Evening Report | April 10, 2024

Check our advice monitor on ProFarmer.com for updates to our marketing plan.

States restrict cattle movement from those with BIAV... In an effort to prevent domestic cattle from being exposed to Bovine Influenza A Virus (BIAV), 17 states have restricted cattle imports from states where the virus has infected dairy cows. Alabama, Arizona, Arkansas, California, Delaware, Florida, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, Pennsylvania, Tennessee, Utah and West Virginia have blocked cattle movement from Texas, Kansas, New Mexico, Ohio, Michigan and Idaho, where BIAV has been confirmed by USDA.

USDA’s Animal and Plant Health Inspection Service (APHIS) will not be issuing federal quarantine orders at this time, nor is the agency recommending any state quarantines or official hold orders on cattle. “However, we strongly recommend minimizing movement of cattle as much as possible, with special attention to evaluating risk and factoring that risk into movement decisions. Do not move sick or exposed animals,” APHIS previously noted.

U.S. consumer inflation rises more than expected... The annual consumer inflation rate accelerated for a second straight month to 3.5% in March from 3.2% in February, above market forecasts of 3.4%. Higher costs for shelter and gasoline contributed over half of the monthly increase. Core inflation, which excludes changes in food and energy costs, remained at 3.8%.

Food prices increased 2.2% from year-ago, with food at home (grocery) prices up 1.2% and food away from home (restaurant) prices up 4.2%.

The energy index increased 2.1% over the past 12 months. The gasoline index rose 1.3% and the electricity index increased 5.0% annually.

Fed fund futures now reflect less than 50% odds the Fed will start cutting interest rates in June. The highest odds are now for the first rate cut in September, with two reductions now expected this year instead of three.

FOMC minutes: Fed’s confidence in declining inflation wanes... Federal Reserve officials showed concern progress might have stalled and a longer period of tight monetary policy may be needed to tame prices, according to the minutes of the March 19-20 meeting monetary policy meeting. “Participants generally noted their uncertainty about the persistence of high inflation and expressed the view that recent data had not increased their confidence that inflation was moving sustainably down to 2%,” the minutes from the meeting said. “Some” officials said there were risks Fed policy was “less restrictive than desired, which could add momentum to aggregate demand and put upward pressure on inflation,” the minutes said. There was discussion about whether the greater risk was for monetary policy to remain too tight for too long or for the Fed to ease too soon.

The consumer price index released earlier today seemingly confirmed concerns the fight against inflation wasn’t done.

The minutes also showed the majority of officials judged it would be prudent to slow the runoff of the central bank’s massive holdings of Treasury bonds and mortgage-backed securities “fairly soon.”

Iowa signs law on foreign ownership of farmland... Iowa Governor Kim Reynolds signed a new law regarding regulations on foreign ownership of farmland in the state. The law aims to increase reporting requirements and impose harsher penalties for violations related to foreign ownership of agricultural land. Key points:

• The law introduces stricter reporting requirements for foreign-owned agricultural land and imposes heavier penalties for violations. Foreign landowners are now required to provide detailed information about their landholdings in other states exceeding 250 acres. Failure to report holdings every two years could result in fines of up to $10,000 per violation. Additionally, failure to disclose leases or purchases of farmland by foreign entities could lead to fines of up to 25% of the property's value per violation.
• The law grants the state attorney general enhanced oversight powers, including the ability to subpoena financial records and land purchase agreements from foreign landowners for investigations into potential violations of foreign farmland owner restrictions.
• Reynolds and supporters argue that Iowa’s strong laws restricting foreign farmland ownership are crucial for protecting American agriculture. Reynolds emphasizes Iowa’s fertile soil and high production capacity make it a prime target for foreign entities seeking to gain an advantage in the global market. The governor contends that stricter regulations are necessary to combat evolving threats to American agriculture, particularly from countries like China.
• Reynolds and Attorney General Brenna Bird encourage Iowans to report any instances of improper foreign ownership of farmland in the state. Bird assures her office will investigate such reports and emphasizes the importance of enforcing the new law to safeguard Iowa's farmland.
• According to 2022 data from USDA, foreign investors currently hold nearly 514,000 acres of agricultural land in Iowa, accounting for approximately 1.6% of the state’s total privately held agricultural land. Canada and Italy are identified as the largest foreign owners of Iowa land, with China having a relatively minor presence.

USDA seeks feedback on bioengineered food disclosure rules... USDA issued a notice in the Federal Register seeking feedback on potential amendments to the electronic or digital link disclosure option within the National Bioengineered Food Disclosure Standard. This proposed rule focuses on eight specific issues and specifies that comments should only address these matters. When the standard initially rolled out, USDA acknowledged challenges with accessing electronic notifications and implemented a text option, which faced legal challenges. Consequently, USDA is now seeking input to address these issues. USDA had previously planned to remove the text option by November 2023, as indicated in its regulatory agenda.

The Agricultural Marketing Service (AMS) is specifically seeking comments on challenges related to accessing information on the bioengineered status of foods via electronic or digital links, preferences for consumer-friendly options and their location, smartphone ownership statistics among consumers, broadband availability in retail settings, consumer usage patterns of bioengineered or electronic disclosures, the advantages of electronic or digital link disclosures, usage by small businesses and the time required to update labels.

Comments must be submitted by June 10.