Lower crop returns will pressure farmland market, say analysts
The boom in corn and soybean prices since 2020 is fading away, with lower farm income likely in the near term, wrote three agricultural economists in the farmdoc daily blog. “Returns to farming have declined, suggesting that cash rents should decline as well. How quickly or how much cash rents decline will depend on how far commodity prices fall as well as potential policy responses to those declines,” they said.
Farm bill should insist on stewardship — Des Moines Register
"Congress needs to take the plunge" in the new farm bill and "insist on conservation practices where it has, up until now, asked for cooperation while dangling a bit of cash," said the Des Moines Register, published in the No. 1 corn and hog state. USDA's soil and water conservation programs traditionally have relied on voluntary cooperation from farmers, aided by cost-sharing funds, but progress is unacceptably slow, said the newspaper in an editorial.
EPA tailpipe rule faces new lawsuit
The EPA overstepped its authority with its so-called tailpipe rule that requires automakers to reduce sharply greenhouse gas emissions from cars and pickup trucks, said the Renewable Fuels Association (RFA) and the National Farmers Union in a lawsuit filed in U.S. appellate court on Monday. It was the second lawsuit in four days to challenge the regulation.
China falls to third place as U.S. ag export market, USDA says
U.S. food and ag exports to China will fall by $6 billion this fiscal year in the biggest slump in sales since the Sino-U.S. trade war, forecast the Agriculture Department on Wednesday. Mexico and Canada will surpass China as the top customers, while the agricultural trade deficit will widen to $32 billion.
Analyst: ‘Sure looks like’ ag census undercounted corn and soybean acreage
The latest Census of Agriculture, released in February, reported a 2.2 percent decline in U.S. farmland from 2017 to 2022. A portion of that reduction, involving corn and soybean cropland, may be overstated, said Aaron Smith, a professor of agricultural economics at UC-Davis, in a blog.
Drought imperils production of corn, a vital food, in southern Africa
Hot and dry weather has reduced corn yields throughout southern Africa, “threatening food security for millions of households depending on this key staple for a significant share of calories consumed on a daily basis,” said the IFPRI think tank. In South Africa, the region’s major corn grower, the harvest could fall by 18 percent from the previous crop, said the USDA on Thursday.
Brazil, an agricultural giant, could expand cropland by 35 percent, say analysts
Already a major soybean, corn, and cotton grower, Brazil could expand its crop area by 35 percent through the conversion of overgrazed and overgrown pastureland, according to a research agency that is part of the Brazilian Ministry of Agriculture. Besides the potential addition of 70 million acres of cropland, Brazil could increase production by devoting more land to second-crop corn, said a team of U.S. university economists.
Big crops and lower prices for U.S. farmers in 2024
American farmers will harvest monster corn and soybean crops this year, including the largest soybean crop ever, at 4.5 billion bushels, and the third corn crop in four years to top 15 billion bushels, projected the Agriculture Department on Thursday. Season-average prices for the crops would fall for the second year in a row from the spike in commodity markets created by Russia’s invasion of Ukraine in 2022.
U.S. crop prices head downhill after roller coaster climb
After soaring to sky-high levels following Russia's invasion of Ukraine, U.S. corn, soybean, and wheat prices are coming back to earth as supplies expand worldwide, said the Agriculture Department. The average price for corn this marketing year will be 27 percent lower, wheat 18 percent lower, and soybeans 10 percent lower than last season, said USDA analysts in a new look at global supply and demand.
Drought more widespread in corn and soybean areas than wheat territory
Half of U.S. corn and soybean territory is in drought, compared to one-third of wheat land, said weekly drought reports on Thursday. Drought is far less prevalent for winter wheat than it was a year ago, while conditions for soybeans are little changed and corn has seen an 11 percentage point decline, said the USDA’s Ag in Drought report.
Ethanol supporters argue for fuel diversity
Rather than promoting electric vehicles, the government should adopt “a diversified portfolio of approaches” in the transportation sector such as flex fuel vehicles, said three ethanol advocates on Monday. Meanwhile, the Supreme Court refused to hear a challenge of the Minnesota rule that …
GM crops grown on 55 percent of U.S. cropland, says USDA
Farmer adoption of genetically modified crop varieties is spreading beyond the well-known dominance of the major field crops of corn, soybeans, and cotton, said a USDA report. When lesser-known GM crops such as canola, potatoes, and apples are counted, about 55 percent of U.S. cropland is planted to GM varieties, said the Economic Research Service report.
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.
Winter wheat crop in slightly better condition
Nearly half of the U.S. winter wheat crop is in drought but its condition improved slightly in the past week, said the USDA on Tuesday. The weekly Crop Progress report also showed growers in the upper Midwest were rushing through corn and soybean planting after a slow start due to cold and wet weather.
Corn and soybean returns sink as market prices fall
For the first time since 2015, Midwestern farmers face negative returns from corn and soybeans grown on rented land, three agricultural economists said Tuesday at the farmdoc daily blog. They estimated a loss of $99 an acre for corn and $13 a bushel on soybeans, based on rising production costs and a downturn in market prices.
Settlement proposed in green group challenge of RFS
The EPA, to settle a lawsuit over biofuel regulation, said on Monday it would consult with federal wildlife agencies on whether the Renewable Fuel Standard adversely affects endangered species. The consultation would be performed before the EPA finalizes the RFS for 2023-23, now expected in June.
Climate change threatens large portion of U.S. cropland – report
Three of every 10 acres of U.S. corn and winter wheat are under increased threat as climate change boosts temperatures and makes rainfall more erratic in the Midwest and Plains, said new report on Tuesday. Commissioned by the American Farmland Trust, the report said the 2023 farm bill should embrace climate mitigation and provide the money to help farmers adapt to global warming.
U.S. calls for consultations with Mexico over GMO corn ban
The United States asked for technical consultations with Mexico over its agricultural biotechnology policy on Monday, the first formal step toward a challenge under the U.S.-Mexico-Canada free trade agreement. Mexico, the leading customer for U.S. corn exports, said in mid-February that it would ban entry of GMO corn used in making tortillas but accept GMO corn intended for livestock feed and industrial processors.
USDA ‘disappointed’ by revised Mexico corn ban
In a step to defuse trade tensions with the United States, Mexico removed a looming ban on most imports of GMO corn and said it would only block genetically modified corn that would be used in making tortillas. Agriculture Secretary Tom Vilsack said Tuesday the USDA was dissatisfied by the revisions.