On Wednesday, the Federal Reserve Board released its January 2021 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.
Farm Policy News
Administration Could Grant Last-Minute Biofuel Waivers
Earlier this week, Reuters writers Stephanie Kelly and Jarrett Renshaw reported that, “The Trump administration is expected to grant waivers to some oil refiners that would exempt them from requirements to blend biofuels into their fuel mix for the 2019 compliance year, according to two sources familiar with the matter.”
Need for Animal Feed: China Approves GMO Corn Varieties
Bloomberg News reported earlier this week that, “China approved two genetically modified corn varieties from Bayer AG and Syngenta AG for imports as demand for animal feed surges.”
FAO Food Price Index Reaches Six-Year High, But Below 2011 Peak
Reuters News reported last week that, “World food prices rose for a seventh consecutive month in December, with all the major categories, barring sugar, posting gains last month, the United Nations food agency said on Thursday.”
Supreme Court to Take Up Biofuel-Blending Waivers
Bloomberg writer Jennifer A Dlouhy reported on Friday that, “The Supreme Court will review the ability of oil refineries to win exemptions from federal biofuel-blending quotas, a blow to producers of ethanol and biodiesel that had challenged the waivers.”
As 2021 Begins, Some Ag Commodity Prices Climb, Including Corn and Soybeans
Bloomberg writers Kim Chipman and Megan Durisin reported on Wednesday that, “Soybean futures in Chicago extended their winning streak for a sixth day and corn exceeded $5 a bushel on expectations that the U.S. will cut domestic supply forecasts for the crops.”
Phase One Ag Targets Lag, But U.S. Soybean and Corn Exports to China Surge
Last week, Bloomberg News reported that, “China is far away from meeting its U.S. trade-deal commitments, with the latest data showing it’s imported just over half of the American goods it promised to buy in the first year of the phase-one agreement.”
CRS Report, “USDA’s Coronavirus Food Assistance Program: Round Two (CFAP-2)”
Last month, the Congressional Research Service (CRS) released a report titled, “USDA’s Coronavirus Food Assistance Program: Round Two (CFAP-2).” Today’s update includes highlights from the report, which was authored by Randy Schnepf.
“The Importance of Highways to U.S. Agriculture,” a Report from USDA’s Agricultural Marketing Service
A news release last month from the USDA’s Agricultural Marketing Service (AMS) announced the release of a report, prepared in close partnership with the Department of Transportation,” titled: “The Importance of Highways to U.S. Agriculture.”
Congress Passes COVID Relief Stimulus Package, with Agricultural and Nutrition Provisions
Emily Cochrane reported on the front page of Tuesday’s New York Times that, “Congress on Monday night overwhelmingly approved a $900 billion stimulus package that would send billions of dollars to American households and businesses grappling with the economic and health toll of the pandemic.”
An Overview of Some COVID Related Impacts on Rural America from USDA’s Economic Research Service
Last week, the USDA’s Economic Research Service (ERS) released its annual report exploring characteristics and economic indicators associated with Rural America : “Rural America at a Glance: 2020 Edition.”
Brazil in “Advanced” Talks with China to Boost Corn Sales as China’s Hog Herd Rebuilds
Last week, Bloomberg writers Isis Almeida, Samy Adghirni, and Tatiana Freitas reported that, “Brazil is close to an agreement that would allow the world’s second-largest corn exporter to boost sales of the grain to China, a move that could threaten the U.S.’s dominance, according to people familiar with the matter.”
Iowa Farmland Value Grows 1.7% Since 2019
A news release Tuesday from the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach indicated that, “Favorable interest rates, a strong demand for land, and substantial government payments helped stabilize Iowa’s farmland market in a year in which Iowa’s farmers faced the destructive onslaught of a derecho, significant uncertainties in US agricultural trade, and a pandemic that significantly altered market demand.”
An Overview of U.S. Farms From USDA’s Economic Research Service- 2020 Edition
Last week, the USDA’s Economic Research Service (ERS) released its annual report exploring characteristics of U.S. farms: “America’s Diverse Family Farms: 2020 Edition.” Today’s update includes highlights from the report, which was written by Christine Whitt, Jessica E. Todd, and James M. MacDonald.
“Dynamic” Forecast for Feed Grain Trade, and China is the “Primary Driver.”
Last week, in its monthly Grain: World Markets and Trade report, the USDA’s Foreign Agricultural Service (FAS) explained that, “Trade data for 2019/20 (October-September) are largely complete. Many countries imported record volumes of corn, despite initial concerns over a potential slowdown in feed use due to COVID-19.”
Legal Issues Surrounding RFS Small-Refinery Exemptions Persist
On Tuesday, DTN’s Todd Neeley reported that, “A coalition of ethanol and agriculture interests asked a federal court on Monday to vacate EPA’s granting of 31 small-refinery exemptions in 2018, alleging the agency did not conduct the proper review of those requests.”
Corn Exports: Chinese Pigs, American Crops- “Increasingly Interdependent”
On Monday, Reuters writer Dominique Patton reported that, “Behind the walls of a hulking industrial compound in rural China, top pig producer Muyuan Foods is trying to raise more hogs on a single site than any company in the world – a risky investment with deadly African swine fever lingering.”
La Nina, A “Supply-Side Wild Card,” Could Impact Markets Into 2021
Wall Street Journal writer Lucy Craymer reported late last week that, “La Niña is shaking up agriculture in an already-tumultuous year for commodity markets.”
Farm Income: Better Market Prices Likely Not Enough to Offset Expected Subsidy Reductions
Donnelle Eller reported on the front page of Friday’s Des Moines Register that, “Mid-Iowa Cooperative’s Mike Kinley sees a $275 million soybean processing plant under construction in eastern Iowa as a way for farmers to get more money for the crops they grow.”
Federal Reserve: Observations on the Ag Economy- November 2020
On Wednesday, the Federal Reserve Board released its November 2020 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.