Welcome to your weekly agriculture report, where we cover everything you’ll need to know for the week ahead. This week, food security rises to the headlines yet again as tensions in Ukraine escalate and the USDA announces its plans to invest in international development programs.
International Agricultural Affinity
Fear dominates the stock market’s fear and greed index as Russia continues in their attack on Ukraine. As tensions in Ukraine escalate, food security concerns continue to strike fear into those wondering if enough food will be available.
USDA’s Continental Contributions …The USDA announced they will be investing in seven international development programs aimed at long-term food security and solutions, totaling $178 billion. Climate, trade, and supply-chain issues in El Salvador, Honduras, and Guatemala are intended to “address the root causes of migration” as part of their Root Causes Strategy. Other programs benefiting from the USDA include coffee-producing Burundi, Peru and Jamaica’s spice production, food insecure Malawi, Nigeria’s cacao crops, and climate-conscious practices implemented in Thailand.
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Fervent Food Facts…In addition to their recent budgetary announcements, the USDA has also solidified food security concerns with their September publication of the International Food Security Assessment. The report details all aspects of food security, but key notes include the inability to rebound from COVID-19 and Russia’s war on Ukraine in the coming year, leaving 1.3 billion people in food insecure countries without minimum nutritional requirements, a 9.4% increase from 2021. Of the projected increase, it is estimated that 41.7 million of those people are directly affected by Russia’s invasion and fertilizer and energy price hikes.
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Russian Revelations…President Vladimir Putin has threatened to revoke the grain deal allowing Ukrainian grain to be exported via Odessa and the Black Sea. This comes after Ukranian advancements regained territory previously taken by the Russian military and claims made by Putin that grain is not being sent to countries that need it most. Following these threats, the port city of Odessa was attacked by Iranian drones. While more ships carrying grain have left the port since, the scope of this attack is yet to be determined.
Harvest on the Homefront
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Soy Far, Soy Good…Soybean harvest is underway across the Corn Belt and the Midwest as we approach the last week of September. Many key production states are considered behind, but there is time to catch up with good weather in the forecast.
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It’s Corn! (without the juice)...Corn harvest is advancing with the USDA reporting last week that 7% of corn has been harvested. Keeping pace with the prior week, the expected harvested acreage for the report to be released today is 9%. However, analysts expect this number to be higher as the harvest rolls on.
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Wheat Feat…Harvest on the spring wheat front has nearly wrapped up across the US. The last published Weekly Harvest Report from US Wheat Associates indicates a No.1 spring wheat crop for the season, while HRS was graded as No. 1 Northern Spring.
Overseas Supply
While harvest is good news for the US and US farmers, this year was no easy growing season as farmers across the world battled drought. This makes us revisit current speculation about grain supply shortages.
What else you need to know…
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Adventures in Agrotourism... The niche agrotourisim industry doesn’t seem so niche anymore, as more and more people are now seeking out these exclusive adventures. Due to a growing interest in agriculture, the industry is projected to reach $8.34 billion by 2032.
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Wild Hogs, The Squealqel…California has been faced with an overwhelming wild pig population, causing the implementation of loosening hunting regulations and eliminating fees for the hunting of the hogs in an attempt to control the 400,000+ pigs.
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Mexico’s Maize Banning Craze…Our neighbors, who are on track to import more than last year’s 17 million tonnes of US corn, have put their foot down on GMO corn. This comes from a country-wide initiative to phase out glyphosate by 2024. Farmers are now asking Washington to challenge them. If not, the US economic output could decrease $16.5 billion over the next 10 years as a result.
That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.
Source: Barchart
