Washington, D.C. — Today, 102 farmer, rancher, consumer, labor, farmworker, and faith organizations sent a letter urging the U.S. House Committee on Appropriations to remove a policy rider from its FY24 Agriculture Appropriations bill when it is considered during Wednesday’s markup. The rider would prevent USDA from writing, preparing, or publishing proposed rules to strengthen the Packers and Stockyards Act, a landmark law intended to protect farmers and ranchers from abusive and anti-competitive behavior.

The proposed rules are particularly crucial now, the letter states, “because of the highly concentrated and vertically integrated nature of the livestock and poultry industries.” Such concentration gives “dominant meatpacking corporations considerable market power and [enables] their use of unfair contracting provisions and retaliatory practices that are abusive and harmful to family farmers.”

The letter provides examples of the harmful and anticompetitive behavior the rules would prevent: “Whether it be a contract poultry grower whose contract is abruptly terminated when they resist taking on overwhelming debt for corporate-mandated facility upgrades, a cattle producer who loses money year after year because the only packer in their market can manipulate the price of beef, or a livestock producer who experiences retaliation after they speak up against a corporation’s unfair practices, farmers and ranchers are being driven out of business and off their land across this nation.”

The groups conclude by calling on members of the Committee to “stand with American farmers and ranchers” by rejecting the rider, which they describe as “an unacceptable attack on the ability of the Department of Agriculture to do its job: protecting American farmers and ranchers and ensuring fair and competitive markets.”

Led by the Campaign for Contract Agriculture Reform, Campaign for Family Farms and the Environment, Farm Action, National Farmers Union, National Sustainable Agriculture Coalition, Rural Advancement Foundation International-USA, and the Western Organization of Resource Councils, the letter lists 102 signing organizations.

(WASHINGTON D.C.) — It was another week of falling crop ratings for corn and soybeans nationwide as drought continues to impact the early part of the 2023 growing season.

Corn condition dropped three percentage points, down to 61% good to excellent as of Sunday, June 11th. That is also below last year’s rating for the week of 72%. Soybean condition dropped three percentage points as well, down to 59% good to excellent as of Sunday. That rating is also 11 points lower than last year’s rating of 70% for the week.

Emergence continues to look good with 93% of corn and 86% of soybeans emerged nationwide as of Sunday. U.S. winter wheat condition was up two percent on the week and now stands at 38% good to excellent as of Sunday, June 11th. Just 8% of the crop has been harvested.

Spring wheat is 97% planted nationwide, up four percent from last week while 60% of the crop is rated in good to excellent condition as of Sunday. North Dakota’s spring wheat crop is rated 67% good to excellent, unchanged from one week ago. South Dakota’s spring wheat crop is rated 47% good to excellent with Minnesota at 72% as of Sunday.

North Dakota corn is 75% emerged with 77% rated in good to excellent condition while soybeans across the state are 60% emerged and rated 64% good to excellent.

South Dakota corn is 96% emerged with 60% rated in good to excellent condition. Soybeans across the state are 84% emerged and 61% is rated in good to excellent condition.

Minnesota corn and soybeans are both 75% good to excellent as of Sunday.

Read the full report from USDA here: https://downloads.usda.library.cornell.edu/usda-esmis/files/8336h188j/dj52xk84h/q237k775k/prog2323.pdf

Story courtesy of AEM

Four-Wheel-Drive Tractors and Combine Harvesters continue growth while some other segments continue declines according to the latest data from the Association of Equipment Manufacturers (AEM).

Overall U.S. ag tractor unit sales gained in all but one segment. U.S. self-propelled combine sales grew the most, up 54.6 percent, with 4WD tractors (up 51.1 percent) and 100+hp 2WD units (up 9.8 percent). However, a 2.7 percent decline in the sub-40 hp segment resulted in a 0.7 percent reduction in total farm tractors. Total farm tractor sales in the U.S. for the year are down 12.2 percent versus 2022, while combines are up 68.3 percent.

In Canada, combine harvesters were the biggest growth spot as well, up 68.3 percent for the month, and 107.7 percent for the year. Total unit sales in tractors finished the month down 11.3 percent due to losses in the sub-40 hp and 40-100hp segments, down 14.7 and 13.1 percent respectively. All other tractor segments were positive for the month, with 4WD units leading the way again with 26.6 percent growth. Year to date, tractors in Canada are down.

“The trends seen here are still being informed by the pandemic-driven highs in past years, especially in the sub-40 horsepower segment that, this month, makes up nearly seventy percent of total unit sales volume in ag tractors,” said Curt Blades, senior vice president, industry sectors and product leadership at the Association of Equipment Manufacturers. “The continued growth in bigger units and harvesters indicate two trends. First, farmers see enough improvement in the technology to make a clear business case for this investment, and second, they feel confident that positive commodity prices will continue, allowing them to afford the expense.”

The full reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports.

U.S.: https://www.aem.org/market-data/statistics/us-ag-tractor-and-combine-reports/

Canada: https://www.aem.org/market-data/statistics/canadian-ag-tractor-combine-reports/

The Farm Credit Administration board received a quarterly report on economic issues affecting agriculture recently. According to the report, inflation remains elevated in certain sectors of the economy despite interest rate hikes and supply chain improvements.

For agriculture, drought has declined substantially across the western half of the country, and good spring weather conditions sped up planting progress for many crops. For several states in the Great Plains and Southwest, drought conditions will need to continue to be monitored. With strong prospects for large crops and the building of grain stocks in 2023, prices have weakened. While many input costs also have fallen, crop producers are likely facing tighter margins this year.

Because of rising interest rates and seasonal lending fluctuations, Farm Credit System growth was slower in the first quarter of 2023 than it was for the same quarter the previous three years. The loan portfolio continued to perform well, but nonperforming assets increased. Despite the increase, the overall level of nonperforming assets remained low, at 0.53 percent of loans outstanding and other property owned.

USDA’s trade mission to Japan last week pressed Tokyo for ethanol sales as many countries look for new ways to reduce carbon emissions.

USDA Under Secretary for Trade Alexis Taylor on the trade mission’s efforts to sell ethanol in Japan, after Tokyo issued a green light in March. Taylor; “I met with the Ministry of Economy, Trade and Industry, they call them ‘METI’ in Japan, has been a key interlocutor in making some of those changes to eliminating the cap on US ethanol exports.”

Japan issued a new biofuels policy earlier that could boost U.S. ethanol sales by over 80 million gallons a year, worth up to an added 200 million dollars.

Taylor says ethanol is a key way for countries to reduce their carbon pollution; “As we, globally, are trying to deal with changing climate, lowering our on-road vehicle gas emissions, ethanol is a key tool for many countries, certainly for the United States, but for many countries around the world.”

Where Canada, India, the Netherlands, and the UK are leading U.S. ethanol importers, as industry leaders push to sell in new markets like Japan. Taylor; “The U.S. Grains Council was on this trade mission, and they also had a set of meetings with key officials to continue to promote U.S. ethanol, and continue to engage with government officials on the additional benefits that increasing ethanol use in on-road vehicle fleets can have.”

The latest efforts come at a key moment for biofuels, with the EPA about to issue final rules for ethanol and biodiesel use this year through 2025.

Story provided by NAFB News Service and Lorrie Boyer, KSIR, Fort Morgan, Colorado

What does the U.S. wheat flour miller importing wheat outside of the U.S. mean for the U.S. wheat marketplace? Vince Peterson US Wheat Associates President explains this obscure situation.

Peterson; “We do have some European, Eastern European, most likely Polish origin, wheat that is going to be moving into flour mill in Tampa, Florida, which is the only flour mill we have in the United States that is actually built on a water access facility, it’s a new flour mill that was built about the last one or two years down there.”

Blaming this situation on Russian President Vladimir Putin, Peterson explains that commodities from Ukraine have flooded the domestic market for Eastern European countries pushing prices down. Peterson; “The Russian invasion and a displacement of all those Ukrainian agricultural goods has made a huge problem in Eastern Europe. So, when they blocked essentially the Black Sea access by ship, and it’s not blocked entirely there’s a corridor there’s been protected, but a huge flood of grain, wheat, corn, oil seeds, and some other things, went across into Eastern Europe.”

Bottom line, he says, that the Tampa Florida Miller is making a decision based on economics.

Peterson; “At $100 ton difference, you can put it on a boat in Poland bring it all the way across the Atlantic and take it into Tampa, Florida, and be less than the price of the U.S. hard winter wheat railed across the United States to get there.”

The Canola Council of Canada supports the Government of Canada in joining the dispute settlement consultation with Mexico on agricultural biotechnology. The consultation was initiated by the United States under the U.S.-Mexico-Canada Agreement, and Canada joined this week as a third party.

There have been challenges to regulatory predictability in Mexico over the last few years, according to Canola Council. Regulatory approaches not grounded in sound science risk stifling access to innovations that farmers need to contribute to food security challenges, address climate-related production issues, and remain competitive and profitable.

Canola Council of Canada President Jim Everson says, “It is essential that Canada’s trading partners support and implement science-based regulatory systems.” Everson says more formal and substantive assurance is required to provide clarity and certainty about the regulatory approach moving forward.

Mexico is a leading and valued market for Canadian canola and is Canada’s largest agri-food export to that country, valued at $1.6 billion in 2022.

After falling last week, the nation’s average price of gasoline rebounded, rising 5.6 cents from a week ago to $3.57 per gallon. GasBuddy’s Patrick De Haan says, “The good news has continued for average diesel prices, which again fell last week to their lowest since early 2022, helping to relieve some pressure on hard-hit consumers of diesel.”

The national average diesel price fell 1.6 cents in the last week and stands at $3.87 per gallon. Diesel prices at the top ten percent of stations in the country average $4.91 per gallon, while the bottom ten percent average $3.17 per gallon. While oil prices had rallied last week on OPEC+’s production cuts announced for 2024 and Saudi Arabia’s July cut of 1 million barrels, markets are still jittery over the potential for more rate hikes amidst stubborn inflation and banking sector challenges.

In addition, Goldman Sachs cut its price forecast for crude by nearly ten percent as it sees Russian supply recovering.

Lawmakers Monday introduced the Safe American Food Exports Act. The legislation would codify USDA’s role in negotiating regionalization agreements that allow livestock, poultry, and other animal products from unaffected areas of the country to continue to be safely exported in the event of an animal disease outbreak.

Although USDA already works with the U.S. Trade Representative to develop the agreements, the legislation explicitly expresses congressional support for establishing regionalization agreements and promoting robust agricultural trade policies before any animal disease impacts the nation. Representative Randy Feenstra, an Iowa Republican, and Jimmy Panetta, A California Democrat, introduced the legislation in the House of Representatives.

Feenstra says, “Like every producer fears, foreign animal disease can devastate flocks and herds, preventing our farmers from selling their high-quality product on the global market.” Feenstra says his bill ensures a disease outbreak in one part of the country does not impact other regions’ ability to produce and export agricultural goods.

After a rapid planting season, Steve Schany, AgriGold’s western agronomy manager, says less-than-ideal moisture across much of the Corn Belt is reason for concern about crop stands.

Schany; “Yes, I would say much of the Corn Belt is experiencing some form of drought. Agronomist all over can be heard talking about rootless corn syndrome, herbicide carryover, salt injury from NH3 and manure applications – just due to the overall dry soil conditions that a lot of people are experiencing.”

Each growing season brings unique pest and disease threats. Schany explains what farmers should be on the lookout for; “Well, the best thing a farmer can do is get out of the truck and get in the field as much as possible and be on the lookout for disease and pest pressure. Even in a drought, disease can take hold in a crop when high dew points are in play. And when it comes to drought, pest pressure can be inopportune just due to the stress it puts on the crop, as well. So, right now, I’m focused on looking for corn rootworm, cyst nematodes, and also the dark horse of a drought would be spider mites out there.”

Experts say tar spot thrives in wet conditions. Schany offers the outlook for tar spot this year; “Tar spot likes moderate temps and humid conditions, but don’t let that fool you. We saw its movement last year tracking to the west into new environments even in the face of a drought. So, tar spot is an aggressive disease, and you are always one week away from this taking hold within the field as long as conditions are right. So, top three management items for tar spot are going to be selecting tolerant hybrids, taking preventative fungicide measures, and then budgeting for multiple applications.”

He adds what should farmers keep in mind as the crop heads into the critical pollination period.

Schany; “The biggest thing I pay attention to right now is what our tissue sampling protocols taught me over the last few years about finishing a crop strong. So, the top two things that I’m going to be taking a look at is keeping those plants healthy and taking up nutrients all the way through black layer. And some of the things I want to focus on are nutrients that are going to help maximize that grain-fill period. Those top six nutrients that I’m looking for are nitrogen, phosphorus, boron, sulfur, zinc and copper.”

For more support getting the most out of your crops, visit AgriGold.com or reach out to your local AgriGold agronomist.