“ERS Forecasts Released by USDA”
The USDA Economic Research Service projects that net farm income for U.S. producers will be up 11.8 percent this year from 2009. That’s an upward move of 6.7-billion dollars to 63 billion. Still, that forecast is 1.4-billion below net farm income earned during the previous 10 years. Net cash income is forecast to be up 7.8 percent to 76.3 billion. Also, net value added income is expected to be 14.2-billion dollars, up 6.1-billion from 2009.
ERS expects total expenses to remain about the same as last year. Costs for fertilizer and feed are down from 2009. Meanwhile, the 2010 forecast is for a rise of about 2 percent in cash receipts from sales of farm commodities and Government payments are forecast to change little in 2010.
ERS reports that In 2010, the economic conditions for livestock producers are expected to improve, while the economic conditions for crop producers are expected to deteriorate slightly or stabilize.
Soybean receipts are expected to experience the second largest decline, 1.8-billion dollars. And sales of corn for grain—the largest single source of crop cash receipts for U.S. farmers—is expected to decline slightly in 2010.
Despite U.S. cotton demand expected to be the lowest since 1988, and exports forecast at their lowest levels since 2001/02, cotton cash receipts are predicted to be a bright spot for U.S. farming in 2010.
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“WTO Ag Trade Talks Continue”
WTO agriculture negotiations continue and progress is being reported by New Zealand Ambassador David Walker, who chairs the talks. Walker termed the talks – an informal agriculture negotiations meeting of the full membership. The present consultations began on February 1st and according to Walker, – these consultations provided some useful opportunities for discussion, and in each case there’s on-going work to be done of one form or another.
Walker’s meetings with smaller groups of members have covered four topics in particular: 1/ The special safeguard mechanism, a tool that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls; 2/ Tariff simplification, or ending the use of complex tariffs so that most or all end up as straight percentages of the price, with some possibly left as “specific” duties. 3/ Tariff quota creation, which is shorthand for whether sensitive products, which will have smaller tariff cuts than normal, can only be products that already have “tariff quotas”; and 4/ Concerning tropical products and products enjoying preferences — members are looking at a draft compromise.
Walker reports gradual progress in the separate technical work on “templates” and data.
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“Political Control Under Change in Washington”
When Indiana Senator Evan Bayh announced on Monday that he will not seek a third term in November, the political world took notice. Reading from prepared remarks, the Hoosier Senator said – there is too much partisanship and not enough progress – too much narrow ideology and not enough practical problem-solving. Mr. Bayh noted that – even at a time of enormous challenge, the people’s business is not being done.
So far this year 43 lawmakers have said they will depart the House or the Senate. More than 39 others made similar statements in the spring of last year. This puts into question the political leadership in Washington. At least one political handicapper puts 10 seats held by Democrats in the category of – most competitive.
Mr. Bayh developed a reputation as being a centrist and serves on several Senate committees including Energy and Natural Resources. In 2008, Bayh was part of an effort to reach consensus on energy legislation. The “Gang of 20” supported a GOP push to expand gas and oil drilling in the Gulf of Mexico and the Atlantic Ocean in exchange for new investments in energy efficiency and conservation technology that many Democrats were seeking. The 84-billion dollar New Energy Reform Act that resulted from that action has been moved to the legislative back burner.
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“Administration Making Recovery Act Sales Calls”
Obama Administration Officials are traveling to over 35 communities this week to mark the one-year anniversary of the Recovery Act. They are visiting locations in 25 states and in every region of the country to view Recovery Act progress. Today, President Obama marks the anniversary at a White House event involving Americans from across the country who have benefited from the act. The Vice President is spending the day in Saginaw, Michigan, hearing from local residents how the Recovery Act is helping this hard-hit former auto community reinvent itself to be competitive in the 21st century economy.
Administration officials will have much to discuss, talking how the President’s additional job creation proposals will build on early Recovery Act progress to create more jobs and drive more economic growth. Ag Secretary Tom Vilsack will participate through media conference calls, discussing the effect the Recovery Act is having on job creation in rural communities.
On Friday, Energy Secretary Steven Chu will tour a wind turbine manufacturing facility in Windsor, Colorado to underscore the importance clean and renewable energy is playing in putting more and more Americans back to work. Secretary Chu will also co-host with Representative Betsy Markey a renewable energy forum, highlighting the success the Recovery Act has had in the state and across the country.
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“RFA Executive Sees Bright Future for Ethanol Industry”
As the Renewable Fuels Association’s National Ethanol Conference concludes in Orlando, Florida, RFA President and Chief Executive Officer Bob Dinneen recognized the recent difficulties experienced by the industry, but also reflected on the tremendous gains the ethanol industry has achieved in the past decade and the bright future the industry can achieve.
During his State of the Industry Address, Dinneen said, – I can say with confidence and conviction that the state of the U.S. ethanol industry is strong. We are rebounding from the recession. We are responding to every attack that our adversaries are making against us. And we are ready to take another giant step towards energy, economic and environmental security for all Americans.
Despite the troubled economy, the lack of ethanol tax incentives, the discussion on Food VS Fuel, and other issues important to the ethanol industry, Dinneen said, – thankfully, there is growing support for domestic renewable energy, and the ethanol naysayers, while no less determined, are increasingly losing credibility.
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“GM and Growth Energy Push for More Blender Pumps”
General Motors Vice Chairman Tom Stevens told an ethanol audience in Florida that there is a need for expanding the ethanol fueling station network across the country. GM estimates the country needs to increase the number of stations that carry ethanol blends by 10-thousand. He said this must be done in order to take advantage of the flex-fuel vehicles on the road today.
Stevens pointed out to his audience that- two-thirds of the pumps are concentrated in 10 states and those 10 states have only about 19 percent of the flex-fuel vehicles that we have on the road. Also, there are about 160-thousand U.S. gasoline stations, but only 22-hundred pump ethanol blends.
Growth Energy CEO Tom Buis, says General Motors and other automotive companies have been adding flex fuel capability to their vehicles to help meet federal targets for the production and consumption of renewable fuels. With ethanol use expected to rise to 35 billion gallons by 2022, Buis said, – an investment in the infrastructure to deliver ethanol to consumers is essential. Growth Energy’s position is that increasing the number of blender pumps would give drivers a choice of mid- and high-level ethanol blends in more locations across the country.
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“NCGA Continues Support of Nematode Research”
Parasitic Nematode Worms are the largest unsolved pest problem in agriculture, limiting the yield of crops worldwide and causing tens of billions of dollars in crop damage annually. The National Corn Growers Association is continuing its commitment to support advancement of Divergence, Incorporated’s innovative work to prevent crop damage from nematodes. The collaboration, now in its eighth year, has successfully discovered technology with the potential to protect corn from the yield-reducing effects of parasitic nematode infection.
NCGA Research and Business Development Action Team Chair Larry Hasheider says – NCGA is committed to working with both the industry and directly with growers to optimize our nation’s corn crop. He adds, – this provides us with another opportunity to help producers make the most of their operations.
James McCarter, Divergence Founder, President and Chief Scientific Officer, says – the advancement of our work in the last year makes us increasingly confident that growers will have one or more safe and effective approaches to significantly reduce the damage to corn done by parasitic nematodes. The company hopes these developments should lead to products for other major crop markets, as well.
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“USDA Releases Small Business Loans”
Agriculture Secretary Tom Vilsack announced the release of 144-million dollars in loan guarantees to assist 54 rural businesses through funding made available through the American Recovery and Reinvestment Act. In making the announcement the Secretary said, – advancing biomass and biofuel production holds the potential to create green jobs, which is one of the many ways the Obama Administration and USDA are working to rebuild and revitalize rural America.
For example, in Hilo, Hawaii, Big Island Biodiesel, LLC, has been selected to receive a 5-million dollar loan guarantee to construct a 10-million dollar, 2.64 million gallon per year biodiesel production plant in Keaau. The feedstock for this biodiesel plant will primarily be used cooking oil, and potentially jatropha and algae.
Also, in Athol Massachusetts, Organic Renaissance, LLC, has been selected to receive a 450-thousand dollar loan guarantee to facilitate the provision of fresh, locally grown farm products to restaurants, retailers and other buyers. The company intends to lease a building that is centrally located between Boston and farmers located in Massachusetts, southern New Hampshire, southern Vermont and northern Connecticut. The intent is to reduce shipping costs and enable cost-effective distribution of farm fresh produce by local rural businesses.
