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Friday, September 15th, 2023 Video and Audio Program

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Row crops pushed a bit lower on Friday with wheat and cattle higher to round out the week. Overall, this trade feels quiet and choppy with harvest quickly approaching. Plus, how does $90 crude oil impact the situation in these ag commodity markets? We discuss and get perspective today with Ted Seifried from Zaner Ag Hedge. Learn more at https://www.zaner.com.

Today’s show is brought to you in part by Growmark/FS; learn more online at https://www.fssystem.com.

AUDIO ONLY SHOW LINKS:

https://podcasts.apple.com/us/podcast/market-talk/id1533318516?i=1000628041896

Farmers Show High Interest in Harvest Autonomy

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Farmers in the U.S. and Canada appear to be embracing autonomous technology to optimize their operations and boost productivity.

A survey conducted by Forward Group revealed that 65 percent of the operators surveyed expressed enthusiasm for adopting autonomy solutions, while 29 percent showed high levels of enthusiasm. The survey findings emphasize the positive impact of autonomous solutions on farming efficiency, profitability, and sustainability. Sixty-seven percent of the farmers intend to adopt autonomy technology by 2027, with 47 percent planning integration into their operations by 2025, provided the technology proves effective for the tasks. The survey also shows that 59 percent of farmers believe the autonomy will bring significant value to their carting operations.

A substantial 51 percent of respondents expressed trust in autonomy technology for their harvesting. The driving factors behind the growing interest include 42 percent of the farmers interested in the technology wanting the autonomy to increase their productivity.

Appropriations Process Stalls in House, Ag Programs at Risk

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A spending rebellion by House GOP hardliners has stalled the appropriations process in the lower chamber, putting Ag and other programs at risk. Hardliners withheld their votes for the annual defense spending bill after earlier sidelining USDA-FDA appropriations and won’t back a temporary bill to fund the government without deeper cuts.

Without a stopgap or House-Senate USDA spending deal and no farm bill by the end of the fiscal year on September 30th, some programs could see funding shortfalls. Iowa Senator Chuck Grassley, ahead of the current House turmoil, said “I think the only one that I could think of, that would have to have a short extension, would be the food stamp program, and I’m sure that would be in a continuing resolution, pretty easily. For that matter, if the farm bill programs end September 30th, they could be very easily extended for the next few weeks while we’re negotiating a five-year farm bill.”

But doing so would likely take a rider on the USDA spending bill, now thrown into doubt. Senate Ag Chair Debbie Stabenow says other programs could also be affected without some kind of funding extension by October 1st.

“We don’t believe we need a general one, but there are certain programs that don’t have baseline funding, and so, the USDA has given a few areas where they believe they need to continue certain Beginning Farmer programs,” according to Stabenow.

Other farm bill programs like crop insurance would continue, while commodity programs would start being impacted on January 1st. Grassley says a one-year extension would be needed right before Christmas to prevent a reversion to archaic permanent law, which is inconsistent with modern agriculture and government farm policies.

EPA Resolves Long-Standing ESA Litigation

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The U.S. Justice Department, on behalf of the Environmental Protection Agency, resolved long-standing litigation covering over 1,000 pesticide products.

The resolution allows EPA to fulfill its obligations to protect endangered species while conducting reviews and approvals of pesticides in a safe and protective manner. In 2011, a lawsuit was filed against EPA alleging it violated the Endangered Species Act when it registered or reevaluated the registration of 382 pesticide active ingredients. A settlement entered in a federal court resolves all outstanding claims.

“The agreement is a win-win to protect endangered species, ensure the availability of pesticides needed to grow food across America, and save considerable time and taxpayer expenses further required to litigate this case,” says Michael Freedhoff of the EPA. “This settlement allows EPA time to fulfill its obligations under the ESA and adopt key elements from the Agency’s 2022 ESA work plan, which has a wide range of stakeholders’ support.”

Ethanol Industry Associations Ask Treasury Secretary To Use GREET Model For Scientific Accuracy

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WASHINGTON, D.C.—This afternoon, U.S. ethanol organizations including Growth Energy, the U.S. Grains Council (USGC), and the Renewable Fuels Association (RFA) sent a letter to Treasury Secretary Janet Yellen acknowledging global actions to decarbonize the aviation transportation sector using sustainable aviation fuel (SAF) and encouraging the use of updated scoring in the U.S. Department of Energy’s GREET model instead of carbon intensity scoring used in the CORSIA model for corn-based ethanol SAF.

Growth Energy, USGC, and RFA said in their joint letter:

“We strongly support the adoption of the DOE’s GREET model by the U.S. Treasury as the standard for carbon intensity scoring of conventional aviation fuels and SAF. The latest DOE GREET model relies on the most current information and highest-resolution data regarding the energy use, carbon emissions and potential land use impacts associated with the corn ethanol-based SAF process. By incorporating the DOE GREET model into its evaluation framework, the Treasury can unlock the full potential of agriculture to meet the growing demands of the global aviation industry while simultaneously reducing its carbon footprint.”

Use this link to view the entire joint letter.

State Ag Departments Set Policy Priorities

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The National Association of State Departments of Agriculture set policy priorities for the upcoming year during its annual meeting.

NASDA will advocate to give the USDA more authority to be flexible in serving farmers and ranchers who often face challenges in seeking disaster assistance. NASDA members also want existing gaps in insurance coverage and federal disaster relief programs closed to protect farmers from an increasing number of natural disasters. Members will also advocate for standards that ensure clear and consistent labeling for cell-based meat products, also referred to as cultured meat.

During the meeting, NASDA also adopted a new policy of supporting laws that protect farmers’ right to farm. The new policy advocates for protecting agricultural and forestry operations from nuisance lawsuits. NASDA members also amended the organization’s policy to support increased investment in apprenticeships and educational programming because of a tremendous need for workers with training specializing in agricultural fields.

NASDA also finished its annual meeting by electing new leadership for 2023-2024. Blayne Arthur, Oklahoma Secretary of Agriculture, will serve as NASDA’s 2023-2024 President and host the 2024 NASDA Annual Meeting on September 22-25, 2024.

“The opportunity to serve as NASDA President is incredibly humbling and certainly an honor, and I appreciate the support of my fellow Ag Commissioners in this new role,” Arthur says. “Agriculture looks different all across the U.S., but I look forward to working together to cultivate common ground as we help producers feed, fuel, and clothe the world.”

She also says NASDA members will remain steadfast in their commitment to strengthen and promote agriculture in this country and she’s excited to continue this work. Arkansas Secretary of Agriculture Wes Ward is the new Vice President, Amanda Beal of Maine is Second VP, and Washington’s Derek Sandison is the Secretary-Treasurer.

NAWG Hosts Farm Bill Fly-In

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Washington, D.C. (September 14, 2023) – The National Association of Wheat Growers (NAWG) completed the second part of its 2023 summer Farm Bill fly-ins. The first round of hill visits happened earlier this summer in July.

During the hill visits, wheat growers from across the country reinforced NAWG’s core priorities and underscored the need for Congress to work together to ensure farmers can continue to provide safe and affordable food for all Americans. Between both summer fly-ins, wheat growers met with over 110 offices. On Tuesday and Wednesday, growers from 14 states met with their delegations, staff from the four corners of the House and Senate Agriculture Committees, and leadership offices in efforts to continue to educate lawmakers and advocate for an effective farm safety net. Additionally, during the July visits, our growers met with Senate Agriculture Committee Chairwoman Stabenow and Ranking Member Boozman and House Agriculture Committee Chairman Thompson, along with other members of Congress to discuss priorities in the Farm Bill.

In these meetings, NAWG continued to underscore the need to get a Farm Bill done, which works for wheat growers and rural America. These conversations included:

  • Protecting crop insurance that serves as the cornerstone of the farm safety net.
  • Working to strengthen and enhance Title I and crop insurance to protect farmers better.
  • Supporting financial and technical assistance through voluntary conservation cost-share programs for producers in all climates and wheat-producing regions.
  • Encouraging additional investment in agricultural trade promotions and US commodities as part of the Farm Bill’s trade title.
  • Supporting wheat research programs authorized under the Farm Bill and robust funding as part of the annual appropriations process.
  • And how wheat growers can continue to help educate members of Congress and be a resource as Farm Bill discussions continue.

“I want to thank all of the members of Congress, their staff, and wheat growers who took the time over the summer to meet in D.C. and talk about the Farm Bill,” said NAWG President and Oregon wheat farmer, Brent Cheyne. “It is so important for wheat growers to tell their story and share their needs and concerns with lawmakers to help formulate policies and programs that benefit wheat growers and the ag industry.”

During the meetings, lawmakers and their staff expressed optimism about being able to proceed with a Farm Bill later this year. However, Congress must first pass a fiscal year 2024 appropriations package before federal funding runs out at the end of the month. While we are encouraged with the optimism to work towards finishing the Farm Bill in a timely manner, a common concern was the availability of new resources to make additional investments that could further improve the farm safety net.

September is National Chicken Month

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September is National Chicken Month, celebrating the most-consumed meat in the U.S. Two-thirds of all chickens in America are raised in Alabama, Georgia, Arkansas, North Carolina, Mississippi, and Texas.

Chicken is also one of the top agricultural exports for the U.S. Foreign markets are increasingly important, accounting for $4.4 billion and 16 percent of world production in 2022. The U.S. is the second-largest exporter in the world as more than 145 countries imported U.S. frozen chicken leg quarters, legs, and thighs last year. While American consumers prefer chicken breast meat, dark meat is more widely desired and consumed internationally.

Most U.S. chicken meat exports are often destined for low and middle-income countries that value safe, affordable, and tasty high-protein options. In 2022, almost all of the U.S. broiler meat exports went to developing economies. Fourteen percent of shipments were exported to some of the least developed countries in the world.

USDA Invests $6.5 Million in Risk Management Education

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The USDA is awarding approximately $6.5 million to 22 organizations to educate underserved, small-scale, and organic producers on-farm risk management and climate-smart farm practices. The funding from the Risk Management Agency provides assistance through its Risk Management Education partnerships for organizations like non-profits and land grant universities.

“This funding and these partnerships are integral to our outreach efforts in communities that historically have not had access to training about risk management options,” says RMA Administrator Marcia Bunger. “As a farmer, I know first-hand that agriculture is a risky business.” She also says because of that risk, the agency is determined to work with growers and livestock producers to provide them with training and resources about risk management options and how to apply them to their farming businesses.

RMA first advertised the available funds in January, and this year’s recipients include nonprofits, historically black colleges, and university extensions, among others.

Thursday, September 14th, 2023 Video and Audio Program

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Soybeans and cattle had a strong day to the upside while everything else in grains and livestock were mixed and quiet on Thursday. We discuss the market action as we near the end of the week with Bryan Doherty, Senior Market Advisor at Total Farm Marketing. Learn more at https://www.totalfarmmarketing.com.

Also, we get and update on early harvest from Ashley Bergthold, Area Business Development Manager, Brevant Seeds.

Today’s program is brought to you in part by Growmark/FS; learn more online at https://www.fssystem.com.

AUDIO ONLY SHOW LINKS:

https://podcasts.apple.com/us/podcast/market-talk/id1533318516?i=1000627914050