The US economy is still hit by the pandemic, according to a quarterly report from CoBank, with supply chains in about the same condition as the start of the pandemic. With lead times for manufacturing inputs at record highs, persistent supply chain disruptions and labor shortages are adding costs to businesses and consumers. CoBank says rising input costs and supply chain issues will continue into the next year along with higher inflation.
In agriculture, rapidly rising input costs and product shortages are hurting producers as commodity prices flatten. The main positive is good exports.
Diversity in farming
Farm groups are pushing for more diversity in farming. The American Farm Bureau reached an agreement with the National Society for Minorities in Agriculture, Natural Resources and Related Sciences to increase minority involvement in agriculture. The groups announced a memorandum of understanding for collaboration on projects – including written content for each publication, leadership training and expertise and cross-promotion. The National Society for Minorities in Agriculture says the partnership will ensure all voices in the community are heard.
Meanwhile, this week the US Department of Agriculture committed $25 million for programs reaching underserved communities. The latest effort in its commitment to root out generations of systematic racism, center equity in decisions and ensuring USDA is inclusive. One set of awards is $18 million in grants to provide training and outreach to historically underserved and veteran farmers in 21 states..
A Roose by any other name
Market analyst Don Roose has the pre-report markets:
“The grain market is all about the reaction to the crop report, focus has been on big yields the last two to three weeks here, harvest progress continues to be very aggressive, at the same time we’re looking at the size of the crop here, we’re looking at are we going to see any new demand coming into the market South America weather is definitely bubbling to the top in a la ninna year that means we’re supposed to have a warmer than normal midwest which we are, and we’re supposed to have a dryer condition in Argentina and Southern Brazil. Cattle market trying to take a little risk premium out of the market to the boxed beef, coming under some pressure just recently now eventually that should lead to a pickup in demand cash cattle trade, the trade is optimistic, we’re going to see steady to higher, see if we can push through that 124 level we’ve been stuck on for a number of months for the top end of the range, see if we can move to a new price level, the hog market continues to leak lower, we did have that bullish reaction to the hog and pig report but back to the reality and that’s the competition from around the world. U.S. hogs are trying to move to the price of the rest of the hgos in the rest of the world. Chinese hogs are down 67 percent this year they’re a big importer of U.S> pork the fear is they’re going to continue to back away.”