NATIONAL AG NEWS SPONSORED BY THE AMERICAN FARM BUREAU FEDERATION
National Ag News for April 28, 2022
World Bank: Commodity Prices to Drop Through 2024
Global commodity prices are expected to drop this year at the fastest clip since the beginning of COVID-19. A World Bank report says that clouds the prospective growth of approximately two-thirds of the developing economies that depends on exports. The Commodity Markets Outlook says the drop in prices is expected to bring little relief to the almost 350 million people around the world who are facing food insecurity. While food prices are expected to drop by eight percent this year, they will be at their second-highest level since 1975. Food price inflation is at 20 percent globally, the highest level in 20 years. “The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in commodity trade,” the report says. Overall, commodity prices are expected to fall by 21 percent in 2023, relative to last year.
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House Amendment Preserves Renewable Fuel Tax Credits
Clean Fuels Alliance welcomed an amendment to House legislation that would raise the nation’s debt limit and make substantial changes to clean energy tax credits. The amendment would preserve the biodiesel and renewable diesel blenders’ credits as they are written in current law. “The clean fuels industry thanks all the House members who sought to preserve predictability and stability in tax policy,” says Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. Midwestern House Republicans were also concerned about the bill’s elimination of ethanol tax credits. A manager’s amendment eliminated those provisions that would have eliminated tax credits for biofuels that were part of the Inflation Reduction Act. The amendment added a grandfather clause in a section that eliminates sustainable aviation fuel and alternative fuel tax credits for those engaged in activities who would have received a credit after the Inflation Reduction Act passed and before it was introduced.
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Ag Groups Testify on Farm Bill Priorities
American Soybean Association President Daryl Cates testified before the House Agriculture Committee’s Subcommittee on General Farm Commodities, Risk Management, and Credit. Cates offered ASA’s perspectives on the 2023 Farm Bill and asked for help with two priorities under the subcommittee’s jurisdiction. The first was protecting crop insurance, and the second was improving the Title 1 farm safety net for soybeans. Cates called crop insurance, “The most effective and important component of the farm safety net for soybean farmers.” National Sorghum Producers Chair Craig Meeker also testified during the hearing. “It’s clear that more resources will be necessary to enact a strong farm bill this year as there’s a major shortfall of funding compared to previous bills,” Meeker says. He also reaffirmed his group’s support for crop insurance, noting that he would not be the sixth generation on his family farm without it. Crop insurance has been critical in managing an ongoing drought.
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From Drought to Flooding in Six Months
Last fall, the main topic of discussion with historically-low water levels on the Mississippi River and other navigable rivers. Now, high water levels are presenting a challenge to barge transportation, especially along the Upper Mississippi River levels. Significant snowfall and rain over the past several weeks have resulted in a sizable increase in water levels. Many of the Mississippi River locks between St. Paul, Minnesota, and Quincy, Illinois, have been closed by the high water conditions. Many will likely stay closed until the first and second week of May. Mike Steenhoek, executive director of the Soy Transportation Coalition, says, “Closures of these locks will obviously impede the delivery of any remaining soybeans or grain for the export markets. However, lock closures at this time of year will particularly impact northern fertilizer shipments.” The USDA estimates that 2.4 million tons of fertilizer have been delivered during the first 12 weeks of 2023.
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USDA Kicks Off Implementation Phase of Partnerships for Climate-Smart Commodities
The USDA kicked off the implementation phase for projects funded through the $3.1 billion Partnerships for Climate-Smart Commodities effort. As projects get started, the agency is also launching the Partnerships for Climate-Smart Commodities Learning Network, which will generate key lessons learned as projects get implemented. “Farmers, ranchers, and forest landowners are on the frontlines of climate change,” says Ag Secretary Tom Vilsack. “At the same time, they are uniquely positioned to deliver climate solutions through climate-smart production that reduces greenhouse gas emissions and sequesters carbon.” Vilsack also says through these projects, the agency’s partners are working to create new markets for climate-smart commodities while developing the tools needed to quantify impacts and help producers implement those climate-smart practices on their land. Producers interested in participating in projects can go to the Partnerships for Climate-Smart Commodities Active Project Dashboard to find projects in their areas. For more information on projects, go to usda.gov.
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Canadian Farmers Planting More Wheat This Year
As Canadian farmers gear up for spring planting, they expect to plant more wheat this year and increase crops of canola and soybeans. The University of Illinois’ Farm Policy News says, “Canada’s farmers forecast planting 26.97 million acres of wheat in 2023, six percent higher than 2022 but still well below the 8.2 percent annual increase recorded last year.” The spring wheat area will increase 7.5 percent to 19.39 million acres, durum wheat is predicted to edge up 0.9 percent to just over six million acres, and the winter wheat area is anticipated to jump more than 12 percent to 1.52 million acres. Geopolitical concerns may be behind Canada’s increasing wheat crop. Canada’s farmers are planting the most wheat in 22 years as the war in Ukraine and a significant drought in the U.S. tighten global supplies. Global wheat stocks and vegetable oil supplies are limited by obstacles facing Ukraine’s exports
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