US Wheat Associates, Weekly Price Report – Michael Anderson
- All futures were up this week. CBOT soft red winter (SRW) futures were up 33 cents to close at $7.08/bu. KCBT hard red winter (HRW) futures were up 37 cents to end at $7.13/bu. MGE hard red spring (HRS) futures gained 17 cents to close at $9.00/bu. CBOT corn futures were up 25 cents to $5.27/bu. CBOT soybean futures were up 9 cents to close at $12.84/bu
- Commercial Sales: View the most recent USW Commercial Sales report here.
- Net sales of 617,100 metric tons (MT) for delivery in 2021/22, were up 59% from last week’s 388,400 (MT) and on the high end of trade expectations of 300,000 MT to 700,000 MT. Year-to-date commercial sales for delivery in 2021/22 total 10.4 million metric tons (MMT), 21% lower than last year at the same time. USDA expects total 2021/22 U.S. wheat exports will reach 23.8 MMT, 12% lower than last year, if realized
- Hot temperatures continue depleting soil moisture across many of the Plains, Midwest, and southern states. Some areas of Colorado, Kansas, and Nebraska have seen record-setting heat this month. Conditions in the Dakotas have improved following recent rain, but USDA noted that topsoil moisture is still 64% to 71% short to very short. The PNW continues to experience hot and dry conditions, with most of the region’s soil moisture conditions rated poor. Dry weather has assisted fall harvest and winter wheat planting. Except for Oregon, planting progress in all 13 major winter wheat-producing states is ahead of the 5-year average
Figure 2 – Sept 9th
Figure 1.2 : Sept 16th
National Policy Update – by: Mariah Wollweber
- NAWG Responds to Ways and Means Advancing Reconciliation Tax Changes
Yesterday, the House Ways and Means Committees advanced its contributions to the proposed $3.5 trillion budget reconciliation package, which included provisions to offset components of the bill. NAWG is glad to see that proposals to tax capital gains at death were not included in the committee advanced package, preserving stepped-up basis benefits. However, the current estate tax exemption will be lowered. NAWG CEO, Chandler Goule, said that he appreciated the preserving of tax codes that helped protect family farms from being driven out of business. He also commented that NAWG will continue to work to protect the tax code and educate on how it is important in preserving family farms. To read the full press release, click here.
- NAWG Advocacy Campaign – Last week, NAWG launched an advocacy campaign to protect family farms and farmers by working to keep programs – like stepped-up basis and 1031 like-kind exchanges – intact. We are happy to see some of our priorities reflected in the Ways and Means markup earlier this week, but it is important our growers continue to reach out to their Members of Congress through NAWG’s advocacy campaign as this measure goes before the full House. Now is a critical time for protecting tax law affecting farmers — click here to join us in our campaign and follow the instructions to send a message to your Member of Congress
- NAWG on WOTUS Changes
NAWG CEO Chandler Goule tells www.agrimarketing.com, the Navigable Waters Protection Rule (NWPR) clarified for farmers what the Clean Water Act and other important provisions had jurisdiction over for farmers and farmers don’t need more uncertainty by changing this. To read the full article, click here.
- President Biden Nominates USTR’s Chief Agriculture Negotiator
In a recent announcement, Biden announced his intent to nominate ten individuals to serve on the Commodities Future Trading Commission, Export-Import Bank of the United States, Federal Trade Commission, and U.S. Trade Representative’s Chief Ag Negotiator. Elaine Trevino, current president of the Almond Alliance of California, is the nominee for USTR’s Chief Ag Negotiator. Her understanding of tariff/non-tariff barriers to trade and maintaining trade agreements and America’s global positioning will prove advantageous in her new role. She has previously served as a Deputy Secretary at the California Department of Food and Agriculture where she was responsible for oversight of international export and trade programs, specialty crop block grant funding, division of marketing services, plant health and pest prevention, and the statewide county fair network. She also serves on the USDA’s Agricultural Policy Advisory Committee. To read more about Elaine and her nomination, click here.
Industry News – Clippings from the MN Farm Bureau Impact
Stepped-Up Basis
- Congress continues to work through the 3.5 trillion Build Back Better plan with reconciliation instructions, with the last of the Authorizing Committees in the House of Representatives concluded their markups on the FY22 Reconciliation Spending Package and transmitted their respective bills to the Budget Committee.
- Thanks to the hard work of Farm Bureau members sharing their stories and contacting their elected officials, the legislation as it stands today does not include any changes to stepped-up basis. While this is GREAT news, this is not the end. This budget bill will still need to be adopted on the House floor and make its way through the United States Senate before ultimately being signed by President Biden.
- Minnesota Farm Bureau appreciates the members of the Minnesota Congressional delegation from both sides of the aisle that have been imperative in protecting stepped-up basis. We will continue to work closely with them to make sure that no changes are made to this important tax provision as this bill continues through the legislative process.
Increasing Freight Rail Rates Put Additional Pressure on Farm and Ranch Income
- The domestic rail transportation network is vital to the movement of products and goods supplied by America’s farmers and ranchers. In 2019, over 33 million carloads of U.S. goods navigated the nearly 140,000-mile U.S. rail system, generating over $85 billion in total rail revenue. According to the Surface Transportation Board, an independent federal agency tasked with economic regulation of freight rail, farm products contributed nearly 7.4%, or $6.3 billion, of total rail revenue, with an additional 13%, or $11 billion, from the transportation of food, textile mill, wood, and paper and pulp products. A recent Market Intel update dives into the continued upward trend in freight rail rates contributing to heightened farm-level business expenses.
Industry News – MFU Clippings
Next Week: Join MFU members for the NFU Fall ‘21 Legislative Virtual Fly-In
Sign up to join Farmers Union members from across the country for the 2021 Fall Legislative Virtual Fly-In from Monday, Sept. 20 through Thursday, Sept. 23.
Register here: https://bit.ly/MFUFlyIn2021
We have meetings scheduled with Senator Tina Smith, Senator Amy Klobuchar, and congressional representatives, all of which will be held via Zoom next Monday through Thursday. Registering is not an obligation to attend every meeting, so you’re sure to be able to make this work with your schedule.
Farmers Union members from across the country will meet with their representatives in congress to highlight challenges and propose sensible legislative solutions to help ensure the long-term success of family farm agriculture, establish equity in our food system, and support the prosperity of rural communities.
Have questions? Interested, but not sure what you’d share in a meeting? For more information about how to participate, contact Stu Lourey at (320) 232-3047 (C) or stu@mfu.org.
It’s an important time for Farmers Union to make our voice heard. And we can’t do it without you!