his department is investing $981 million to help create new and better market opportunities and expand services for rural people, businesses, and entrepreneurs. The funds will be used to assist people in 47 states, Guam, and the Virgin Islands. “Rural people provide the everyday essentials our country depends on,” he says. “The partnerships we’re announcing today demonstrate USDA’s commitment to advocating for rural business owners and building brighter futures for everyone in rural America.” The funding will keep resources and wealth made by rural people right at home through affordable financing and technical assistance. It will also help rural Americans start businesses and allow small business owners to grow. It also opens doors to new economic opportunities for communities and people who’ve historically lacked access to resources and funding. USDA is making 242 awards through eight programs designed to create economic opportunities for rural people and businesses. *********************************************************************************** USDA Letter Emphasizing Western Drought and Conservation Priorities Senators Micheal Bennet of Colorado and Mitt Romney of Utah led a bipartisan group of 14 senators in sending a letter to USDA about the western drought and conservation priorities. They’re asking the agency to give parity to the urgent priorities of Western growers and communities through existing authorities, new funding, and collaboration across government. “The American West is in crisis,” the senators say in the letter. “Farm and ranch families hang in the balance as they grapple with a 22-year mega-drought.” They also say the acute shortage of water for Western growers threatens productive farmland across our states, which are both a pillar of rural economies and drivers of American food production. In the letter, the senators asked USDA to support Western farmers and ranchers to conserve water, improve water infrastructure and efficiency, protect lands at risk of erosion, and provide technical assistance for growers in regions hurt by drought. *********************************************************************************** There are Enough Christmas Trees to Meet the Demand The Christmas tree industry wants Americans to know there will be enough trees available to meet the demand for real Christmas trees. Marsha Gray, executive director of the Real Christmas Tree Board, says,” The industry met the demand in 2021 and will do so again this year. This is a year with few surprises.” Gray also says their annual survey found that 86 percent of real Christmas tree buyers had no problems finding a nearby place to get their trees in 2021. “Our grower survey tells us the demand for real trees is healthy,” Gray says. “Retailers see steady consumer interest in real Christmas trees and supply is pretty well matched to that interest.” Like many other sectors of U.S. agriculture, Christmas tree growers say their input costs have risen compared to last year. Consequently, many growers had a five to 15 percent increase in their wholesale prices compared to last year.
| Rural Advocate News | Thursday December 8, 2022 |
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 and an update of the U.S. Drought Monitor. Trading may be cautious ahead of Friday's WASDE report and traders will keep an eye on the latest weather forecasts and any news of an export sale. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Weather A storm system moving through the Central and Southern Plains northeast through the Ohio Valley is already producing a wide band of moderate rainfall from Oklahoma to Kentucky Thursday morning. The storm will fill in farther north later in the day with some potential for freezing rain and a band of moderate snow going through Nebraska into southern Minnesota and Iowa. The snow will continue across Wisconsin and Michigan on Friday. Temperatures are rising across most areas regardless of precipitation moving through.
| Rural Advocate News | Wednesday December 7, 2022 |
Farmer Sentiment Unchanged Despite High Costs, Rising Interest Rates There wasn’t much movement in the November Purdue University/CME Group Ag Economy Barometer. The index read 102 for the month, unchanged from October. However, the Current Conditions Index dropped three points to 98, while the Future Expectations Index rose two points to a reading of 104. Even though producer sentiment was the same in November, producers are continuing to look at their bottom line and rising interest rates. Combine that with high input and energy costs, and there’s a lot of anxiety at the farm level. Forty-two percent of the survey respondents list high input costs as their top concern in the year ahead. The Farm Capital Investment Index dropped to a record low of 31 in November. Almost 80 percent of the respondents said it’s a “bad time” to make large investments in farm machinery. Just over one-fourth of the respondents have made operational changes due to rising energy prices. *********************************************************************************** Poll Shows Voters Support Immigration Reform A poll of voters commissioned by the International Dairy Foods Association shows strong support for reforming immigration policy as a way to help control food prices. Almost 90 percent of Democrat voters and 79 percent of Republican voters support the idea of immigration reform. When asked about the price of food, it was an almost unanimous 94 percent who said that rising food prices are a problem in America. It turns out that over 40 percent of the voters see a connection between immigration issues and rising food costs. Democrat and Republican voters aren’t aligned in connecting immigration issues with rising food costs. Over half of Republican voters say they’re connected while only one-third of Democrats do. Over half of the voters, including 55 percent of Democrats and 58 percent of Republicans, support Congress passing substantial immigration reform. Older voters, post-graduate voters, and urban voters are the most supportive of reform *********************************************************************************** Rabobank: Fertilizer Prices Lower in 2023 Fertilizer consumption suffered in 2022 due to market volatility and record-high prices. However, a new Rabobank report says a recovery in consumption is possible in some regions next year, with fertilizer prices lowering and commodity prices at historically high levels. “The affordability index’s moving average is trending lower as fertilizer prices are returning to pre-Ukraine War levels,” says Rabobank. “For the next three months, the index will continue to trend downward but remain above normal.” The key point to watch for is nitrogen products, as the natural gas crisis in Europe has the potential to make urea and ammonia more expensive and could keep the index at a high level. Rabobank says the nitrogen-based fertilizer market is the most volatile among all fertilizers due to its connection with oil and natural gas markets. As those commodities get more volatile, urea and ammonia prices are expected to go along with the tide. *********************************************************************************** Export Inspections of Corn and Wheat Improve USDA says export inspections of corn and wheat rose while soybean assessments declined during the week ending on December 1. Corn inspections were just over 524,300 metric tons. That’s up from 311,700 tons the prior week. It’s still behind the 786,000 tons inspected during the same time last year. Wheat assessments reached 334,650 metric tons during the week, up from 284,500 tons during the previous week. It’s also ahead of the 285,000 tons inspected at the same time last year. Soybean inspections dropped to 1.72 million metric tons during the week, a significant drop from 2.23 million tons the prior week. Since the marketing year began, the agency has inspected 6.34 million metric tons of corn, 21.2 million metric tons of soybeans, and 10.9 million metric wheat tons. Last year at this time, the agency had inspected 9.42 million metric tons of corn, 23.8 million tons of soybeans, and 11.2 million tons of wheat. *********************************************************************************** Pork Checkoff Rate Adjustment on January 1 The Pork Checkoff rate will drop by five cents on January 1, 2023, to 35 cents per $100 of value. This change is the result of a resolution passed by voting delegates at the 2022 Pork Industry Forum. Pork Checkoff payments are collected for all pigs sold with a change of ownership. This includes the sale of weaned pigs, breeding age animals, and at the final market destination. Payments received by NPB for pigs sold on or after the first of the year will reflect the reduced rate. The rate change was recommended by the Pork Industry Vision Task Force, a group of 19 leaders from NPB, NPPC, and various state associations, to ensure the pork industry’s long-term success. Other actions from the task force included creating a joint producer-led working group of NPB and NPPC state leaders to conduct animal industry planning, prioritize issues, identify risks, and develop action plans. *********************************************************************************** NCBA Pleased with Cattle Contract Library Final Rule The National Cattlemen’s Beef Association welcomed the release of the final rule from the USDA to establish the Cattle Contract Library Pilot Program. This program was authorized following NCBA’s congressional engagement on the Consolidated Appropriations Act of 2022. “We are pleased that USDA listened to the feedback from industry stakeholders like NCBA while crafting the final rule for the Cattle Contract Library Pilot Program,” says NCBA senior director of government affairs Tanner Beymer. “We are hopeful that this pilot program will strike an appropriate balance between offering cattle producers additional insight into the market while also protecting their proprietary business information.” Beymer also says a Cattle Contract Library is just one of the many tools that NCBA has advocated for to help producers make informed business decisions and capture the most value possible for their cattle at sale time. NCBA provided USDA with feedback throughout the testing phase of the program.
| Rural Advocate News | Wednesday December 7, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CST Wednesday, the U.S. Labor Department will have a report on third-quarter U.S. productivity, followed by the Energy Department's weekly inventory report, including ethanol production. Traders will continue to monitor the latest weather forecasts, especially for Argentina where drought concerns lifted Tuesday's soybean prices. Traders will also watch for possible export sales announcements at 8 a.m. CST, after USDA reported 18.5 million bushels of U.S. soybeans sold Tuesday. Weather Remnants of a front across the Tennessee Valley will continue to produce scattered showers Wednesday. A disturbance across the north will provide scattered snow showers. Scattered showers will continue to develop across the Southern Plains and Mississippi Delta today and tonight. Temperatures will be below normal across the Northern Plains and northern Upper Midwest with near-normal temperatures across the Central Plains and southern Upper Midwest. Temperatures will remain well above normal across the South.
| Rural Advocate News | Tuesday December 6, 2022 |
Farm Capital Expenditures Increasing with Farm Income Rise In response to relatively stronger net farm incomes, U.S. farm sector capital expenditures have increased dramatically in the last three years, according to research by the University of Illinois. In 2019, farm sector capital expenditures were approximately $30.1 billion. The forecasted value for 2022 is $44.2 billion. Capital expenditures include tractors, trucks, autos, machinery, buildings, land improvements, and miscellaneous expenditures. Capital consumption represents the declining balance of capital stock or economic depreciation. The ratio of capital expenditures to capital consumption increased from 1.06 in 2019 to 1.70 in 2022. The data implies that farmers have used a portion of their strong net farm incomes in the last few years to replenish their capital stock. The changes in expenditures during the last four years have differed among expenditure categories. Specifically, increases were larger for tractors and machinery than for autos, trucks, buildings, and land improvements. *********************************************************************************** Food Price Index in November Virtually Unchanged The FAO Food Price Index averaged 135.7 points in November 2022, virtually unchanged from October. The index offered month-on-month decreases in the price indices for cereals, dairy and meat, nearly offsetting increases in vegetable oils and sugar. At this level, the index stood only marginally above—0.3 percent—its corresponding value in November 2021. The Cereal Price Index averaged 150.4 points in November, down 1.9 points from October, but still 6.3 percent above its value a year ago. The Oil Price Index averaged 154.7 points, up 3.4 points after declining for seven consecutive months. The Dairy Price Index averaged 137.5 points, down 1.7 points, but remained 9.2 percent above its value a year ago. The Meat Price Index averaged 117.1 points, down 1.1 points from October, but 4.1 percent above its value a year ago. Finally, the Sugar Price Index averaged 114.3 points in November, up 5.7 points from October. *********************************************************************************** Cover Crop Mixes account for 18 – 25% of Cover Crop Acreage USDA’s Economic Research Service finds cover crop mixes account for 18 to 25 percent of acres with cover crops. However, the use of single-species cover crops is more common. For corn fields in 2021, almost 75 percent of acres with cover crops used a grass or small grain cover crop, such as cereal rye, winter wheat, or oats. At 44 percent of acreage, cereal rye was almost twice as common as winter wheat as the cover crop on corn for grain fields. Rye and winter wheat were also the most common cover crops on soybean fields in 2018. Winter wheat was the most common cover crop used on cotton fields in 2019. Farmers add cover crops to a rotation to provide living, seasonal soil cover between the planting of two cash or forage crops. Including cover crops in a rotation can provide benefits such as improved soil health and water quality, weed suppression, and reduced soil erosion. *********************************************************************************** USDA Launches New Virtual Nutrition Center of Excellence The Department of Agriculture Monday announced the new Agricultural Science Center of Excellence for Nutrition and Diet for Better Health. The virtual center is part of President Biden’s Cancer Moonshot effort to end cancer as we know it. Agriculture Secretary Tom Vilsack says, “The virtual center will connect existing resources, including people and programs, to leverage expertise and increase coordination and cooperation.” USDA is enhancing its research focus on precision nutrition science to better understand the needs of underserved communities. The research complements efforts to advance food and nutrition security – which means consistent and equitable access to healthy, safe and affordable foods essential to optimal health and well-being, according to USDA. The World Cancer Research Fund claims 30-50 percent of all cancer cases are preventable by following a healthy diet and lifestyle. As part of the announcement, USDA convened a panel of experts that discussed nutrition's role in improving overall health and reducing risks for diet-related chronic diseases. *********************************************************************************** EPA Proposes Elimination PFAS Reporting Exemption The Environmental Protection Agency Monday proposed a rule to end an exemption used to avoid disclosure of certain PFAS releases. The exemption allows facilities to avoid reporting information on PFAS when those chemicals are used in small or minor concentrations. Because PFAS are used at low concentrations in many products, the rule would ensure that covered industry sectors and federal facilities that make or use PFAS will no longer be able to rely on the exemption to avoid disclosing their PFAS releases and other waste management quantities for these chemicals. PFAS chemicals have been used to make various commercial products, including non-stick cookware, stain-resistant carpets and furniture, water-resistant clothing, coated oil-resistant paper and cardboard food packaging, and some personal care products. Agriculture and PFAS chemicals can intersect through air, water, and soil, according to the Maine Department of Agriculture. One way that PFAS may enter soil is through the application of residuals such as biosolids, industrial sludges and ashes. *********************************************************************************** Gas, and Diesel Prices Fall Again The national average gas price fell 15.8 cents over the last week, down to $3.36 per gallon. The national average is down 43 cents from a month ago and 1.5 cents per gallon higher than a year ago. The national average diesel price fell 13.6 cents last week to $5.06 per gallon. GasBuddy's Patrick De Haan says, “it remains very possible the national average could fall under $3 per gallon by Christmas.” De Haan expects diesel prices to fall under $5 per gallon this week, and soon reach its lowest level since March of this year. While the declines are welcomed, De Haan cautions that there may be some concerns coming as the price cap on Russian oil kicks in. Further, retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. Meanwhile, U.S. retail gasoline demand rose last week by 2.3 percent, bouncing back the week after Thanksgiving.
| Rural Advocate News | Tuesday December 6, 2022 |
Tuesday Watch List Markets The U.S. Census Bureau's report on international trade data for October is