U.S. files USMCA challenge to Mexico’s corn import rules
Putting its warnings into action, the Biden administration officially accused Mexico on Thursday of violating North American trade rules by prohibiting imports of genetically modified white corn used in making tortillas, a staple of the Mexican diet. Mexico, the birthplace of corn and a top U.S. trade partner, said it was ready to defend its ban before a USMCA dispute panel.
Big corn and soybean crops in 2023, but lower farm-gate value
The farm-gate value of U.S. corn and soybeans, the two most widely grown crops in the country, will fall 16 percent compared to last year's harvests due to a steep drop in commodity prices, according to USDA data. The season-average price for corn was forecast to be $1.70 a bushel below the near-record prices paid for the 2022 crop, and soybeans were expected to be $1.50 a bushel below last year's price.
Report: Food insufficiency grew when SNAP benefits shrank
Two million SNAP households "faced food insufficiency" following the nationwide termination in March of so-called emergency allotments enacted during the pandemic, said researchers from the University of Pennsylvania medical school.
Precision ag usage is highest in top row-crop states
Farmers in the top corn, wheat, soybean, and hog states are twice as likely as farmers in smaller-volume states to use precision agriculture practices, such as GPS guidance, said the USDA’s farm computer report on Thursday. Usage often topped 50 percent in the top row-crop states, while the U.S. average was just 27 percent.
WTO backs U.S. in challenge of Chinese trade war tariffs
China wrongly imposed retaliatory tariffs against U.S. products including pork, wine, and fruits and nuts in response to Trump-era tariffs on aluminum and steel imports, said a WTO dispute panel on Wednesday. The trade war levies were an additional 25 percent on pork and an additional 15 percent on fruits and derived products.
Food inflation rate is lowest in nearly two years
The U.S. food inflation rate, on the decline since last fall, has fallen to 4.9 percent, aided by the second month in a row of modestly lower prices for meat, poultry, fish, and eggs, said the government on Thursday. It was the lowest food inflation rate since September 2021.
After run-up, farmland prices may become more stable
Higher interest rates and weaker commodity prices may slow the momentum for ever-higher farmland values, said the Chicago and Kansas City Federal Reserve banks in quarterly reports on Thursday. "After this unusual period of large farmland gains, it wouldn't be too surprising if we were back to that general stable [land value] scenario for a while," said David Oppedahl, policy adviser at the Chicago Fed.
U.S. ag exports slow down, but imports don’t
At the three-quarter point in the trade year, U.S. food and agricultural imports were nearly $7 billion larger than farm exports, $148.2 billion vs. $141.4 billion, according to USDA data released on Thursday. The agency has forecast a $17 billion food trade deficit for the 12 months ending on Sept. 30, due to a drop-off in corn, wheat, beef, and poultry exports, while demand remained strong for imports that include wine, coffee, beer, fresh fruits and vegetables, and distilled spirits.
Whatever you call it, cultivated meat trails beef in consumers’ estimation
Americans declare beef is better than its plant-based or lab-grown alternatives from almost any standpoint, from taste to nutrition and environmental impact, said a Purdue University report on Wednesday. Consumers gave slightly higher scores to "lab-grown meat" as opposed to "cell-cultured meat," although it is the same thing.
More states are incentivizing schools to buy local food
A growing number of states are reimbursing schools for buying locally grown and produced foods in an effort to improve children's diets while supporting local farmers. Before the pandemic, eight states and the District of Columbia had programs that subsidize local food purchases at schools — seven more states have added these programs since 2020.
Vilsack urges Brazil ‘in the strongest terms’ to speed up mad-cow testing
In stern terms, Agriculture Secretary Tom Vilsack told his Brazilian counterpart that beef trade between the nations hinges on prompt reporting of cattle diseases, especially mad cow disease. Earlier this year, Brazil reported two cases of atypical mad cow disease two months after they occurred, while most nations report the findings within days.
Insuring desert farms against heat-related losses is bad policy
Studies have repeatedly shown that federally subsidized crop insurance discourages farmers from updating their practices, tools, or strategies in ways that would help them adapt to climate change — but the federal government still subsidizes a whopping 62 percent of farmers’ insurance premiums.
Lawmaker says farm bill should be split in two: SNAP and agriculture
A decade after the House briefly put the idea into play, a senior Republican on the House Agriculture Committee said the far-ranging farm bill should be divided into two separate pieces of legislation: SNAP and everything else. SNAP, which cost $119 billion last year, has become “an emotional, political issue” that taints consideration of farm supports, said Rep. Austin Scott of Georgia.
Incentive payments help farmers start with cover crops, says report
Nine out of 10 farmers say they definitely or probably will stick with cover crops after the expiration of financial incentives to add the crops to their operations, said a report based on a survey of 795 farmers nationwide. Half of the participants in the National Cover Crop Survey said they had received some sort of payment for cover crops in 2022.
House Republicans court defeat of farm bill with SNAP talk, say Democrats
The 2023 farm bill is headed for defeat if Republican leaders meddle with SNAP, said Democrats on the House Agriculture Committee on Monday, pointing to floor votes that delayed enactment of the 2014 and 2018 bill. It was the second warning by the committee’s Democrats against additional cuts in food stamps following revisions in the debt limit deal in June.
Grants will help small and rural schools improve meals
Some 264 school districts across the nation will receive up to $150,000 apiece for projects to improve the nutritional quality of the meals served in small and rural schools, said the USDA on Monday. Nearly $30 million will be distributed through the Healthy Meals Incentives Initiative, said Agriculture Deputy Secretary Xochitl Torres Small.
Cropland values soar 33 percent in three years
After years of stagnation, cropland values rose an average of $1,300 an acre in the three years since the pandemic hit the United States, according to the Agriculture Department. Values mushroomed 33 percent at the same time farmers enjoyed back to back years of record-high farm income, with income forecast to be the third-highest this year.
Food price index edges upward on fears of disrupted supplies
The FAO index of global commodity prices rose 1.3 percent during July, its second increase since April, reflecting the termination of the Black Sea grain initiative and India's restrictions on rice exports. The increases punctuated a longer-term decline in commodity prices in the past year.
High interest rates fall heaviest on less-profitable farmers
Interest rates doubled in the past year for agricultural loans, the fastest increase since the early 1980s, with the least-profitable farmers feeling the impact the most, said the Minneapolis Federal Reserve Bank. “All producers should prepare for elevated interest rates by incorporating higher interest expenses into cash flow projections regardless of profitability and debt levels,” it said.
Kremlin uses Black Sea grain as blackmail, says Blinken
Russia is exporting more grain at higher prices than ever before while suppressing Ukrainian shipments, said Secretary of State Antony Blinken at a UN Security Council meeting on Thursday. “Every member of this council, every member of the United Nations should tell Moscow: Enough using the Black Sea as blackmail, enough treating the world’s most vulnerable people as leverage.”