READ the NAFB’s National Ag News for Wednesday, May 13th
Sponsored by the American Farm Bureau Federation
USDA WASDE Report Released
The Department of Agriculture released its latest World Agriculture Supply and Demand report Wednesday. USDA says the corn crop is projected at 15.0 billion bushels, up from last year on higher area and a return to trend yield. The yield projection of 179.5 bushels per acre is based on a weather-adjusted trend assuming normal planting progress and summer weather. The season-average corn price received by producers is projected at $5.70 per bushel, up $1.35 from a year ago when much of the crop was marketed at lower prices. The soybean crop is projected at 4.4 billion bushels, up 270 million from last year on increased harvested area and trend yields. With lower beginning stocks, soybean supplies are projected down three percent. The season-average soybean price is projected at $13.85 per bushel, up $2.60 from last year. The outlook for U.S. wheat is for smaller supplies, higher domestic use, lower exports, and reduced stocks and a season-average farm price of $6.50 per bushel.
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Study Shows Consumer Attitudes on Cultivated Meat
Global research released this week shows consumers are open to pivoting to cultivated meat in the future. The study was released by Aleph Farms, a cultured meat startup based in Israel, with an office in the United States. Their research claims many consumers were not familiar with cultivated meat. Yet, upon being presented with a description, the respondents, on average, imagined that cultivated meat could make up about 40 percent of their future meat intake, with conventional meat constituting around 60 percent. The survey included roughly 2,000 U.S. consumers and 2,000 UK consumers. In addition, the study showed patterns of greater openness to trying such products by younger generational groups: 87-89 percent of Gen Z adults, 84-85 percent of Millennials, 76-77 percent of Gen X, and 70-74 percent of Boomers were at least somewhat open to trying cultivated meat. An Aleph farms representative states the organization’s vision “is to provide a better alternative to industrial livestock farming.”
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Report Offers Farmer Insight on Data Collection and Sharing
Several challenges prevent farmers from collecting and sharing data on their production practices. However, there is ample opportunity to empower farmer’s digital transition, according to new research from Farm Journal’s Trust In Food initiative and the Sustainability Consortium. Farm-level production data plays a critical role in conservation and sustainability efforts. Previous research shows only eight percent of food and beverage companies who could report data said they have visibility into on-farm practices. More than half of all respondents, 64 percent, said they do not rely on-farm management information systems exclusively. Almost a third of respondents, 28 percent, said their primary data storage method is paper or another non-digitized method. Of those that do not use digital, only half have considered transitioning to digital. Additionally, 73 percent of respondents do not trust private companies with their data, and 58 percent do not trust the government with it. Conversely, 71 percent do trust their financial institutions with data.
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April 2021 Farm Tractor Sales Grow Over Already-Large 2020 Gains
U.S. farm tractor unit sales continue double-digit growth rate in both the U.S. and Canada, and inventories continue to fall, after a strong month of April. U.S. total farm tractor sales rose 22.7 percent in April compared to 2020, which was the first month of the current sales growth trend, while U.S. combine sales fell 3.2 percent. U.S. tractor sales grew across every segment, with the biggest gains in the 100 plus horsepower segment, up 29.2 percent. For Canada, April monthly tractor and combine sales were positive across all segments, with the four-wheel-drive segment nearly doubling, up 93.3 percent to 201 units sold, while total farm tractor sales were up 72.3 percent. Combine sales also grew 23.1 percent. Curt Blades, Senior Vice President of Ag Services at the Association of Equipment Manufacturers, says, “Seeing the larger row-crop units leading the way in segment gains shows the pull rising commodity prices have been having on equipment sales.”
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U.S. and Mexico Keep Organic Trade Open
Mexico last week agreed to extend the deadline for U.S. organic exports to be certified to its Organic Products Law. U.S. Agriculture Secretary Tom Vilsack met with his counterpart, and they agreed to extend the compliance deadline to December 31, 2021. Through 2021, USDA-certified organic products may continue to be exported, but on January 1, 2022, organic products exported from the U.S. to Mexico must be certified to the Organic Products Law standard. Secretary Vilsack this week commented on the deadline extension, “This is another important step for American agriculture and for maintaining positive bilateral relations between the United States and Mexico, one of our most important export markets.” Mexico’s Organic Products Law and regulations for organic production were implemented in April 2017. The regulations require all organic products sold in Mexico to be certified under the Mexican organic standards or to a standard that has been deemed equivalent under an organic equivalency arrangement.
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Farmers for Sustainable Food Marks Transformation of Conservation Alliance
An alliance created five years ago to support and promote farmers in their conservation efforts has reached a new level. The Dairy Strong Sustainability Alliance this week announced its transformation into Farmers for Sustainable Food. The group is a nonprofit organization that provides resources, advocacy, support and empowerment for farmers who are innovating and demonstrating sustainable farming practices. The transition marks a change to a broader focus, more innovative projects, and a diverse set of partners, according to a news release.” Farmers for Sustainable Food President Todd Doornink says, ”Our focus is on uniting stakeholders to collaborate across organizational lines, inspiring farmers to be leaders of change and empowering our partners to meet their goals.” The organization closely supports six farmer-led watershed conservation groups encompassing 211 farms, nearly 300,000 acres and 212,000 cows, hogs and other livestock. The organization and its partners are also developing on-farm initiatives to test ways of measuring sustainability and documenting the impact of conservation practices, both environmentally and financially.
