FarmPolicy

December 12, 2019

USDA- NASS Report- Crop Values 2014 Summary

On Tuesday, USDA’s National Agricultural Statistics Service (NASS) released its Crop Values Summary report for 2014.

In part the NASS report included these two tables highlighting corn and soybean values:

(Click here for a larger view).

The table shows the average price of corn in the U.S.:

2012- $6.89
2013- $4.46

2014- $3.65

(Click here for a larger view).

The table shows the average price of soybeans in the U.S.:

2012- $14.40
2013- $13.00

2014- $10.20

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Ag Economy Update- Calif. Drought; International Issues

Joseph Serna reported in today’s Los Angeles Times that, “When it’s as dry as it has been for three years, a couple of weeks of sporadic rain or a big storm or two in Los Angeles can make it seem as though Southern California is getting a healthy dose of rainfall.

But in fact, the city’s rain totals since Oct. 1 — the beginning of a rain year that ends Sept. 30 — show that L.A. is still on pace for a below-average year.”

The article noted that, “About 3.88 inches of rain fell on downtown L.A. in December, the most in that month in four years. And the region has been doused by more rainfall just in the last few days. But between that December and this February there was January — the month that is the traditional portal to Southern California’s three wettest months.

“And that month was very dry, with just over an inch of rain. The average rainfall in January for downtown L.A. is over 3 inches.

When the Southland has been in an awful dry streak for several years, a middling rain year can come across as more substantial than it actually is.”

Today’s article added that, “‘It’s a lot compared to the last three years, but the last three years were the driest in the history of California,’ said Bill Patzert, a climatologist with the Jet Propulsion Laboratory. ‘If you think we’ve turned around on the drought, stop smoking whatever you’re smoking.'”

More broadly, Reuters writer Gustavo Bonato reported today that, “A growing protest by Brazilian truck drivers against high fuel prices entered a seventh day on Tuesday, interrupting supplies of diesel and food across several commodity-rich states at the start of harvest season.

“The protests are part of a reaction to the return of fuel taxes, one of several unpopular measures that President Dilma Rousseff is counting on to shore up government fiscal accounts.”

The article added that, “Truckers started restricting the flow of goods along BR 163, the main highway running through top soybean-producing state Mato Grosso, on Feb. 18 but the demonstrations quickly spread and spilled into as many as six states by Monday, including Minas Gerais, Parana, Goias and Rio Grande do Sul.”

And Reuters writers Polina Devitt and Pavel Polityuk reported that, “Officials in both Russia and Ukraine are considering tougher trade protections to keep food prices from spiralling as their currencies collapse, with Moscow taking more aggressive steps than Kiev to control exports.

“The two countries, on opposite sides of a war in eastern Ukraine that has killed more than 5,600 people, are both among the world’s biggest exporters of wheat, through Black Sea ports that help feed Africa and the Middle East.

“Both have seen their currencies collapse in the past year, making exports more valuable in local terms and driving up the politically sensitive domestic price of food.”

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Policy Issues; Trade; Ag Economy; and, Budget Issues Tuesday

Policy Issues

In a letter yesterday to Senate and House Budget Committee leaders, a large number of food, agriculture and policy organizations indicated that, “The undersigned 392 organizations, representing America’s agriculture, nutrition, conservation, rural development, finance, forestry, energy, trade, labor, equipment manufactures and crop insurance sectors, strongly urge you to reject calls for additional cuts to programs within the jurisdiction of the Senate and House Agriculture Committees.

Just over one year ago, Congress passed, and the President signed into law, sweeping changes to our nation’s food and farm policy that included significant deficit reduction. The 2014 Farm Bill required over three years of debate in both chambers of Congress and ultimately ended with the consolidation of over 100 programs and cuts to mandatory spending across many titles, including the elimination of the direct payment program. These cuts came in addition to those already in effect due to sequestration.”

After noting that the new measure saved an estimated $23 billion, the letter stated that, “We, therefore, oppose re-opening any title of the Farm Bill during the consideration of the 2016 Budget Resolution and strongly urge you to refrain from including reconciliation instructions for either the Senate Committee on Agriculture, Nutrition, and Forestry or for the House Committee on Agriculture.”

Recall that The House Ag Committee will hold hearings this week on Wednesday and Thursday regarding Farm Bill nutrition issues; while, this morning, the Senate Ag Committee will hold a hearing on Farm Bill implementation and hear testimony from Sec. of Ag. Tom Vilsack.

Sec. Vilsack is also scheduled to appear on Wednesday at the House Appropriations Subcommittee on Agriculture.

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