Farms.com Home   News

Funding Bill Provides Investments, Setbacks For Soybean Growers

The Senate has passed a combination continuing resolution and omnibus spending bill that will fund the federal government for the 2015 fiscal year, after the House passed the same legislation earlier this week. Informally dubbed the "CRomnibus," the bill designates funding for 11 individual spending bills, including the agriculture appropriations legislation.

The American Soybean Association (ASA) thanked Senate committee Chairwoman Barbara Mikulski (D-Md.) and House committee Chairman Hal Rogers (R-Ky.) for their leadership on the bill.

"This bill represents a mixed bag, with some ASA-championed programs receiving steady or increased funding, while other ASA-supported programs receiving cuts. It doesn't give us one hundred percent of what we need, but it does recognize a significant number of our priorities by making investments in the projects and programs that soybean farmers use every day," said Wade Cowan, ASA's president and a farmer from Brownfield, Texas.

Cowan noted that the association is pleased with the increase in funding that the bill provides for the Agriculture and Food Research Initiative, which was given a three percent boost in funding. Additionally, ASA is very supportive of language in the bill that would withdraw the Environmental Protection Agency's interpretive rule on the Waters of the United States.

In the area of conservation, ASA is disappointed in the bill's further cuts to conservation programs on working lands like the voluntary Conservation Stewardship Program (CSP) and Environmental Quality Incentive Program (EQIP), as these programs have been proven effective in improving soil and water health.

With regard to waterways infrastructure, significant funding increases were provided for several ASA priority areas. The U.S. Army Corps of Engineers Construction account for waterways infrastructure was increased by $514.5 million above the administration's request, including $112 million in additional funding for Inland Waterways Trust Fund (IWTF) projects.

Reflecting policy changes that were supported by ASA and made in the Water Resources Reform & Development Act (WRRDA) that was enacted earlier this year, the omnibus appropriations bill funds the Olmsted lock & dam project with a 85 percent to 15 cost-share between the IWTF and general treasury. Previously it was split 50-50, consuming nearly all of the available IWTF dollars.

The omnibus also provides $1.1 billion for the Harbor Maintenance Trust Fund, which is an increase of $100 million above the previous year. Overall, the Corps of Engineers fared well, with a $921 million increase in their Civil Works account and a $47.5 million increase in the Operations & Maintenance account, levels that will help the Corps in its efforts to maintain operations on the Mississippi River and other inland waterways and make upgrades to the aging infrastructure.

In the arena of international trade, the bill contains language directing the U.S. Department of Agriculture to establish a path forward on a fix to the ASA-opposed mandatory country of origin labeling requirements that have been found by the World Trade Organization to be out of compliance with U.S. trade obligations. "While Congress' acknowledgement of the issue is a positive step, it stops short of the clear-cut fix that ASA is looking for as a member of the COOL Reform Coalition," said Cowan.
 

Click here to see more...

Trending Video

"Perfectly Timed" Rains: Above-Trend Corn and Soybean Yields??

Video: "Perfectly Timed" Rains: Above-Trend Corn and Soybean Yields??

Futures and options trading involves risk of loss and is not suitable for everyone.

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.

?? Stay Updated: For ongoing insights into these issues affecting agriculture, make sure to subscribe to our channel. We bring you the latest information to help you understand the dynamics affecting global agriculture and markets.

?? Join the Conversation: How do you think these developments will impact global agricultural markets? What are your views on the current weather patterns affecting crop conditions? Share your thoughts in the comments below. Your input is crucial for our discussions.