Diversity of Scale Tom Vilsack is one of the longest serving secretaries in USDA history. The one-time presidential candidate is a likeable and formidable character. Yet at this week’s annual USDA Outlook conference he tried to talk farmers out of getting big, and instead to go into diversification. His position satisfies the left’s tendency to attract support from small, inefficient farmers, and it comports with the Biden Administration’s skepticism of big business. However, the message was cloaked in the idea that farmers could better thrive by being small, and diversifying their sources of income such as selling environmental services. It is quaint but not at all backed up by vigorous research by his own agency...
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...