NATIONAL AG NEWS SPONSORED BY THE AMERICAN FARM BUREAU FEDERATION
Retaliatory tariffs Reduced U.S. Ag Exports Annually by $13.2 Billion
New data from USDA’s Economic Research Service shows retaliatory tariffs reduced U.S. ag exports annually by $13.2 billion. Specifically, the research points to six trading partners, Canada, China, the European Union, India, Mexico, and Turkey, that announced retaliatory tariffs affecting agriculture and food products in 2018. The retaliatory tariffs followed U.S. tariffs on steel and aluminum imports from major trading partners and on a broad range of imports from China. The agricultural products targeted for retaliation were valued at $30.4 billion in 2017, with individual product lines experiencing tariff increases ranging from two to 140 percent. USDA estimates annualized losses from mid-2018 through the end of 2019 totaled $13.2 billion across 17 commodity groups, led by soybeans, sorghum, and pork. While retaliatory tariffs affected all states, the Midwest experienced the largest losses. ERS researchers estimated Iowa lost $1.46 billion, Illinois, $1.41 billion, and Kansas, $955 million, all on an annualized basis.
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Farm Futures Survey: More Soybean Acres Than Corn This Year
A survey from Farm Futures shows fertilizer prices are changing planting intentions. The January 2022 Farm Futures survey found that high input costs will drive U.S. growers to plant fewer corn acres in 2022 in favor of other crops with less expensive production costs. Some 93 percent of growers expect high input costs this year to slash profits. The survey results put Farm Futures 2022 projected corn acreage at 90.4 million acres and soybean acres at 92.4 million acres. The last and only time soybean acreage surpassed corn was in 2018, when 296,000 more acres of soybeans than corn were planted. Double crop winter wheat and soybean rotations have likely already consumed many of those corn acres, according to Farm Futures, which projects winter wheat acreage at 35.2 million acres. USDA releases its first look at 2022 acreage estimates Thursday, March 31, 2022. Farm Futures will conduct another grower survey ahead of the Prospective Plantings.
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AFBF: Vaccine Mandate Will Lead to More Supply Chain Troubles
American Farm Bureau Federation President Zippy Duvall says a federal vaccine mandate on non-U.S. citizens traveling to the U.S. will lead to more supply chain issues. Last week, the Department of Homeland Security announced enforcement of the vaccine requirement, which includes essential workers, traveling to the United States. Duvall says Farm Bureau is concerned that the decision “will limit agriculture’s ability to grow safe and nutritious food.” Farm Bureau says DHS failed to provide proper notice of the mandate, which gives farmers, ranchers and agriculture suppliers no time to prepare. Farmworkers and truck drivers provide critical skills and have been designated as essential by the Cybersecurity and Infrastructure Security Agency. Duvall adds that further limiting the available workforce will exacerbate existing supply chain issues as families face rising prices and fewer options at the grocery store. The Homeland Security Department says the travel restriction will remain in place until April 21, 2022.
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Army Corps Receiving Funding for Missouri River Infrastructure Projects
The U.S. Army Corps of Engineers Kansas City District will receive approximately $278 million under the Infrastructure and Investment Jobs Act. Almost $249 million of that is to repair damages caused by the 2019 flood to the Bank Stabilization and Navigation Project along the Missouri River from Rulo, Nebraska. to St. Louis, Missouri. In addition to Missouri River repairs, several lakes in the area will benefit from the funding. Tuttle Creek Lake in Manhattan, Kansas, will receive $15 million to repair rock embankments on the dam and perform other dam maintenance and infrastructure repairs. Overall, the U.S. Army Corps of Engineers received $17.1 billion in infrastructure funds across the nation for its Civil Works programs, projects and activities that will help the nation address current and future water resources infrastructure needs. The act’s appropriations also enable the Corps of Engineers to regulate development in waters of the United States.
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Fuel Prices Increase Again Last Week
The nation’s average gas price increased for the fourth straight week, climbing 1.8 cents from a week ago to $3.32 per gallon. The national average is up 3.3 cents from a month ago and 92.0 cents per gallon higher than a year ago. The national average price of diesel increased 5.4 cents in the last week and stands at $3.66 per gallon, the highest level since October 2014. Gas Buddy’s Patrick De Haan says, “With all eyes on the Russia/Ukraine situation, oil will likely remain north of $80 per barrel, with additional volatility.” De Haan says rising gas prices will likely persist as worries continue to overpower weak global consumption. Continued attention is focusing on Russia and the possibility of the world’s second-largest oil producer making a move into Ukraine. U.S. retail gasoline demand fell last week as weather, rising unemployment figures and omicron may have all played some role in a big drop in gasoline demand.
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Taco Bell Unveils 3rd Dairy-Based Beverage with Checkoff Support
Taco Bell is continuing its run of dairy-based beverages thanks to dairy checkoff support. Dairy Management Incorporated Monday announced the chain released the Island Berry Freeze that uses a shelf-stable creamer created by dairy checkoff scientists. It is Taco Bell’s third beverage launch featuring the dairy creamer, beginning with the Pineapple Whip Freeze in May of 2020 and the Mountain Dew Baja Blast Colada Freeze last May. Another popular Taco Bell item, the Grilled Cheese Burrito, is back on the menu. The burrito launched in the summer of 2020 and re-entered Taco Bell’s menu last fall with a double steak option. Taco Bell’s Heather Mottershaw says, “We’re grateful to have checkoff scientists working side-by-side with our team to continue pushing the envelope with items featuring dairy.” DMI’s Emily Bourdet adds, “our on-site scientists at Taco Bell have changed the game for how to incorporate dairy and creating excitement for Taco Bell fans.”
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