Aid Dependency Many poorer nations are dependent of foreign aid, including food donations, but so are some agriculture groups. Because of the war in Ukraine, the Biden Administration announced an increase in foreign food assistance. This will include the extraordinary use of CCC subsidies to cover transportation costs for the food aid since normally the labor union-backed Jones Act causes a large percentage of food aid money to be used for U.S.-flagged vessel transportation costs. Also aided by the foreign assistance are domestic wheat growers since their commodity often stars in the aid package to the tune of around one million tons. To show their generosity, U.S. wheat growers said they “are ready again in this crisis to hel...
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.