NATIONAL AG NEWS SPONSORED BY THE AMERICAN FARM BUREAU FEDERATION
National Ag News for February 27, 2022
U.S. Imposes Higher Tariffs on Russian Imports
The White House announced actions intended to hold Russia accountable for invading Ukraine. U.S. Trade Representative Katherine Tai says as part of that effort, President Biden announced additional tariff increases on a variety of goods from Russia worth approximately $2.8 billion. The president raised tariffs on most metal and metal products, doubling them from 35 to 70 percent and targeting a crucial revenue-generating sector of the Russian economy. He also increased tariffs on additional Russian products to 35 percent, including chemicals and minerals. These moves are complemented by tariff increases on Russian aluminum. “These actions are carefully calibrated to put economic pressure on Russia while minimizing costs to U.S. consumers,” says Tai. “As the president recently said in Poland, the United States and our Allies and partners will hold accountable those who are responsible for the war.” She also says those actions demonstrate the U.S. resolve in doing precisely that.
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Food-at-Home Price to Increase Almost Nine Percent
USDA’s Economic Research Service publishes its price forecasts in the monthly Food Price Outlook report. The FPO forecasts food-at-home prices will increase by 8.6 percent in 2023, with a prediction interval of 5.6 to 11 percent. Forecasts now include a midpoint and a prediction interval to represent the expected price change and range of likely prices. The prediction intervals vary. They begin wider due to uncertainty at the start of the year and then narrow as forecasts incorporate more months of observed data. In 2023, fresh fruit prices are predicted to experience little change at 0.1 percent with a prediction interval of -5.6 to 6.4 percent. Overall, food prices are expected to grow more slowly in 2023 than they did in 2022 but remain above historical average rates. Food-at-home prices grew 11.4 percent in 2022, the largest annual increase since 1974, compared with a historical average increase of 2.5 percent from 2003-2022.
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Egg Prices are Projected to Drop 30 Percent This Year
The price of eggs is projected to fall dramatically after reaching record-high levels over several months. The USDA says those prices should fall back to typical levels this year, provided the U.S. doesn’t see a rebound in highly pathogenic avian influenza cases in 2023. The Bureau of Labor Statistics says the price of eggs in January was $4.80 a dozen, 150 percent higher than in January of last year. USDA Chief Economist Seth Meyer told the Ag Outlook Forum attendees that wholesale egg prices will drop almost 27 percent in 2023. The agency says the high price of eggs is driven by the historic level of avian flu outbreaks that have killed more than 58 million backyard and commercial chickens and turkeys since last February. The agency says egg production will increase four percent this year to 9.4 billion dozen as the number of egg-laying chickens will also rebound from 2022.
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Report Says Farm Bill Should Prioritize Ag Research
A report produced by the Farm Journal Foundation and the Chicago Council on Global Affairs says the U.S. needs to increase support for agricultural research and development in the next farm bill. The support would help make sure that farmers can keep feeding the world despite the challenges faced by agriculture. New innovations generated from agricultural research at land-grant universities and other public sector institutions can help increase farm productivity and economic growth. Despite that, public investment in agricultural R and D has declined in recent years. The report says the 2023 farm bill is an opportunity to increase funding for agricultural R and D and ensure the U.S. is prepared for the challenges ahead. The USDA’s Economic Research Service says ag research provides one of the highest returns of any public research investment, generating $20 on average for every $1 spent. Public investment is needed to complement private-sector spending.
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Ethanol Production Surges
The Energy Information Administration says ethanol output jumped to the highest level in more than two months while inventories again increased during the week ending on February 17. The EIA report says production rose to an average of 1.029 million barrels a day. That’s up from 1.014 million barrels, on average, during the previous week and is the highest output since December 16. The Midwest saw output increase to an average of 984,000 barrels a day, up from 965,000 barrels during the previous week. That was where all the gains took place. Production in the West Coast and East Coast regions was unchanged from the prior week. Production in the Rocky Mountain and Gulf Coast regions fell an average of 9,000 and 21,000 barrels a day, respectively. Ethanol stockpiles were up again, rising to 25.58 million barrels, up from 25.33 million during the prior week, and the highest level since April 1, 2022.
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Give FFA Day Raises Record Amount of Support
The National FFA Organization was amazed at the amount of support shown during the National Give FFA Day event. They were excited to announce that with the generous support of the FFA community, they helped raise a record-breaking amount of money. A total of 721,506 dollars will go toward benefitting National FFA and 51 FFA associations. “To those who donated on Give FFA Day, we are so grateful for your support,” the organization said in a release. “Your generosity will impact FFA members and teachers across the country.” They also say because the support was so generous, FFA is able to build members’ leadership skills, instill a passion for service, and prepare the next generation for agriculture careers. “Thank you to everyone who stepped up to make the day such a rousing success,” the organization said. For those who didn’t get the chance, go to ffa.org to continue supporting the organization.
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