Reuters’ Leah Douglas reported that “the administration of U.S. President Joe Biden on Monday finalized a rule requiring meat, poultry, or eggs labeled as a U.S. product to come from animals born, raised, slaughtered, and processed in the country.” “The rule, proposed last March, is a victory for U.S. ranchers who argued for years that […]
Agricultural Economy
Farmers Continue Embracing Solar Panels
Bloomberg’s Ilena Peng, Michael Hirtzer, and Will Wade reported Thursday that “farmers are increasingly embracing solar as a buffer against volatile crop prices and rising expenses. Their incomes are heading for a 26% slide this year, the biggest drop since 2006, as cash receipts for corn, soy and sugar cane are expected to drop by […]
Ag Avoids SEC Emissions Reporting Rule
Progressive Farmer’s Todd Neeley reported Wednesday that “the U.S. Securities and Exchange Commission on Wednesday voted to finalize a climate-disclosure rule that dropped a requirement for U.S.-listed companies to disclose Scope 3 greenhouse gas emissions, including farms and ranches.” “The final rule is considered a victory for farmers and ranchers who spoke out against the […]
Drought Ends Along Mississippi River, For Now
WorkBoat’s Pamela Glass reported last week that “the U.S. Army Corps of Engineers has officially declared an end to the severe drought that disrupted barge transportation along the Mississippi River system for more than a year.” “Draft restrictions on vessels have been lifted, and dredges no longer operate to maintain nine-foot navigation throughout the Mississippi […]
Spring Crop Insurance Projected Prices Fall
Progressive Farmer’s Katie Micik Dehlinger reported Thursday that “the corn projected price for 2024 revenue protection policies is 27% lower than last year at $4.66 per bushel, while the soybean projected price is 16% lower at $11.55. Projected prices for spring wheat are $6.85, 30% lower than last year.” “Revenue protection crop insurance policies won’t […]
USDA Raises 2024 Export & Import Forecast
The United States Department of Agriculture this week raised its fiscal year 2024 agricultural export and import forecasts by $1 billion each, holding steady its estimate of a $30.5 billion U.S. ag trade deficit in 2024. Fiscal year 2024 exports are now forecast at $170.5 billion, while imports are estimated at $201.0 billion. An ag […]
Government Shutdown Looms Amid Crop Insurance Deadline
Forbe’s Simon Moore reported Tuesday that “without passage of a budget or a continuing resolution, four appropriations areas of the U.S. government would shut down at midnight on March 1. This includes Agriculture, Rural Development, and the Food and Drug Administration; Energy and Water Development; Military Construction and Veterans Affairs; and Transportation, Housing and Urban […]
Corn Dropped Below $4 Last Week
Reuters’ P.J. Huffstutter reported that “Chicago Board of Trade corn futures (last) Friday dipped below $4 per bushel in the front-month contract Cc1 for the first time since November 2020, as hefty U.S. and global supplies weighed over the market.” May corn futures prices, however, remained above $4, closing at just above $4.13 last Friday. […]
Year-Round E15 Sales to be Approved for Midwest States in 2025
Reuters’ Jarrett Renshaw and Stephanie Kelly reported Tuesday that “the White House will approve a request from a group of Midwest governors to allow year-round sales of gasoline with higher blends of ethanol (in their states), but will push the start date into next year, two sources familiar with discussions said.” “The decision will likely […]
First Ship Abandoned After Red Sea Attack
Bloomberg’s Omar Tamo, Mohammed Hatem, and Alex Longley reported Monday that “the crew of a commercial ship in the Red Sea abandoned the vessel following a Houthi attack — the first such evacuation since the militant group began menacing trade in the vital waterway late last year.” “The strikes on the Rubymar, a relatively small […]
Soybean Futures Continue Falling
Bloomberg’s Gerson Freitas Jr reported that last week, “soybeans capped an eighth straight week of losses, the longest stretch of declines since 2006, on an outlook for record global stockpiles and sluggish appetite for US exports.” “The losing streak underscores how soybean traders have lacked any incentive to buy futures of the commodity used in […]
Farm Income Forecast to Fall in 2024
The United States Department of Agriculture Economic Research Service reported Wednesday that “net farm income, a broad measure of profits, is forecast at $116.1 billion in calendar year 2024, a decrease of $39.8 billion (25.5 percent) relative to 2023 in nominal (not adjusted for inflation) dollars.” “After adjusting for inflation, net farm income is forecast […]
Mexico Buying US Corn Despite Dispute
Reuters’ Karen Braun reported last week that “the United States has been losing corn export business to Brazil as the South American country continues expanding its output, though top customer Mexico has secured a record volume of U.S. corn for shipment this year.” “That is despite an active dispute between the United States and Mexico […]
Fed Rates Unchanged in January
CNBC’s Jeff Cox reported that “the Federal Reserve on Wednesday sent a tepid signal that it is done raising interest rates but made it clear that it is not ready to start cutting, with a March move lower increasingly unlikely.” “Policy makers have kept their benchmark interest rate between 5.25% and 5.5% — the highest […]
ADM Investigating Accounting Practices
Reuters writer Karl Plume reported on Monday that “An investigation into accounting practices in Archer-Daniels-Midland’s Nutrition segment could not come at a worse time for the company as sinking crop prices look set to erode profit for its core grain trading and processing businesses this year.” ADM had been counting on its Nutrition unit to return […]
Fed’s January Ag Economy Observations
The Federal Reserve Board on Wednesday released its January 2024 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. While the report covers generalized “regional economic conditions and prospects,” it also includes the following observations pertaining to the U.S. agricultural economy. Sixth District — Atlanta “Low cattle supply led […]
High Interest Costs Could Weigh On Farmland Demand
The Federal Reserve Bank of Kansas City’s Ty Kreitman reported yesterday that “higher interest rates and a moderation in agricultural commodity prices have cut potential returns and could dampen demand for farmland—and thus farmland values—going forward.” The potential for lower farmland demand is largely driven by the fact that, “In 2023, interest costs on new […]
Argentina’s Rosario Exchange increases soybean and corn production estimates
Bloomberg reporter Jonathan Gilbert reported yesterday that “Argentina is on course to produce its best soybean crop in five seasons — 52 million metric tons — as El Nino-fueled rains water fields that were parched by several years of drought.” “An Argentine soy harvest of 52 million tons would surpass last year’s miserly crop by 160%, impacting […]
Red Sea Attacks Continue, Could Affect U.S. Corn
Reuters reported yesterday that “U.S. and British naval forces shot down 21 drones and missiles fired by Yemen-based Houthis on Tuesday towards the southern Red Sea, the United States said, with Britain hinting at further measures to protect international shipping lanes.” The attack was the largest attack by the Houthis in the Red Sea since mid-November, […]
German Farmers Protest Ag Subsidy Cuts
CNBC writer Sophie Kiderlin reported at the beginning of this week that “Farmers across Germany on Monday began protests against the government’s economic and agricultural policies, blocking roads and highways with tractors and marching through major cities.” “Farmers are protesting the government’s plans to reduce or withdraw tax breaks for the agriculture sector, which were […]