The Senate passed the President’s $3.5 trillion FY 2022 budget resolution this week by a 50-49 vote. Now Congress will turn toward implementing that budget with both new spending plans and new revenues to offset the new spending. The revenue raisers proposed under the President’s budget total $3.919 trillion over 10 years. Several of these revenue raisers would impact agriculture either directly or indirectly, including: Carbon Border Tax: This would raise $5 to $16 billion per year via new tariffs on carbon intensive imports through a complicated process of 1) requiring the Treasury Department to annually measure the costs that a few emissions-intensive U.S. economic sectors incur in complying with federal, state,...
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.
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...