China’s consumer price index climbed 1.8 percent in January from the year prior, which was a 0.2 percent rise from December but 0.1 percent less than expected, according to data from the National Bureau of Statistics. The slight rise was primarily due to a 4.1 percent seasonal increase in food prices preceding the Lunar New Year celebration. Pro Farmers First Thing Today reports non-food consumer inflation was up just 1.2 percent in January from the year prior. The producer price index was down 5.3 percent from year-ago levels in January, which was a bit better than expectations for a 5.4 percent decline and a 0.6 percent improvement from December. Most believe the data adds to the case for more monetary policy easing.
Author: Agriculture News
National FFA Week Starts Saturday
National FFA Week kicks off Saturday. The week runs February 20th to the 27th as FFA chapters around the country celebrate National FFA Week. The week-long tradition began in 1947 when the National FFA Board of Directors designated the week of George Washington’s birthday as National FFA Week. The designation was made in recognition of Washington’s legacy as an agriculturist and farmer. The first National FFA Week was held in 1948. Today, FFA Week always runs Saturday to Saturday and encompasses February 22nd, Washington’s birthday. Follow the National FFA Week conversation on Twitter by using hashtag #FFAweek.
USDA: Farm Sizes Increasing, Farms Decreasing
The annual USDA Farm and Land in Farms report shows the nation’s farms are getting bigger, and the number of farms is getting smaller. The report released Thursday by USDA shows the U.S. lost 18,000 farms last year compared to 2014 with a total estimated 2.07 million farms in the United States. The report shows that U.S. farmland decreased in 2015 by one million acre’s now totaling 912 million acres. The average farm size increased by three acres to 441 and almost 31 percent of all farmland was operated by farms with less than $100,000 in sales. Farms with sales of $500,000 or more operated 41 percent of all farmland. Texas has the most farms with more than 245,000. Meanwhile, Missouri came in second with more than 97,000 farms and Iowa was third with 88,000 reported farms. Alaska had the least amount of farms reported at 760.
Top House Democrat Opposes TPP
House Ways and Means Committee ranking Democrat Sander Levin of Michigan said Thursday the Trans-Pacific Partnership “falls short of an acceptable outcome.” He cited four areas where the agreement failed to make improvements, according to a report by The Hill. Those issues being workers’ rights, rules of origin for automobile parts, currency manipulation and the investment chapter that he claims endangers U.S. laws on the environment and health. The 12 member nation pact that includes the United States represents nearly 40 percent of the global gross domestic product or GDP. Levin was not a likely candidate to support the trade pact; he opposed Trade Promotion Authority last year that forces Congress to a simple pass-fail vote with no debate. The trade deal faces a rough road to passage as congressional leaders say a vote is not likely until after the November elections, possibly under a new president. Levin did say he expected talks to heat up in the coming weeks as “lobbyists storm Capitol Hill” to sway lawmakers to take their sides.
Death of SCOTUS Justice Shakes up Water Docket
The death of Supreme Court Justice Antonin Scalia may be a major victory on water law for the Obama administration. Politico reports Scalia was the foremost critic of federal wetlands regulations who helped move the court away from an expansive interpretation of the law. With a divided court following his passing, the court could leave lower court rulings standing or simply avoid making a decision. The controversial Waters of the United States rule is working its way through the courts, but case regarding the rule likely won’t reach the high court until 2017 at the soonest, when a Scalia successor may already be named. However, there is a chance the high court would be asked to appeal a technical ruling from the sixth circuit sooner sometime this year.
Hemp Could Soon be Tradeable Commodity
Seed CX has applied to become a trading venue for industrial hemp. Seed CX filed a draft application with the US Commodity Futures Trading Commission to create an exchange-like trading platform established under the 2010 Dodd-Frank financial reforms. The cousin plant to marijuana is found in products such as fabric, shampoo, plastics, building materials and even food. The Financial Times reports Brian Liston, Seed CX president, hopes to offer three contracts tracking markets for hemp seed, whole hemp plant and hemp plant extract. Through fundraising, Liston, and his co-founder has mustered more than $3 million to create the exchange. Meanwhile, 27 states have passed laws related to industrial hemp as Kentucky, Tennessee and Colorado accounted for most of last year’s crop. Hemp production in the U.S. previously peaked at more than 150 million pounds during the Second World War.
China Prepping to Sell Reserves of Corn
China is reportedly preparing to sell aging stockpiles of corn to companies to churn out products such as ethanol or starch, according to a report by Reuters. The move would come even as a stockpiling scheme to support farmers is expected to add record amounts of new grain. The government has yet to finalize the volume or prices for the sales but did ask selected firms to take part. China is the world’s largest buyer of corn and corn substitutes and any significant change in grain use could impact demand for imports. Beijing is holding about 10 million tons of aging corn that has been stored for more than three years. China has more than 200 million tons of corn stored overall or more than one-years’ worth of consumption. The upcoming sales would be months earlier than the government’s regular annual sales which usually begin after April.
Canada Dairy Processor: TPP Would Bring Few Opportunities
Canada’s largest dairy processor said the Trans-Pacific Partnership trade agreement will result in few global opportunities for Canadian producers. That is because the country’s quota system and import restrictions remain intact. Saputo’s CEO Lino Saputo(Suh-pu-dough) told Bloomberg this week the TPP “could have been a catalyst for Canada to be a real supplier of dairy to the emerging markets,” adding Canada could have been on the map as a dairy supplier to the world. However, Canada agreed to open foreign quotas for just 3.3 percent of its dairy market over five years. Canadian production of dairy, poultry and eggs are all controlled through the quotas and imports are restricted with tariffs under a system known as supply management. Meanwhile, Saputo says the company is exploring acquisition opportunities in the U.S. to diversify its product and customer base.
Farmers Can’t Afford Costlier Crop Insurance
Farmers cannot afford to spend more on crop insurance.
Michael Swanson, the chief agricultural economist at Wells Fargo, told the Crop Insurance and Reinsurance Bureau recently that if federal crop insurance premiums decrease, farmers will reduce their coverage levels. He said farmers currently spend about four percent of their budget on crop insurance premiums, according to the Hagstrom Report. Swanson explained that a typical crop farmer’s spending includes 30 percent of the budget for land rents, 26 percent on manufactured inputs including machinery, 10 percent for seed, 10 percent for farm labor and six percent for crop chemicals. Although farmers complain to bankers about the cost of crop insurance, it is not “mispriced,” Swanson said because the cost has been about the same for the past 15 years.
Green Industry Worth near $200 Billion Annually
What economists call the green industry – nursery and greenhouse production, landscape services and horticultural product distribution – is worth an estimated $196 billion in revenues annually. Florida State University said this week the industry also brings more than two million jobs to the United States. The $196 billion estimate for revenue contributions by the industry includes additional impacts through the industry supply chain such as fertilizer and chemical costs. The study compared industry activity in 2013 to previous studies for 2002 and 2007-08. Green industry products include sod, flowers, bedding plants, tropical foliage, trees and shrubs, among other types of plants. The industry also includes many businesses that provide services such as landscape design, installation and maintenance, plus firms — such as lawn and garden stores — for wholesale and retail distribution of horticultural products.