Farm, Biofuels, Trade Leaders Label Brazil Decision Devastating For U.S. Ethanol
12/17/2020
The U.S. Grains Council, Growth Energy, the Renewable Fuels Association and the National Corn Growers Association issued the following statement in response to the Brazilian government’s decision to let the current tariff rate quota (TRQ) expire, replacing it with a 20 percent tariff on all imports of U.S. ethanol: “Brazil’s decision to impose a 20 percent …
An Overview of U.S. Farms From USDA’s Economic Research Service-2020 Edition
12/15/2020
Last week, the USDA’s Economic Research Service (ERS) released its annual report exploring characteristics of U.S. farms: “America’s Diverse Family Farms: 2020 Edition.” Today’s update includes highlights from the report, which was written by Christine Whitt, Jessica E. Todd, and James M. MacDonald. The report noted that, “Family farms as a group, across type, accounted for 98 percent …
Prep Harvest Equipment for Winter Storage
12/15/2020
With harvest mostly finished, producers should make sure their equipment is ready for winter months. Harvest 2020 was different for many Iowa farmers due to the derecho. An unusual harvest caused more wear on equipment due to downed corn and rough ground. This extra wear makes cleaning equipment this winter and identifying needed maintenance all …
“Dynamic” Forecast for Feed Grain Trade, and China is the “Primary Driver.”
12/15/2020
Last week, in its monthly Grain: World Markets and Trade report, the USDA’s Foreign Agricultural Service (FAS) explained that, “Trade data for 2019/20 (October-September) are largely complete. Many countries imported record volumes of corn, despite initial concerns over a potential slowdown in feed use due to COVID-19. For 2020/21, global trade for major feed grains is forecast to grow significantly from …
Legal Issues Surrounding RFS Small-Refinery Exemptions Persist
12/11/2020
On Tuesday, DTN’s Todd Neeley reported that, “A coalition of ethanol and agriculture interests asked a federal court on Monday to vacate EPA’s granting of 31 small-refinery exemptions in 2018, alleging the agency did not conduct the proper review of those requests. In all, the groups asked the U.S. Court of Appeals for the District of Columbia Circuit to restore about 1.43 billion …
Surging Feed Prices Will Challenge the U.S. Animal Protein Sector’s Recovery
12/11/2020
The U.S. animal protein sector is expected to face a 12% increase in feed costs in 2021, which will mark the highest year-over-year inflation since 2011. With corn futures above $4 per bushel and soybean meal futures around $350 per ton, cattle feeders, hog producers and chicken producers will pay higher prices for feed than …
Ag Producers Should Do Year-end Income Tax Planning
12/11/2020
Agricultural producers should do tax planning before the end of the year. “It is that time of the year again to think about year-end tax planning,” says Ron Haugen, North Dakota State University Extension farm management specialist. “Having a snowless autumn should allow producers to stop doing some outside work and hit the books. “This …
La Nina, A “Supply-Side Wild Card,” Could Impact Markets Into 2021
12/08/2020
Wall Street Journal writer Lucy Craymer reported late last week that, “La Niña is shaking up agriculture in an already-tumultuous year for commodity markets. “The natural weather phenomenon, known as the cool sister of the better-known El Niño, occurs every few years. It is characterized by cooler-than-normal waters in the Pacific Ocean, causing dry weather in some parts of the …
Farm Income-Better Market Prices Likely Not Enough to Offset Expected Subsidy Reductions
12/07/2020
Donnelle Eller reported on the front page of Friday’s Des Moines Register that, “Mid-Iowa Cooperative’s Mike Kinley sees a $275 million soybean processing plant under construction in eastern Iowa as a way for farmers to get more money for the crops they grow.” “Boosting farm income is crucial, even though a new U.S. Department of Agriculture report this week forecasts that U.S. …
Prospects for Swine Feed Costs in 2021
12/07/2020
Corn and soybean meal prices declined sharply from late January to early August, and then increased significantly in response to deteriorating crop conditions and the potential for strong exports of corn and soybeans during the 20/21 marketing year. Given the uncertainty related to supply and demand, feed prices are likely to be volatile through at …