The Russian war on Ukraine has shorted the EU energy market and forced resumed use of coal. This in turn has driven up the need for more carbon allowances as the cost of carbon has risen too high for some industries. The EU has a mandatory cap and trade system, but it still informs U.S. policymakers as they work on a voluntary-based carbon offset market. Demand from major corporations for offsets is increasing and U.S. farmers are scrambling to benefit from a potential new income source. While agriculture contributes 10 percent of all emissions, they calculate that net-emissions in agriculture after deducting carbon sinking is -2 percent. The challenge is establishing a system of certification, quantification and verification with un...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.