With the increasing attention in Washington on income inequality, any focus in the future on what parts of agriculture have money and assets while concurrently receiving large subsidies will create a risk to that dynamic. Farm Subsidy Risk The last time agricultural commodity prices were this low was 2009/10. Moreover, the vast majority of soybean, corn and wheat farmers selected farm bill policy protection under the Agricultural Risk Coverage (ARC) program, a “shallow loss” revenue protection system that has been adjusting downward based on a rolling average of the previous five years of revenue, either at the county or individual farm level. This means that farmers’ income risk grows with every succeeding year in which the market is in...
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.
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...