Thursday, May 9, 2024
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Labor is Number One Challenge Facing Farmers; Says NCFC President Chuck Conner

As many farms and ag businesses across the U.S. struggle with labor shortages, one ag leader continues to push lawmakers on Capitol Hill to pass legislation that may offer a solution.

Chuck Conner, President and CEO of the National Council of Farmer Cooperatives, says; “Labor has quickly taken over as the number one challenge facing cooperatives and farmers.”

Two years ago, the U.S. House passed The Farm Workforce Modernization Act, a bipartisan bill that would have expanded the length of time that immigrant workers with H-2A visas are allowed to stay and work in the U.S. However, the Senate version of that bill—The Affordable and Secure Food Act of 2022—failed to pass late last year, which also killed the corresponding House bill.

Conner; “The legislation didn’t fail because of anything of substance. It failed because of the controversy over border issues and the whole immigration space that isn’t particularly targeted at farm labor. We were sort of caught up in all of that, so we’re going to be continuing to look for the opportunity when maybe that controversy is settled down a little bit and it gives us the opportunity to come in and fix this H-2A program.”

Conner says he’s concerned that ongoing farm labor shortages will hurt the country’s ag economy. “There aren’t very many dairy barns in America today that can operate strictly on family labor. If you’re having to hire virtually any labor today, about the only option for you is to look potentially at foreign labor coming in. With the current challenges that we face in the H-2A program—for many, that’s just not an option.”

He adds that the National Council of Farmer Cooperatives is continuing to push lawmakers on Capitol Hill to revisit and pass legislation to expand the H-2A visa work program.

Conner says; “For all practical purposes, it is the only solution for co-ops and the only solution for farmers going forward,” says Conner. “We have to figure out a way to make it an option going forward if we are to continue to provide the food and fiber for America in the manner which they become quite accustomed to.”

Story provided by NAFB News Service and C.J. Miller, Hoosier Ag Today, Greenwood, Indiana

EIA Expects Less Electricity Demand this Summer, More Generation from Renewables

The U.S. Energy Information Administration expects a slightly cooler summer in 2023 will lead to less demand for air conditioning than in 2022. The result will slightly reduce overall electricity demand this summer.

EIA expects that despite less electricity demand this summer, more electricity will be generated from renewable sources and natural gas throughout 2023. EIA forecasts this summer will see the second-most U.S. natural gas consumption for electricity generation on record, surpassed only by last summer. EIA continues to expect significant growth in U.S. electricity generation from wind and solar, but the wet winter in California and the western United States should also increase electricity generated from hydropower during the coming months.

EIA expects U.S. retail electricity costs will remain higher than before the COVID-19 pandemic. Those higher prices mean that even if households consume less electricity, their electricity bills will likely be similar to or slightly higher than last summer.

U.S. Imports of Cut Flowers Grew to $3.3 Billion in 2022

Fresh-cut flowers and plants are popular gifts for special occasions such as Mother’s Day. Many bouquets contain flowers grown in countries where cool, wet climates have historically favored production.

In 2022, the United States imported nearly $3.3 billion of cut flowers, plants, and nursery stock products from 81 countries, according to USDA’s Economic Research Service. Imports of fresh-cut roses totaled more than $800 million, while other fresh-cut flowers were valued at a combined $1.1 billion. Live plant imports were valued at nearly $860 million, and imports of other nursery stock products, such as bulbs and greenery, were valued at $492 million.

Of the many countries supplying flowers and other nursery stock, Colombia made up the largest import value at $1.2 billion. From 2018 to 2022, Colombia provided about 37 percent of U.S. cut flower and nursery stock value. Other leading suppliers in 2022 included Canada, Ecuador, and the European Union, as well as Mexico, Taiwan, and Costa Rica.

USDA Seeking American Agriculture Feeds Kids and Families Acquisitions

The Department of Agriculture plans to purchase various protein items to support activities to leverage American Agriculture to feed kids and families. Potential materials may include dairy, meat, fish, and poultry items.

The funds, provided through USDA’s Commodity Credit Corporation, will support nearly $1 billion to purchase food for emergency food providers like food banks. The purchases are phase two of the program. Interested parties shall be responsible for ensuring that they have the most up-to-date information about this acquisition. The contract type is anticipated to be firm-fixed price, indefinite-delivery/definite quantity.

Commodities and the products of agricultural commodities acquired under this contract must be a product of the United States and shall be considered to be such a product if it is grown, processed, and otherwise prepared for sale or distribution exclusively in the United States.

Potential contractors must meet the AMS vendor qualification requirements to be eligible to submit offers.

Research: Tinplate Steel Tariffs Will Harm American Consumers

The Consumer Brands Association says implementing proposed tariffs of up to 300 percent on tinplate steel imports would increase the cost of canned foods and products by up to 30 percent.

The association released two studies on the proposal, which would threaten nearly 40,000 union and non-union manufacturing jobs. The economic impact studies bolster Consumer Brands’ efforts to urge the Department of Commerce and International Trade Commission (I to deny a petition submitted by steel conglomerate Cleveland-Cliffs to impose tariffs of up to 300% on imported tinplate steel from eight countries. Because tinplate is used in hundreds of canned goods – everything from soup to shaving cream – imposing the requested tariffs would raise production costs for U.S. can manufacturers and trigger price hikes for every consumer, as supported by the research.

According to the research, the proposed tariffs will increase the cost of canned foods and products by up to 58 cents per product.

Huge Jump in Planting Progress Last Week

(WASHINGTON D.C.)- Farmers had ample time and a big window last week to get a lot of fieldwork done across the country.

Corn planting advanced to 49% complete as of Sunday, May 7th while soybean planting nationwide now stands at 35% done. Iowa and Illinois continue to lead the pack in terms of planting progress with Iowa corn and soybean planting 70% and 49% completed respectively while Illinois is 73% and 66% complete respectively.

Spring wheat continues to lag behind the five year average with just 24% planted nationwide as of Sunday, May 7th. The Northern Plains continue to see delays in planting of spring wheat, corn and soybeans.

Read the full report here: https://usda.library.cornell.edu/concern/publications/8336h188j

Soaring Interest Rates on US Default Would Crush Producers

President Biden and Congressional leaders are meeting today at the White House in hopes of averting a catastrophic U.S. debt default that could crush producers with sky-high interest rates.

The political environment for a deal to raise the nation’s borrowing limit and cut spending isn’t good—and the markets are nervously waiting to see if the White House and GOP can end their stalemate.

On Capitol Hill, farm leaders are concerned as a June 1st deadline to avert a possible default draws near.

Senate Ag Chair Debbie Stabenow; “Fed Reserve Chair Jerome Powell said, no one should assume that the Fed can really protect the economy and financial systems and our reputation globally, from the damage that a U.S. default might inflict. We shouldn’t even be talking about a world in which the US doesn’t pay its bills.”

A U.S. default would drive business and consumer borrowing costs through the roof, making months of Fed interest rate tightening to slow inflation ‘child’s play’ by comparison.

Farm Credit Council witness Phillip Morgan told Senate Ag lawmakers; “Any operator we have with an annual operating loan, whether that be cattle, whether that be row crop, right now is facing interest rates that are more than two-times where they were at the beginning of last year. We also have a number of long-term real estate loans that will re-price this year as their pricing, original pricing, expires—they will be facing much higher interest rate costs.”

And Morgan says some operators will face both, but adds, Farm Credit is “well-positioned” to weather that storm.

The bigger, more pressing question is whether farm lenders and the broader economy can weather a possibly catastrophic U.S. default on its debt.

Oklahoma Wheat Crop a Mixed Bag

It’s a tale of two stories about the Oklahoma wheat crop as drought continues to impact the state. Oklahoma State University small grains specialist Dr. Amanda Silva provides an update on the wheat crop.

Silva says; “Oklahoma wheat production this year is a mixed bag. We have some fields that are looking good. Of course, not up to our yield potential, but looking good considering our conditions. And we have some fields where there is not even any wheat there, so very unfortunate.”

Silva says what good wheat is available may be used for hay; “There’s a lot of need for hay and that’s a point, too, because there are some good-looking wheat fields, but the need for hay is so high, and the prices of it are also good, so we may not see those fields being cut for grain, also.”

Comparing this year’s wheat to that of last year, Silva said both years have been tough years to grow winter wheat in. Silva; “Both tough years, very dry. I think the main difference is just the timing that we got the rain and where we got the rains. I would say that is the biggest shift, is just the regions of the state this year that are doing a little bit better like southwest in comparison to north-central.”

Story provided by NAFB News Service and KC Sheperd, Radio Oklahoma Network, Oklahoma City, Oklahoma

Economic Research Service: Farm Income Decline Varies by Region

After reaching recent highs in 2021 and 2022, the average net cash income of U.S. farm businesses is expected to decline by 18 percent in 2023 compared with 2022.

Farm businesses across the country are forecast to see higher production expenses, lower cash receipts, and lower Government payments in 2023, resulting in lower expected average net cash farm income. However, this overall decline will vary considerably across the country. USDA’s Economic Research Service uses resource regions to depict the geographic specialization in production of U.S. commodities.

Farm businesses in the Northern Crescent region, which leads the nation in dairy production, are forecast to see the largest average percentage decrease, 30 percent, while those in the Mississippi Portal, which leads the nation in rice production, are forecast to see the smallest percent decrease, nine percent. Meanwhile, the Fruitful Rim will see an estimated 24 percent decline in average net cash income.

March Pork Exports Largest in Nearly Two Years; Beef Exports Show Signs of Rebound

March U.S. pork exports were the largest since May 2021, and beef export volumes were the largest since October, according to the U.S. Meat Export Federation.

March pork exports totaled 260,195 metric tons, up 17 percent year-over-year and the ninth-largest volume on record. Export value was also the ninth largest at $724 million, up 18 percent from a year ago. These results capped a strong first quarter for U.S. pork as exports reached 716,691 metric tons, up 14 percent from a year ago, valued at $1.96 billion.

Beef exports totaled 120,495 metric tons in March, down five percent from a year ago. Export value fell 17 percent to $892.6 million, but both volume and value were the highest in five months. Through the first quarter, beef exports were down eight percent year-over-year to 326,494 metric tons, valued at $2.35 billion.

March exports of U.S. lamb muscle cuts totaled 218 metric tons, down five percent from a year ago.