Reduced domestic and international demand for pork is hitting Tyson Foods, one of the nation’s top pork producers. 

The Arkansas-based meatpacker reported this week that the company earned approximately $25 million from its pork business for the three months ending on July 3. 

That’s about 63 percent lower than the same quarter in 2021. The company reports that China, the biggest consumer of pork in the world, is buying less pork from the United States. 

Company executives also reported this week that U.S. stores are buying less pork as well. Hog farmers find themselves needing to decrease the number of pigs they’re raising this year because of higher corn prices for feeding the animals and fewer buyers at the grocery store. 

Domestically, U.S. farms had approximately 72.5 million head of hogs as of June 1, down one percent from the same day in 2021. Tyson expects that the tight live hog supply will continue.

Reduced domestic and international demand for pork is hitting Tyson Foods, one of the nation’s top pork producers. The Arkansas-based meatpacker reported this week that the company earned approximately $25 million from its pork business for the three months ending on July 3. That’s about 63 percent lower than the same quarter in 2021. The company reports that China, the biggest consumer of pork in the world, is buying less pork from the United States. Company executives also reported this week that U.S. stores are buying less pork as well. Hog farmers find themselves needing to decrease the number of pigs they’re raising this year because of higher corn prices for feeding the animals and fewer buyers at the grocery store. Domestically, U.S. farms had approximately 72.5 million head of hogs as of June 1, down one percent from the same day in 2021. Tyson expects that the tight live hog supply will continue.

Tyson Foods reports sales slump amid lower demand, higher costs

PHILLIPSBURG&nbsp;– Governor Laura Kelly on Tuesday joined Amber Wave, a leader in sustainable agriculture, food ingredients, and low-carbon fuels, to cut the ribbon on a state-of-the-art wheat protein ingredients facility in Phillipsburg that will be the largest wheat protein producer in North America within two years, according to a media release from her office.

The company is investing more than $250 million into the facility and is creating more than 60 new jobs as it ramps up to full capacity.

The ribbon-cutting comes during the Governor's Prosperity on the Plains tour promoting economic development in Kansas.

“Kansas is known for its high-quality wheat, and this cutting-edge facility will strengthen the competitive edge we have in the market,”&nbsp;Governor Laura Kelly said. “Now, Kansas wheat farming families will have a massive direct buyer close to home and major food, baking, and pet food companies are able to have their wheat needs met here in Phillipsburg. This investment shows why our constant efforts to bring businesses to Kansas matter: Every local business owner and community member benefits.”

The plant’s location puts it in the heart of the country with rail access to both coasts and core Midwest customers for the diverse variety of products being made in Phillipsburg. All the wheat Amber Wave needs is grown within 100 miles of the plant.

“This is a big win not just for Phillipsburg and western Kansas but the entire state,”&nbsp;Lieutenant Governor and Secretary of Commerce David Toland said.&nbsp;“Amber Wave's facility underscores Governor Kelly’s continued commitment to increasing prosperity in all areas of the Kansas.”

In addition to building a wheat mill and vital wheat gluten plant, the company retrofitted the existing Prairie Horizon Agri-Energy corn-based ethanol plant to produce ethanol from wheat starch. The plant will use the latest technology in wheat milling and protein extraction while creating a significantly lower carbon footprint than traditional corn ethanol plants to produce biofuels.

“Recognizing the rising demand for high-protein ingredients and innovative feed products, coupled with renewable fuels that reduce our carbon footprint, this investment fits with what we have successfully done many times in Summit’s history,”&nbsp;said Bruce Rastetter, CEO of Summit Agricultural Group, Amber Wave’s parent organization.&nbsp;“We evaluated several sites in various wheat-growing areas and Prairie Horizon is ideally located. The wheat protein we will produce is a healthy ingredient used widely within baked goods, pet food and growing aquaculture feed markets.”

“Today, wheat protein demand in the U.S. is heavily reliant on imports,”&nbsp;Rastetter said, “and with consumers demanding more transparency about the origins of the food they eat, we see a real opportunity.”

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/8/1660071167423.png" alt="The ribbon-cutting comes during the Governor's Prosperity on the Plains tour promoting economic development in Kansas-courtesy photo" />
 <figcaption>The ribbon-cutting comes during the Governor's Prosperity on the Plains tour promoting economic development in Kansas-courtesy photo</figcaption>
 </figure>PHILLIPSBURG&nbsp;– Governor Laura Kelly on Tuesday joined Amber Wave, a leader in sustainable agriculture, food ingredients, and low-carbon fuels, to cut the ribbon on a state-of-the-art wheat protein ingredients facility in Phillipsburg that will be the largest wheat protein producer in North America within two years, according to a media release from her office.The company is investing more than $250 million into the facility and is creating more than 60 new jobs as it ramps up to full capacity.The ribbon-cutting comes during the Governor's Prosperity on the Plains tour promoting economic development in Kansas.“Kansas is known for its high-quality wheat, and this cutting-edge facility will strengthen the competitive edge we have in the market,”&nbsp;Governor Laura Kelly said. “Now, Kansas wheat farming families will have a massive direct buyer close to home and major food, baking, and pet food companies are able to have their wheat needs met here in Phillipsburg. This investment shows why our constant efforts to bring businesses to Kansas matter: Every local business owner and community member benefits.”The plant’s location puts it in the heart of the country with rail access to both coasts and core Midwest customers for the diverse variety of products being made in Phillipsburg. All the wheat Amber Wave needs is grown within 100 miles of the plant.“This is a big win not just for Phillipsburg and western Kansas but the entire state,”&nbsp;Lieutenant Governor and Secretary of Commerce David Toland said.&nbsp;“Amber Wave's facility underscores Governor Kelly’s continued commitment to increasing prosperity in all areas of the Kansas.”In addition to building a wheat mill and vital wheat gluten plant, the company retrofitted the existing Prairie Horizon Agri-Energy corn-based ethanol plant to produce ethanol from wheat starch. The plant will use the latest technology in wheat milling and protein extraction while creating a significantly lower carbon footprint than traditional corn ethanol plants to produce biofuels.“Recognizing the rising demand for high-protein ingredients and innovative feed products, coupled with renewable fuels that reduce our carbon footprint, this investment fits with what we have successfully done many times in Summit’s history,”&nbsp;said Bruce Rastetter, CEO of Summit Agricultural Group, Amber Wave’s parent organization.&nbsp;“We evaluated several sites in various wheat-growing areas and Prairie Horizon is ideally located. The wheat protein we will produce is a healthy ingredient used widely within baked goods, pet food and growing aquaculture feed markets.”“Today, wheat protein demand in the U.S. is heavily reliant on imports,”&nbsp;Rastetter said, “and with consumers demanding more transparency about the origins of the food they eat, we see a real opportunity.”

North America's largest wheat protein plant is in Kansas

The Inflation Reduction Act passed by the Senate over the weekend includes some $40 billion of agricultural-focused funding. 

Passed along party lines, with Vice President Kamala Harris casting the tie-breaking vote, the legislation seeks to address prescription drug prices, climate, and reducing the federal deficit. 

Senate Agriculture Committee Chair Debbie Stabenow, a Michigan Democrat, says the legislation "gives farmers the resources they need to tackle the climate crisis by reducing carbon pollution and other greenhouse gas emissions." 

However, the committee's top Republican, Senator John Boozman of Arkansas, alleges Democrats are “passing their far-Left agenda, including reviving parts of the radical Green New Deal, raising taxes on job creators, turbocharging the IRS to harass taxpayers, and expanding the federal government’s reach." 

The bill includes $4 billion for drought resilience directed to the Bureau of Reclamation, and $3.1 billion in funding for distressed borrowers of USDA loans, according to Politico. The legislation also includes funding for USDA conservation programs and rural development.

The Inflation Reduction Act passed by the Senate over the weekend includes some $40 billion of agricultural-focused funding. Passed along party lines, with Vice President Kamala Harris casting the tie-breaking vote, the legislation seeks to address prescription drug prices, climate, and reducing the federal deficit. Senate Agriculture Committee Chair Debbie Stabenow, a Michigan Democrat, says the legislation "gives farmers the resources they need to tackle the climate crisis by reducing carbon pollution and other greenhouse gas emissions." However, the committee's top Republican, Senator John Boozman of Arkansas, alleges Democrats are “passing their far-Left agenda, including reviving parts of the radical Green New Deal, raising taxes on job creators, turbocharging the IRS to harass taxpayers, and expanding the federal government’s reach." The bill includes $4 billion for drought resilience directed to the Bureau of Reclamation, and $3.1 billion in funding for distressed borrowers of USDA loans, according to Politico. The legislation also includes funding for USDA conservation programs and rural development.

Senate passes Inflation Reduction Act, includes ag funding

Information updated Monday by USDA’s Economic Research Service shows in 2020, U.S. farms sold almost $10.7 billion of food commodities directly to consumer outlets and supply chains. 

This includes restaurants, grocery stores, regional distributors and local institutions. 

The figure is nearly $2.8 billion, or 35 percent more than sold in 2019. 

From 2019 to 2020, sales at farmers markets and restaurants and grocery stores increased by 11 and 13 percent, respectively, whereas sales at farm stores, community-supported agriculture, and other direct-to-consumer channels increased by 79 percent. Meanwhile, sales to regional distributors increased by 73 percent. 

However, sales to local institutions declined by 86 percent in 2020 relative to 2019, likely because of closures or restricted operations related to the COVID-19 pandemic. O

verall, in 2020, 73 percent of total direct sales occurred through intermediary supply chains, while the remaining 27 percent were direct-to-consumer outlets. USDA adds that about seven percent of America’s two million farms sold commodities through direct-to-consumer outlets.

Information updated Monday by USDA’s Economic Research Service shows in 2020, U.S. farms sold almost $10.7 billion of food commodities directly to consumer outlets and supply chains. This includes restaurants, grocery stores, regional distributors and local institutions. The figure is nearly $2.8 billion, or 35 percent more than sold in 2019. From 2019 to 2020, sales at farmers markets and restaurants and grocery stores increased by 11 and 13 percent, respectively, whereas sales at farm stores, community-supported agriculture, and other direct-to-consumer channels increased by 79 percent. Meanwhile, sales to regional distributors increased by 73 percent. However, sales to local institutions declined by 86 percent in 2020 relative to 2019, likely because of closures or restricted operations related to the COVID-19 pandemic. Overall, in 2020, 73 percent of total direct sales occurred through intermediary supply chains, while the remaining 27 percent were direct-to-consumer outlets. USDA adds that about seven percent of America’s two million farms sold commodities through direct-to-consumer outlets.

Direct-to-Consumer farm sales reach $10.7 billion in 2020

House Agriculture Committee Chair David Scott Monday announced an upcoming Farm Bill listening session in Ohio. 

The session is the next in a series titled "A 2022 Review of the Farm Bill: Perspectives from the Field." 

The House Agriculture Committee has conducted several hearings in Washington, D.C., focused on the 2018 Farm Bill and improvements that can be made in the 2023 Farm Bill. 

The Georgia Democrat, Scott, says the series of listening sessions allows House Agriculture Committee Members to gather input from producers and consumers on the ground across the country. The next session in the series takes place at 12:00 p.m. ET at Terra State Community College in Fremont, Ohio, on Monday, August 22. 

It will be hosted by Congresswoman Marcy Kaptur, an Ohio Democrat, and chaired by House Agriculture Subcommittee Chair Cheri Bustos, an Illinois Democrat. The event is open to the public, and additional dates and locations will be announced in the coming weeks.

House Agriculture Committee Chair David Scott Monday announced an upcoming Farm Bill listening session in Ohio. The session is the next in a series titled "A 2022 Review of the Farm Bill: Perspectives from the Field." The House Agriculture Committee has conducted several hearings in Washington, D.C., focused on the 2018 Farm Bill and improvements that can be made in the 2023 Farm Bill. The Georgia Democrat, Scott, says the series of listening sessions allows House Agriculture Committee Members to gather input from producers and consumers on the ground across the country. The next session in the series takes place at 12:00 p.m. ET at Terra State Community College in Fremont, Ohio, on Monday, August 22. It will be hosted by Congresswoman Marcy Kaptur, an Ohio Democrat, and chaired by House Agriculture Subcommittee Chair Cheri Bustos, an Illinois Democrat. The event is open to the public, and additional dates and locations will be announced in the coming weeks.

House Ag Committee to host Farm Bill listening session in Ohio

Over 50 percent of the U.S. was in at least some level of drought for the fourth-straight week. 

The U.S. Drought Monitor says the combination of extreme heat and low rainfall is pulling moisture from plants and the soil. 

The Western U.S. and, especially, California remains in a drought that’s lasted several years. 

While drought is an increasing worry in the Northeast, Midwest, and South, extreme rainfall events are hitting parts of Kentucky and Mississippi. A flash flood warning was issued for St. Louis late last week, thanks to rainfall rates of several inches per hour. 

Drought also expanded in some parts of the Southern Plains, particularly in Texas, where the consequences are hitting agriculture and cattle ranching. Drought impacts in Texas ranged from crop failure to water supply problems. 

The only improvement in the monitor came from heavy rains in the Texas Panhandle, Oklahoma, Arkansas, northern Mississippi, and parts of Tennessee.

Over 50 percent of the U.S. was in at least some level of drought for the fourth-straight week. The U.S. Drought Monitor says the combination of extreme heat and low rainfall is pulling moisture from plants and the soil. The Western U.S. and, especially, California remains in a drought that’s lasted several years. While drought is an increasing worry in the Northeast, Midwest, and South, extreme rainfall events are hitting parts of Kentucky and Mississippi. A flash flood warning was issued for St. Louis late last week, thanks to rainfall rates of several inches per hour. Drought also expanded in some parts of the Southern Plains, particularly in Texas, where the consequences are hitting agriculture and cattle ranching. Drought impacts in Texas ranged from crop failure to water supply problems. The only improvement in the monitor came from heavy rains in the Texas Panhandle, Oklahoma, Arkansas, northern Mississippi, and parts of Tennessee.

Drought now covers half the U.S.

Global food prices fell by the biggest amount since 2008 due to easing concerns over the supplies of grains and vegetable oils as Ukraine restarted its exports. 

The United Nations world food cost index dropped almost nine percent in July. 

Bloomberg says the index is at its lowest level since January before Russia’s attack on Ukraine helped push the cost of food close to record levels. 

It’s the fourth-straight monthly drop in the U.N index, giving some relief to consumers struggling with a cost-of-living crisis covering everything from energy to transportation. However, food prices are still high, and global hunger is getting worse. 

Wheat and corn prices eased last month after Russia and Ukraine reached a deal to reopen Ukraine’s ports. While there are still many challenges yet to solve, three more grain ships left the country’s ports on Friday. Corn harvests in Argentina and Brazil are also helping to ease prices.

Global food prices fell by the biggest amount since 2008 due to easing concerns over the supplies of grains and vegetable oils as Ukraine restarted its exports. The United Nations world food cost index dropped almost nine percent in July. Bloomberg says the index is at its lowest level since January before Russia’s attack on Ukraine helped push the cost of food close to record levels. It’s the fourth-straight monthly drop in the U.N index, giving some relief to consumers struggling with a cost-of-living crisis covering everything from energy to transportation. However, food prices are still high, and global hunger is getting worse. Wheat and corn prices eased last month after Russia and Ukraine reached a deal to reopen Ukraine’s ports. While there are still many challenges yet to solve, three more grain ships left the country’s ports on Friday. Corn harvests in Argentina and Brazil are also helping to ease prices.

Food prices post biggest drop since 2008

POET, the world’s largest biofuel producer, says it signed a purchase agreement with Savannah Marine Terminal to acquire its rail-to-container transload facility in Savannah, Georgia. 

The acquisition will include all equipment and real estate to operate the grain transload facility. 

The Port of Savannah is one of the highest volume container ports in the U.S. 

It also has closer proximity to several of POET’s key global markets for its animal feed products. A release from POET says the facility will strengthen POET’s shipping process, ensuring greater traceability and transparency for its customers, who already expect the best in food safety and quality. 

“This acquisition is yet another indicator of our confidence in the future of the bioeconomy,” says POET Founder and CEO Jeff Broin. “We look forward to the opportunities this facility will create to ensure that our growing suite of plant-based bioproducts is available to consumers across the globe.”

POET, the world’s largest biofuel producer, says it signed a purchase agreement with Savannah Marine Terminal to acquire its rail-to-container transload facility in Savannah, Georgia. The acquisition will include all equipment and real estate to operate the grain transload facility. The Port of Savannah is one of the highest volume container ports in the U.S. It also has closer proximity to several of POET’s key global markets for its animal feed products. A release from POET says the facility will strengthen POET’s shipping process, ensuring greater traceability and transparency for its customers, who already expect the best in food safety and quality. “This acquisition is yet another indicator of our confidence in the future of the bioeconomy,” says POET Founder and CEO Jeff Broin. “We look forward to the opportunities this facility will create to ensure that our growing suite of plant-based bioproducts is available to consumers across the globe.”

POET Ethanol gets into shipping

Earlier this week, the Environmental Protection Agency submitted a petition to the Ninth Circuit Court of Appeals requesting a partial rehearing of its glyphosate interim decision. 

In that ruling, the panel vacated the interim decision’s human health risk assessment and sent back the ecological risk assessment to the agency to complete an Endangered Species Act analysis by October 1. 

The EPA is seeking a partial rehearing because of the ecological part of the decision. 

In its request, the EPA says that finalizing an ESA consultation is a multi-year process, for which the panel only granted 106 days. EPA also says it can’t comply with the order because it has to coordinate with other agencies that aren’t part of the lawsuit. 

The agency requested the court grant the rehearing to consider lifting the October 1 deadline. The American Soybean Association is a party to the litigation and monitoring the case for further developments.

Earlier this week, the Environmental Protection Agency submitted a petition to the Ninth Circuit Court of Appeals requesting a partial rehearing of its glyphosate interim decision. In that ruling, the panel vacated the interim decision’s human health risk assessment and sent back the ecological risk assessment to the agency to complete an Endangered Species Act analysis by October 1. The EPA is seeking a partial rehearing because of the ecological part of the decision. In its request, the EPA says that finalizing an ESA consultation is a multi-year process, for which the panel only granted 106 days. EPA also says it can’t comply with the order because it has to coordinate with other agencies that aren’t part of the lawsuit. The agency requested the court grant the rehearing to consider lifting the October 1 deadline. The American Soybean Association is a party to the litigation and monitoring the case for further developments.

EPA requests partial rehearing in Glyphosate litigation

New York’s attorney general says Tyson Foods is refusing to comply with a subpoena for a civil probe into possible price gouging during COVID-19. 

Letitia James asked a state judge in Manhattan to make Tyson turn over materials like contractual terms, prices, and profit margins for its meat sales to New York retailers between December 2019 and April 2022. 

James says Tyson, one of the largest U.S. meat producers, stopped complying after giving limited information based on the company’s argument that New York’s price gouging law didn’t apply to meat products brought in from outside the state. 

James called that “novel and unfounded,” pointing out in a recent court filing that it can only be tested by examining the same materials that Tyson now refuses to hand over to her office. Reuters says Tyson declined to comment on the subpoena, saying it raised meat prices to offset soaring labor and feed costs.

New York’s attorney general says Tyson Foods is refusing to comply with a subpoena for a civil probe into possible price gouging during COVID-19. Letitia James asked a state judge in Manhattan to make Tyson turn over materials like contractual terms, prices, and profit margins for its meat sales to New York retailers between December 2019 and April 2022. James says Tyson, one of the largest U.S. meat producers, stopped complying after giving limited information based on the company’s argument that New York’s price gouging law didn’t apply to meat products brought in from outside the state. James called that “novel and unfounded,” pointing out in a recent court filing that it can only be tested by examining the same materials that Tyson now refuses to hand over to her office. Reuters says Tyson declined to comment on the subpoena, saying it raised meat prices to offset soaring labor and feed costs.

Tyson Foods ignoring subpoena in meat price gouging probe

Oil prices declined to the lowest point in almost six months, caused by weakening gasoline demand and recessionary fears weighing down markets. 

Bloomberg says West Texas Intermediate fell to $87.78 a barrel, a level last seen during the weeks before Russia invaded Ukraine. 

The price drop this week was jump-started by government data showing Americans are driving less than they did in the summer of 2020. 

Fears of a slowing economy have intensified along with the potential impacts on crude demand. One senior market analyst says prices falling under $90 a barrel is “quite remarkable” given how tight the market is and how little relief is in store. 

Crude oil has now given up all of the gains triggered by the Russian invasion of Ukraine. Since it peaked at more than $130 a barrel, the benchmark has dropped due to signs that Moscow is still getting its oil cargoes onto the global market.

Oil prices declined to the lowest point in almost six months, caused by weakening gasoline demand and recessionary fears weighing down markets. Bloomberg says West Texas Intermediate fell to $87.78 a barrel, a level last seen during the weeks before Russia invaded Ukraine. The price drop this week was jump-started by government data showing Americans are driving less than they did in the summer of 2020. Fears of a slowing economy have intensified along with the potential impacts on crude demand. One senior market analyst says prices falling under $90 a barrel is “quite remarkable” given how tight the market is and how little relief is in store. Crude oil has now given up all of the gains triggered by the Russian invasion of Ukraine. Since it peaked at more than $130 a barrel, the benchmark has dropped due to signs that Moscow is still getting its oil cargoes onto the global market.

Oil falls below $90 a barrel

Senate Ag Chair Debbie Stabenow, Ranking Member John Boozman, and Senators Cory Booker and John Thune introduced legislation to regulate digital commodities. 

The Digital Commodities Consumer Protection Act of 2022 would give the Commodity Futures Trading Commission new tools and authority it needs to regulate digital commodities and safeguard customers and markets. 

“One in five Americans have used or traded digital assets, but these markets lack the transparency and accountability they expect from our financial system,” Stabenow says. 

“That puts Americans’ hard-earned money at risk.” The senators say digital assets and blockchain technology have already, and will continue to change the way global markets function. They point out that the fast-growing industry is governed largely by a patchwork of state-level regulations. 

Boozman says that’s not an effective way to make sure the market’s rules work for everyone. “Our bill gives CFTC exclusive jurisdiction over the digital commodities spot market,” he says.

Senate Ag Chair Debbie Stabenow, Ranking Member John Boozman, and Senators Cory Booker and John Thune introduced legislation to regulate digital commodities. The Digital Commodities Consumer Protection Act of 2022 would give the Commodity Futures Trading Commission new tools and authority it needs to regulate digital commodities and safeguard customers and markets. “One in five Americans have used or traded digital assets, but these markets lack the transparency and accountability they expect from our financial system,” Stabenow says. “That puts Americans’ hard-earned money at risk.” The senators say digital assets and blockchain technology have already, and will continue to change the way global markets function. They point out that the fast-growing industry is governed largely by a patchwork of state-level regulations. Boozman says that’s not an effective way to make sure the market’s rules work for everyone. “Our bill gives CFTC exclusive jurisdiction over the digital commodities spot market,” he says.

Senate legislation would regulate digital commodities

The USDA is accepting applications from U.S. exporters for a trade mission to Nairobi, Kenya, and Zanzibar, Tanzania, from October 31-November 4. 

The mission offers U.S. agribusinesses the chance to unlock new opportunities in East and Central Africa, where strong economic growth is driving demand for imported food and farm products. 

Kenya is the economic, financial, and transportation hub for East and Central Africa. 

While in Nairobi, trade mission delegates will meet potential customers from across Sub-Saharan Africa. Then, they’ll head to Zanzibar, located in the Indian Ocean off the coast of Tanzania, a historic trading hub with a thriving tourism sector. 

“The Foreign Agricultural Service team looks forward to introducing U.S. exporters to the many business opportunities that exist in East and Central Africa,” says FAS Administrator Daniel Whitley. “We’ll arrange targeted business meetings, site visits, and other networking opportunities with potential importers, processors, distributors, and local officials.”

The USDA is accepting applications from U.S. exporters for a trade mission to Nairobi, Kenya, and Zanzibar, Tanzania, from October 31-November 4. The mission offers U.S. agribusinesses the chance to unlock new opportunities in East and Central Africa, where strong economic growth is driving demand for imported food and farm products. Kenya is the economic, financial, and transportation hub for East and Central Africa. While in Nairobi, trade mission delegates will meet potential customers from across Sub-Saharan Africa. Then, they’ll head to Zanzibar, located in the Indian Ocean off the coast of Tanzania, a historic trading hub with a thriving tourism sector. “The Foreign Agricultural Service team looks forward to introducing U.S. exporters to the many business opportunities that exist in East and Central Africa,” says FAS Administrator Daniel Whitley. “We’ll arrange targeted business meetings, site visits, and other networking opportunities with potential importers, processors, distributors, and local officials.”

Next USDA trade mission heading to East Africa

While the Missouri River basin runoff improved over the past two months, it’s still not enough to overcome the long-term drought persisting in much of the basin. 

July runoff in the Missouri River basin above Sioux City, Iowa, was 3.2 million acre-feet, which is 98 percent of the average and 0.7 million acre-feet more than was forecast last month. 

This led to an annual runoff forecast of 20.6 MAF, which is 80 percent of the yearly average and 0.6 MAF higher than last month’s forecast. 

“As expected, reservoir inflows in July have been declining due to the warmer and drier conditions in the upper Missouri River Basin,” says John Remus, chief of the Army Corps of Engineers Missouri River Basin Water Management Division. 

“Per the July 1 System storage check, navigation support was increased slightly to 500 cubic feet per second above minimum-service levels.” Storage peaked July 1 at 52.1 MAF.

While the Missouri River basin runoff improved over the past two months, it’s still not enough to overcome the long-term drought persisting in much of the basin. July runoff in the Missouri River basin above Sioux City, Iowa, was 3.2 million acre-feet, which is 98 percent of the average and 0.7 million acre-feet more than was forecast last month. This led to an annual runoff forecast of 20.6 MAF, which is 80 percent of the yearly average and 0.6 MAF higher than last month’s forecast. “As expected, reservoir inflows in July have been declining due to the warmer and drier conditions in the upper Missouri River Basin,” says John Remus, chief of the Army Corps of Engineers Missouri River Basin Water Management Division. “Per the July 1 System storage check, navigation support was increased slightly to 500 cubic feet per second above minimum-service levels.” Storage peaked July 1 at 52.1 MAF.

Long-Term drought continuing in Missouri River Basin

The Purdue University/CME Group Ag Economy Barometer farmer sentiment index rose six points in July to a reading of 103. 

Producers were somewhat more optimistic about both their current and future economic conditions on their farms compared to June. 

Even though there was a slight increase in optimism, there’s still a lot of uncertainty in the agricultural economy. 

Key commodity prices, including wheat, corn, and soybeans all weakened during the month, and producers remain concerned over rising input prices and input availability. Forty-two percent of survey respondents said higher input prices were a big concern, 19 percent said lower crop prices, and 17 percent said rising interest rates. 

The Farm Financial Performance Index, primarily an indicator of income expectations in the year ahead, improved five points to a reading of 88 in June. However, 49 percent of the survey respondents said they expect their farm to be worse off financially a year from now.

The Purdue University/CME Group Ag Economy Barometer farmer sentiment index rose six points in July to a reading of 103. Producers were somewhat more optimistic about both their current and future economic conditions on their farms compared to June. Even though there was a slight increase in optimism, there’s still a lot of uncertainty in the agricultural economy. Key commodity prices, including wheat, corn, and soybeans all weakened during the month, and producers remain concerned over rising input prices and input availability. Forty-two percent of survey respondents said higher input prices were a big concern, 19 percent said lower crop prices, and 17 percent said rising interest rates. The Farm Financial Performance Index, primarily an indicator of income expectations in the year ahead, improved five points to a reading of 88 in June. However, 49 percent of the survey respondents said they expect their farm to be worse off financially a year from now.

Farmer sentiment rises in July

The sale prices for good cropland in rural America continue upward, reaching new high points in many states. 

Farmers National Company says the “record” sale prices continue to capture headlines, but there has generally been continued strength in the land market, with good cropland attracting the most attention from buyers. 

“The upcoming months will set the trend in land prices,” says Randy Dickhut, senior vice president of real estate operations at Farmers National. 

Recently, good cropland in Iowa sold above $25,000 per acre, $15,000 per acre in South Dakota, and $12,000 an acre in North Dakota. Further east, Illinois had land sales above $21,000 an acre, Indiana at $17,000 an acre, and Ohio has seen $16,000 per acre. 

Land sales in Nebraska were above $13,500 per acre, $14,500 in Missouri, and more than $8,000 in Kansas. Farmers National will be watching before and after this year’s harvest to gauge the future land market.

The sale prices for good cropland in rural America continue upward, reaching new high points in many states. Farmers National Company says the “record” sale prices continue to capture headlines, but there has generally been continued strength in the land market, with good cropland attracting the most attention from buyers. “The upcoming months will set the trend in land prices,” says Randy Dickhut, senior vice president of real estate operations at Farmers National. Recently, good cropland in Iowa sold above $25,000 per acre, $15,000 per acre in South Dakota, and $12,000 an acre in North Dakota. Further east, Illinois had land sales above $21,000 an acre, Indiana at $17,000 an acre, and Ohio has seen $16,000 per acre. Land sales in Nebraska were above $13,500 per acre, $14,500 in Missouri, and more than $8,000 in Kansas. Farmers National will be watching before and after this year’s harvest to gauge the future land market.

Land prices continue to set new records

The National Chicken Council responded to the USDA’s Food Safety and Inspection Service plan to declare salmonella an adulterant in frozen, raw, breaded, stuffed chicken products. 

Dr. Ashley Peterson, senior vice president of scientific and regulatory affairs, says they recognize the special nature of the products that appear ready to eat but contain raw chicken. 

“The NCC and our member companies have invested millions of dollars and worked for over ten years to develop and refine the best practices to reduce Salmonella and protect public health,” Peterson says. 

The NCC points out that it's concerned about the precedent set by this abrupt shift in long-standing policy, which was made without supporting data for a product category associated with one outbreak since 2015. 

“We believe FSIS already has the ability to ensure the continued safety of these products,” Peterson says. “There’s no magic bullet for food safety, so we employ a multi-stage strategy.”

The National Chicken Council responded to the USDA’s Food Safety and Inspection Service plan to declare salmonella an adulterant in frozen, raw, breaded, stuffed chicken products. Dr. Ashley Peterson, senior vice president of scientific and regulatory affairs, says they recognize the special nature of the products that appear ready to eat but contain raw chicken. “The NCC and our member companies have invested millions of dollars and worked for over ten years to develop and refine the best practices to reduce Salmonella and protect public health,” Peterson says. The NCC points out that it's concerned about the precedent set by this abrupt shift in long-standing policy, which was made without supporting data for a product category associated with one outbreak since 2015. “We believe FSIS already has the ability to ensure the continued safety of these products,” Peterson says. “There’s no magic bullet for food safety, so we employ a multi-stage strategy.”

National Chicken Council reacts to FSIS move on salmonella in frozen products

Larger loans continued to boost lending activity in the second quarter of 2022 while farm loan interest rates edged higher. 

The Federal Reserve Bank of Kansas City says the volume of non-real estate agricultural loans grew steadily alongside an increase in the number and average size of loans. 

Interest rates remained historically low but continued to increase in recent quarters and on nearly all types of farm loans as benchmark rates continue rising. 

The average maturity of some types of loans, particularly for real estate, also increased during the quarter and was above recent historic averages.&nbsp;&nbsp;

The Kansas City Fed says farm lending activity showed signs of rebounding from the pullback in recent years and could grow further in the coming months as the higher costs of many major inputs continue impacting farmers.&nbsp;&nbsp;

Persistent pressure from higher production expenses could squeeze profit margins going forward and drive demand for credit higher.

Larger loans continued to boost lending activity in the second quarter of 2022 while farm loan interest rates edged higher. The Federal Reserve Bank of Kansas City says the volume of non-real estate agricultural loans grew steadily alongside an increase in the number and average size of loans. Interest rates remained historically low but continued to increase in recent quarters and on nearly all types of farm loans as benchmark rates continue rising. The average maturity of some types of loans, particularly for real estate, also increased during the quarter and was above recent historic averages.&nbsp;&nbsp;The Kansas City Fed says farm lending activity showed signs of rebounding from the pullback in recent years and could grow further in the coming months as the higher costs of many major inputs continue impacting farmers.&nbsp;&nbsp;Persistent pressure from higher production expenses could squeeze profit margins going forward and drive demand for credit higher.

Farm lending and interest rates rise in the second quarter

In 2021, USDA says farm production expenses hit $392.9 billion, higher than the $366.2 billion in 2020. 

That’s a 7.3 percent rise from 2020 to 2021.&nbsp;&nbsp;The four biggest expenditures totaled $189.4 billion, just over 48 percent of all expenses last year. 

Those four are feed at 16 percent, farm services at 11 percent, livestock, poultry, and related expenses at 10 percent, and labor at 9.4 percent. 

The total fuel expense was $12.9 billion on 2021. Diesel is the largest sub-component and totaled $8.4 billion in expenditures, accounting for 65 percent of the total fuel outlay. 

Diesel expenditures were 18 percent higher than in 2020. Gasoline expenses totaled $2.4 billion, 22 percent higher than the previous year. LP gas expenses rose to $1.4 billion in 2021, an 11 percent jump from 2020. 

Crop farm expenditures were $207.6 billion, up 6.2 percent, and livestock farm expenditures increased to $185.3 billion, up 8.5 percent in 2021.

In 2021, USDA says farm production expenses hit $392.9 billion, higher than the $366.2 billion in 2020. That’s a 7.3 percent rise from 2020 to 2021.&nbsp;&nbsp;The four biggest expenditures totaled $189.4 billion, just over 48 percent of all expenses last year. Those four are feed at 16 percent, farm services at 11 percent, livestock, poultry, and related expenses at 10 percent, and labor at 9.4 percent. The total fuel expense was $12.9 billion on 2021. Diesel is the largest sub-component and totaled $8.4 billion in expenditures, accounting for 65 percent of the total fuel outlay. Diesel expenditures were 18 percent higher than in 2020. Gasoline expenses totaled $2.4 billion, 22 percent higher than the previous year. LP gas expenses rose to $1.4 billion in 2021, an 11 percent jump from 2020. Crop farm expenditures were $207.6 billion, up 6.2 percent, and livestock farm expenditures increased to $185.3 billion, up 8.5 percent in 2021.

2021 Farm production expenses surpassed $390 billion

If Republicans take back a Congressional majority in November, Florida Representative Mike Waltz pledged that the House GOP would investigate the flow of Chinese money into the U.S. economy. 

Waltz tells Daily Mail that the steady encroachment not only poses a military threat but could also have wide-ranging impacts on the American economy. 

Recent reports have shown that Chinese companies are increasing their hold over key sectors of the U.S. economy by purchasing farmland and expanding their technology into rural areas. 

Lawmakers on both sides of the aisle are concerned about a Chinese company buying land in North Dakota for $2.6 million which is only 20 minutes from a key military base. 

Some of America’s most sensitive drone technology is stored at that base in North Dakota. “There’s the land concern near the base, but I think an even bigger concern is China investing in the U.S. food supply chain,” Waltz says.

If Republicans take back a Congressional majority in November, Florida Representative Mike Waltz pledged that the House GOP would investigate the flow of Chinese money into the U.S. economy. Waltz tells Daily Mail that the steady encroachment not only poses a military threat but could also have wide-ranging impacts on the American economy. Recent reports have shown that Chinese companies are increasing their hold over key sectors of the U.S. economy by purchasing farmland and expanding their technology into rural areas. Lawmakers on both sides of the aisle are concerned about a Chinese company buying land in North Dakota for $2.6 million which is only 20 minutes from a key military base. Some of America’s most sensitive drone technology is stored at that base in North Dakota. “There’s the land concern near the base, but I think an even bigger concern is China investing in the U.S. food supply chain,” Waltz says.

Florida Congressman wants investigation into Chinese land purchases

House Ag Committee Chair David Scott introduced the Small Family Farmer and Rancher Relief Act to help small farmers and ranchers in the cattle industry. 

“As I’ve said before, it’s a crisis in this nation that we’ve lost an average of 17,000 cattle ranchers per year,” Scott says. 

“The drivers of the loss are complex, and I applaud the efforts my colleagues have taken to try and improve the cattle industry.” 

He also says other efforts don’t have enough emphasis on direct help for America’s small farmers and ranchers. A key backbone of the bill helps smaller operators with financial assistance by strengthening the safety net. 

It includes offering an increased premium subsidy for small ranchers insuring a cattle herd of 100 head or less. It offers incentives for insurance agents to better market Livestock Risk Protection policies to smaller producers. The bill also creates opportunities to increase competition and new marketing opportunities.

House Ag Committee Chair David Scott introduced the Small Family Farmer and Rancher Relief Act to help small farmers and ranchers in the cattle industry. “As I’ve said before, it’s a crisis in this nation that we’ve lost an average of 17,000 cattle ranchers per year,” Scott says. “The drivers of the loss are complex, and I applaud the efforts my colleagues have taken to try and improve the cattle industry.” He also says other efforts don’t have enough emphasis on direct help for America’s small farmers and ranchers. A key backbone of the bill helps smaller operators with financial assistance by strengthening the safety net. It includes offering an increased premium subsidy for small ranchers insuring a cattle herd of 100 head or less. It offers incentives for insurance agents to better market Livestock Risk Protection policies to smaller producers. The bill also creates opportunities to increase competition and new marketing opportunities.

Ag Chair introduces Livestock Legislation

Ag Secretary Tom Vilsack says the administration’s Inflation Reduction Act will have a meaningful impact on America’s rural and agriculture communities. 

“Agriculture is at the forefront of our fight against climate change,” he says. 

“From climate-smart agriculture to supporting healthy forests and conservation, to tax credits, to biofuels, infrastructure and beyond, this agreement gives USDA significant additional resources.” 

House Ag Chair Debbie Stabenow says the act contains almost $40 billion to tackle the climate crisis, lower costs, and create good-paying jobs by investing in agriculture, forestry, and rural communities. Over $20 billion is set aside for the tools farmers and ranchers need to help address the climate. 

Those funds will help incentivize sustainable practices like optimizing fertilizer use and expanding cover crops. $14 billion will help lower costs for families and support good-paying clean energy jobs in rural communities. “It’s critical that Congress act quickly on this legislation,” Vilsack says.

Ag Secretary Tom Vilsack says the administration’s Inflation Reduction Act will have a meaningful impact on America’s rural and agriculture communities. “Agriculture is at the forefront of our fight against climate change,” he says. “From climate-smart agriculture to supporting healthy forests and conservation, to tax credits, to biofuels, infrastructure and beyond, this agreement gives USDA significant additional resources.” House Ag Chair Debbie Stabenow says the act contains almost $40 billion to tackle the climate crisis, lower costs, and create good-paying jobs by investing in agriculture, forestry, and rural communities. Over $20 billion is set aside for the tools farmers and ranchers need to help address the climate. Those funds will help incentivize sustainable practices like optimizing fertilizer use and expanding cover crops. $14 billion will help lower costs for families and support good-paying clean energy jobs in rural communities. “It’s critical that Congress act quickly on this legislation,” Vilsack says.

Inflation Reduction Act should help rural America

Last Thursday, the Senate overwhelmingly passed the Water Resources Development Act by a vote of 93-1. 

The legislation contains a provision pushed for by the American Soybean Association. 

That provision would permanently adjust the cost-share ratio for Inland Waterways Trust Fund projects from the current 65 percent general revenues-35 percent IWTF funds to 75 percent general revenue-25 percent IWTF. 

Cost share allocation changes for inland waterways projects often reduce overall project costs and allow projects to be completed faster. That allows communities and industries to realize the economic benefits of a project more quickly. In June, the House passed its version of WRDA by a vote of 384-37. 

That bill didn’t include the same adjustment to cost-share allocations for IWTF projects. The two chambers will now begin conference negotiations to reconcile the difference between the two bills. The ASA says it will continue to advocate for the Senate version containing the adjustment.

Last Thursday, the Senate overwhelmingly passed the Water Resources Development Act by a vote of 93-1. The legislation contains a provision pushed for by the American Soybean Association. That provision would permanently adjust the cost-share ratio for Inland Waterways Trust Fund projects from the current 65 percent general revenues-35 percent IWTF funds to 75 percent general revenue-25 percent IWTF. Cost share allocation changes for inland waterways projects often reduce overall project costs and allow projects to be completed faster. That allows communities and industries to realize the economic benefits of a project more quickly. In June, the House passed its version of WRDA by a vote of 384-37. That bill didn’t include the same adjustment to cost-share allocations for IWTF projects. The two chambers will now begin conference negotiations to reconcile the difference between the two bills. The ASA says it will continue to advocate for the Senate version containing the adjustment.

Senate overwhelmingly passes Water Resources Development Act

USDA Secretary Tom Vilsack says the agency is investing $401 million to provide access to high-speed internet for 31,000 rural residents and businesses in 11 states. 

The funds come from the ReConnect Program and an award through the USDA’s Telecommunications Infrastructure Loan and Loan Guarantee Program. 

“Connectivity is critical to economic success in rural America,” Vilsack says. 

“The internet is vital to our growth and continues to act as a catalyst for our prosperity.” The secretary also said from the farm to the school, from households to international markets, connectivity drives “positive change.” 

USDA will support internet investments in Alaska, Arizona, Arkansas, California, Colorado, Idaho, Montana, New Mexico, Nevada, North Dakota, and Texas. 

The Department also says it will make more investments for rural high-speed internet later this summer, including ReConnect Program funding from the bipartisan infrastructure law, which provides $65 billion to expand affordable high-speed internet to all communities across the U.S.

USDA Secretary Tom Vilsack says the agency is investing $401 million to provide access to high-speed internet for 31,000 rural residents and businesses in 11 states. The funds come from the ReConnect Program and an award through the USDA’s Telecommunications Infrastructure Loan and Loan Guarantee Program. “Connectivity is critical to economic success in rural America,” Vilsack says. “The internet is vital to our growth and continues to act as a catalyst for our prosperity.” The secretary also said from the farm to the school, from households to international markets, connectivity drives “positive change.” USDA will support internet investments in Alaska, Arizona, Arkansas, California, Colorado, Idaho, Montana, New Mexico, Nevada, North Dakota, and Texas. The Department also says it will make more investments for rural high-speed internet later this summer, including ReConnect Program funding from the bipartisan infrastructure law, which provides $65 billion to expand affordable high-speed internet to all communities across the U.S.

Administration announces $401 million for rural internet access

Bunge profits rose 15 percent during the second quarter of 2022. 

However, the global farm commodities company didn’t reach Wall Street expectations and the share price dropped five percent as a result. 

The company raised its full-year profit forecast and talked about plans to spend $3.3 billion on future investments and expenditures during the next few years. 

Bunge attributed a $59 million net loss for the quarter in its agribusiness segment because of the war in Ukraine. CEO Gregory Heckman says it will be a slow process for shippers to move commodities out of Ukraine and into the global markets. 

The company’s results come amid backed-up supply chains and strong demand for food and fuel driving inflation to its highest level in decades. 

Bunge’s rising operating costs offset higher demand and tighter supplies of commodity grain crops. Transportation and ongoing COVID-19 issues continue to drag down the world’s grain sector.

Bunge profits rose 15 percent during the second quarter of 2022. However, the global farm commodities company didn’t reach Wall Street expectations and the share price dropped five percent as a result. The company raised its full-year profit forecast and talked about plans to spend $3.3 billion on future investments and expenditures during the next few years. Bunge attributed a $59 million net loss for the quarter in its agribusiness segment because of the war in Ukraine. CEO Gregory Heckman says it will be a slow process for shippers to move commodities out of Ukraine and into the global markets. The company’s results come amid backed-up supply chains and strong demand for food and fuel driving inflation to its highest level in decades. Bunge’s rising operating costs offset higher demand and tighter supplies of commodity grain crops. Transportation and ongoing COVID-19 issues continue to drag down the world’s grain sector.