Milk Prices - News & Analysis

2021 Livestock Market Outlook Roundup

Wed, 05 Oct 2022 18:44:12 GMT

The editors at AgWeb.com are looking at experts’ projections for a variety of commodities in 2021 to help you succeed and be profitable in the coming year. Here’s a look at what analysts are expecting for the upcoming year in the protein segments.

2021 Beef Outlook: New Challenges, New Opportunities

(Farm Journal)

Disruptions to the beef industry from the COVID-19 pandemic will likely linger into 2021, but the result may not be all bad for producers, Don Close, animal protein analyst at Rabo AgriFinance told AgriTalk.

Read more.

U.S. Pork Outlook: Will 2021 Be Different?

(Farm Journal)

Five respected economists in the pork industry share their insight on what’s ahead in 2021 and ways producers can make the most of new opportunities ahead.

Read more.

2021 Milk Price Outlook: Throw the Crystal Ball Out the Window

(Farm Journal)

Government intervention creates a level of uncertainty that makes a 2021 milk price forecast nearly impossible.

Read more.

USDA Announces Fifth Round in Farmers to Families Food Box Program

Tue, 05 Jan 2021 15:59:31 GMT

On Monday, U.S. Secretary of Agriculture Sonny Perdue announced the USDA will purchase an additional $1.5 billion worth of food for nationwide distribution through the Farmers to Families Food Box Program.

According to a USDA release, the program has distributed more than 132 million food boxes in support of American farmers and families affected by the COVID-19 pandemic.

“This new round of Farmers to Families Food Boxes will go a long way in helping American families access nutritious and healthy meals as we recover from the COVID-19 pandemic. Thanks to the President Trump’s leadership, we have helped tens of millions of families and countless farmers with this program,” Secretary Perdue said in the release. “President Trump has committed to helping the American people recover and rebuild and this program helps American families get back on solid ground by ensuring they receive the nutritious food they need during these difficult times.”

The additional funding for the program was included in the COVID-19 relief package as part of the Consolidated Appropriations Act that passed December 21, 2020. In this fifth round of purchases, USDA will again purchase combination boxes to ensure all involved recipient organizations have access to fresh produce, dairy products, fluid milk and meat products. Seafood products will also be included in this round.

The Farmers to Families Food Box program is part of the Coronavirus Food Assistance Program (CFAP), created in response to the pandemic. Using authority provided by the Families First Coronavirus Response Act, USDA said it has partnered with national, regional and local distributors, whose workforces were significantly impacted by the closure of restaurants, hotels and other food service businesses, to purchase and distribute agricultural products to Americans in need.

“With over 3.3 billion meals distributed to families across this nation, I am proud to share that thanks to the Trump administration’s efforts, the Farmers to Families Food Box Program has an additional $1.5 billion to continue to feed families in need, provide employment and support our small farmers. During these unprecedented times, this Administration will continue to fight for American families and will always put them first!” says Advisor to the President Ivanka Trump.

The fourth round of the program purchased a total of $463 million worth of food. By the end of the third round on Oct. 31, USDA purchased more than $3.566 billion worth of food. In the second round, USDA purchased more than $1.781 billion of food. The first round of purchases saw more than 35.5 million boxes delivered in the first 45 days.

Read More:

$26 billion for food, ag in COVID-19 relief package: A mixed holiday blessing

USDA Announces CFAP2 Details

Wed, 11 Nov 2020 05:23:07 GMT

USDA Under Secretary for Farm Production and Conservation will discuss details of the second round of the Coronavirus Food Assistance Program this morning on AgriTalk. Listen live at 10:18 a.m. Central.

USDA Press Release:

USDA to Provide Additional Direct Assistance to Farmers and Ranchers Impacted by the Coronavirus

Expansion of the Coronavirus Food Assistance Program Begins Sept. 21

(Washington, D.C., September 18, 2020) – President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue today announced up to an additional $14 billion dollars for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP 2) will begin September 21st and run through December 11, 2020.

“America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic. President Trump is once again demonstrating his commitment to ensure America’s farmers and ranchers remain in business to produce the food, fuel, and fiber America needs to thrive,” said Secretary Perdue. “We listened to feedback received from farmers, ranchers and agricultural organizations about the impact of the pandemic on our nations’ farms and ranches, and we developed a program to better meet the needs of those impacted.”

Background:

The U.S. Department of Agriculture (USDA) will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. USDA has incorporated improvements in CFAP 2 based from stakeholder engagement and public feedback to better meet the needs of impacted farmers and ranchers.

Producers can apply for CFAP 2 at USDA’s Farm Service Agency (FSA) county offices. This program provides financial assistance that gives producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. Producers will be compensated for ongoing market disruptions and assisted with the associated marketing costs.

CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-rate Crops and Sales Commodities.

Price Trigger Commodities

Price trigger commodities are major commodities that meet a minimum 5-percent price decline over a specified period of time. Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat. Payments will be based on 2020 planted acres of the crop, excluding prevented planting and experimental acres. Payments for price trigger crops will be the greater of: 1) the eligible acres multiplied by a payment rate of $15 per acre; or 2) the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History (APH) approved yield. If the APH is not available, 85 percent of the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield for that crop will be used.

For broilers and eggs, payments will be based on 75 percent of the producers’ 2019 production.

Dairy (cow’s milk) payments will be based on actual milk production from April 1 to Aug. 31, 2020. The milk production for Sept. 1, 2020, to Dec. 31, 2020, will be estimated by FSA.

Eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between Apr. 16, 2020, and Aug. 31, 2020.

Flat-rate Crops

Crops that either do not meet the 5-percent price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed, and several others.

Sales Commodities

Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) not included under the price trigger category that were grown for food, fiber, fur, or feathers. Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.

Additional commodities are eligible in CFAP 2 that weren’t eligible in the first iteration of the program. If your agricultural operation has been impacted by the pandemic since April 2020, we encourage you to apply for CFAP 2. A complete list of eligible commodities, payment rates and calculations can be found on farmers.gov/cfap .

Eligibility

There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.

Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

Applying for Assistance

Producers can apply for assistance beginning Sept. 21, 2020. Applications will be accepted through Dec. 11, 2020.

Additional information and application forms can be found at farmers.gov/cfap . Documentation to support the producer’s application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply . For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with FSA county office to see if any of the forms need to be updated.

Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. This is a recommended first step before a producer engages with the team at the FSA county office.

All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with FSA, Natural Resources Conservation Service or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel, and visitors must adhere to social distancing guidelines. Visitors are also required to wear a face covering during their appointment. Our program delivery staff will be in the office, and they will be working with our producers in the office, by phone and using online tools. More information can be found at farmers.gov/coronavirus .

MFP 2019: Payments Range From $15 to $150 Per Acre

Wed, 11 Nov 2020 05:05:28 GMT

USDA shed some light on the 2019 Market Facilitation Program (MFP) Thursday. After months of uncertainty and murky details, the agency announced per acre payments will vary by county but will range from $15 to $150.

Payments will be made by the Farm Service Agency (FSA) under the authority of the Commodity Credit Corporation (CCC) Charter Act to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton, and wheat.

MFP assistance for those non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. County payment rates range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county. See a full list of county rates here . A producer’s total payment-eligible plantings cannot exceed total 2018 plantings.

Acreage of non-specialty crops and cover crops must be planted by August 1, 2019 to be considered eligible for MFP payments.

Dairy & Hogs

Dairy producers who were in business as of June 1, 2019, will receive a $0.20 per hundredweight payment on production history, and hog producers will receive an $11 per head payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.

Sign Up & Eligibility Details

MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.

MFP payments will be made in up to three waves, with the second and third tranches evaluated as market conditions and trade opportunities dictate. The first tranche will be comprised of the higher of either 50% of a producer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranches two or three. USDA will begin making first tranche payments in mid-to-late August.

MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000.

The AGI limits are slightly different this year. Eligible applicants must also have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000 or, 75% of the person’s or legal entity’s average AGI for tax years 2014, 2015, and 2016 must have been derived from farming and ranching.

As usual, applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

If conditions warrant, the second and third tranches will be made in November and early January, respectively.

“China and other nations have not played by the rules for a long time, and President Trump is the first President to stand up to them and send a clear message that the United States will no longer tolerate unfair trade practices,” Secretary Perdue said. “The details we announced today ensure farmers will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe.”