NATIONAL AG NEWS SPONSORED BY THE AMERICAN FARM BUREAU FEDERATION
National Ag News for November 15, 2023
NFU Releases Farmer’s Share of Thanksgiving Food Dollar
The National Farmers Union released its Farmers’ Share of the Food Dollar Report for items typically served during the Thanksgiving holiday. These figures reflect how much family farmers earn compared to the amount consumers pay at the grocery store. Consumers are likely to see an increase when they shop for the holiday meal, but little of that increase will get passed on to American farmers and ranchers. An 11-pound turkey retails for $21.89, with the farmer’s share at 66 cents. A 12-ounce box of stuffing is $3.99, and the farmer gets nine cents. Sixteen-ounce frozen sweet corn costs $2.99, and the farmer gets 41 cents. Pumpkin pie filling is $1.79 a can, and farmers get 16 cents. A five-pound bag of mashed potatoes costs $3.99, and farmers get 64 cents. A two-pound boneless ham is $12.98, with the farmer receiving $1.32. Twelve-ounce cranberries are $2.99, and the farmer’s share is 29 cents.
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Stabenow Calls for More Farm Bill Urgency
Debbie Stabenow, Senate Ag Committee Chair, is looking for more urgency from farm groups about getting a new farm bill in place. The Fence Post says Stabenow recalled farm bill negotiations dragging on during 2013 and says there was a “sense of urgency” in the agricultural community about getting it done. However, the Michigan Senator says she doesn’t get that same sense of urgency now. While an extension is considered important, she says it’s absolutely vital that Congress get a new farm bill written and passed in 2024. “I want to hear more of a sense of urgency from ag groups,” Stabenow told a group of reporters after a hearing. John Boozman (BOZE-man), ranking member from Arkansas, says he believes farm groups are “expressing urgency.” However, farm leaders know times are so different from 2018 and that “we don’t just need to do something, we need to do the right thing.”
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November Oil Crops Outlook Increases Soybean Production, Stocks
This month, USDA’s National Agricultural Statistics Service raised the 2023-2024 national average soybean yield to 49.9 bushels an acre in its Crop Production Report. That’s up from 49.6 bushels an acre in the previous report. This revision has increased the 2023-2024 soybean production forecast by 25 million bushels to 4.13 billion bushels. Higher yields in Wisconsin, Tennessee, Ohio, North Dakota, and South Dakota have contributed to the higher yield forecast. With soybean crush and exports unchanged this month, soybean ending stocks for the 2023-2024 marketing year are now forecast at 245 million bushels. The season-average soybean price forecast is unchanged this month at $12.90 a bushel. With the U.S. soybean supply forecast for 2023-2024 at 4.43 billion bushels, 25 million higher than last month’s forecast with unchanged demand, soybean ending stocks were raised to 245 million bushels. U.S. soybean oil production for the 2022-2023 marketing year is finalized at 26.2 billion pounds.
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CHS Foundations Awards $4.3 Million to National FFA Foundation
The CHS Foundation announced grants of $4.3 million to the National FFA Organization, continuing a partnership to support the next generation of agricultural leaders. “We are thrilled to continue this partnership with CHS,” says Molly Ball, president of the National FFA Foundation. “Throughout our partnership, CHS has been unwavering in its support and continues to see the potential leaders in each of our members and advisors.” The grants will help fund FFA programs in 17 states, provide scholarships for attending conferences and contests, and introduce students from all backgrounds to ag careers through the workforce development program. It will also support the National Association of Ag Educators in attracting ag teachers and building strong teaching programs. “CHS and its foundation are proud to make the largest gift in the foundation’s 75-year history to the National FFA,” says Megan Wolle, president of the CHS Foundation. “We’re connecting to the next generation of leaders.”
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Paraguay Beef Imports Won’t Boost Tight U.S. Supplies
USDA’s decision to accept beef imports from Paraguay for the first time in 25 years will likely not change the overall volume of U.S. imports, even during tight supplies and high prices. U.S. meat importers tell Reuters that’s due to a quota on shipments. American beef prices set records this year because of herd contraction to its smallest level in decades. As a result, meat companies are relying on more imports to process enough ground beef to meet demand. Paraguay didn’t negotiate with the U.S. to sell beef under its own quota agreement. That means it has to compete with other countries in the same situation to fill a group tariff-rate quota. The quota for these countries, including Brazil, Ireland, Japan, and Namibia, is approximately 650,000 metric tons. Suppliers already filled that quota earlier this year. Suppliers face a steep 26 percent tax on the value of products shipped above the quota.
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Beyond Meat Struggling to Stay Afloat
An industry analyst says Beyond Meat may need to reach into the financial markets next year to stay in business. Ag Funder News says the firm posted a $70.5 million net loss in the third quarter. Net revenues slid again at the plant-based meat company in Q3, dropping eight percent year-over-year and 26 percent versus the prior quarter. Beyond Meat did see positive free cash flow in the third quarter, but the company doesn’t expect to sustain it. Industry analysts are saying that the firm is now in “survival mode” and will need to tap the financial markets in 2024 to stay afloat. CEO Ethan Brown says the company anticipated a modest return to growth in the third quarter that did not occur. “We did see pockets of growth, especially in the EU, where we saw double-digit gains in net revenues,” Brown says. “But we are still disappointed with the overall results.”
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