Told You So USDA’s ERS warned that the EU’s Green Deal Farm to Fork policy would lead to a decline in production but Brussels denied the negative impact and said it would have its own study. One was delivered to the European Parliament’s Committee on Agriculture and it pretty much says the same thing: farm income will decline by 3 – 28 percent, and up to a 42 percent drop for farmers that stick to their conventional practices rather than adopting higher paying organic methods. Ignoring the fact that all farmers going organic will commoditize the market into lower returns, there are other report insights that will be noted by Europe’s competitors. In addition to farmers reducing the use of inputs, the report s...
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...