NATIONAL AG NEWS SPONSORED BY THE AMERICAN FARM BUREAU FEDERATION

University of Missouri Releases U.S. Agricultural Market Outlook

The University of Missouri Food and Agricultural Policy Institute Wednesday released its Agricultural Markets Outlook. In recent years, unexpected events have caused great uncertainty and volatility in agricultural markets. Trade disputes, the COVID-19 pandemic and now the war in Ukraine have added to the natural uncertainty caused by weather and other factors. The report summarizes baseline projections for agricultural and biofuel markets prepared using market information available in January 2022. Major crop prices have been pushed higher by the global economic recovery, increased demand from China, some weather-induced reductions in crop supplies, and the war in Ukraine. Based on information available in January 2022, the projection was for lower prices for most crops in the 2022/23 marketing year. A weather-reduced soybean crop in South America and the war in Ukraine have both pushed oilseed and grain prices higher, at least in the near term. Projected cattle and milk prices increase sharply in 2022, and prices for hogs and poultry remain well above the 2020 pandemic levels.

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Canadian Pacific Railway and Union Reach Agreement, Return to Work

Canadian Pacific Railway this week announced an agreement with the Teamsters Canada Rail Conference – Train and Engine Negotiating Committee to enter into a binding arbitration. The move ended a work stoppage. The work stoppage began Saturday and ended Tuesday afternoon. In the announcement, Canadian Pacific said it will immediately begin working with customers to resume normal train operations across Canada as soon as possible. The union represents approximately 3,000 locomotive engineers, conductors, train and yard workers across Canada. The Western Grain Elevator Association in Canada had called on the two sides to reach an agreement and end the work stoppage quickly. Rail service is essential to get grain off the Prairies to customers and ports across North America and globally. The association says serious challenges with rail service have already resulted in irreparable damage to Canada’s reputation with its customers, and are adding to inflationary pressures on food prices abroad.

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Brazil’s Suspension of Ethanol Tariff Welcomed as Opportunity

Brazil has temporarily lifted its 18 percent tariff on all U.S. ethanol as of Wednesday, March 23 and running through the end of the year to decrease inflationary pressures. Ryan LeGrand, President and CEO of the U.S. Grains Council; Emily Skor, CEO of Growth Energy; and Geoff Cooper, President and CEO of the Renewable Fuels Association, released a joint statement regarding the tariff. The leaders say, “We are pleased to see the temporary elimination of the 18 percent tariff, which should improve access for Brazil’s ethanol consumers as well as help meet its own decarbonization goals.” Brazil sources an estimated 60 percent of its ethanol imports from the United States. World-Grain reports most cars in the country are flex-fuel, which means they can either use gasoline or hydrated ethanol. Brazil also has a mandatory blend of 25 percent to 27 percent anhydrous ethanol in gasoline.

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Growth Energy Ad Campaign Presses E15 Fix to Deliver Relief at the Pump

Growth Energy Wednesday launched a new ad campaign calling on President Biden to direct his administration to lift restrictions on the year-round sale of E15. Growth Energy says the action would boost energy security and combat the surge in fuel costs accelerated by the conflict in Ukraine. The campaign will air on FOX, MSNBC, and CNN in the Washington, D.C. area. It will run until June 1, when many retailers will be forced to pull E15 from the market due to oil companies’ successful challenge in court to eliminate this fuel choice. Growth Energy CEO Emily Skor says, “The White House says all options are on the table to ease surging gas prices, and E15 is a common-sense solution that can deliver immediate relief at the pump.” In some markets, E15 is already saving drivers 50 to 60 cents per gallon, but that option could vanish on June 1 unless the Biden EPA takes swift action, according to Growth Energy.

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NMPF, USDEC Commend Congressional Progress on Ocean Shipping Reform Act

The National Milk Producers Federation and the U.S. Dairy Export Council lauded passage by the Senate Commerce Committee of the Ocean Shipping Reform Act. The approval Tuesday establishes Senate committee support for action to address shipping supply chain challenges as Congress prepares to begin conference procedures on the Senate-passed U.S. Innovation & Competition Act and the House-passed America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act in the coming weeks. Jim Mulhern, President and CEO of NMPF, says, “Export supply chain issues continue to pose immense challenges to dairy exporters, which is why this legislation remains so critical as part of a broad-based approach to tackling those problems.” In the House, Representative Dusty Johnson, a South Dakota Republican, says, “Getting this bill across the finish line and signed by the President is crucial to begin easing the costly problems created by foreign carriers’ unfair shipping practices.

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Value of U.S. Dairy Exports to Canada Grew by Nearly 50% Over a Decade

New Data from USDA’s Economic Research Service shows total dairy exports from the United States to Canada, adjusted for inflation, rose 48 percent from $466.4 million in 2010 to $691.5 million in 2021. Canada is an important market for U.S. dairy products, second only to Mexico. Canada’s proximity to the United States favors imports such as fluid milk, cheese, and infant formula, among others. Supplemental imports of fluid milk, butter, and butterfat in addition to cheese and cream from the United States often meet the shortfall in Canada’s production. By value, infant formula has been the top U.S. dairy product exported to Canada, accounting for $151.3 million in 2021 and representing 22 percent of the total. Coming in second, the combined export value of fluid milk, cream, and milk-based drinks reached $128.5 million in 2021—an inflation-adjusted increase of $85.2 million from 2010. U.S. exports of cheese to Canada have grown by 12 percent to $68.1 million in 2021.

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By Tucker Allmer - The BARN

Tucker Allmer & the BARN are members of the National Association of Farm Broadcasting (NAFB), the Colorado FFA Foundation, the Colorado 4H Foundation, the Colorado Farm Show Marketing Committee, 1867 Club Board Member, Denver Ag & Livestock Club Member, the Weld County Fair Board, the Briggsdale FFA Advisory Council, Briggsdale 4H Club Beef Leader & Founder / Coordinator of the Briggsdale Classic Open Jackpot Show.