As expected, the final conference report of the new farm bill was filed last night. It contains several new commodity programs of interest.As expected, the final conference report of the new farm bill was filed last night. Following is a summary of issues of interest to clients about the new commodity programs. The bill repeals direct payments, counter cyclical (CC) payments and the Average Crop Revenue Election (ACRE) program. It establishes the Agricultural Risk Coverage (ARC) program as a revenue option like ACRE (from the Senate bill) and the Price Loss Coverage Program (PLC) as a counter cyclical program like the CC payments (from the House bill). As we previewed yesterday, producers will be required to make a one-time election of eith...
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...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.