With China's announcement last week regarding a change in its income support policy for farmers, local analysts predict a notable shift in their planting decisions. Meanwhile, there is another crop-related issue also looming. Implications of China’s Changing Corn Policy China last week announced it was changing its financial subsidy policy for farmers by replacing a price support program based on purchasing stocks for storage with a system that ties income support payments to a target price. The shift will allow corn prices to fluctuate and is expected to reduce farmer incentives to plant corn, ultimately decreasing the huge stockpile as producers shift to growing alternate crops. It was suggested here a few weeks ago that if China did im...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
As fall begins, wild migratory birds are starting their seasonal migration. That has the industry and government officials worried about the potential spread, again, of highly pathogenic avian influenza (HPAI). Some members of Congress have called for the United States to be prepared for a pote...
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.