As we outlined back in March, reform to the Federal Milk Marketing Order (FFMO) pricing formula is a good bet for the farm bill. Indeed, reform efforts are underway administratively now; the National Milk Producers Federation (NMPF) has petitioned USDA for a hearing on a comprehensive reform plan to the FMMO, and that petition has the support of the American Farm Bureau Federation. The groups have been working for years on FMMO reforms; they’ve submitted five proposals to USDA including: Revert to the “Higher-Of” Class I Mover Prior to the 2018 farm bill, under the FMMO, Class I milk prices were calculated by using the higher of Class III and IV advanced skim milk prices (SMP). In 2018, that was changed to an averag...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
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.