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Ag groups asking Vilsack to allow production on conservation acres

Ag groups asking Vilsack to allow production on conservation acres

Producing more grain will help offset loss of Ukrainian production

By Diego Flammini
Staff Writer
Farms.com

U.S. ag groups are asking Agriculture Secretary Vilsack for permission to plant crops on acres enrolled in conservation programs to offset losses of Ukrainian production due to the conflict in that country.

Seven organizations, including the American Farm Bureau Federation, the National Grain and Feed Association and the North American Export Grain Association, want American farmers to be able to produce crops on about 4.1 million acres of “prime farmland” enrolled in the Conservation Reserve Program (CRP).

For context, Ukrainian farmers planted about 13 million acres of corn in 2021.

The CRP, administered by the Farm Services Agency, provides farmers with a yearly rental payment in exchange for removing environmentally sensitive lands from agricultural production.

As of this February, the U.S. had more than 22 million total acres enrolled in CRP.

Ukraine, sometimes referred to as Europe’s breadbasket, provides 12 percent of the world’s wheat, 15 percent of global corn, 15 percent of barley and half of the world’s sunflower oil.

As the conflict between Ukraine and Russia continues, countries like the U.S. must be able to make up for production losses in Ukraine.

“The United States needs to produce more grain and oilseeds to offset the loss of Ukraine’s grain and sunflowers. Time is of the essence,” the groups wrote in a March 23 letter addressed to Vilsack.

Ukrainian farmers are going ahead with planting.

Reports from the country indicate farmers have planted about 988,000 acres of crops as of March 31.

But with the uncertainty of the situation in Ukraine, American farmers are ready to do what they can.

“The U.S. should do all it can to feed a growing hungry population now threatened by a likely global production shortfall by reassessing vital productive acres being idled here at home,” the letter says. “Our members stand ready to carry out their respective roles along the agricultural value chain to produce, transform, and deliver a safe, abundant and affordable food supply.”

Farms.com has contacted the United States Department of Agriculture for comment.


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Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

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