The Inflation Reduction Act (IRA), also officially known as the Budget Reconciliation bill and unofficially as the mini-Build Back Better bill, has been passed by Congress and signed by President Biden. It was the subject of several eleventh-hour changes, but now the dust has settled and there is more transparency into what is included in the legislation. The bill includes $38.244 billion in agricultural programs and forestry. Here is a rundown of the provisions: The biodiesel tax credit (BTC) is extended through 2024 for biodiesel and renewable diesel. That is estimated as a tax expenditure of $5.571 billion. A new sustainable aviation fuel (SAF) credit is created through 2024. It is a credit of $1.25 per gallon, plus one cent for each...
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
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.