China had already implemented a subsidy this year to encourage farmers to plant more soybeans, and that production is likely to be even higher as a separate initiative is introduced to address the country's issue with a different crop. China Sharply Increases Farmer Subsidy to Encourage Crop Rotation To encourage farmers to plant less corn, this year the government of China will nearly double the incentives to rotate crops. The finance ministry today indicated the government will pay farmers the equivalent of $375 million, an increase of 78 percent over last year.The rotation subsidy will be focused on northeastern China where most of the country’s corn is produced. The government is believed to have over 200 MMT in reserve, and it wants...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
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.