As we outlined back in March, reform to the Federal Milk Marketing Order (FFMO) pricing formula is a good bet for the farm bill. Indeed, reform efforts are underway administratively now; the National Milk Producers Federation (NMPF) has petitioned USDA for a hearing on a comprehensive reform plan to the FMMO, and that petition has the support of the American Farm Bureau Federation. The groups have been working for years on FMMO reforms; they’ve submitted five proposals to USDA including: Revert to the “Higher-Of” Class I Mover Prior to the 2018 farm bill, under the FMMO, Class I milk prices were calculated by using the higher of Class III and IV advanced skim milk prices (SMP). In 2018, that was changed to an averag...
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
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.