The USDA’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to increase by $19.5 billion (13.8 percent) from 2021 to $160.5 billion in calendar year 2022.”
Farm Policy News
Senate Blocks Rail Strike, World Food Prices Fall, China Moves to Ease “Zero COVID,” While EPA Issues Draft Biofuel Proposal
Tony Romm and Lauren Kaori Gurley reported on the front page of today’s Washington Post that “The Senate on Thursday adopted a measure that forces a deal between warring national freight railroads and their unions, averting a potential Dec. 9 strike that could have crippled U.S. travel and commerce ahead of the busy holiday shopping season.”
House Moves on Rail Dispute, as U.S. and Mexico “Tangle” on GMO Corn
Lauren Kaori Gurley and Liz Goodwin reported on the front page of today’s Washington Post that, “The House voted Wednesday to force a deal between freight rail carriers and unions, blocking a potential strike that threatened travel, supply chains and the busy holiday shopping season.”
Federal Reserve: Observations on the Ag Economy- November 2022
On Wednesday, the Federal Reserve Board released its November 2022 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
Congressional Leaders Pledge Action to Avert Rail Strike; Mexico’s Planned Ban on U.S. GMO Corn Imports Percolates, While U.S. Wheat Condition in Focus
Lauren Kaori Gurley reported on the front page of today’s Washington Post that, “Democratic leaders vowed to take up legislation to force a rail contract deal early Wednesday, despite objections from union members — and some in their own caucus — who raised concerns that the plan would not provide any paid sick days for workers.”
USDA Lowers FY 2023 Forecast for U.S. Agricultural Exports
On Tuesday, the USDA released its Outlook for U.S. Agricultural Trade, a quarterly report from the Department’s Foreign Agricultural Service (FAS) and Economic Research Service (ERS). Today’s update includes highlights from the report, which was coordinated by Bart Kenner, Hui Jiang, Dylan Russell and James Kaufman.
As Rail Strike Looms, Pres. Biden Calls on Congress to Act, While U.S. Threatens Legal Action on Mexico’s Planned Import Ban of U.S. GMO Corn
Esther Fung and Andrew Restuccia reported in today’s Wall Street Journal that, “President Biden called on Congress to pass legislation that would avert a rail shutdown by imposing a proposed contract that members at four railroad unions had rejected.”
China Protests Contribute to Global Demand Fears
Lingling Wei, Brian Spegele and Wenxin Fan reported on the front page of today’s Wall Street Journal that, “Protests are erupting in major cities in China over President Xi Jinping‘s zero-tolerance approach to Covid-19, an unusual show of defiance in the country as the economic and social costs from snap lockdowns and other strict restrictions escalate.”
Rising Cost of Credit Impacting Farmers
Earlier this week, Reuters writers P.j. Huffstutter and Bianca Flowers reported that, “Montana farmer Sarah Degn had big plans to invest the healthy profits she gleaned for her soybeans and wheat this year into upgrading her planter or buying a new storage bin.”
Brazil Exports Corn to China, Amounts Could Increase, as Mexico Signals Softening of Planned Import Ban of U.S. GMO Corn
Bloomberg writer Tarso Veloso Ribeiro reported yesterday that, “The first vessel carrying Brazilian corn to China is set to sail Wednesday after a deal earlier this year between the two nations.”
As Some Grain Has Shifted to Rail From River, Railroad Strike Looms, Diesel Fuel Supply a Concern
Esther Fung reported in today’s Wall Street Journal that, “One of the country’s largest railroad unions said Monday that its members voted to reject a new wage deal brokered by the White House, splitting with another large union and moving closer to a labor strike as soon as early December.”
Farm Bill Passage, “About to Get Much Harder”
Kristina Peterson reported in today’s Wall Street Journal that, “House Republicans had a tough time passing the last farm bill, when they had a sizable majority in 2018. It’s about to get much harder.”
Black Sea Export Deal Extended For Another 120 Days
Financial Times writers Roman Olearchyk and Ayla Jean Yackley reported today that, “Ukraine says negotiators from Kyiv and Moscow have agreed to prolong a UN and Turkish-brokered Black Sea grain export agreement, a crucial step to alleviating a global food crisis triggered by the conflict.”
Global Wheat Ending Stocks Tightest Since 2016/17, But Some See Global Food Price Declines for Next Year
In its monthly Wheat Outlook report earlier this week, the USDA’s Economic Research Service pointed out that, “2022/23 global ending stocks are projected up 0.3 MMT to 267.8 MMT but remain the tightest since 2016/17.”
Kremlin Expected to Extend Black Sea Export Deal
Bloomberg News reported today that, “Russia is expected to agree to extend a United Nations-brokered deal allowing exports of Ukrainian grain and other farm products from the Black Sea, ensuring a vital flow of foodstuffs to the world market.”
Farmland Values, Production Costs in Focus, No Agreement on Black Sea Export Deal, While Biden and Xi Meet
Linda Qiu reported in today’s New York Times that, “Joel Gindo thought he could finally own and operate the farm of his dreams when a neighbor put up 160 acres of cropland for sale in Brookings County, S.D., two years ago.”
Federal Reserve Ag Credit Surveys- 2022 Third Quarter
Yesterday, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the third quarter of 2022. The Federal Reserve Bank of Dallas also released its Agricultural Survey for the third quarter last month.
Food Prices Increase in October, at Slower Pace
New York Times writer Ana Swanson reported yesterday that, “Food prices continued to grow in October, inflating grocery bills for American households, though at a slightly slower pace than in previous months. The price of food rose 0.6 percent last month, down from 0.8 percent growth in September.”
UN, Russia to Discuss Black Sea Export Deal, Mexican GM Corn Purchases an Issue, as Mississippi River Water Levels Highlighted
Reuters writer Michelle Nichols reported yesterday that, “Top U.N. officials will meet a senior Russian delegation in Geneva on Friday to discuss extending a Ukraine Black Sea grain export deal and efforts to smooth shipments of Russian food and fertilizers to global markets, the United Nations said.”
USDA Sees More Corn, Wheat Acres and Less Soybeans in 2023/24 Crop Year
Earlier this week, Reuters writer Julie Ingwersen reported that, “The USDA on Monday released unofficial annual ‘baseline’ forecasts projecting that U.S. farmers are likely to expand plantings of corn and wheat for the upcoming 2023/24 marketing year, while reducing seedings of soybeans.”