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Demand for U.S. beef rebounding in Middle East post-pandemic

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WASHINGTON — U.S. beef sales in the Middle East were impacted by COVID restrictions in 2020, particularly as tourism in the region came to a halt. In this U.S. Meat Export Federation (USMEF) Report, Bassam BouSaleh, USMEF representative in the Middle East, reports that as restrictions are lifted, U.S. beef sales are rebounding.

In particular, grocers have reopened to cooking demonstrations and product sampling. Supermarket tasting demonstrations, conducted through support from USDA and the Beef Checkoff Program, showcase the quality and flavor of U.S. beef in key grocery chains in the region.

And as tourism and hotel occupancy rebound, a wide range of U.S. beef cuts are being featured in high end restaurants throughout the Middle East.

TRANSCRIPT

SPEAKERS
John Herath, Bassam BouSaleh

John Herath

As pandemic restrictions ease U.S. beef is seeing new growth in the Middle East through grocery sampling, restaurants and hotels, and a surge in e-commerce Bassam BouSaleh, the U.S. Meat Export Federation representative in the Middle East says the region’s grocers are allowing food sampling again, and tasting demos, conducted with support from USDA and the Beef Checkoff Program, which are important for U.S. beef sales.

Bassam BouSaleh

During the COVID time, sampling in the retail sector was not allowed. But now, the government they’re giving us special permission to do it again. The chef is allowed to do live cooking and do a tasting for U.S. beef cuts. Customers like such demonstration because they taste U.S. beef properly prepared, and they can ask questions to chefs and communicate with them the proper cooking tips and methods.

John Herath

High end restaurants in the Gulf region often feature U.S. beef so the return of hotel and food service business has been key.

During COVID time food service was suffering in the region because visitors to the country were very minimal. But now the food service sector in Dubai and other Gulf states is going back to normal. Occupancy in the hotels is around like 70 to 90% and for sure, U.S. beef in this situation is getting better market. Steak houses are now ordering more quantities. Customer used to know only the prime costs like tenderloin, strip loin, ribeye, T-bone steaks, but we promoted cuts at less cost in the market like the short rib, hanging tenders, brisket, chuck. Chefs find them very profitable for their menu and they can use with a reasonable price.

John Herath

BouSaleh also says the pandemic increased interest in U.S. beef meal sales through e-commerce, a trend that is continuing to boost sales even as restrictions have been lifted. For more visit USMEF.org. For the U.S. Meat Export Federation. I’m John Herath.

–U.S. Meat Export Federation

India open to exporting wheat to needy nations despite ban

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NEW DELHI (AP) — India on Sunday said it would keep a window open to export wheat to food-deficit countries at the government level despite restrictions announced two days earlier.

India’s Commerce Secretary B.V.R. Subrahmanyam told reporters the government will also allow private companies to meet previous commitments to export nearly 4.3 million tons of wheat until July. India exported 1 million tons of wheat in April.

India mainly exports wheat to neighboring countries like Bangladesh, Nepal and Sri Lanka.

A notice in the government gazette by the Directorate of Foreign Trade on Friday said a spike in global prices for wheat was threatening the food security of India and neighboring and vulnerable countries.

A key aim of restrictions on exports is to control rising domestic prices. Global wheat prices have risen by more than 40% since the beginning of the year.

Before the war, Ukraine and Russia accounted for a third of global wheat and barley exports. Since Russia’s Feb. 24 invasion, Ukraine’s ports have been blocked and civilian infrastructure and grain silos have been destroyed.

At the same time, India’s own wheat harvest has suffered from a record-shattering heat wave that is stunting production.

He said India’s wheat production this year has come down by three million tons from 106 million tons last year. Wheat prices have shot up by 20-40% in India.

“The current rise in prices seems to be a panic reaction rather than a reaction based on a genuine collapse in supply or a sudden shooting of demand,” Subrahmanyam said.

Even though it is the world’s second-largest producer of wheat, India consumes most of the wheat it produces. It had set a goal of exporting 10 million tons of the grain in 2022-23, looking to capitalize on the global disruptions to wheat supplies from the war and find new markets for its wheat in Europe, Africa and Asia.

Up to 90 million tons of wheat were consumed in India last year out of a total production of 109 million tons, Subrahmanyam said, adding that India exported 7 million tons of wheat last year.

–By ASHOK SHARMA Associated Press

Senators Dianne Feinstein & Alex Padilla join effort to resolve export trade crisis

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SACRAMENTO —  The Almond Alliance of California thanked  California’s U.S. Senators Dianne Feinstein and Alex Padilla for joining with a collaborative of major agriculture associations in urging a summit with all stakeholders – ocean shipping carriers and agricultural exporters – to resolve gridlock at the nation’s ports, where billions of dollars of exports are stuck on the docks.

“The agriculture community of California thanks and appreciates our Senate delegation for standing up to end this gridlock which has crippled California farmers for the last year,” stated Almond Alliance President Aubrey Bettencourt.

The call to action – spelled out in a letter from the senators – urged a wide range of interests to come to the table to address this crisis. The communique was sent to March Bourdon, President of CMA CGM Maritime, the United States Secretary of Agriculture, the United States Secretary of Transportation, and the National Economic Council.

The senators implored those officials to work with American agricultural exporters to immediately expand export opportunities.

“We urge you to work with California agricultural producers to ensure their products, especially perishables, expeditiously get to export markets worldwide during this important season,” the senators wrote. “We look forward to working with you to achieve our shared goals.”

In their communique, Senators Feinstein and Padilla underscored the urgency of the crisis:

Our “agricultural commodities have been significantly hampered in exporting their products because of container and equipment shortages, canceled bookings, and inadequate receiving windows.

“According to the attached letter from several of California’s major agricultural producers, three out of four containers at U.S. ports are returning to Asia empty, resulting in a significant backlog of sold product in need of transportation.”

That letter from national and state agricultural groups specifically demands for an immediate federal effort to convene a meeting of ocean carrier companies and agricultural exporters to address the tremendous export trade imbalance which is crippling American agriculture and damaging the American economy.

Signatories of that second letter include leadership of the California Farm Bureau; Western Growers Association; National Milk Producers Federation; U.S. Dairy Export Council; Western United Dairies; the Almond Alliance of California, and the California Walnut Handlers Alliance.

To View Letter, Click Here.

About the Almond Alliance

The Almond Alliance of California (AAC) is a trusted non-profit organization dedicated to representing and advocating on behalf of the California almond community. California almonds generate more than $21 billion in economic revenue and directly contribute more than $11 billion to the state’s total economy. California’s top agricultural export, almonds create approximately 104,000 jobs statewide, over 97,000 in the Central Valley, which suffers from chronic unemployment. The AAC is dedicated to educating state legislators, policy makers and regulatory officials about the California almond community. As a membership-based organization, our members include almond processors, hullers/shellers, growers and allied businesses. AAC works to raise awareness, knowledge and provide a better understanding about the scope, size, value and sustainability of the California almond community.

For more information on the Almond Alliance, visit almondalliance.org.

–Almond Alliance of California

Cotton marketing news for May 12, 2022

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TIFTON, Ga. — USDA’s monthly crop production and supply and demand estimates for May, released today, show revisions for the 2021 crop and are also the first such estimates for the 2022 crop.  We obviously have a long way to go but the drought situation in Texas and Oklahoma is not improving and portions of the Southeast are getting worse by the day.  We need rain, bad.

Here is a summary of today’s major US and World numbers:

US

  • The 2021 US crop was reduced 100,000 bales.
  • There were no changes in 2021 crop year US exports—still pegged at 14.75 million bales.
  • So, ending stocks to carry in to the 2022 crop year on August 1 are reduced 100,000 bales.
  • The first projection of the 2022 crop is 16.5 million bales- down approximately 1 million bales from last year.
  • Exports for the 2022 crop year are projected at ¼ million bales less than this season.
  • 2022 crop year ending stocks are projected to be down ½ million bales.

World

  • The 2021 crop year World beginning stocks were raised by 720,000 bales (not good for price) but estimated production of the 2021 World crop was trimmed 1.75 million bales—a net reduction in available supply of just over 1 million bales.
  • World use/demand for the 2021 crop year was reduced 1.13 million bales from the April estimate.
  • 2022 World production projected up over 2 ½ million bales.
  • World use/demand projected to continue to slip—almost 1 million bales lower than the just lowered 2021 crop year use.

I consider this a mixed outlook for the 2022 crop market.  If price is to maintain its upward path, more focus will have to shift to the condition and size of the US crop.  Because the demand outlook seems cautious.

US acres planted this year are estimated up 1 million acres and yield projected up 6%.  But, due to drought conditions, acreage abandonment is projected at 25% compared to only 8.5% last season.  Acres planted could be reduced.

US production concerns, coupled with reduced carry-in stocks, creates a tighter supply situation for 2022.  This is supportive of prices but the demand/use situation appears to be weakening somewhat.  Granted, the May numbers cut 2021 crop year use by only 1% and the forecast for the 2022 crop year is down less than another 1%– but taken in the context that this price buildup is largely based on demand, well, it’s a bit worrisome at least to me.

Growers should consider where the market is, how much of expected production you have priced, and the risk you are willing to take that prices could go even higher vs. move lower.

Don Shurley
Cotton Economist-Retired/Professor Emeritus of Cotton Economics

–Don Shurley

Governor visits Lyons Ranch for Beef Month

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TOPEKA, Kan. — In recognition of Beef Month, Governor Laura Kelly and Kansas Agriculture Secretary Mike Beam visited Lyons Ranch near Manhattan yesterday. Jan and Frank Lyons started their cowherd in the Kansas Flint Hills nearly five decades ago. Today, their daughter and son-in-law, Amy and Karl Langvardt, manage most of the day-to-day operations, working with their son, Trey, and his wife, Bailey.

While at the ranch, Gov. Kelly and Secretary Beam both took time to acknowledge all the hard work put in by Kansas farmers and ranchers each day to provide wholesome and nutritious beef for families within the state and around the world. The governor also recognized the contributions the Kansas cattle industry makes to the state’s economy by providing nearly $13 billion annually. Additionally, Kansas exported $1.7 billion in fresh, chilled and frozen beef in 2021.

Prior to leaving, Gov. Kelly and Secretary Beam posed for pictures with the Beef Month proclamation signed by the governor. Those on horseback (L to R) are Karl, Amy, Trey and Bailey Langvardt. Standing behind the governor (L to R) are Frank and Jan Lyons and Secretary Beam.

— Kansas Livestock Association

Mexican market reopens to U.S. potatoes

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WASHINGTON — The National Potato Council has welcomed the news that the first shipments of U.S. fresh potatoes crossed into Mexico yesterday, May 11. The successful crossings signal the start of Mexico’s process to restore full market access for U.S. fresh potatoes after decades of disputes and legal obstructions.

“This is an important moment for the U.S. potato industry and our partners in the federal government who have fought for decades to restore access to this vital market, but we know the work is not over if we are to keep the border open,” said NPC President and Washington state potato grower Jared Balcom.

The shipments come after more than 25 years of regulatory and legal obstructions by Mexico, and one year after the Mexican Supreme Court ruled unanimously that U.S. fresh potatoes were legally authorized to be imported.

“Today’s news wouldn’t be possible without the tireless work of Secretary Tom Vilsack, Ambassador Katherine Tai, and their outstanding teams at USDA and USTR,” said NPC CEO Kam Quarles. “Both agencies have made the restoration of U.S. potato access a top U.S. trade priority. We thank them for getting us to this important step and we will need their continued partnership to ensure that the border remains open as we seek to grow the Mexican market for potatoes.”

Mexico is the largest export market for U.S. potatoes and products valued at $394 million in 2021. Despite the previous restriction to the 26-kilometer border region, Mexico was the second-largest market for fresh potato exports in 2021, accounting for 124,449 metric tons valued at $60 million last year. The U.S. potato industry estimates that access to the entire country for fresh U.S. potatoes will provide a market potential of $250 million per year, in five years.

 

The National Potato Council represents the interests of U.S. potato growers on federal legislative, regulatory, environmental and trade issues. The value of U.S. potato production is over $4.5 billion annually and supports hundreds of thousands of jobs both directly and indirectly.

–National Potato Council

Recent rains make for ‘hit-and-miss’ agricultural progress

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COLLEGE STATION, Texas — While recent rains have provided a needed respite for agricultural producers in some parts of Texas, the majority of producers did not benefit and continue to hope for more, according to Texas A&M AgriLife experts and others.

“There has been a patchwork of rain throughout the state recently,” said John Nielsen-Gammon, Ph.D., state climatologist in the College of Geosciences Department of Atmospheric Sciences at Texas A&M University. “Some rains in North Central and South Texas have improved prospects for agricultural production, but it’s been very dry overall in most of the state.”

Nielsen-Gammon said thunderstorms in the High Plains area provided some relief for producers, while the area from San Angelo to Abilene in West Texas was mostly dry with below-normal rainfall. He also noted there had been little to no rain throughout most of the Panhandle.

“The system that came through recently may be the last big weather system we see for a while,” he said. “There may be some storms in West Texas in the near future, but then you can expect it to get hotter and drier.”

Recent rains help some areas of Texas

The Coastal Bend area, especially around Corpus Christi, has also continued to be unusually dry.

“Much of the Coastal Bend area missed the recent rains,” said Corpus Christi-based Joshua McGinty, Ph.D., Texas A&M AgriLife Extension Service specialist in field crops and forages in the Department of Soil and Crop Sciences.

“The Alice area received anywhere from 0.5 to over 3 inches of rain, but most of the area closer to the coast only got a few hundredths of an inch,” he said. “The persistent high wind the last few weeks is just further drying us out.”

McGinty said cotton crops around the Corpus Christi area are mostly dry-planted and waiting on rain.

“Corn and sorghum stands are good, although both are showing signs of moisture stress by mid-morning on most days,” he said.

He also noted much of the Lower Rio Grande Valley received some good rains since late April, but that moisture will only carry the crops for a short while and more will be needed soon.

The recent rains probably had their greatest positive impact in East Texas, said Larry Redmon, Ph.D., associate department head in the Department of Soil and Crop Sciences and AgriLife Extension program leader, Bryan-College Station.

“They have greatly helped with forage and hay production in that part of the state,” he said. “But agricultural production anywhere west of I-45 has been generally poor, unless there has been irrigation.”

Redmon said one of the more significant missed opportunities for producers has been in wheat production.

“With what’s happening in Ukraine and Russia, there has been little to no wheat exportation to the U.S. and wheat prices here have been very high,” he said. “But the general lack of rain in the state has kept producers away from planting wheat or has had a negative impact on wheat crops. As a result, many producers have lost out on what could have been a very good opportunity for them.”

Some beneficial rains, but irrigation continues

Ben McKnight, Ph.D., AgriLife Extension state cotton specialist in the Department of Soil and Crop Sciences, Bryan-College Station, said the rains have brought some good progress to both corn and cotton crops in Williamson and Milam counties.

“It has also helped cotton crops in Brazos County and surrounding counties,” McKnight said.

“However, I’ve seen some ‘skippy’ fields where some of the stands received adequate moisture and others did not. Even there, the soil moisture appears to have been inconsistent.”

While cotton in the Blackland Prairie area and Texas High Plains still needs rain, he said cotton, corn and sorghum crops in the Brazos Valley area all benefitted from recent rains.

Jourdan Bell, Ph.D., AgriLife Extension agronomy specialist for the High Plains region, Amarillo, said much of the recent rainfall moved through that region very quickly so only a few localized areas received beneficial rain.

“Most irrigated producers were applying pre-irrigation,” she said. “And along with the rain came a lot of hail, some of it up to baseball size, that damaged structures and destroyed a good amount of the wheat crop.”

She said generally the soil moisture profile was poor and soils were badly depleted.

“Even where good rainfall was received, it wasn’t going far with the hot windy days,” Bell said. “Some producers are proceeding with planting irrigated ground, but most are still waiting for more rainfall for dryland planting.”

Larry Stein, Ph.D., horticulturist based at the Texas A&M AgriLife Research and Extension Center in Uvalde and associate head of the Department of Horticultural Sciences, said rains have been “hit and miss” throughout the Texas Winter Garden region.

“Cotton in this area has come up very well this time around,” he said. “A lot of that was due to our getting adequate rains recently.”

He said spinach, onion and cabbage crop production in the Winter Garden was generally steady but down somewhat from last year.

“The onion bulbs this year were also a little smaller than what we usually see because of the drier-than-normal weather,” Stein explained.

Future chances for rain

Nielsen-Gammon said rain is usually reliable in April, but this year has been unusually dry and those producers who received rain were fortunate.

“There may be some rainfall in the near future, but unfortunately it will also be hotter, drier and windier across much of the state,” he said. “This will worsen the situation in some of the places that got rain, as they may lose a good bit of it to evaporation. And for the other areas that did not receive adequate rain, the situation will be even worse.”

However, Nielsen-Gammon said there is still the possibility of longer-range prospects for rain, and “you can get into a wet-weather pattern pretty quickly,”

“May and June are typically the wettest months of the year in Texas, so even if we get less than average rainfall over those months, we still may get enough to help with agricultural production,” he said. “Time will tell.”

–Paul Schattenberg
Texas A&M AgriLife Communications

President Biden visits Illinois soybean farm

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BLOOMINGTON, Ill. — On May 11, President Joe Biden spent time on a family farm in Kankakee, Ill., belonging to Illinois soybean farmer and Illinois Soybean Association (ISA) Board Director Jeff O’Connor. There, he announced his administration’s three-pronged plan of action to support American farmers, reduce food prices, and feed the world.

“The pandemic combined with the Ukraine-Russia conflict has resulted in supply chain disruptions and increasing food, fuel, and fertilizer prices which are negatively impacting farm families and leading to shortages of food in countries across the globe,” says ISA Board Chairman, Steve Pitstick. “The Illinois Soybean Association is grateful for the opportunity today to discuss farmer concerns, the sustainable solutions our industry brings to the table, and to learn more about what we can be doing to relieve pain points that are echoing throughout communities around the world.”

During the farm visit, the President announced new actions to give farmers the tools and resources they need to boost production, and play a critical role in mitigating global price hikes. As the world’s second largest exporter of wheat and soybeans, these actions will help grow new markets for American-grown food, supporting jobs in rural communities across the country. These administrative flexibilities implemented by USDA could include:

• Increasing the number of counties eligible for double cropping insurance. Double cropping allows farmers to plant a second crop on the same land in the same year, helping boost production without relying on farmers to substitute crops or cultivate new land. But it is not free from risk and some farmers who practice double cropping cannot obtain crop insurance. The Biden-Harris Administration is seeking to expand insurance for double cropping to as many as 681 additional counties, bringing the total number of counties where this practice qualifies for crop insurance to as many as 1,935, so more American farmers have the financial security they need to start or expand double cropping.

• Cutting costs for farmers by increasing technical assistance for technology-driven “precision agriculture” and other nutrient management tools. Precision agriculture is a farm management system that allows farmers to use technology to target application of inputs to soil and plant needs, resulting in less fertilizer usage without reducing yields, saving farmers money over time and extending the usefulness of critical products in short supply worldwide. The U.S. Department of Agriculture has planning and cost sharing assistance programs available to help American farmers with nutrient management. The Administration is working to boost outreach to farmers, streamline the application process, and prioritize application approvals to expand access to these critical programs.

• Doubling funding for domestic fertilizer production. Fertilizer prices have more than doubled since last year, due in part to supply chain disruptions created and exacerbated by Russia’s invasion of Ukraine, including rising energy costs. Today, President Biden announced that he is doubling his initial $250 million investment in domestic fertilizer production to $500 million to lower costs and boost availability for farmers, so they can obtain the inputs they need at prices they can afford to maximize yields.

“And to all our farmers, I want you to know: we have your back,” said Biden.

Leadership from the Illinois Soybean Association spoke with Biden on the wheat double crop system, and the need for support for U.S. wheat breeding programs. Beginning in 2020 double crop wheat followed by soybeans became insurable under federal crop insurance programs for each crop instead of as previously being insured jointly. This allows greater flexibility for farmers and promoted crop rotation.

“ISA applauds the efforts being made by this Administration, specifically by Secretary Vilsack and USDA staff for reaching out to farmers across the country to hear what tools they need to increase double crop soybeans and wheat,” said Pitstick. “ISA encourages USDA to continue their aggressive outreach and collaboration to find double crop solutions that make an impact at the farm level and globally.”

The Illinois Soybean Association (ISA) checkoff and membership programs represent more than 43,000 soybean farmers in Illinois. The checkoff funds market development and utilization efforts while the membership program supports the government relations interests of Illinois soybean farmers at the local, state, and national level, through the Illinois Soybean Growers (ISG). ISA upholds the interests of Illinois soybean producers through promotion, advocacy, and education with the vision of becoming a market leader in sustainable soybean production and profitability. For more information, visit the websites www.ilsoy.org and www.ilsoygrowers.com.

— Illinois Soybean Association

Big picture: during Va. Agriculture Week, June 12-18

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RICHMOND, Va. — Virginia Agriculture Week is approaching, and the state’s farms are ready to be the stars of the show.

Held this year June 12-18, Virginia Agriculture Week celebrates agriculture’s $70 billion annual economic impact and the 334,000 jobs it generates. Commodities and products grown and produced in Virginia are sourced from a broad range of agricultural zones, from mountainous altitudes to the sprawling Piedmont, and below sea level.

To help paint a picture of the state’s largest private industry, photographers are invited to submit their best farm photos to the Virginia Agriculture Week Photo Contest, organized by the Virginia Department of Agriculture and Consumer Services.

Photographers may share photos in several categories—agricultural landscapes, livestock, produce and crops, local food and aquaculture. Winners will receive a Virginia’s Finest gift basket valued up to $200, and their photos will be featured in Virginia Agriculture magazine.

There is plenty to photograph. Virginia is home to 43,225 farms on 7.8 million acres of land, according to the U.S. Department of Agriculture’s 2017 Census of Agriculture. The average farm size is 181 acres. The typical Virginia farmer is 58.5 years old, and about 36% of primary farm operators are female. Broiler chickens top the state’s commodities list with annual cash receipts at $625 million, followed by cattle, miscellaneous crops, turkeys, dairy and milk, and soybeans.

The state’s farmers are represented by Virginia Farm Bureau Federation, the commonwealth’s largest agricultural advocacy group. With more than 132,000 members in 88 county Farm Bureaus, the organization provides a unified voice to advocate for local, state and national policies using a grassroots process.

“While we celebrate the efforts of our farmers every day, Virginia Agriculture Week is an opportunity to include the public in that recognition, sharing gratitude for the state’s agricultural community,” said Wayne F. Pryor, VFBF president and a Goochland County grain and hay producer. “The high-quality food, fiber and other products grown by Virginia farmers are valued at all levels—from neighborhood farm stands to international exports.”

The VDACS photo contest’s entry deadline is May 31. Visit bit.ly/3Mb0SgY for complete contest rules.

–Virginia Farm Bureau

Ag organizations react to President Biden's announcement

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WASHINGTON — Editor’s note: The American Farm Bureau Federation, National Farmers Union, The Fertilizer Institute, American Soybean Association, and Illinois Soybean Association have released statements following President Joe Biden’s recent visit to an Illinois farm. While there, he unveiled new policies that aim to increase harvests in ways that the administration believes could also help to reduce grocery bills at home.

American Farm Bureau Federation
AFBF Recognizes First Steps to Address High Food Prices

American Farm Bureau Federation President Zippy Duvall commented today on  President Joe Biden’s plan to address production costs and the affordability of food.

“AFBF appreciates that President Biden took time to visit a farm and recognize the hard-working families who grow crops and tend to the animals each and every day. We agree with the President’s description of the American farm as the ‘breadbasket of Democracy.’

“America’s farmers take seriously their responsibility to stock America’s pantries and help feed the rest of the hungry world. This effort to create greater opportunities and reduce barriers is welcomed, recognizing that this alone will not solve the multiple challenges we face.

“Removing the disincentives for double cropping has the potential to increase near term production in areas suitable for the practice and for farmers who have the financial capacity to do so. Similarly, the proposal to increase domestic fertilizer production is an acknowledgement by the administration of the extraordinarily high cost of supplies for farmers and ranchers, but it could take years to realize the benefits.

“There is no magic bullet to reduce food costs. It will require addressing all the factors contributing to higher costs, including record high fuel and fertilizer prices that are bearing down on farmers. We will continue working with the administration, Congress and the private sector to get the supply chain moving again and find solutions that will enable farmers to keep store shelves filled with groceries that America’s families can afford.”

National Farmers Union
NFU Supports Administration’s New Efforts to Address Ag Supply Chain Problems
Actions Include Increasing Domestic Fertilizer Production, Providing Technical Assistance, and Expanding Crop Insurance Options

During a farm visit today in Illinois, President Biden announced new actions to give farmers the tools and resources they need to help respond to continuing supply chain problems and rising input costs for farmers.

Speaking in support of today’s announcement, NFU President Rob Larew said, “America’s family farmers, along with the economy in general, have faced sky-high prices for inputs due to global unrest and a lack of competition in agricultural markets. Lack of competition in the fertilizer market, for example, has resulted in a fragile supply chain prone to interruptions and price gouging. The Biden Administration’s promise to double down on USDA efforts to diversify domestic fertilizer markets is promising and we look forward to providing input on how to do this most effectively.”

Larew added, “We appreciate the Administration’s efforts to create more crop insurance options and flexibility for farmers as we face difficult planting conditions and mounting global instability. We will continue to work with the USDA to identify the best policy options to help farmers across the country meet these challenges.”

Specifically, the Biden-Harris Administration will:

  • Expand the number of counties eligible for double cropping insurance.
  • Increase technical assistance for farmers using technology-driven precision agriculture and other nutrient management tools.
  • Double investment in domestic fertilizer production.

NFU’s “Fairness for Farmers” campaign has brought the devastating impact of monopolies on family agriculture into the national spotlight. Campaign priorities include addressing issues such as excessive costs for fertilizer, supply chain vulnerabilities, and increased farm equipment costs.

The Fertilizer Institute
TFI Applauds Additional Investment in Domestic Fertilizer Grants; Urges Improvements to Nutrient Management Programs

The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today welcomed the announcement from President Joe Biden that the United States Department of Agriculture (USDA) will be doubling its initial $250 million investment in domestic fertilizer production to $500 million.

“The importance of fertilizer in food production and national security is taking center stage. Fertilizer increases crop yields that can be attributed to feeding 50% of the global population,” Rosenbusch said. “TFI supports efforts to bolster fertilizer supply through domestic production and technology; and we also urge policy makers to remove the regulatory burdens that inhibit growth of existing fertilizer production.”

Rosenbusch added that the United States has one of the most robust and competitive fertilizer industries in the world and is one of only three countries to have at least twenty unique fertilizer producers.

“We look forward to working with the USDA on how to most efficiently leverage those funds in a way that positively impacts farmers who rely on fertilizers to feed the crops that feed the world.”

President Biden, speaking to local growers at a farm in Kankakee, IL, also addressed the need to increase access to existing nutrient management tools, an issue that TFI has been supporting through its industry-wide 4R Nutrient Stewardship program and by seeking streamlining of USDA technical assistance programs.

“There are barriers to adoption that must be addressed,” Rosenbusch stressed. “The biggest thing the administration can do is to allow Certified Crop Advisors (CCAs) to be recognized as Technical Service Providers (TSP) which would allow them to write nutrient management plans known as 590 plans.”

Additional improvements include expanded eligibility for the 590 grant program, allowing agricultural retailers to be eligible for all Natural Resource Conservation Service (NRCS) grants and Regional Conservation Partnership Program (RCPP) funds, building a dedicated Environmental Quality Incentives Program (EQIP) initiative to support and encourage sustainable, climate smart nutrient stewardship practice adoption, and to increase the cost-share rate within NRCS programs to 75%.

“Food security is national security,” concluded Rosenbusch. “We thank President Biden for his focus on these critical issues and we will continue working with the Administration to ensure U.S. farmers receive this necessary input and have the tools they need to promote the efficient and sustainable use of fertilizer.”

TFI recently released a number of actions that policymakers can take to strengthening domestic fertilizer production and address supply chain vulnerabilities. That document can be found here.

American Soybean Association
Soy Farmers Welcome Biden Announcement on Double Cropping Insurance Expansion, Technical Assistance for Precision Ag, Domestic Fertilizer Support

President Biden’s three-pronged announcement to address food affordability and farmer costs amid the Russia/Ukraine conflict is one that America’s soybean farmers can get behind.

Brad Doyle, soybean and wheat farmer from Weiner, Arkansas, and American Soybean Association (ASA) President said, “The president is improving access to double cropping insurance coverage and technical assistance for precision agriculture and nutrient management, and he is investing more into domestic fertilizer production. We applaud this announcement and look forward to soybean farmers realizing these benefits.”

As the supply chain experiences complications during the current global environment, U.S. soybean farmers are proud to contribute high-quality protein to vulnerable populations worldwide and bolster our national security through food security. ASA appreciates the administration considering farmers’ role in the world economy and aiming to protect their profitability here at home.

Illinois Soybean Association
President Joe Biden Visits Illinois Soybean Farm, Announces Fresh Supports for American Farmers

Today, President Joe Biden spent time on a family farm in Kankakee, Illinois, belonging to Illinois soybean farmer and Illinois Soybean Association (ISA) Board Director, Jeff O’Connor. There, he announced his administration’s three-pronged plan of action to support American farmers, reduce food prices, and feed the world.

“The pandemic combined with the Ukraine-Russia conflict has resulted in supply chain disruptions and increasing food, fuel, and fertilizer prices which are negatively impacting farm families and leading to shortages of food in countries across the globe,” says ISA Board Chairman, Steve Pitstick. “The Illinois Soybean Association is grateful for the opportunity today to discuss farmer concerns, the sustainable solutions our industry brings to the table, and to learn more about what we can be doing to relieve pain points that are echoing throughout communities around the world.”

During the farm visit, the President announced new actions to give farmers the tools and resources they need to boost production, and play a critical role in mitigating global price hikes. As the world’s second largest exporter of wheat and soybeans, these actions will help grow new markets for American-grown food, supporting jobs in rural communities across the country. These administrative flexibilities implemented by USDA could include:

• Increasing the number of counties eligible for double cropping insurance. Double cropping allows farmers to plant a second crop on the same land in the same year, helping boost production without relying on farmers to substitute crops or cultivate new land. But it is not free from risk and some farmers who practice double cropping cannot obtain crop insurance. The Biden-Harris Administration is seeking to expand insurance for double cropping to as many as 681 additional counties, bringing the total number of counties where this practice qualifies for crop insurance to as many as 1,935, so more American farmers have the financial security they need to start or expand double cropping.

• Cutting costs for farmers by increasing technical assistance for technology-driven “precision agriculture” and other nutrient management tools. Precision agriculture is a farm management system that allows farmers to use technology to target application of inputs to soil and plant needs, resulting in less fertilizer usage without reducing yields, saving farmers money over time and extending the usefulness of critical products in short supply worldwide. The U.S. Department of Agriculture has planning and cost sharing assistance programs available to help American farmers with nutrient management. The Administration is working to boost outreach to farmers, streamline the application process, and prioritize application approvals to expand access to these critical programs.

• Doubling funding for domestic fertilizer production. Fertilizer prices have more than doubled since last year, due in part to supply chain disruptions created and exacerbated by Russia’s invasion of Ukraine, including rising energy costs. Today, President Biden announced that he is doubling his initial $250 million investment in domestic fertilizer production to $500 million to lower costs and boost availability for farmers, so they can obtain the inputs they need at prices they can afford to maximize yields.

“And to all our farmers, I want you to know: we have your back,” said Biden.

Leadership from the Illinois Soybean Association spoke with Biden on the wheat double crop system, and the need for support for U.S. wheat breeding programs. Beginning in 2020 double crop wheat followed by soybeans became insurable under federal crop insurance programs for each crop instead of as previously being insured jointly. This allows greater flexibility for farmers and promoted crop rotation.

“ISA applauds the efforts being made by this Administration, specifically by Secretary Vilsack and USDA staff for reaching out to farmers across the country to hear what tools they need to increase double crop soybeans and wheat,” said Pitstick. “ISA encourages USDA to continue their aggressive outreach and collaboration to find double crop solutions that make an impact at the farm level and globally.”

The Illinois Soybean Association (ISA) checkoff and membership programs represent more than 43,000 soybean farmers in Illinois. The checkoff funds market development and utilization efforts while the membership program supports the government relations interests of Illinois soybean farmers at the local, state, and national level, through the Illinois Soybean Growers (ISG). ISA upholds the interests of Illinois soybean producers through promotion, advocacy, and education with the vision of becoming a market leader in sustainable soybean production and profitability. For more information, visit the websites www.ilsoy.org and www.ilsoygrowers.com.