Farm Bill and Ag Industry Updates
Agriculture is a critical industry that feeds the world’s population and plays a vital role in the global economy. As such, staying informed about the latest trends, policies, and developments in the field is crucial for anyone in the agricultural industry.
Let’s take a look at some of the most noteworthy recent headlines in the ag industry, including updates on the USDA’s annual ag outlook forum, the upcoming 2023 Farm Bill, and the challenges that inflation poses for grain elevator managers.
Corn-for-Ethanol Use Stronger Than Expected
The USDA reports that corn-for-ethanol use reached 443.6 million bushels in January, exceeding trader expectations of 436.8 million bushels. While ethanol use increased by 18.3 million bushels (4.3%) from December, it fell by 20.0 million bushels (4.3%) compared to January 2022.
Link: https://www.agweb.com/markets/pro-farmer-analysis/corn-ethanol-use-stronger-expected
Local meat processors are struggling to find essential items due to supply chain issues
Local processors are facing challenges in accessing essential supplies due to ongoing labor shortages and supply chain issues, according to the American Association of Meat Processors. Finding paper, cardboard boxes, seasoning, and spices is proving to be a struggle for these businesses. The situation is worse now than during the pandemic because packers have purchased all available stock, and supplies have not yet caught up.
The U.S. climate does not support the growth of certain ingredients, and this, combined with supply chain bottlenecks, has resulted in small processors missing shipments of essential ingredients such as salt.
Federal regs, funding and the Farm Bill top rail’s 2023 agenda
Leaders of the North American rail industry will visit Washington, D.C., in person for the first time since the pandemic hit in 2020. The Rail Day on Capitol Hill will give industry leaders the opportunity to meet with Congress members and navigate the new political reality following the midterm elections. The industry’s main legislative priorities remain the same as previous years, with federal funding for transportation infrastructure, especially rail infrastructure grant programs, high on the agenda. Rail association leaders will pay close attention to a multi-hundred-billion-dollar reauthorization of the Farm Bill, which will expire this year, and will explore whether a small program can be created to fund upgrading storage facilities, grain elevators, rail spurs, sidings, and loading equipment used by ag shippers.
Shipping Logistics: When could things go back to normal?
According to logistics experts, although the availability and cost of shipping containers are improving, it may take a while for supply chain issues to return to normal. Leaders suggest that shipping prices are decreasing, and the supply chain is in better condition than it has been recently. However, they note that container availability is not recovering as rapidly. Demand has increased as the worldwide agricultural industry recovers from the pandemic, but they caution that it could be until next year before the number of shipping containers reaches pre-pandemic levels.
Link: https://www.rfdtv.com/shipping-logistics-when-could-things-go-back-to-normal
The Ukraine Report: Bread factory saved farmers and residents from starving during the attacks
A Ukrainian bread factory run by Mykola Bantov managed to continue production throughout the war, despite being shelled three times. The bakery provided much-needed sustenance to people, hospitals, and soldiers in the area, with bread given away for free during the most difficult weeks. Bantov’s other enterprises allowed him to achieve almost complete self-sufficiency with production.
Link: https://www.rfdtv.com/the-ukraine-report-bread-factory-saved-farmers-and-residents-from-starving-during-the-attacks
National Ag Week and Ag Day Coming Soon
As National Agriculture Week and National Ag Day approach in March, it’s a great time to recognize and celebrate the essential role that the agricultural industry plays in our daily lives. These holidays provide an opportunity to appreciate the hard work and dedication of the producers, agricultural associations, corporations, universities, and government agencies that contribute to our economy and provide us with safe and affordable products. National Ag Day is a day to recognize the abundance provided by agriculture, and the Agriculture Council of America hosts the campaign on a national level. Let’s take this time to build awareness and encourage young people to consider career opportunities in agriculture while valuing the essential role of agriculture in maintaining a strong economy.
Link: https://www.ffa.org/national-ag-day/
USDAs 99th Agriculture Outlook Forum is underway at the nation’s capitol
The USDA’s annual agriculture outlook forum is currently underway in Washington, D.C. Experts are giving outlooks on various agricultural sectors, including dairy, cotton, sugar, livestock, and grains. According to Seth Meyer, there is a projected growth in planted acreage for corn, wheat, and soybeans, including a major rebound in wheat planting. Total acreage for all three crops is projected at $228 million, a three percent jump from last year. Prices are expected to be lower than last year but still above average.
Link:https://www.rfdtv.com/usdas-99th-agriculture-outlook-forum-is-underway-at-the-nations-capitol
Sec. Tom Vilsack shares his thoughts on the 2023 Farm Bill
The 2023 Farm Bill is expected to come in at more than a trillion dollars, according to the Congressional Budget Office. RFD-TV’s Tammi Arender asked Secretary Tom Vilsack what he hopes lawmakers will achieve in the next few months of discussions.
Link: https://www.rfdtv.com/sec-tom-vilsack-shares-his-thoughts-on-the-2023-farm-bill
Aisle Divided? Senate lawmakers discuss nutrition spending as part of the most expensive Farm Bill in history
The Senate Ag Committee tackled the largest portion of the Farm Bill. Nutrition could be the area where there is the most division between Republicans and Democrats. RFD-TV’s Tammi Arender is in Washington, D.C. with the latest.
The cost to build is complicating grain bin expansion, according to a manager
An elevator manager in Northern Illinois says inflation is making it hard to justify upgrades or expansions. They would like to renovate their current space and install a new dry fertilizer building, but the current economy just will not allow it. Concrete and steel costs have ballooned, making it tough to green light any kind of construction. They say these kinds of decisions require a lot more analysis than they used to, but working with a good banker can help minimize the risks.
Link: https://www.rfdtv.com/the-cost-to-build-is-complicating-grain-bin-expansion-according-to-a-manager
Control Chief exhibited at GEAPS 2023
Control Chief Corporation was on hand at the GEAPS Exchange 2023 to connect with grain producers and ag industry professionals and to introduce our state-of-the-art Locomotive Remote Control systems.
Find out more about GEAPS Exchange 2023
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