CRP, Inputs, Supply Chain and Farm Bill focus on Commodity Classic

Goule added, “A lot of the cover crop programs they’re working on won’t be available to more than 70% of wheat growers because that 70% is winter wheat,” Goule said.

Tim Lusk, CEO of National Sorghum Producers, said sorghum producers were discussing program details, also pointing to geographic differences between regions. Lusk said sorghum growers have worked with the USDA’s Natural Resource Conservation Services on programs related to carbon sequestration or reducing emissions.

“And that’s something that we believe there’s a future there, but I think we have to understand that it’s a learning process… Hopefully we don’t have not see that we have all the answers because I certainly think, from the perspective of our culture, there are still a lot of questions that need to be answered as part of this process.

ENTRANCE CHALLENGES

Doggett said the biggest issue he hears about now from corn growers is fertilizer prices and he said there should be some sort of inquiry into the fertilizer markets.

“We are very concerned about fertilizer markets, how fertilizers are imported into this country and the companies that make these products,” Doggett said. “We are working hard to fix it.”

Doggett said there needs to be “some kind of investigation” into what’s really going on with fertilizer markets and supply chains. The situation creates significant uncertainty “at a time when the world is going to need us to maximize our production potential”.

Doggett added that farmers are becoming more innovative about how to use less fertilizer in their operations.

Doggett later noted, “Imagine what the corn nightmare would be if, for prices, you had a three ahead of it instead of a seven, and you have all these input costs,” he said. he declares. “It would be a whole different world today.”

Lusk said all organizations are looking for ways to reduce fertilizer costs. Farmers could face a “perfect storm” when it comes to crop enhancement tools. Lusk also pointed to steel, labor and trucking shortage issues.

“So it’s a multi-faceted problem and we will have to solve it,” he said.

Steve Censky, CEO of the American Soybean Association and former USDA assistant secretary during the Trump administration, said his growers are concerned about how the Biden administration’s EPA makes tool decisions. crop protection that farmers rely on.

“Our message to them is don’t make the decision to retire tools when we already have high herbicide costs and fairly low availability,” Censky said. “We cannot take these tools away from farmers, because that will only make supply chain problems worse.”

Censky added, “Same thing on the fertilizer side. We’ve seen phosphate and potash prices double. We’ve seen nitrogen prices triple.”

This is one of the reasons why ASA, NGCA, NAWG and NSP have each tried to appeal to the International Trade Commission to reverse import tariffs imposed on phosphate rock from Morocco, as well as opposition to the imposition of tariffs on nitrogenous products from Trinidad and Tobago which are under review. “It just doesn’t make sense and the economic circumstances just don’t justify it,” he said.

LAW OF EXPLOITATION

Depending on the outcome of the fall election, the House Agriculture Committee could have more than half of its members who weren’t there for the vote on the 2018 farm bill, Goule noted. This would require spending a lot of time in 2023 educating new members on the various Farm Bill titles and programs involved in each USDA area.

The NAWG will likely wait until this summer to focus more on farm bill policies, but Goule and Censky both stressed the need to raise benchmark prices. Censky said the benchmark price of soybeans under agricultural risk hedging/price loss hedging programs, $8.40 a bushel, is so low that it hasn’t triggered payments even during the trade war with China that drove down commodity prices. He also said higher production costs should also factor into benchmark prices.

“I think that was always factored into how Congress set (benchmark prices),” Censky said. “It’s not necessarily based solely on the cost of production, but it’s one of those factors that Congress has always traditionally considered in setting those benchmark prices, or target prices,” Censky said.

Goule added that farmers were experiencing higher production costs even before the Russian-Ukrainian conflict and that the Farm Bill should protect them against these higher production costs. “Reference prices need to be able to align more closely with our true cost of production,” Goule said. “Otherwise it’s not a real safety net.”

Chris Clayton can be reached at [email protected]

Follow him on Twitter @ChrisClaytonDTN

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