Posted May 2, 2016 by Administrator
Some experts believe that soy meal may be the boost the soybean market needs to finally pull away from its below cost-of-production trend. And the US is in position to become the place where the world turns to meet its soy meal needs.
Trouble in South America
Recent issues in Brazil and Argentina have caused experts to lower their soybean production estimates for 2015-2016. Argentina’s inclement weather has cause the worst harvest in a decade. It also fulfilled experts’ calculation that it would take a weather event to drive the price of soybeans up from its record lows.
With Argentina struggling with its poor harvest, the US is next in line to meet global and domestic soy meal needs. US currently has 300 million bushels of soybeans and with demand growing, the price per bushel is expected to rise.
Not all trade experts are convinced that soy meal will be able to save the soybean market. While other experts say that what happens in the soy meal market in May and June will set the tone for how soybean futures will perform.
To help understand the ambiguous future of the soybean market and other important agribusiness news, contact the experts at Cline Wood.
Posted April 11, 2016 by Administrator
As farm income is expected to hit a 14-year low, more agribusiness profits are being bolstered by US subsidies. Unless the price of important crops such as corn performs better than expected, the US farming community will continue to struggle to be profitable.
Over $50 Billion in Aid
According to USDA estimates, federal aid will comprise 25% for total profit for farmers this year. Total aid will reach over $50 billion, which is higher than was predicted two years ago. The last time farmers received this high of a payout was ten years ago in 2006. And agriculture states are looking for ways to help their farmers with even more government aid as the prices for certain crops continue to falter.
Corn and Soybeans a Losing Proposition
Agribusiness income is less than half what it was even three years ago. The main culprits of the lackluster profits are the price of corn and soybeans. Despite the fact that corn and soybeans are the biggest US crops, farmers will lose money for every acre they plant this growing season due to a significant drop in prices. And the price of corn over the next few years will be a major factor in the fate of the farming industry.
Experts estimate that corn prices will hover around $3.70 a bushel for the next nine years. If corn manages to rise above this estimated average, then the government won’t have to provide as much aid to farmers between now and 2025. If corn prices drop, to say $3.00 a bushel, then government subsidies will need to increase over the next nine years.
In the meantime, states that depend on farming are looking at alternatives, such as adding cottonseed to the list of crops that qualify for subsidies, and emergency aid to help farmers make it through the lean years.
Contact the experts at Cline Wood to learn more about the current state of agribusiness and how it affects your business.
Posted June 10, 2015 by Administrator
There are various Federal agencies that administer animal production health and food safety in the United States. These agencies are charged with:
- Ensuring livestock production has a minimal negative impact on the environment,
- Imported livestock is inspected and monitored to prevent transmissible diseases such as foot and mouth disease, swine flu, and avian flu – do not spread to U.S. food-producing animals,
- Livestock feeding practices, and
- Food safety for meat products.
The agency that is responsible for inspecting imported live animals is USDA’s Animal and Plant Health Inspection Service (APHIS). This agency helps to ensure that livestock are not exposed to certain diseases that can cause catastrophic economic losses to U.S. food producing animals, or diseases that can also affect humans entering into the U.S. food supply.
The U.S. Food and Drug Administration (FDA) administers oversight of livestock feeding. The food ingested by livestock can have a major impact on the nation’s food supply and public health. The regulations are primarily focused on keeping contaminants and diseases out of the food supply. More information can be obtained at the FDA’s Center for Food Safety and Applied Nutrition.
The USDA’s Food Safety and Inspection Service (FSIS) is the government agency responsible for inspecting slaughter facilities, animals and meat products. The FSIS generally focuses on food-borne illnesses such as E. coli, salmonella and listeria.
Other animal health and food safety agencies include: