Biden ag budget
President Joe Biden released his 2022 budget request including billions more for agriculture. The nearly $6 trillion dollar budget request calls for a $4 billion increase to the Agriculture Department, totaling $27.9 billion.
In it are more than $300 million in new investments for the next generation of agriculture as well as another $6.5 billion dollars in lending to support additional clean energy and transmission projects in rural communities.
Farm credit conditions
The US ag economy is strengthening farm credit conditions. A Federal Reserve survey of agriculture credit conditions show farm loan repayment rates are improving in the first quarter of 2021. After several years of financial stress and ag economy weakness, bankers report farm income was higher than a year ago for the second consecutive quarter. Ultimately, the overall outlook for farm income and credit conditions remained significantly improved from recent years.
Brazil is in its worst drought in 91 years. Last week an agency associated with the Energy Ministry recommended a state of water scarcity to its regulators. The Agriculture Ministry issued a drought alert for June through September, which are the coldest and driest months in Brazil. Drier than normal weather is hard on its second corn crop as well as sugar and coffee.
Grain safety improving
Grain entrapments fell this past year. Purdue University’s Agricultural Safety and Health Program released its annual 2020 summary of U-S confined space related injuries and fatalities report. The program reported 64 cases of injuries or deaths from 35 grain entrapments, seven falls from grain storage structures and 12 equipment entanglements.
The number is a 5% decrease from 2019 but is still more than the five-year average. The report says there is direct correlation between out-of-condition grain and increased chances of farmer injury.
As always : farmers should never to enter a grain bin without proper safety precautions.
A look at the markets
After a three day weekend, grains are up. Market analyst Don Roose has the details:
“The grain market overnight found some support due to the cold weather we had maybe some damage up in parts of northern Iowa into Wisconsin, Arizona, the trade’s focused on that. Give us some support overnight and then really accelerate. The heat that’s out to the west that’s going to move into the northern corn belt part of the western corn belt. Temperatures by some meteorologist point to 100 degrees for the weekend. So that’s really caught the attention of the market the crop ratings are going to start out lofty on cron and we did the same thing last year so the early crop rating are not a precursor to how we end up on the marketing year the higher grain market really put a damper on the cattle, feeder cattle down sharply due to the higher input costs, need a lower break even for the feeders. The cattle market by itself is really struggling with the cash market just really stuck in these areas. Big numbers in cattle, big weights in cattle continue to press the market. The hog market, the beat just continues to go on in those summer months, in contract highs, disease issues giving us a lower slaughter number. Stimulus demand for pork seems to be moving off the shelf here, so giving us big support there.”