The USDA’s Economic Research Service (ERS) indicated last week in its monthly Feed Outlook report that, “Ukraine borders Russia to the north and east, Belarus to the north, and several Eastern European countries—Poland, Romania, Hungary, Slovakia, and Moldova—to the west.”
Farm Policy News
Federal Reserve Ag Credit Surveys- 2021 Fourth Quarter, Rise in Farmland Values Accelerates
Last week, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the fourth quarter of 2021.
Food Prices Surge 7%, The Most Since 1981
Washington Post writers Andrew Van Dam and Rachel Siegel reported on the front page of Friday’s paper that, “Prices continued their upward march in January, rising at an annual rate of 7.5 percent, the fastest pace in 40 years, as pandemic inflation continues to defy expectations, climbing faster and lasting longer than nearly anyone would have guessed.”
U.S. Agricultural Exports Set Record in 2021
A news release on Tuesday from the USDA’s Foreign Agricultural Service stated that, “The American agricultural industry posted its highest annual export levels ever recorded in 2021, Secretary of Agriculture Tom Vilsack announced today.”
DTN: Fertilizer Prices Cool Slightly
DTN writer Todd Neeley reported on Tuesday that, “Most retail fertilizer prices tracked by DTN cooled off a bit during the first week in February, as five of the eight fertilizers reported small price drops.”
On Phase One, U.S. Patience with China “Wearing Thin,” as Purchase Commitments Fell Short
Reuters writers Andrea Shalal and David Lawder reported this week that, “U.S. officials called on Monday for ‘concrete action’ from China to make good on its commitment to purchase $200 billion in additional U.S. goods and services in 2020 and 2021 under the ‘Phase 1’ trade deal signed by former President Donald Trump.”
2022 Farm Sector Income Forecast, February
The USDA’s Economic Research Service (ERS) indicated on Friday that, “Net farm income, a broad measure of profits, is forecast to decrease by $5.4 billion (4.5 percent) from 2021 to $113.7 billion in 2022.”
Fertilizer Price Index Jumps Most Since September
Bloomberg writer Elizabeth Elkin reported on Friday that, “North American fertilizer prices rose the most in almost five months this week as a global competition for supplies means farmers could still have a ways to go before seeing relief from high nutrient costs.”
Conservation Title Kicks Off 2023 Farm Bill Debate in House Ag Subcommittee Hearing
Late last month, the Congressional Research Service (CRS) released an update titled, “Farm Bill Primer: Conservation Title.”
Global Food Prices Climb Towards Record
Bloomberg writer Megan Durisin reported on Thursday that, “Global food prices jumped toward a record last month, further adding to the surging cost of living for consumers.”
Anhydrous Reaches an All-Time High, While Belarus Potash Restrictions “May Play Into Russia’s Hands”
DTN writer Todd Neeley reported on Tuesday that, “Most retail fertilizer prices tracked by DTN continued to rise during the fourth week of January, while several of them continued to hit all-time highs.”
Russia-Ukraine Tensions Unnerving Grain Markets- Could “Spark Unrest Far From the Front Lines”
Wall Street Journal writer William Mauldin reported on the front page of Tuesday’s paper that, “A senior U.S. diplomat accused Russia of trying to destabilize Ukraine, and a Kremlin representative in turn criticized Washington for stoking fears and tensions as the two sides squared off in a fractious debate in the United Nations Security Council.”
Illinois Crop Production Costs Could Hit Record Levels This Spring- Fertilizer Prices a Driver
DTN writer Russ Quinn reported last week that, “Most retail fertilizer prices were slightly higher the third week of January 2022. But as was the case last week, one fertilizer was lower in price looking back a month.”
China Keeps Eye on Domestic Food Security
Earlier this week, Reuters writers David Stanway and Muyu Xu reported that, “China’s ambitious low-carbon goals should not come at the expense of energy and food security or the ‘normal life’ of ordinary people, President Xi Jinping said, signalling a more cautious approach to climate change as the economy slows.”
Court Delays California Pork Rule Enforcement
Earlier this week, Reuters writer Tom Polansek reported that, “A California court said it will delay enforcement of part of a law aimed at ensuring more humane treatment of farm animals, which opponents warned could lead to pork shortages and higher food prices in the most populous U.S. state.”
Ukraine, Russia Tensions- A Growing Focus of Ag Markets
Robyn Dixon, David L. Stern, Isabelle Khurshudyan, John Hudson and Rachel Pannett reported on the front page of Wednesday’s Washington Post that, “President Biden and Russian President Vladimir Putin traded provocations Tuesday, with the Kremlin broadcasting a new round of military exercises within striking distance of Ukraine and Washington rushing a fresh shipment of weapons to Kyiv while suggesting thousands of U.S. troops could be deployed soon to shore up allies’ defenses in Eastern Europe.”
WSJ: Omicron Brings Renewed Strain to U.S. Food System
Jesse Newman and Jaewon Kang reported on the front page of Monday’s Wall Street Journal that, “The U.S. food system is under renewed strain as Covid-19’s Omicron variant stretches workforces from processing plants to grocery stores, leaving gaps on supermarket shelves.”
China’s Imports of U.S. Soy Rose in 2021, as Administration Walks “Fine Line” on Phase One Trade Deal, Negotiations Continue
Reuters writers Hallie Gu and Dominique Patton reported last week that, “China’s soybean imports from the United States in 2021 rose from the previous year as it stepped up agricultural purchases under a trade deal agreed with Washington, while annual Brazilian shipments fell, customs data showed on Thursday.”
High Fertilizer Prices Impacting Developing Countries and Europe- Food Price Repercussions a Concern
Wall Street Journal writer Jon Emont reported last week that, “From South America’s avocado, corn and coffee farms to Southeast Asia’s plantations of coconuts and oil palms, high fertilizer prices are weighing on farmers across the developing world, making it much costlier to cultivate and forcing many to cut back on production.”
Fertilizer Price Update, and Iowa Crop Production Cost Estimates for 2022
DTN writer Russ Quinn reported this week that, “Retail fertilizer prices continue to be mostly higher the second week of January 2022, according to retailers surveyed by DTN.”