Supply Chain
In my arsenal of reasons why things aren’t my fault, recent events have given me a cruise-missile-strength weapon: the supply chain.
No matter where you travel across the country right now, farmers share similar concerns. The latest Ag Economy Barometer fell to its lowest reading since July 2020 as the input situation weighs outlooks.
The April Ag Economy Barometer shows farmers’ concerns about crop inputs are overshadowing optimism surrounding commodity prices hitting decade-highs as some inputs are still in short supply as planting gets underway.
Diesel prices hit historic highs this week. Due to increased demand and a drop in production, a diesel shortage may be looming as the largest diesel distribution hub in the U.S. is sitting on supplies at a 30-year low.
U.S. diesel prices are the highest ever, with warnings of shortages, especially in the eastern U.S., and the most intensive part of the farming season is still ahead.
Shanghai offered some tax rebates for companies and allowed all manufacturers to resume operations from June as authorities rolled out policies to revitalize an economy impacted by Covid-19 lockdowns.
Transforming the U.S. food system by improving supply chains and addressing issues exposed by the Covid-19 pandemic was detailed by USDA Secretary Tom Vilsack during a speech at Georgetown University.
High input prices continue to be a pain point for farmers planning their 2023 crop needs. Experts say the price of natural gas isn’t the only driver fueling the market as farmers look to book their fall needs.
USDA unveiled additional plans to help boost domestic fertilizer production including $500 million in grants and reduce the risk of a series of black swans that have flown into the fertilizer market the past two years.
Grain shipments on some railroads could stop as early as Wednesday, two days ahead of a possible rail strike. A rail stoppage is growing more likely as the country’s main rail unions remain at odds with rail companies.
China retaliated swiftly on Tuesday with 10% to 15% retaliatory levies impacting $21 billion worth of U.S. agricultural and food products, moving the world’s top two economies a step closer toward an all-out trade war.