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Ag included in national defense bill

Ag included in national defense bill

The PASS Act will prohibit stakeholders from certain countries from owning U.S. farmland

By Diego Flammini
Staff Writer
Farms.com

An amendment to a national defense bill to help safeguard U.S. agriculture from foreign entities passed in the Senate.

The Promoting Agriculture Safeguards and Security (PASS) Act, which received bipartisan support, prohibits foreign stakeholders from China, Russia, Iran and North Korea from purchasing U.S. farmland and agricultural companies.

In addition, the bill adds the secretary of agriculture as a member of the Committee on Foreign Investment in the United States and requires the president to provide a report any time a waiver is granted to a prohibited country.

The PASS Act is attached to the National Defense Authorization Act for fiscal year 2024. It will be reconciled with the House-passed defense spending bill.

Food security is related to national security and Congress needs to treat agriculture as such, said Congresswoman Elise Stefanik (R-NY).

The U.S. can’t afford to let foreign entities to “undermine the efforts of our farmers, whose hard work feeds and fuels our communities,” she said in a statement. “We cannot allow our adversaries to control land near our military installations and we cannot cede any ownership of our food supply to those who are actively working against our security interests.”

The prohibited countries collectively owned hundreds of thousands of acres of farmland.

In March 2023, Secretary Vilsack informed the Senate ag committee that Iran, North Korea, China and Russia owned about 400,000 acres of farmland.

For context, farmers in Kossuth County, Iowa, planted 292,000 acres of corn in 2022.

And between 2021 and 2020, Chinese ownership of U.S. farmland increases from $81 million to $1.8 billion.


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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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