A University of Illinois economist expects 2018 crop prices to remain below high levels seen earlier this decade due to global inventories. Economist Todd Hubbs explains that global economic growth continues to build on the momentum seen over the last year, offering some limited upside for demand. Growth in China and emerging markets in Asia is projected to remain strong …
KORUS Talks Set for Washington This Week
The U.S. and South Korea will hold formal trade talks starting Friday regarding the Korea-U.S. Free Trade Agreement, known as KORUS. Officials from Korea and the U.S. will meet in Washington, D.C. Friday to discuss “potential amendments and modifications” to the five-year-old deal, according to Politico. The two nations met last year to discuss concerns surrounding the trade agreement as …
Produce Safety Rule Implementation Nearing
The Produce Safety Rule, part of the Food Safety Modernization Act, will go into effect January 26 for farms with $500,000 or more in revenue. The Food and Drug Administration has emphasized the first year will focus less on regulation and compliance and more on education and readiness. Regardless, AFBF economist Veronica Nigh says produce growers need to be ready …
U.S. Crop Acreage Still Moving to Soybeans
Farmers in the United States have been slowly switching their cropland to just two field crops. Corn is king in the United States. Soybeans have been on a swift move upward. And wheat acreage has been on the decline for about 40 years. About half-way through those four decades two important things happened. Congress passed the 1996 farm bill – …
Another Year of Tight Budgets in Washington
2018 will be another year of tight budgets in Washington, especially after the passage of a sweeping tax overhaul bill. That will also likely mean less money to write a new farm bill. The 2014 farm bill was tough enough to write but the 2018 bill could be tougher. And it’s not just automatic budget cuts begun in 2011, but a …
Downward Pressure Expected on 2018 Cash Rents
As commodity prices fell over the past few years, many landowners across the country agreed to lower cash rents. The annual LandOwner/Pro Farmer Cash Rent and Values Survey shows a majority of the respondents expecting cash rents to continue their lower trend in 2018. LandOwner consultant and columnist Mike Walsten says the survey also shows the focus on lowering cash …
USGC Report Says U.S. Corn Harvest Quality was Excellent
The U.S. Grains Council (USGC) issued a report on this year’s corn harvest quality, saying a good growing season resulted in record yields that had very good quality. The report says the majority of crop conditions in 2017 were good-to-excellent. That led to strong plant size, good kernel health, and a projected record yield of 370.3 million metric tons, or …
Agrium/Potash Corp. Merger Closing on New Year’s Day
Shortly after the Christmas holiday, Agrium and Potash Corp. received a late present in the form of final merger approval. The U.S. Federal Trade Commission clearance was the final hurdle in the effort to complete the business merger. If the companies successfully meet all the closing conditions, approval will go into effect on January first. The president/CEO of Agrium says …
China Implementing New Import Requirements on U.S. Soybeans
U.S. soybean exports will undergo a new procedure to meet new phytosanitary requirements for shipping to China, starting on January first. A Bloomberg report discussed the new rules for American soybean shipments. The U.S. Animal and Plant Health Inspection Service says the new procedure applies to both bulk and container shipments of raw and unprocessed American soybeans to China. APHIS …
Orange Juice Stuck in a Rut
The orange juice futures trade is stuck in the biggest rut it’s seen since way back in 1967. The futures closed lower for a record 15th-straight day last Wednesday, with no end in sight. Domestic demand for orange juice has been shrinking for several years. On top of that, add in a declining citrus crop in Florida, the nation’s number-one …