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The Farm Bill And Cultivating The Future – 2024 NGA Winter Meeting Task Force Meeting

At the 2024 NGA Winter Meeting, Idaho Governor Brad Little and U.S. Virgin Islands Governor Albert Bryan Jr., Co-Chairs of NGA’s Education, Workforce and Community Investment Task Force, co-hosted a discussion on agriculture, rural development and the Farm Bill. The discussion came on the heels of comprehensive Farm Bill priorities NGA released in the fall of 2023, as well as Congress’s one-year extension on the Farm Bill.

During the meeting, Governors underscored the critical role of the Farm Bill to states and territories, addressing aspects such as ensuring ongoing nutritional support despite high food costs, the importance of bolstering the agricultural workforce, and the continued collaboration between states and regions to tackle agricultural issues.

The Governors were joined by panelists Jennifer Lester Moffitt, Under Secretary for Marketing and Regulatory Programs at the U.S. Department of Agriculture, and Ted McKinney, National Association of State Departments of Agriculture (NASDA) CEO. The two panelists engaged in substantive discussions regarding the current state of agriculture and rural America, emphasizing the importance of a robust supply chain to support working farmers and ranchers to provide food across the country and globe. They also stressed the need to strengthen agricultural trade and assistance nationwide.

Governor Little kicked off the meeting by sharing some examples of work taking place in Idaho to address the unique needs of the state’s farmers and ranchers, stressing the future of the state’s and country’s agriculture necessitates “adapting to change” and remembering “the most important product that we raise [is] our young farmers and ranchers” who face a number of challenges, including those related to trade, profitability and forestry – all matters that the Farm Bill can help address. During his remarks, Governor Little also touted the Idaho LAUNCH program, which is a new initiative to provide grants up to $8,000 to Idaho students who participate in postsecondary education programs that lead to good paying jobs, including those in Idaho’s agriculture sector.

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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.