Deere and Company reported a net income of $903 million during the company’s first quarter that ended on January 30, or about $2.92 a share. 

That compares to a net income of $1.224 billion or $3.87 a share for the same time last year. Worldwide net sales and revenues increased five percent in the first quarter to $9.56 billion. 

Equipment operations and net sales were $8.53 billion for the quarter, compared with $8.05 billion in 2021. 

“Deere’s performance in the first quarter was impressive given production issues surrounding the delayed ratification of our UAW contract as well as persistent challenges posed by the supply chain and pandemic,” says Deere Chairman and CEO John C. May. 

“Those factors led to higher production costs during the quarter.” May also says the company will continue to work closely with key suppliers to manage the situation. Net income for Deere and Company is forecast between $6.7 and $7.1 billion.

Deere and Company reported a net income of $903 million during the company’s first quarter that ended on January 30, or about $2.92 a share. That compares to a net income of $1.224 billion or $3.87 a share for the same time last year. Worldwide net sales and revenues increased five percent in the first quarter to $9.56 billion. Equipment operations and net sales were $8.53 billion for the quarter, compared with $8.05 billion in 2021. “Deere’s performance in the first quarter was impressive given production issues surrounding the delayed ratification of our UAW contract as well as persistent challenges posed by the supply chain and pandemic,” says Deere Chairman and CEO John C. May. “Those factors led to higher production costs during the quarter.” May also says the company will continue to work closely with key suppliers to manage the situation. Net income for Deere and Company is forecast between $6.7 and $7.1 billion.

Deere revenues up while net income drops in the first quarter

U.S. biofuel industry backers told lawmakers that the nation’s renewable fuel mandates are good for farmers, national security, and the environment. 

The supporters defended the Renewable Fuel Standard as the Biden administration considers changes to the program. 

The program is good for the nation’s farmers, but the oil industry says the mandates are too expensive. 

“The RFS remains the nation’s most successful clean energy policy,” said Growth Energy CEO Emily Skor during the congressional hearing. “Let me be clear on this. There is no path to net-zero emissions by 2050 without biofuels.” 

Reuters says other advocates called the RFS “crucial support” for American farmers and it reduces the need for energy imports. The Environmental Protection Agency is reviewing the RFS and intends to announce potential changes to the program by May. 

“As much as the Biden administration dreams of all-electric vehicles, the reality is liquid fuels are here to stay,” says Senator Joni Ernst of Iowa.

U.S. biofuel industry backers told lawmakers that the nation’s renewable fuel mandates are good for farmers, national security, and the environment. The supporters defended the Renewable Fuel Standard as the Biden administration considers changes to the program. The program is good for the nation’s farmers, but the oil industry says the mandates are too expensive. “The RFS remains the nation’s most successful clean energy policy,” said Growth Energy CEO Emily Skor during the congressional hearing. “Let me be clear on this. There is no path to net-zero emissions by 2050 without biofuels.” Reuters says other advocates called the RFS “crucial support” for American farmers and it reduces the need for energy imports. The Environmental Protection Agency is reviewing the RFS and intends to announce potential changes to the program by May. “As much as the Biden administration dreams of all-electric vehicles, the reality is liquid fuels are here to stay,” says Senator Joni Ernst of Iowa.

U.S. biofuel stresses biofuel successes in testimony

More than 735,000 FFA members across the country will share the story of agriculture as part of National FFA Week. 

The week starts on Saturday, February 19, and culminates on Saturday, February 26. 

“National FFA Week is an important week for members across the country, as not only do we celebrate the organization, but we share the message of FFA and agriculture,” says National FFA Advisor Dr. James Woodard. 

“FFA chapters across the country celebrate agriculture while thanking their supporters.” Woodard also says FFA and agricultural education continue to play a key role in not only developing the next generation of leaders but also developing those who will be filling the ever-growing need in the talent pipeline. 

FFA members will share agriculture with fellow students and their communities while also giving back to their communities through service projects. The six national officers will also connect with chapters around the country.

More than 735,000 FFA members across the country will share the story of agriculture as part of National FFA Week. The week starts on Saturday, February 19, and culminates on Saturday, February 26. “National FFA Week is an important week for members across the country, as not only do we celebrate the organization, but we share the message of FFA and agriculture,” says National FFA Advisor Dr. James Woodard. “FFA chapters across the country celebrate agriculture while thanking their supporters.” Woodard also says FFA and agricultural education continue to play a key role in not only developing the next generation of leaders but also developing those who will be filling the ever-growing need in the talent pipeline. FFA members will share agriculture with fellow students and their communities while also giving back to their communities through service projects. The six national officers will also connect with chapters around the country.

Students celebrate agriculture and leadership during FFA week

Senior leadership in the USDA will be back in their offices on February 28. 

Keith Gray, associate administrator of the Risk Management Agency made the announcement during the Crop Insurance Industry’s Annual Convention. 

The Hagstrom Report says mid-level staff will be expected to return by March 28, and all staff will be moved in by May 27. “But we aren’t coming back in the traditional sense,” Gray says. 

“We’re going to be hybrid, largely remote.” How much time RMA employees spend in the office will also depend on local conditions. The office has been 100 percent telework, but Gray says working that way hasn’t slowed them down. 

“In some cases, remote work has improved our response time,” Gray says. “We are going to hold everyone accountable.” Ag Secretary Tom Vilsack says USDA will have a policy of maximum telework, which means they can work remotely eight out of every ten days.

Senior leadership in the USDA will be back in their offices on February 28. Keith Gray, associate administrator of the Risk Management Agency made the announcement during the Crop Insurance Industry’s Annual Convention. The Hagstrom Report says mid-level staff will be expected to return by March 28, and all staff will be moved in by May 27. “But we aren’t coming back in the traditional sense,” Gray says. “We’re going to be hybrid, largely remote.” How much time RMA employees spend in the office will also depend on local conditions. The office has been 100 percent telework, but Gray says working that way hasn’t slowed them down. “In some cases, remote work has improved our response time,” Gray says. “We are going to hold everyone accountable.” Ag Secretary Tom Vilsack says USDA will have a policy of maximum telework, which means they can work remotely eight out of every ten days.

USDA announces reopening schedule

China failed to reach the Phase One Agreement commitments to purchase U.S. goods and services, including agricultural commodities. 

The U.S. Trade Representative's office revealed the data in a more than 70-page report Wednesday. 

The annual review states, "The reality is that this Agreement did not meaningfully address the more fundamental concerns that the United States has with China's state-led, non-market policies and practices and their harmful impact on the U.S. economy." 

While the report focused on China's World Trade Organization compliance, it covered agricultural trade. 

USTR says China's implementation of the agricultural commitments in the Phase One Agreement has been generally positive, however, there has been a notable lack of meaningful action in other areas, including agricultural biotechnology and a required risk assessment for the use of ractopamine in the production of beef and pork. 

And the report finds China remains a difficult and unpredictable market for U.S. agricultural exporters, largely because of inconsistent enforcement of regulations and selective intervention in the market by China’s regulatory authorities.

China failed to reach the Phase One Agreement commitments to purchase U.S. goods and services, including agricultural commodities. The U.S. Trade Representative's office revealed the data in a more than 70-page report Wednesday. The annual review states, "The reality is that this Agreement did not meaningfully address the more fundamental concerns that the United States has with China's state-led, non-market policies and practices and their harmful impact on the U.S. economy." While the report focused on China's World Trade Organization compliance, it covered agricultural trade. USTR says China's implementation of the agricultural commitments in the Phase One Agreement has been generally positive, however, there has been a notable lack of meaningful action in other areas, including agricultural biotechnology and a required risk assessment for the use of ractopamine in the production of beef and pork. And the report finds China remains a difficult and unpredictable market for U.S. agricultural exporters, largely because of inconsistent enforcement of regulations and selective intervention in the market by China’s regulatory authorities.

USTR releases annual report on China's WTO compliance

State agriculture officials this week announced their priorities for the upcoming 2023 Farm Bill discussion. 

The National Association of State Departments of Agriculture will direct its policy advocacy efforts regarding the bill towards ten specific policy areas. At the hybrid 2022 NASDA Winter Policy Conference this week, members laid the foundation for those priorities. 

NASDA wants to focus its attention on agriculture research, animal disease, conservation and climate resiliency, cyber security and food safety. Other priorities include hemp, invasive species, local food systems, Specialty Crop Block Grants and trade promotion. 

NASDA CEO Ted McKinney says, “The next Farm Bill must remain unified, securing a commitment to American agriculture and the critical food and nutritional assistance programs for those who need it most.” 

McKinney adds that NASDA members are often the officials closest to farmers themselves. As co-regulators with the federal government, they are uniquely positioned to lead impact and direct policymaking solutions for the 2023 Farm Bill.

State agriculture officials this week announced their priorities for the upcoming 2023 Farm Bill discussion. The National Association of State Departments of Agriculture will direct its policy advocacy efforts regarding the bill towards ten specific policy areas. At the hybrid 2022 NASDA Winter Policy Conference this week, members laid the foundation for those priorities. NASDA wants to focus its attention on agriculture research, animal disease, conservation and climate resiliency, cyber security and food safety. Other priorities include hemp, invasive species, local food systems, Specialty Crop Block Grants and trade promotion. NASDA CEO Ted McKinney says, “The next Farm Bill must remain unified, securing a commitment to American agriculture and the critical food and nutritional assistance programs for those who need it most.” McKinney adds that NASDA members are often the officials closest to farmers themselves. As co-regulators with the federal government, they are uniquely positioned to lead impact and direct policymaking solutions for the 2023 Farm Bill.

NASDA announces priorities for the 2023 farm bill

Agricultural output in the United States nearly tripled between 1948 and 2017 even as the amount of labor hours-worked declined by more than 80 percent. 

USDA’s Economic Research Service says the opposing trends resulted in an increase in labor productivity growth in the U.S. farm sector. Labor productivity, calculated as average output per unit of labor input, is a popular measure for understanding economic growth. 

ERS estimates agricultural output per worker grew by 16 times from 1948 through 2017. At the same time, agricultural output per hour worked grew even faster, by 17 times, implying that average hours worked per worker declined. 

Labor productivity estimates can vary based on different ways labor is measured. One factor in the increased labor productivity is the quality of labor, measured by attributes such as age, gender, and the highest level of education a worker has reached. 

ERS researchers estimate that changes to farmworker attributes accounted for about 13 percent of growth in hourly-based annual labor productivity during the time studied.

Agricultural output in the United States nearly tripled between 1948 and 2017 even as the amount of labor hours-worked declined by more than 80 percent. USDA’s Economic Research Service says the opposing trends resulted in an increase in labor productivity growth in the U.S. farm sector. Labor productivity, calculated as average output per unit of labor input, is a popular measure for understanding economic growth. ERS estimates agricultural output per worker grew by 16 times from 1948 through 2017. At the same time, agricultural output per hour worked grew even faster, by 17 times, implying that average hours worked per worker declined. Labor productivity estimates can vary based on different ways labor is measured. One factor in the increased labor productivity is the quality of labor, measured by attributes such as age, gender, and the highest level of education a worker has reached. ERS researchers estimate that changes to farmworker attributes accounted for about 13 percent of growth in hourly-based annual labor productivity during the time studied.

USDA: Ag productivity increased as hours worked declined

Foreign Agricultural Service Administrator Daniel Whitley arrived in Dubai Tuesday to launch the Department of Agriculture’s first trade mission since November 2019. 

Whitley is kicking off the trade mission for Agriculture Secretary Tom Vilsack, who arrives in Dubai on Friday, with a delegation of representatives from U.S. agribusinesses, farm organizations, and state agriculture departments interested in exploring export opportunities across the Middle East. 

Whitley says, “I am thrilled that USDA trade missions are back, and I am honored to lead such a dynamic group of U.S. agribusinesses and representatives to the UAE.” 

With annual agricultural exports averaging more than $1.2 billion during the last five years, the United States is the UAE’s fourth-largest supplier of food and farm products and is poised for further export growth. 

Trade mission participants will engage directly with potential customers, receive in-depth market briefings, and participate in site visits, including Expo Dubai 2020.

Foreign Agricultural Service Administrator Daniel Whitley arrived in Dubai Tuesday to launch the Department of Agriculture’s first trade mission since November 2019. Whitley is kicking off the trade mission for Agriculture Secretary Tom Vilsack, who arrives in Dubai on Friday, with a delegation of representatives from U.S. agribusinesses, farm organizations, and state agriculture departments interested in exploring export opportunities across the Middle East. Whitley says, “I am thrilled that USDA trade missions are back, and I am honored to lead such a dynamic group of U.S. agribusinesses and representatives to the UAE.” With annual agricultural exports averaging more than $1.2 billion during the last five years, the United States is the UAE’s fourth-largest supplier of food and farm products and is poised for further export growth. Trade mission participants will engage directly with potential customers, receive in-depth market briefings, and participate in site visits, including Expo Dubai 2020.

USDA trade mission underway in Dubai

The Center for Rural Affairs applauds expansions to federal crop insurance recently announced by USDA’s Risk Management Agency. 

The changes signal encouraging opportunities for farmers practicing conservation on their operations, according to the organization. This month, RMA announced it will be offering the Pandemic Cover Crop Program for a second year. 

The program offers a $5 per acre discount on a producer’s crop insurance premium if they planted a qualifying cover crop ahead of their 2022 crop. If a cover crop variety is reportable to the Farm Service Agency, it is eligible for the program. 

To receive the benefit, producers must have a Report of Acreage form filed for their cover crops by March 15, also the crop insurance sales closing date for most spring crops. 

Kate Hansen with the Center for Rural Affairs says, "Producers across the country are implementing new conservation practices to better steward their land,” adding, “These recent developments from RMA to support these efforts are encouraging.”

The Center for Rural Affairs applauds expansions to federal crop insurance recently announced by USDA’s Risk Management Agency. The changes signal encouraging opportunities for farmers practicing conservation on their operations, according to the organization. This month, RMA announced it will be offering the Pandemic Cover Crop Program for a second year. The program offers a $5 per acre discount on a producer’s crop insurance premium if they planted a qualifying cover crop ahead of their 2022 crop. If a cover crop variety is reportable to the Farm Service Agency, it is eligible for the program. To receive the benefit, producers must have a Report of Acreage form filed for their cover crops by March 15, also the crop insurance sales closing date for most spring crops. Kate Hansen with the Center for Rural Affairs says, "Producers across the country are implementing new conservation practices to better steward their land,” adding, “These recent developments from RMA to support these efforts are encouraging.”

Center for Rural Affairs applauds recent crop insurance improvements

As National FFA Week approaches, Culver’s is celebrating its relationship with the organization of future agriculture leaders by launching its eighth annual FFA Essay Contest. 

Culver's longstanding relationship with FFA is part of its Thank You Farmers Project, an initiative that aims to celebrate and advocate for the role of farming in creating a more resilient and sustainable world. 

Three winners will be selected, earning prizes of $7,500, $5,000 and $2,500 for their FFA chapters to pursue additional educational projects and initiatives. Culver's has awarded over $100,000 in prizes to contest finalists since 2015. 

This year's prompt is: Agriculture impacts the world in so many ways, Share three ways the industry is making a positive difference that you want people to know about. Written essays, 1,000 words or less, and videos, five minutes or less, will be accepted at culvers.com/essaycontest until the deadline of April 11, 2022. National FFA Week begins this Saturday.

As National FFA Week approaches, Culver’s is celebrating its relationship with the organization of future agriculture leaders by launching its eighth annual FFA Essay Contest. Culver's longstanding relationship with FFA is part of its Thank You Farmers Project, an initiative that aims to celebrate and advocate for the role of farming in creating a more resilient and sustainable world. Three winners will be selected, earning prizes of $7,500, $5,000 and $2,500 for their FFA chapters to pursue additional educational projects and initiatives. Culver's has awarded over $100,000 in prizes to contest finalists since 2015. This year's prompt is: Agriculture impacts the world in so many ways, Share three ways the industry is making a positive difference that you want people to know about. Written essays, 1,000 words or less, and videos, five minutes or less, will be accepted at culvers.com/essaycontest until the deadline of April 11, 2022. National FFA Week begins this Saturday.

Culvers celebrates National FFA Week with essay contest

For the seventh straight week, the nation's average gas price climbed, up 4.6 cents from a week ago to $3.47 per gallon. The national average is up 16.5 cents from a month ago and 97.2 cents per gallon higher than a year ago. 

The national average price of diesel increased 8.9 cents in the last week to $3.87 per gallon, the highest since July 2014. 

The jump in gasoline prices continues as oil prices continue to push higher, reaching $94 per barrel last week on continued concern over the possible imminent threat that Russia may invade Ukraine. 

GasBuddy’s Patrick De Haan says, “I see no other potentials in the short term but additional price increases unless Russia does an about-face on Ukraine.”&nbsp;&nbsp;

Beyond that, seasonal issues will push prices further higher, including the multi-month transition to summer gasoline. U.S. retail gasoline demand rose last week as stations refueled after major winter storms boosted demand.

For the seventh straight week, the nation's average gas price climbed, up 4.6 cents from a week ago to $3.47 per gallon. The national average is up 16.5 cents from a month ago and 97.2 cents per gallon higher than a year ago. The national average price of diesel increased 8.9 cents in the last week to $3.87 per gallon, the highest since July 2014. The jump in gasoline prices continues as oil prices continue to push higher, reaching $94 per barrel last week on continued concern over the possible imminent threat that Russia may invade Ukraine. GasBuddy’s Patrick De Haan says, “I see no other potentials in the short term but additional price increases unless Russia does an about-face on Ukraine.”&nbsp;&nbsp;Beyond that, seasonal issues will push prices further higher, including the multi-month transition to summer gasoline. U.S. retail gasoline demand rose last week as stations refueled after major winter storms boosted demand.

Russia-Ukraine issue driving fuel prices higher

The Department of Agriculture Monday unveiled a resource guide to help rural businesses grow and expand the rural economy. 

The guide features information on how rural entrepreneurs can use USDA and other federal programs to access financing and other assistance to help start and expand their businesses. 

Rural Development Undersecretary Xochitl Torres Small says the guide will "enhance American competitiveness around the world to meet the challenges of the 21st century by equipping rural entrepreneurs with the tools they need to succeed." 

The guide includes tools to help rural businesses expand access to capital, create value-added agriculture products, access high-speed internet and cut energy costs. 

The guide also includes sources on access to health care resources, workforce development and training opportunities. Finally, the guide features firsthand stories from Rural Development customers on ways USDA programs and services have helped them start or expand businesses. The guide is available on USDA’s Rural Development website, rd.usda.gov.

The Department of Agriculture Monday unveiled a resource guide to help rural businesses grow and expand the rural economy. The guide features information on how rural entrepreneurs can use USDA and other federal programs to access financing and other assistance to help start and expand their businesses. Rural Development Undersecretary Xochitl Torres Small says the guide will "enhance American competitiveness around the world to meet the challenges of the 21st century by equipping rural entrepreneurs with the tools they need to succeed." The guide includes tools to help rural businesses expand access to capital, create value-added agriculture products, access high-speed internet and cut energy costs. The guide also includes sources on access to health care resources, workforce development and training opportunities. Finally, the guide features firsthand stories from Rural Development customers on ways USDA programs and services have helped them start or expand businesses. The guide is available on USDA’s Rural Development website, rd.usda.gov.

USDA releases resource guide for rural entrepreneurs

The United States annually imports more than $5 billion worth of cocoa and chocolate products, according to new data from USDA's Economic Research Service. 

With cocoa beans only grown abroad, trade is critical to meet the U.S. consumer’s fondness for cocoa-based treats. Imported shipments of chocolate and other food preparations containing cocoa were the largest share of imports and were valued at almost $2.8 billion a year between 2017 and 2021. 

The import value of cocoa beans averaged more than $1.1 billion annually over the five-year period. Cocoa butter shipments, principally supplied by Indonesia and Malaysia, were valued at $576 million annually, while supplies of cocoa paste averaged about $293 million a year. 

Cocoa beans, the raw seeds from the cacao tree that are processed into derivative products, were imported mostly from the Ivory Coast, Ecuador, and Ghana. The United States also exports chocolate and cocoa products to Canada and Mexico.

The United States annually imports more than $5 billion worth of cocoa and chocolate products, according to new data from USDA's Economic Research Service. With cocoa beans only grown abroad, trade is critical to meet the U.S. consumer’s fondness for cocoa-based treats. Imported shipments of chocolate and other food preparations containing cocoa were the largest share of imports and were valued at almost $2.8 billion a year between 2017 and 2021. The import value of cocoa beans averaged more than $1.1 billion annually over the five-year period. Cocoa butter shipments, principally supplied by Indonesia and Malaysia, were valued at $576 million annually, while supplies of cocoa paste averaged about $293 million a year. Cocoa beans, the raw seeds from the cacao tree that are processed into derivative products, were imported mostly from the Ivory Coast, Ecuador, and Ghana. The United States also exports chocolate and cocoa products to Canada and Mexico.

US annual cocoa and choleate imports valued at $5 billion

Producers who have coverage under most crop insurance policies are eligible for a premium benefit from the USDA if they planted cover crops during the 2022 crop year.Producers must report their cover crop acreage by March 15 if they want to receive the benefit from this year’s Pandemic Cover Crop Program. 

PCCP helps farmers maintain their cover crop systems despite the financial challenges posed by COVID-19.

“Cultivating cover crops requires a sustained, long-term investment, and the economic challenges of the pandemic made it financially challenging for many producers to maintain cover crop systems,” says RMA Administrator Marcia Bunger. “Producers use cover crops for a variety of agronomic benefits, and this program will reduce producers’ overall premium bill to help ensure they can continue this climate-smart agricultural practice.” 

PCCP was first offered in 2021, and producers with crop insurance received $59.5 million in premium subsidies for 12.2 million acres of cover crops.

Producers who have coverage under most crop insurance policies are eligible for a premium benefit from the USDA if they planted cover crops during the 2022 crop year.Producers must report their cover crop acreage by March 15 if they want to receive the benefit from this year’s Pandemic Cover Crop Program. PCCP helps farmers maintain their cover crop systems despite the financial challenges posed by COVID-19.“Cultivating cover crops requires a sustained, long-term investment, and the economic challenges of the pandemic made it financially challenging for many producers to maintain cover crop systems,” says RMA Administrator Marcia Bunger. “Producers use cover crops for a variety of agronomic benefits, and this program will reduce producers’ overall premium bill to help ensure they can continue this climate-smart agricultural practice.” PCCP was first offered in 2021, and producers with crop insurance received $59.5 million in premium subsidies for 12.2 million acres of cover crops.

Crop Insurance Premium Benefit available for cover crops

A group of U.S. agricultural organizations had filed a lawsuit against the Environmental Protection Agency over chlorpyrifos. 

DTN says the 21 groups want the agency’s pending ban on the product to be halted and eventually revoked. The lawsuit was filed as the EPA will finalize its rule revoking the food tolerances for the insecticide on February 28. That will effectively ban U.S. farmers from legally using the product. 

The rule was issued by the Biden EPA in August 2021. The ag groups filed a series of petitions asking the judge to issue a stay halting the EPA’s pending ban until the lawsuit can be reviewed. The lawsuit itself asks the judge to vacate the EPA’s rule revoking food residue tolerances based on the harm to agriculture and the EPA’s history of re-registering and approving the insecticide. 

This is the second attempt by ag groups to halt the EPA’s final rule banning chlorpyrifos.

A group of U.S. agricultural organizations had filed a lawsuit against the Environmental Protection Agency over chlorpyrifos. DTN says the 21 groups want the agency’s pending ban on the product to be halted and eventually revoked. The lawsuit was filed as the EPA will finalize its rule revoking the food tolerances for the insecticide on February 28. That will effectively ban U.S. farmers from legally using the product. The rule was issued by the Biden EPA in August 2021. The ag groups filed a series of petitions asking the judge to issue a stay halting the EPA’s pending ban until the lawsuit can be reviewed. The lawsuit itself asks the judge to vacate the EPA’s rule revoking food residue tolerances based on the harm to agriculture and the EPA’s history of re-registering and approving the insecticide. This is the second attempt by ag groups to halt the EPA’s final rule banning chlorpyrifos.

Ag groups sue EPA over Chlorpyrifos

A Wells Fargo economist predicted a rosy future ahead for American commodities during the next several years. 

Michael Swanson says the only thing that could seriously derail that prediction is the weather. The Hagstrom Report says Swanson spoke at the Crop Insurance and Reinsurance Bureau’s annual meeting. He says, “Life is good now, and the prices should remain high up to 2025.”

 Swanson did say that fertilizer prices aren’t sustainable at their current highs. The economist also says that farmers have to be disciplined in what they’re paying to rent land and not agree to rents so high that they can’t make a profit. The value of U.S. farmland has risen from $1 trillion in 2020 to $2.7 trillion this year. 

As far as the overall economy, Swanson says it’s “very, very strong.” If interest rates rise to 3.5 percent and inflation drops, businesses should be able to make adjustments.

A Wells Fargo economist predicted a rosy future ahead for American commodities during the next several years. Michael Swanson says the only thing that could seriously derail that prediction is the weather. The Hagstrom Report says Swanson spoke at the Crop Insurance and Reinsurance Bureau’s annual meeting. He says, “Life is good now, and the prices should remain high up to 2025.” Swanson did say that fertilizer prices aren’t sustainable at their current highs. The economist also says that farmers have to be disciplined in what they’re paying to rent land and not agree to rents so high that they can’t make a profit. The value of U.S. farmland has risen from $1 trillion in 2020 to $2.7 trillion this year. As far as the overall economy, Swanson says it’s “very, very strong.” If interest rates rise to 3.5 percent and inflation drops, businesses should be able to make adjustments.

Economist sees good things ahead for farm economy

The Energy Information Administration says ethanol production plunged to its lowest level in four months during the week ending February 4. 

Production dropped under one million barrels a day, finishing the week with an average of 994,000 barrels. That’s down from 1.041 million barrels a day during the previous week and the lowest level since the week ending on October 1, 2021. The nation’s largest-producing region is the Midwest, where output dropped to an average of 939,000 barrels a day from the 981,000 during the prior week. 

That’s the lowest production level in the Midwest since last October. Gulf Coast production declined by 20,000 barrels a day, while the Rocky Mountain region stayed steady at 15,000 barrels a day. The East Coast region was the only one to increase, averaging 12,000 barrels a day, up from 11,000 the previous week. Ethanol inventories during the week ending on February 4 declined to 24.79 million barrels.

The Energy Information Administration says ethanol production plunged to its lowest level in four months during the week ending February 4. Production dropped under one million barrels a day, finishing the week with an average of 994,000 barrels. That’s down from 1.041 million barrels a day during the previous week and the lowest level since the week ending on October 1, 2021. The nation’s largest-producing region is the Midwest, where output dropped to an average of 939,000 barrels a day from the 981,000 during the prior week. That’s the lowest production level in the Midwest since last October. Gulf Coast production declined by 20,000 barrels a day, while the Rocky Mountain region stayed steady at 15,000 barrels a day. The East Coast region was the only one to increase, averaging 12,000 barrels a day, up from 11,000 the previous week. Ethanol inventories during the week ending on February 4 declined to 24.79 million barrels.

Ethanol production hits four-month low

The Biden administration is looking at the possibility of new tariffs on China if they can’t persuade Beijing to live up to its failed commitments under the Phase One trade deal. 

Reuters says the administration is looking at other possibilities, including a closer working relationship with allies to present a united front against China. Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs, says the goal would be to find ways to level the playing field for international firms that deal with China. U.S. trade data shows that China came up well short of its required purchases under the phase one deal, meeting only 60 percent of its total purchasing goals. 

China’s Commerce Ministry says the U.S. should “cancel tariffs on China to create a favorable environment for trade.” Brilliant says the Chamber supports talks with China but also says there are vehicles the administration can use to take action.

The Biden administration is looking at the possibility of new tariffs on China if they can’t persuade Beijing to live up to its failed commitments under the Phase One trade deal. Reuters says the administration is looking at other possibilities, including a closer working relationship with allies to present a united front against China. Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs, says the goal would be to find ways to level the playing field for international firms that deal with China. U.S. trade data shows that China came up well short of its required purchases under the phase one deal, meeting only 60 percent of its total purchasing goals. China’s Commerce Ministry says the U.S. should “cancel tariffs on China to create a favorable environment for trade.” Brilliant says the Chamber supports talks with China but also says there are vehicles the administration can use to take action.

Administration considering new tariffs on China over Phase One Deal

American beef exports shattered previous volume and value records in 2021, surpassing $10 billion for the first time. 

Analysis from the U.S. Meat Export Federation shows pork exports finishing slightly below the record level of 2020 but setting a new value record, surpassing $8 billion for the first time. December beef exports totaled almost 125,000 metric tons, up one percent from last year, while value jumped 33 percent higher to $992 million. These results pushed the 2021 total to 1.44 million metric tons. 

Beef exports to Korea, Japan, China, and Hong Kong each exceeded $2 billion, setting new volume and value records. December pork exports dropped 17 percent from 2020, finishing at 215,900 metric tons. The value was 12 percent lower at $604 million. 

For the year, pork export volume hit 2.92 million metric tons, two percent lower than the 2020 record. However, the export value did rise five percent higher to a record $8.11 billion.

American beef exports shattered previous volume and value records in 2021, surpassing $10 billion for the first time. Analysis from the U.S. Meat Export Federation shows pork exports finishing slightly below the record level of 2020 but setting a new value record, surpassing $8 billion for the first time. December beef exports totaled almost 125,000 metric tons, up one percent from last year, while value jumped 33 percent higher to $992 million. These results pushed the 2021 total to 1.44 million metric tons. Beef exports to Korea, Japan, China, and Hong Kong each exceeded $2 billion, setting new volume and value records. December pork exports dropped 17 percent from 2020, finishing at 215,900 metric tons. The value was 12 percent lower at $604 million. For the year, pork export volume hit 2.92 million metric tons, two percent lower than the 2020 record. However, the export value did rise five percent higher to a record $8.11 billion.

2021 beef exports shatter records

USDA’s Animal and Plant Health Inspection Service Wednesday announced the final Strategic Framework outlining how the Agency will advance surveillance of SARS-CoV-2. 

USDA says early detection and response to pathogens with zoonotic potential while still in animals is essential in limiting or preventing human outbreaks. Additionally, the Agency has launched a new website to help stakeholders and the public stay up to date on the Agency’s broad array of ongoing&nbsp;<a href="https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/SA_One_Health">One Health</a>&nbsp;initiatives and COVID-19 surveillance projects.

These projects are funded by the $300 million provided by the American Rescue Plan Act. In August 2021, APHIS announced its proposed Strategic Framework to guide surveillance for emerging and zoonotic diseases in susceptible animals and build an early warning system to alert public health partners to potential threats. 

APHIS Administrator Kevin Shea says, “The final Strategic Framework builds on APHIS’ proven expertise preparing for and responding to foreign animal disease outbreaks.”

USDA’s Animal and Plant Health Inspection Service Wednesday announced the final Strategic Framework outlining how the Agency will advance surveillance of SARS-CoV-2. USDA says early detection and response to pathogens with zoonotic potential while still in animals is essential in limiting or preventing human outbreaks. Additionally, the Agency has launched a new website to help stakeholders and the public stay up to date on the Agency’s broad array of ongoing&nbsp;<a href="https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/SA_One_Health">One Health</a>&nbsp;initiatives and COVID-19 surveillance projects. These projects are funded by the $300 million provided by the American Rescue Plan Act. In August 2021, APHIS announced its proposed Strategic Framework to guide surveillance for emerging and zoonotic diseases in susceptible animals and build an early warning system to alert public health partners to potential threats. APHIS Administrator Kevin Shea says, “The final Strategic Framework builds on APHIS’ proven expertise preparing for and responding to foreign animal disease outbreaks.”

APHIS announces Final Strategic Framework for enhancing surveillance for SARS-CoV-2

A new Market Intel analysis from the American Farm Bureau Federation finds Chapter 12 farm bankruptcy filings were down 50 percent in 2021. 

The number of Chapter 12 filings in 2021 is the lowest in the last decade, and this is the first time in at least ten years that there were fewer than 300 filings. For 2021, 276 Chapter 12 bankruptcies were filed across the nation. The decrease in bankruptcy filings is a noteworthy shift, according to Farm Bureau, given the significant increases in the number of bankruptcies over the previous three years. 

However, the analysis notes that returns to farm operators have been incredibly volatile over the last decade, ranging from $58.6 billion to $134.5 billion between 2012 and 2021. USDA projects 2022 returns at $95.2 billion. And, while the last year has brought higher commodity prices for some, it has certainly brought higher input costs for all.

A new Market Intel analysis from the American Farm Bureau Federation finds Chapter 12 farm bankruptcy filings were down 50 percent in 2021. The number of Chapter 12 filings in 2021 is the lowest in the last decade, and this is the first time in at least ten years that there were fewer than 300 filings. For 2021, 276 Chapter 12 bankruptcies were filed across the nation. The decrease in bankruptcy filings is a noteworthy shift, according to Farm Bureau, given the significant increases in the number of bankruptcies over the previous three years. However, the analysis notes that returns to farm operators have been incredibly volatile over the last decade, ranging from $58.6 billion to $134.5 billion between 2012 and 2021. USDA projects 2022 returns at $95.2 billion. And, while the last year has brought higher commodity prices for some, it has certainly brought higher input costs for all.

Farm bankruptcies down dramatically in 2021

The latest World Agriculture Supply and Demand report largely focused on global market conditions. 

The Department of Agriculture noted weather concerns in South America with lower soybean harvest projections for Argentina and Brazil. This month’s U.S. soybean outlook projects increased soybean crush and lower ending stocks. Soybean crush is forecast at 2.2 billion bushels, up 25 million from last month on favorable crush margins. The U.S. season-average soybean price for 2021/22 is forecast at $13.00 per bushel, up 40 cents from last month, partly reflecting the impact of drought in South America. 

This month’s U.S. corn outlook is for higher production, greater food, seed, and industrial use, lower exports, and larger ending stocks. The season-average corn price received by producers was unchanged at $5.45 per bushel. The outlook for U.S. wheat this month is for stable supplies, lower domestic use, reduced exports, and higher ending stocks. The projected season-average farm price increased $0.15 per bushel to $7.30.

The latest World Agriculture Supply and Demand report largely focused on global market conditions. The Department of Agriculture noted weather concerns in South America with lower soybean harvest projections for Argentina and Brazil. This month’s U.S. soybean outlook projects increased soybean crush and lower ending stocks. Soybean crush is forecast at 2.2 billion bushels, up 25 million from last month on favorable crush margins. The U.S. season-average soybean price for 2021/22 is forecast at $13.00 per bushel, up 40 cents from last month, partly reflecting the impact of drought in South America. This month’s U.S. corn outlook is for higher production, greater food, seed, and industrial use, lower exports, and larger ending stocks. The season-average corn price received by producers was unchanged at $5.45 per bushel. The outlook for U.S. wheat this month is for stable supplies, lower domestic use, reduced exports, and higher ending stocks. The projected season-average farm price increased $0.15 per bushel to $7.30.

USDA released February WASDE Report

A group of agriculture-state lawmakers introduced the Connect Unserved Americans Act this week. The bipartisan legislation seeks to ensure the Department of Agriculture targets funding through the ReConnect Program to areas most in need of reliable broadband services. 

Additionally, it would enhance the coordination between federal agencies disbursing broadband funding to prevent the overbuilding of existing broadband networks at the taxpayer's expense. 

South Dakota Republican John Thune, one of the lawmakers who introduced the legislation, says, "Our bipartisan legislation would help bridge the digital divide by ensuring federal broadband funding goes to truly unserved areas." 

In October 2021, Thune and Minnesota Democrat Tina Smith co-led a bipartisan letter urging Agriculture Secretary Tom Vilsack to continue to grant awards to areas where there is a higher percentage of unserved households. The lawmakers also asked Vilsack to increase USDA's coordination efforts with other agencies administering broadband programs, and give equal treatment to all applicants.

A group of agriculture-state lawmakers introduced the Connect Unserved Americans Act this week. The bipartisan legislation seeks to ensure the Department of Agriculture targets funding through the ReConnect Program to areas most in need of reliable broadband services. Additionally, it would enhance the coordination between federal agencies disbursing broadband funding to prevent the overbuilding of existing broadband networks at the taxpayer's expense. South Dakota Republican John Thune, one of the lawmakers who introduced the legislation, says, "Our bipartisan legislation would help bridge the digital divide by ensuring federal broadband funding goes to truly unserved areas." In October 2021, Thune and Minnesota Democrat Tina Smith co-led a bipartisan letter urging Agriculture Secretary Tom Vilsack to continue to grant awards to areas where there is a higher percentage of unserved households. The lawmakers also asked Vilsack to increase USDA's coordination efforts with other agencies administering broadband programs, and give equal treatment to all applicants.

Bipartisan legislation to increase access to rural broadband

U.S. Agriculture posted its highest annual export levels ever recorded in 2021. 

The final 2021 trade data published by the Department of Commerce Tuesday shows that exports of U.S. farm and food products totaled $177 billion. 

The total beat the 2020 figure by 18 percent and eclipsed the previous record set in 2014, by 14.6 percent. 

Agriculture Secretary Tom Vilsack says, "These record-breaking trade numbers demonstrate that U.S. agriculture is incredibly resilient."The United States' top ten export markets saw gains in 2021, with six of the ten – China, Mexico, Canada, South Korea, the Philippines and Colombia – setting new records.

Worldwide exports of many U.S. products, including soybeans, corn, beef, pork, dairy, distillers grains and pet food, also reached all-time highs. 

China remained the top export destination, with a record $33 billion in purchases, up 25 percent from 2020, while Mexico inched ahead of Canada to capture the number two position with a record $25.5 billion, up 39 percent from last year.

U.S. Agriculture posted its highest annual export levels ever recorded in 2021. The final 2021 trade data published by the Department of Commerce Tuesday shows that exports of U.S. farm and food products totaled $177 billion. The total beat the 2020 figure by 18 percent and eclipsed the previous record set in 2014, by 14.6 percent. Agriculture Secretary Tom Vilsack says, "These record-breaking trade numbers demonstrate that U.S. agriculture is incredibly resilient."The United States' top ten export markets saw gains in 2021, with six of the ten – China, Mexico, Canada, South Korea, the Philippines and Colombia – setting new records.Worldwide exports of many U.S. products, including soybeans, corn, beef, pork, dairy, distillers grains and pet food, also reached all-time highs. China remained the top export destination, with a record $33 billion in purchases, up 25 percent from 2020, while Mexico inched ahead of Canada to capture the number two position with a record $25.5 billion, up 39 percent from last year.

Agricultural exports shattered records in 2021

Senator Roger Marshall has concerns about the Department of Agriculture’s Climate-Smart Agriculture and Forestry Partnerships Initiative. 

The Kansas Republican penned a letter to Agriculture Secretary Tom Vilsack following his announcement of the program. While reaffirming his support for conservation efforts in agriculture, Marshall is questioning the use of Commodity Credit Corporation funds for the program. 

In the letter, Marshall says, “it seems USDA is crafting its own farm bill by using the CCC to create its own programs and priorities that haven’t been established by congress and to fund projects only USDA deems worthy.” 

Vilsack announced the program Monday that will invest $1 billion to finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices. 

Specifically, practices that reduce greenhouse gas emissions or sequester carbon. Marshall requested answers to a list of eight questions, including seeking meeting notes from the most recent CCC board meeting approving funding for the program.

Senator Roger Marshall has concerns about the Department of Agriculture’s Climate-Smart Agriculture and Forestry Partnerships Initiative. The Kansas Republican penned a letter to Agriculture Secretary Tom Vilsack following his announcement of the program. While reaffirming his support for conservation efforts in agriculture, Marshall is questioning the use of Commodity Credit Corporation funds for the program. In the letter, Marshall says, “it seems USDA is crafting its own farm bill by using the CCC to create its own programs and priorities that haven’t been established by congress and to fund projects only USDA deems worthy.” Vilsack announced the program Monday that will invest $1 billion to finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices. Specifically, practices that reduce greenhouse gas emissions or sequester carbon. Marshall requested answers to a list of eight questions, including seeking meeting notes from the most recent CCC board meeting approving funding for the program.