As the debate on next year’s farm bill gets underway, commodity groups are considering what role the cost of production should play in crop programs such as the Price Loss Coverage (PLC) program. That was a topic of discussion at the Commodity Classic’s roundtable discussion with commodity group CEOs. Consider the historical perspective on the PLC: then-Senator Pat Roberts (R-Kansas) voted against the 2014 farm bill because as he said at the time: The new Price Loss Coverage Program contained in this conference report sets high fixed target prices and subsidies for all commodities and regions of the country. Roberts also noted that the PLC reference prices, set nationally, were at or above the producer's cost of product...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
From WPI Consulting
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.