A comparison of today’s calculations with those of 2011 provides insight into one of the driving forces behind the rapid escalation in land values during the bull market.The numbers are in! The 2017 minimum crop revenue assurance price guarantee for soybeans is the highest it has been since 2014. WPI previously wrote about how such a level will provide another significant reason for farmers to plant more soybeans in 2017 (see Ag Perspectives, 14 February). The following table provides a recent history of price guarantees through 2017:The significance of these minimum price guarantees is that farmers can now calculate their guaranteed revenue per acre under the federal crop insurance programs. If the harvest price calculation is higher...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
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.