Iowa leaders are looking more into carbon sequestration opportunities in the state.
Governor Kim Reynolds signed an executive order this week launching a task force to look at ways to sequester carbon, the group will be chaired by herself with Iowa Agriculture Secretary Mike Naig as vice chair.
In a statement Reynolds says the supply chain along with renewable fuel puts Iowa in a strong position to benefit from a carbon free economy. Iowa is a leader in renewable fuel, and Reynolds says this would allow more investment into the state agriculture.
Forecasts for Brazil’s corn harvests are dropping.
According to a Reuters poll of 10 harvest forecasters, Brazil is now expected to harvest just under 94 million tons of corn due to a severe drought. That’s an 8.5 percent drop from the last forecast.
Second-crop corn failures will lead to more imports and lower exports of the crop.
Brazil is home to some of the world’s largest meat processors and will need to keep a lot of grain grown there to feed its livestock. Back in April, a similar number of forecasters thought Brazil would have a record crop of 107 million tons.
Continued mixed trade midweek, our market analyst Dan Hueber has more.
“Well, really just kind of a choppy affair here so far this week, of course with storm clouds gathering across the Midwest, looks like there could be a pretty big drink of rain throughout the Midwest and upper Midwest. Looking at the beans though, have pushed back and forth more sales announced to China, but that wasn’t a surprise so bean market generally 3-4 cents lower today. Again not doing anything fresh or new, but if anything waiting for the reports next week when we hear the quarterly grain stocks and acres reports. Of course, now this cattle market has been in on a tear all month long, we’ve moved from the extremes we posted when JBS had its shutdown because of computer programs we moved the June cattle from 112 to as high as 124. That said, demand backing it up the numbers have been friendly all around but we have been approaching have moved less than a dollar from the highs posted back in April. Hogs in turn just when it rains it pours, from November to December through the beginning of June there was nothing stopping that hog market. You know just a lot of encouragement in what was going on in the export business and since that time we’ve just fallen out of bed.”
Despite a global economic slowdown in 2020, agriculture lending stayed strong.
U.S. farm banks loaned $98.6 billion last year, just under a two percent drop from normal. The Bankers Association says that goes along with a 6.7 percent decline in agriculture production loans.
In contrast.. outstanding loans in farmland.. increased two percent.
According to the bankers’ report, rising costs, supply bottlenecks, price volatility, and a significant increase in government payments depressed demand for agriculture production loans in 2020.