Farms.com Home   News

Drought Recovery, Processing Capacity Major Focus For Dairy Producers In 2022

Recovering from the 2021 drought will be a major focus for dairy farmers this year.

David Wiens is chair of Dairy Farmers of Manitoba.

"That has been pretty high up on our agenda in terms of trying to address that situation to work our way through this difficult time," he commented. "Looking forward, hopefully we continue to get good snowfall throughout the winter and timely rains again next summer to help us through."

Wiens says they'll also be encouraging more dairy processing across the Prairies.

"Continue to be looking for those opportunities so that we can continue to grow production here on the farms in Western Canada."

He notes issues related animal care and the environment will also be top of mind in 2022.

Last month, the federal government announced that the third payment under the Dairy Direct Payment Program is available to producers.

Based on their milk quota, dairy farmers will receive compensation payments totaling up to $469 million for this fiscal year.

The money is compensation for market access concessions made under CETA and CPTPP.

Wiens says they're still waiting for details on compensation related to the Canada-United States-Mexico Agreement (CUSMA).

"With the CUSMA agreement, or the new NAFTA agreement, that the Canadian government signed onto a couple of years ago, in order to secure that agreement, the government once again provided further access for the Canadian dairy market for the U.S. and that trade agreement. They felt that they needed to have the overall agreement but certainly the dairy industry paid a heavy price there."

The Government of Canada says within the next year, it is committed to working with supply-managed sectors to determine full and fair compensation for the impacts of CUSMA.

Click here to see more...

Trending Video

RECORD National Corn Yield??

Video: RECORD National Corn Yield??

Agricultural and Economic Briefing: USDA Reports, Global Tensions, and Market Reactions

Welcome back to our channel for a detailed update on key developments affecting the agricultural sector and broader economic landscape. Here's what's on the agenda today:

USDA Crop Production and WASDE Reports The USDA is set to release its monthly Crop Production and WASDE reports today at 11:00am CST. These reports will reflect the updated new crop US corn and soybean balance sheets, incorporating data from the June Planted Acreage report which showed a significant increase in corn acreage. While no major adjustments to US corn and soybean yield projections are expected, the focus will be on potential changes to global supply and demand. The reports are anticipated to bear a mostly bearish tone, especially concerning corn prices.

Geopolitical Developments in Ukraine Ukraine's recent detention of a foreign cargo ship on the Danube River, suspected of carrying stolen Ukrainian grain from Russian-occupied Crimea, has escalated tensions. This incident has stirred concerns about potential Russian retaliatory actions during Ukraine's crucial grain export season. Wheat futures saw a sharp rise following the news, highlighting the sensitive interplay between geopolitical events and commodity markets.

US Drought Conditions and Agricultural Impact Recent USDA drought monitor data indicates mixed conditions across the US Corn Belt and High Plains, with many areas receiving beneficial rainfall and experiencing cooler-than-average temperatures. However, conditions have worsened in parts of western Illinois and northeast Missouri. These evolving weather patterns are critical for crop development stages and will continue to influence market dynamics.

US Crop Export Sales Corn export sales showed an increase last week, with Colombia being the largest buyer. However, soybean sales were relatively weak, with the Netherlands as the primary buyer. The varied performance in crop export sales reflects shifting global demand and market conditions, which traders closely monitor for strategic insights.

Economic Indicators and Market Reactions In a surprising economic update, consumer prices declined for the first time in four years last month, with the CPI falling 0.1% in June. This decline, coupled with the slowest annual inflation increase since March 2021, has significantly influenced market expectations, with the probability of the Federal Reserve beginning rate cuts in September now standing at 89%.

Stay Updated: For ongoing insights into these issues affecting agriculture, trade, and economic policies, make sure to subscribe to our channel. We bring you the latest information to help you understand the complexities of agricultural economics and global geopolitical shifts.

Join the Conversation: How do you think the upcoming USDA reports will impact market prices? What are your views on the ongoing geopolitical tensions and their potential effects on agricultural exports? Share your thoughts in the comments below. Your input is vital as we navigate these complex global scenarios.