Des Moines Register writer Donnelle Eller reported this week that, “After last year’s destructive derecho, which flattened corn and stripped soybean across the state, better-than-expected yields and strong prices are making this harvest a profitable one for Iowa farmers lucky enough to have gotten the much-needed rain.”
Keith Good
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
FAS: “China Continues to Drive Red Meat Trade”
In its Livestock and Poultry: World Markets and Trade report this week, the USDA’s Foreign Agricultural Service (FAS) indicated that, “China pork production is expected to contract in 2022 as the hog sector adjusts to rapidly changing market conditions. Hog prices have fallen dramatically since the beginning of 2021 and have remained persistently low despite recent national holidays that usually mark an uptick in pork consumption.”
Higher Crop Income Boosts U.S. Farm Outlook, as Energy Crunch Poses Ongoing Concerns
Bloomberg writers Michael Hirtzer and Kim Chipman reported this week that, “It turns out that 2021 was a pretty good year to be an American farmer.”
Fertilizer Fever: Soaring Costs Could Impact Farmers and Food Prices
Bloomberg writer Elizabeth Elkin reported on Friday that, “A gauge of North American fertilizer prices soared to a record high, driving up costs for farmers and threatening to worsen food inflation.”
First Steps in U.S., China Trade Talks, as Heavy Rain Delays China’s Corn Harvest
Wall Street Journal writer Yuka Hayashi reported late last week that, “The Biden administration kicked off its trade-policy engagement with China late Friday with a virtual meeting between U.S. Trade Representative Katherine Tai and Chinese Vice Premier Liu He.”
Global Food Prices Highest Since 2011, as Energy Costs Rise and Supply Chain Challenges Persist
Bloomberg writer Megan Durisin reported on Thursday that, “The jump in global food prices to a decade high risks leading to even more expensive grocery bills, and the energy crisis is threatening to make things even worse.”
Biden, Xi Plan Virtual Summit by Year’s End
Financial Times writers Demetri Sevastopulo and Ryan McMorrow reported on Thursday that, “Joe Biden and his Chinese counterpart Xi Jinping have agreed to hold a virtual summit this year, in the first sign of improving relations between the countries since the US president took office.”
USDA Attache Update from Beijing Highlights Corn Import Variables
A recent report from the USDA’s Foreign Agricultural Service (FAS) post in Beijing (“China: Grain and Feed Update”) stated that, “Post’s MY 2021/22 corn import forecast is 20 MMT, 6 MMTs below USDA’s official forecast.”
Trade Representative Katherine Tai Outlines U.S., China Trade Policy
Wall Street Journal writers Josh Zumbrun, Bob Davis and Lingling Wei reported in Tuesday’s paper that, “The Biden administration began defining its China trade policy Monday, saying it aims to launch new talks with Beijing but will keep existing tariffs in place, while also restoring the ability of U.S. importers to seek exemptions from those levies.”
Promising Vaccine Candidate for African Swine Fever
Bloomberg’s Mike Dorning reported last week that, “The U.S. Department of Agriculture has potentially found a vaccine to combat African Swine Fever, a disease that devastated hog herds in China and was recently detected in the Dominican Republic and Haiti, the agency said Thursday.”
Higher Fertilizer Prices Could Impact U.S. Acreage Allocation, as Power Issues in China Impact Feed Costs
Bloomberg writer Kim Chipman reported this week that, “Corn and wheat rebounded in Chicago as ripple effects from soaring fertilizer prices threatens to squeeze already tight grain supplies.”
China’s Energy Problems Impacting Food Security Variables, as Weaker Chinese Corn Buying Unfolds
Bloomberg News reported this week that, “China’s power-hungry commodities producers are in Beijing’s firing line, but the government’s efforts to stave off a full-blown energy crisis are also fueling rallies in everything from fertilizer to silicon.”
Democratic Lawmakers Call On Biden Administration to Halt Plan to Cut Biofuel Blending Volumes
Reuters writers Stephanie Kelly and Jarrett Renshaw reported this week that, “A group of U.S. Democratic lawmakers called on President Joe Biden to halt a plan to slash the amount of biofuels that oil refiners must blend into their fuel, according to a letter dated Monday.”
Gulf Export Inspections Making a Comeback, as Hog Production Variables in China Evolve
Reuters writer Karl Plume reported this week that, “U.S. soybean exports jumped last week to a six-month peak, while corn shipments were the highest in a month as Louisiana Gulf Coast terminals steadily ramped up operations disrupted nearly a month ago by Hurricane Ida, preliminary data showed on Monday.”
Wall Street Journal: “Revival” in the Farm Belt, But Things Can Turn Quickly
Wall Street Journal writers Jesse Newman and Bob Tita reported in Monday’s paper that, “A revival in the U.S. Farm Belt is in full swing, boosting markets for land and equipment and raising concerns over farmers’ escalating costs.”
Global Corn Production Higher, but Farmers Face Ida-Related Input Supply Disruptions- Increased Fertilizer Costs
Reuters writer Nigel Hunt reported last week that, “The International Grains Council (IGC) on Thursday raised its forecast for the 2021/22 global corn crop, predominately reflecting improved outlooks for the United States and Ukraine.”
Biden Administration Considers Biofuel Blending Cuts, According to Reports
Reuters writers Stephanie Kelly and Jarrett Renshaw reported this week that, “The administration of U.S. President Joe Biden is considering big cuts to the nation’s biofuel blending requirements, according to a document seen by Reuters, a move triggered by a broad decline in gasoline demand during the coronavirus pandemic.”
U.S. Beef Exports Increase, Reflecting Large Shipments to China
In its monthly Livestock, Dairy, and Poultry Outlook report last week, USDA’s Economic Research Service (ERS) stated that, “In July, U.S. beef exports totaled 297 million pounds, exceeding last July’s exports by 17.9 percent or 45 million pounds.”
Ports in the Gulf Show Signs of Life Post-Ida, But Export Volumes Still Below Normal
Reuters writer Julie Ingwersen reported earlier this week that, “U.S. grain exports increased last week as shippers along the Louisiana Gulf Coast recovered from flooding and widespread power outages caused by Hurricane Ida’s Aug. 29 landfall, but volumes were much lower than normal, preliminary data showed on Monday.”
Kansas City Fed: U.S. Farm Economy Strong in First Half of the Year
In an update from the Federal Reserve Bank of Kansas City earlier this month (“Financing of Ag Production Loans Eases Further”), Nathan Kauffman and Ty Kreitman stated that, “Farm debt at commercial banks continued to ease in the second quarter.”